Some Changes to the National Classifications. For Canada, the agreement on new definitions for retail trade and wholesale trade results in the transfer of a number of establishments from wholesale trade to retail trade, manufacturing, and services, and from retail trade to manufacturing and services. The most important of these changes are outlined below. Although the main criterion to distinguish Retail Trade establishments from Wholesale Trade in the 1980 Standard Industrial Classification (SIC) is the class of customer, particular types of trade establishments are assigned to wholesale trade irrespective of their main class of customer. The most important of these are building materials dealers, computer and software stores, office supplies stores and home fuel dealers. NAICS assigns many of these establishments in Retail Trade, that is, those establishments that meet the conditions specified in the Retail Trade definition. Establishments that supply these products to retailers will remain in Wholesale Trade. The Wholesale Trade division currently includes some activities that are moved to the NAICS manufacturing sector. These activities are tire retreading, the rebuilding on a factory basis of some automotive parts and the converting of fabric (piece goods converters). Piece goods converters are establishments primarily engaged in purchasing fabric in the grey and arranging to have a separate establishment dye the fabric on a contract basis. As well, establishments primarily engaged in the repair of various types of machinery and equipment are transferred from Wholesale Trade to a newly created Repair and Maintenance subsector. These changes affect a relatively small number of establishments currently found in sixteen wholesale industries. A number of activities currently in Retail Trade in the Canadian classification are assigned to other sectors in NAICS, including establishments engaged in the transformation and sale of products on the premises. Therefore, retail bakeries and candy shops that produce most of their products on the premises and tailor shops that produce custom garments are being moved to manufacturing. Also, the repair and maintenance of automobiles, home appliances, consumer electronics, furniture, recreational vehicles, bicycles, musical instruments and watches and jewelry is transferred from Retail Trade to the newly created Repair and Maintenance subsector. This change implies the relocation of entire industries, CSIC 6213, Furniture Refinishing and Repair Shops; CSIC 6223, A...
Some Changes to the National Classifications. For Canada, an important improvement for both production precepts and for international comparability was the movement of ferrous and nonferrous wire drawing to this subsector from other areas. Smelting and refining of precious metals was moved for the same reasons. Other changes for Canada were internal to the existing subsector structure. These changes generally involved realignment of industries to achieve three country comparability, as well as to better meet the production process principle. Some examples are the split of the Other Primary Steel industry to match the NAICS industries for Iron and Steel Xxxxx and Ferroalloy Manufacturing and Rolling and Drawing of Purchased Steel, and the separation of various types of castings from other ferrous or nonferrous manufacturing to match agreed upon NAICS classes. For Mexico, the only structural modification was to move the production of ferrous and nonferrous castings from the current CMAP classes for machinery. This change allows for three country comparability, and improves the production definition of this subsector. Other changes are internal to the existing Mexican structure, but like those made for Canada above, they were made to both achieve an international NAICS level, while at the same time, they are sound production industry moves. An example is splitting the production of rods and structural shapes, pipe and tube and wire made in a steel making facility from those made from purchased primary steel shapes. In the United States, a significant structural change was to move the production of alumina from the Chemical Product Manufacturing subsector. This change both matches the Canadian and Mexican treatment, and groups the basic reduction of this ore with metal manufacturing rather than in a chemical processing group. Other changes entailed the realignment of internal nonferrous smelting, rolling and drawing, mostly to achieve three country compatibility.
Some Changes to the National Classifications. The Canadian classification’s Machinery Industries major group is similar in coverage to the subsector proposed here. The manufacturing of heating equipment, now treated as metal fabricating; of some office machinery, now classified as electrical equipment; and of engines, now classified as transportation equipment have been moved to this subsector. Furthermore, the structure - special-purpose machinery and general-purpose machinery - is similar. However, the classification has more detail, with thirteen industries compared to seven; the Canadian national detail adds three more. The Mexican classification’s Manufacture, Repair and Assembly of Machinery and Equipment for Specific Purposes and Manufacture, Repair and Assembly of Machinery and Equipment for General Use have a combined coverage similar to the subsector proposed here. The manufacturing of heating equipment, now treated as metal fabricating, of some office machinery, now classified as electrical equipment, and of engines now classified as transportation equipment, have been moved to this subsector. Furthermore, the structure - special-purpose machinery and general-purpose machinery - is similar. The amount of detail in the subsector is similar to that of the existing classification. For the United States, a major change is the movement of computers and peripherals out of this group to the new subsector for Computers and Electronic Product Manufacturing. Heating equipment, currently in the 1987 SIC Fabricated Metal major group, and optical instruments, lenses, and photographic equipment, currently in the 1987 SIC Instruments and Related Products major group, have been transferred into this subsector. Other changes involve the movement of a number of relatively small activities from one national industry to another to achieve comparability with Canada and Mexico, and/or to better meet production principles. Otherwise, the new structure, with U.S. national industry detail, is comparable with the 1987 SIC. For example, only seven 1987 U.S. industries have time series breaks that amount to more than 3 percent of the industry value of shipments in 1992.
Some Changes to the National Classifications. For Canada, the production of glass yarn was moved from CSIC 1811, Man-Made Fiber and Filament Yarn, and mirrors from CSIC 3259, Other Motor Vehicle Accessories and Parts. Other changes consist of a restructuring of the existing Canadian subsector for Nonmetallic Minerals Product Manufacturing. For example, the production of glass products was separated for establishments producing glass, and those that purchase glass, then manufacture glass products. For Mexico, all changes are within the existing CMAP class for Nonmetallic Minerals. Changes include the separation of glass fibers (in primary glass production in NAICS) from glass insulation; moving the production of dead burned dolomite from the refractory industry to the NAICS Lime Manufacturing industry; separating decorative glass from glass containers; and moving articles made from plaster of Paris to the Other Nonmetallic Mineral Product Manufacturing industry. For the United States, little change was made to this subsector. The most important change was the elimination of the all but non-existent asbestos product industry. Two remaining products are made by establishments formerly classified in this industry: (1) brake linings were moved to the brake parts industry in the Transportation Equipment Manufacturing subsector and (2) gaskets were moved to the Other Nonmetallic Mineral Product Manufacturing industry. Other changes within the subsector were to move dry mix cement from the concrete products industry, to move steel wool from the abrasives industry, to move some plaster work into the NAICS industry for Gypsum and Gypsum Product Manufacturing, and to create new industries for cast concrete products. Achievement of Objectives The classification meets the objectives for the North American Industry Classification System (NAICS). It includes industries that group establishments with similar production processes, that is, it applies the production-oriented economic concept. In the main, the hierarchical structure of the classification also follows the production concept. Other objectives of the NAICS project are not as relevant in this area of the classification as in others. These objectives are the delineation of new and emerging industries, service industries and industries engaged in the production of advanced technologies. The industrial sector in question is relatively mature, generally produces goods, and has employed relatively stable technology. Therefore, the emphasis is on the objectives l...
Some Changes to the National Classifications. For Canada, the Transportation Equipment Manufacturing subsector is largely the same as the current Canadian classification s Transportation Equipment Industries major group. The NAICS subsector includes the rebuilding of motor vehicle parts on a factory basis, that are partly in Fabricated Metal Industries and partly in Wholesaling in the Canadian classification. On the other hand, the NAICS classifies hardware for transportation equipment in Fabricated Metal Product Manufacturing, while the Canadian classification includes their manufacture in Transportation Equipment. The structure and amount of detail of this NAICS subsector is similar to that of the corresponding areas of the Canadian classification. For Mexico, the Transportation Equipment Manufacturing subsector has coverage similar to the Mexican classification s Automotive Industry and Manufacture, Repair and Assembly of Other Transportation Equipment and Parts. The NAICS subsector includes the rebuilding on a factory basis of motor vehicle gasoline engines, now classified in the Mexican classification s Repair and Maintenance subsector. It also includes the manufacture of electrical equipment for transportation equipment, currently classified with electrical equipment in the Mexican classification; automotive fabrics, currently in textiles; and fiberglass boats, currently in the manufacture of plastic products. However, the manufacturing of hardware and springs for transportation equipment is classified in Fabricated Metal Product Manufacturing in NAICS, not in transportation equipment as in the Mexican classification. The structure and amount of detail of this NAICS subsector is similar to that of the corresponding areas of the Mexican classification. For the United States, several activities related to the production of transportation equipment are transferred into this subsector. For example, automotive job stamping of body parts is now included in this subsector. It has been transferred to this subsector to achieve comparability with Canada and Mexico, and because the production processes involved are exclusively devoted to the production of transportation equipment. The capital equipment required to produce automotive job stamping cannot be easily changed to produce other kinds of stamping, such as appliance parts. Further, most automotive job stamping producers have arrangements (contractual etc.) that makes it even harder to switch production to other kinds of stamping. Other activities mo...
Some Changes to the National Classifications. For Canada, the Paper Manufacturing subsector is largely the same as the current Canadian classification’s Paper and Allied Products Industries major group. There are two major differences. The Canadian classification includes the manufacture of building board in Paper Manufacturing, whereas NAICS includes it in Wood Manufacturing, except Furniture because it is in fact made from wood fibers and not paper. The saturation of paper products with asphalt is classified in NAICS Petroleum and Coal Product Manufacturing, because the saturation process is more important to the activity than the material being saturated. The structure of this NAICS subsector is similar to that of the Canadian classification, but there is less detail. For Mexico, the Paper Manufacturing subsector is largely the same as the current Mexican classification’s Manufacture of Pulp, Paper and Paper Products. The main difference is the classification of some sanitary products, such as disposable paper diapers, in Textile Products. The structure and amount of detail of this NAICS subsector is similar to that of the corresponding area of the Mexican classification. For the United States, there is little difference between the Paper Manufacturing subsector of NAICS and the current Paper and Allied Products Major Group. Converted foil containers are included in the NAICS subsector; they are classified in Metal Fabricating in the 1987 SIC.
Some Changes to the National Classifications. The Forging and Stamping industry represents a major restructuring for Canada. Non- ferrous forgings have been moved from the Primary Metals Major Group, and they are no longer split by type of metal such as aluminum or bronze. Stampings are brought together from two existing CSIC industries. The creation of the Hardware Manufacturing industry represents significant change for both Canada and Mexico. Their current classifications place hardware for transportation equipment in a variety of industries, based on the type of vehicle. All hardware, including locks, is combined in one industry in NAICS. Coating, Engraving, Heat Treating and Allied Activities in NAICS brings together all activities performed on metal, such as coating and heat treating. This is a significant change for Canada and Mexico, whose classifications only distinguish coating activities. For the United States, heat treating of metals is currently in Primary Metal Manufacturing. The creation of a Machine Shop industry is a change for all three countries that currently combine this activity with various others. Other changes for the United States involve the creation of several new national industries within the various NAICS industries.
Some Changes to the National Classifications. For Canada, the NAICS Furniture Manufacturing subsector restructures the existing classification from an end use classification to a production process and input form, i.e., into wood, metal, and other furniture industries. In the case of wood furniture, the Canadian classification was structured both by input raw material (wood) and by end use, i.e., wooden household and upholstered household furniture. For furniture of metal and other materials, Canadian industries were restructured to the NAICS pattern. Other Canadian changes include the movement of wooden kitchen cabinets and bathroom vanities from the Wood Industries major group to this subsector, and the grouping of all kinds of shades, blinds and window hardware into a single NAICS industry. For Mexico, the significant change is one of concept. Formerly, Mexico had no separately identified furniture subsector. Thus, this subsector will be entirely new. Changes at the industry level are relatively small, as the current structure in Mexico classifies wood furniture in the wood product manufacturing industries, metal furniture in the fabricated metal manufacturing industries, etc. For the United States, changes parallel those in Canada. The existing U.S. structure classifies furniture by both inputs and end use in some detail. Like Canada, the U.S. structure has considerable detail for wood furniture, but unlike Canada, the U.S. also has substantial detail for metal furniture. A considerable amount of internal restructuring was required to achieve the NAICS design. However, the U.S. will retain substantial national industry detail below the level of the NAICS Furniture Manufacturing industries, e.g., wood household furniture is distinguished from wood office furniture at the 5-digit national detail level. Another important change for the United States is the inclusion of custom furniture in this sector. The manufacture of custom furniture was formerly classified in the retail sector. The change was made to agree with the Canadian and Mexican classification of the activity because the Canadian and Mexican treatment meets the production-oriented criterion for NAICS. Other changes include the movement of wood kitchen cabinets and wooden chair frames from the 1987 SIC Lumber and Wood Products, Except Furniture major group because the production processes are essentially identical to those for furniture.
