A. Who Should Report?

The Annual Survey of Manufactures is conducted under an Act of Congress (Title 13 United States Code) which requires that a report be filled by every manufacturer who receives one.

Since separate data will be published for industries, states, counties and Standard Metropolitan Statistical Areas, separate reports are required for each manufacturing establishment (plant).

1. An establishment is defined as a single physical location where manufacturing is performed.

It your company operates at different physical locations, even if they are producing the same line of goods, a separate report must be filed for each location.

If your company operates in two or more distinct lines of manufacturing at the same location, a separate report should be filed for each activity. Reasonable amounts of estimating or prorating are acceptable if actual book figures cannot be provided except at high cost to your company.

2. The report form for any establishment not in operation should be returned with the notation as to its status in Item 13. If the establishment had custodial employees, capital expenditures, inventories or any shipments from inventories, these should be reported in the proper section.

B. What Activities Should Be Reported?

Each report should cover all the activities (manufacturing, fabricating, processing, and assembling) conducted within the establishment. The reported figures should also include activities such as the maintenance of plant and equipment, receiving, shipping, warehousing, storage, research, record keeping, health, safety, cafeteria, and other serivces, when carried on at the same physical location by the manufacturing establishment. The manufacturing establishment reports should exclude sales branches, sales offices, research laboratories, retail stores, mining activities, and general administrative offices, if they are operated as separate establishments.

In order for statistics on value added and other subjects to be comparable from industry to industry or area to area, it is necessary that the operations of each establishment of a multiple establishment organization be reported as though the establishment were a separate "economic" unit. This means that the value of interplant transfers within a company should include, in addition to direct costs of production, a reasonable proportion of "all other costs (including company overhead) and profits. The establishments receiving such transfers should report them as materials consumed (or inventories of materials, etc.) at the same value plus costs of freight and other direct handling charges. (See Section E, Items 5, 6, and 9)

E. Items on The Report Form

Item 2. Number of Employees. You may follow the definition of employees specified by your State Employment Security Agency.)

Report employees at the establishment who worked or received pay for part of the pay period including the 12th of specified months (March, May, August, and November.) Include all persons on paid sick leave, paid holidays, and paid vacation during these pay periods; exclude members of armed forces and pensioners carried on your active rolls. Include officers at this establishment, if a

corporation; if an unincorporated concern, exclude proprietor or partners.

Special note for the following types of food processing establishments:

Sugar mills which are part of sugar plantations; Fruit or vegetable canning or freezing plants with farms associated with their operations;

Fish canning, freezing or packaging plants with fishing operations associated with the plant.

Please exclude agricultural workers or fishing crews from your report.

Item 2a-2d. Number of Production Workers.-Workers.-up through the working foreman level) engaged in fabricating, processing, assembling, inspecting, receiving, packing, warehousing, shipping (but not delivering), maintenance, repair, janitorial, watchman services, product development, auxiliary production for plant's own use (e.g., powerplant), recordkeeping, and other closely associated services. Exclude proprietors and partners.

Item 2g. All Other Employees.-Nonproduction personnel, including those engaged in the following activities; supervision above working foreman level, sales (including driver salesmen), sales delivery (truck drivers and helpers), advertising, credit, collection, installation and servicing of own product, clerical and routine office functions, executive, purchasing, finance, legal, personnel (including cafeteria, etc.), professional and technical. Exclude proprietors and partners.

Item 3. Payrolls. Follow the definition of salaries and wages used for calculating the withholding tax.) Report the gross earnings paid in each calendar year to employees at the establishment prior to such deductions as employee's Social Security contributions, withholding taxes, group insurance premiums, union dues, and savings bonds.

Include in gross earnings commissions, dismissal pay, paid bonuses, vacation and sick-leave pay, and the cash equivalent of compensation paid in kind.

Include salaries of officers of this establishment, if a corporation; if an unincorporated concern, exclude payments to proprietor or partners.

Exclude payments to agricultural employees, fishermen, members of the armed forces, and pensioners carried on your active payroll.

Item 4. Plant Man-Hours of Production Workers, by Quarter.-Include all man-hours worked or paid for, except hours paid for vacations, holidays, or sick leave. If an employee elects to work during the vacation period, report only actual hours worked by such employee. Overtime hours should be reported as actual hours worked, not straight-time equivalent hours.

Item 5.-Cost of Materials,-NOTE: The Census Bureau uses this item in conjunction with Value of Shipments (Item 9) and Inventories (Item 6) to calculate value added by manufacture.

Report total cost of the materials actually consumed or put in production during the year.

If book records are lacking, estimates may be made from purchases and other records. However, if purchases during the year do not significantly differ from the amounts actually used, purchase figures may be used in lieu of actual consumption.

If for any major items consumption differs significantly from purchases, estimate consumption by adding beginning inventories to the amount purchased and subtracting end-of-year inventories for the item.

Cost is delivered cost- i.e., the amount paid or payable after discounts and including freight and other direct charges incurred by the establishment in acquiring the materials.

Include all materials received for consumption; i.e., purchases from other companies, transfers from other establishments of your own company, withdrawals from inventories.

If the establishment produces items subsequently consumed in further production, report cost of original materials consumed only.

Multi-establishment Companies: If materials, parts, and supplies are received from other establishments of your company, cost should be checked against the values reported for the plant producing and transferring the goods (see Section D above). The value should be "economic value" i.e. include in addition the producing plant's direct cost of production a reasonable proportion of all other costs (company overhead) and profits. Freight and other direct handling charges should be added.

Special Note: Agricultural activities of this company should be treated as separate establishments. For example, cane sugar mills should report quantity and delivered cost at the mill of sugar cane whether purchased or received from plantations belonging to the same company. Such materials should be reported at their "economic value" (i.e., costs of production and delivery and a proportionate share of overhead and profits).

Item 5a. Cost of Materials, Parts, Components, Containers, Etc., Consumed.—The delivered cost figures reported in Item 5a should cover all raw materials, containers, scrap, and supplies, etc., which were: (1) put into production, (2) used as operating supplies, (3) used in repair and maintenance.

Include also cost of materials owned by you but consumed by other companies to make products for your establishment under contract. Amounts paid to other companies for such contract work should be reported on Line 5e and should include freight in and out.

Include only physical goods used or put into production.

Exclude services used or overhead charges, such as advertising, telephone, telegram and cable, insurance, developmental and reasearch; services of engineering, management, marketing and other professional consultants, etc., unless charges for such services are included in the prices paid for materials.

other fuels including purchased steam. For selected industries, such as Carbon Black, Blast Furnaces and Coke Ovens, the above fuel types should be reported as materials in Item 5a rather than as fuels in Item 5c.

Item 5d. Cost of Purchased Electricity.-Report the total amount actually paid or payable for electric energy purchased during the year from other companies, or received from other establishments of your company. Exclude the value of electricity generated and used at this establishment.

Item 5e. Cost of Contract Work Done for You by Others on Your Materials.—If any contract work was done by others on materials furnished by your establishment, report the total payments made during the year for such work, including freight out and in. Exclude the cost of materials worked on, which should be included in Item 5a.

Item 6. Inventories of This Establishment at End of Year. Inventories should be reported at approximate current costs, if feasible; otherwise at book values. Inventories of each establishment should be reported on a comparable basis from one year to the next. If there is a change in inventory valuation methods, please revise preceding years' figures and explain change in remarks. Where a company operates more than one manufacturing establishment, the inventories held by each establishment should be included on the report for that establishment.

Meat Packing Establishments may combine work-inprocess and finished goods inventories if they are not maintained separately. In this case the combined figures should be reported as a finished product on Line 6a.

Establishments distilling liquors should include stocks of distilled liquors held in storage for aging in the figures for finished products inventories. (Do not report such inventories as work-in-process.) If this instruction results in a change in your past reporting procedure, please enter revised inventory data for previous years.

Item 7. Capital Expenditures During Year (Exclude Expenditures for Land).-Report actual capital outlays during the year, not the final value of equipment put in place and buildings completed during the year. Capital expenditures during the year may be determined by the following computation: The cost of additions completed during the year, plus construction-in-progress at the end of the year, minus construction-in-progress at the beginning of the year.

Item 7a. New Structures and Additions to Plant.Report total expenditures during the year for new construction, (whether constructed on contract or by your own forces), major alterations, capitalized repairs, and improvement of buildings (including all new elevators, cranes, heating and ventilating equipment essentially a part of the buildings), other fixed structures (such as blast furnaces, brick kilns, fractionating towers, shipways, and similar types of structures), and site improvements (such as roads, docks, tracks, parking lots, fences, utilities).

Item 7b. New Machinery and New Equipment.-Report total expenditures at this establishment for new production machinery and equipment and other new machinery and equipment. Include replacements as well as additions to

capacity. Include all new motors, lathes, punch presses and similar machinery and equipment for use in production, as well as all new office machines and fixtures, furniture, cafeteria and dressing room furnishings, automobiles and trucks, and other similar equipment. Report value of improvement and capitalized repairs to machinery and equipment whether repairs and improvements were purchased or made by employees of your company.

Item 7c. Used Plant and Used Equipment Acquired from Others. Report total expenditures at this establishment for old or existing plants and for second-hand equipment acquired from others (including the U.S. Government). Include at approximate market value machinery or equipment transferred from other plants of your company.

Item 8. Quantity of Electricity.-All quantities for electricity should be reported in thousands of kilowatt hours.

Item 8a. Purchased Electricity.-Report (in thousands of kilowatt hours) the quantity of electricity for which cost is reported in Item 5d.

Item 8b. Generated Electricity.-Enter the total quantity of electric energy generated in this plant (gross less generating station use) during the year although part of such energy may have been sold or transferred.

When totals are reported on this line, data relating to the activity of the power stations would also be included in other sections of this report. For example, the number of employees assigned to the power station, their wages and man-hours should be included in the figures reported in Items 2, 3, and 4; and the cost of fuels used to generate electricity, in Item 5c.

Item 8c. Electricity Sold or Transferred.-Enter the quantity of electric energy, which was also included in Items 8a and 8b but which was sold to other companies or transferred, to other manufacturing or non-manufacturing establishments of your company.

Item 9. Value of Products Shipped and Other Receipts.

Lines a-g. Product Classes of This Establishment.In Item 9, the Census Bureau has preprinted the product class codes and description of the products reported by this establishment in the 1963 Census of Manufactures, or in the 1964 Annual Survey of Manufacturers.

Please review these descriptions and codes against the detailed products reported in item 18 of your 1963 census reports and the list of product classes in this manual. Correct the codes and description in item 9, if necessary.

Special Attention should be given to the following types of preprinted product classes:

Product class preprinted with a description and the notation "(Revised-see manual)*” have been redefined since 1964. Please see the special Reference list in Part II for the definitions and composition of these redefined product classes for reporting current data. Do not enter any current year figures for preprinted descriptions but enter the new description, codes and data on the first available line in Item 9.

Product class codes bearing two asterisks (**) before the code indicate that sufficient information was not available in prior years to classify such products to 5-digit, or product class, level. However, a broad industry description has been printed for these items. Do not report current year data for them, but make certain all the value of product shipments of the establishment are accounted for under one of the specific product classes printed in Item 9 or appearing in the manual.

On some lines there may appear the description "Miscellaneous products," with the code column blank. These situations represent values that the Census Bureau was unable to associate with a valid 5-digit product class description or code. Do not report for 1965 or 1966 on any line where "miscellaneous products" appears as a description. Make certain, however, that all of the establishment's shipments for 1965 and 1966 are accounted for under one of the specific codes printed in item 9 or in the manual.

Some product classes will appear imprinted with a description carrying a notation "See manual, codes )." These represent product classes where it was not possible to provide a better description within the allotted space on the report form. The content of the product class can best be determined by an examination of the content of all the product classes referred to in the parenthetical expression.

If some of the products now made do not appear to belong to the prelisted product classes, enter their values in the first available line in item 9 or 9A and describe in your own words the products included. Do not include products of different product classes on the same line.

Report for each class of products, the value of products shipped for sale or transfer to other plants of your company which were manufactured, fabricated, processed or assembled in this establishment. Include products shipped on consignment; deduct value of returned goods.

Include products made elsewhere for this establishment on a contract basis from materials supplied by this establishment. (The cost of these materials should also be reported in item 5a.)

Sale of products bought and resold without further processing should be reported as resales (line k).

Value should be net selling value f.o.b. plant after discounts and allowances and exclusive of freight charges and excise taxes.

(NOTE: Report delivered value, however, if delivery is made by employees of this establishment, e.g., bread, milk, soft drinks, etc.)

Multi-Establishment Companies should treat each establishment as a separate economic unit in valuing products transferred to other establishments of the company. The shipping plant should assign to the transferred products a full economic value, i.e., include all direct cost of production and a reasonable proportion of all other costs (including company overhead) and profits.

The receiving plant, of course, should report these items as cost of materials or inventories at the same value plus costs of freight and handling charges.

Value of Production or Work Done.-Please note that for a few product classes, Part II of this Manual specifies that value of production or value of work done during the year, rather than value of shipments, is to be reported. Value of products made or processed but not sold or transferred during the year should be estimated on the basis of current selling prices. The products are those beginning with the following numbers:

203-Canning and preserving, seafood, frozen fruits and vegetables

2085-Distilled Liquors

211-, 212, 213-Cigarettes, cigars, and pipe tobacco

3721-Complete aircraft

3731-Shipbuilding and repairing

1925-Guided missles

If Lines 9 a-g do not provide enough space, use Item 9A on the reverse side to report the description of products, the product class code number, and the value of these additional products.

Line i. Receipts for Work or Services Performed by You for Others on Their Materials (Contract and Commission Work, Etc.).-Before completing this entry, check the coding manual to see if the type of contract work is included under "Special Contract and Commission Receipt Codes." If so, the value should be entered in lines a-g rather than here. If the code is already preprinted, enter receipts for current year.

Do not report the selling value of the products on which contract or commission work was done, but only your receipts for such work.

reported here should include all the types of items for which capital expenditures are reported in Item 7a “Expenditures for New Structures and Additions to Plant."

Under machinery and equipment include all production machinery, transportation equipment and office equipment. Include motors, lathes, furniture and fixtures for offices, cafeterias, dressing rooms, and warehouse equipment such as lifts. Report value of assets for all equipment for which capital expenditures are to be reported under Item 7b, “Machinery and New Equipment."

Include in the value of assets at the end of the year all improvements and new construction in progress but not yet completed. (The capital expenditures during the year for these are also to be included in 7a and 7b). The value of building and improvements in progress but not yet completed should equal the cumulative capital expenditures to the end of each year.

Used assets purchased during the year or received from other plants of your company should be included at their market value rather than original book.value. (See instruction on used capital expenditures.)

If the establishment maintains a tenant relationship with the parent company or one of its subsidiaries and pays "rent" for the use of either plant or equipment, the gross book value of the assets made available to the establishment should be reported as if the establishment owned them. (See instructions below for Rental payments. In Item 11b DO NOT report rent paid to the parent or subsidiary.)

The gross assets reported at the end of each year should be consistent with the gross assets at the end of the previous year and the capital expenditures and retirements during the year. For example, the gross assets at the end of 1965 less the gross assets at the end of 1964 plus the capital expenditures reported in Item 7 during 1965 should approximate the actual retirements during the year.

If this calculation yields large differences, please explain in the remarks.

Item 11b. Rental Payments During Year.-Report rental payments made to other companies for use of such fixed assets as buildings, structures, machinery and equipment. Do not include as rents those payments made by the plant to the parent company or a subsidiary of the parent for building and equipment owned by the company. The value of these fixed assets should be reported by the plant as if they were owned by the plant.

If the establishment uses building or equipment leased from other companies, but the rental payments are not made directly from the establishment's accounts but are handled centrally at a company or division level, please report the share of the rental overhead charged to the establishment or estimate the share of rental charges appropriate to the operations of the establishment.

Item 11b (1).-Report rental payments (or equivalent charges) during year for use of buildings, and structures such as cranes, kilns, furnaces, etc. If your book records permit or if a reasonable estimate can be made, exclude the rental payments for land on which buildings and structures are erected. If your rental contracts or books do not permit such a separation, enter notation in llb (1) "land not separable."