Computer Self-Administered Questionnaires (CSAQ). This newly developed technology, providing companies the capability of sending in their census reports electronically-was extended well beyond 1992 Economic Census capabilities. The Census Bureau authorized a private company to develop a diskettebased questionnaire that would run on a personal computer. ■ Standardization, across economic sectors, of the table formats. Increased consistency in data presentation greatly assisted data users in making nearly instantaneous comparisons across databases. ■ The expanded use of the Internet. The Internet was used, among other purposes, to promote awareness of the census at the data collection stage and to disseminate data products over the ensuing years of the census cycle. • The development of new products, including new software, for data users. In response to data user requests for timely data with easy navigational capabilities, the Census Bureau augmented its electronic publication system and products. The majority of data from the 1997 Economic Census were released through improved CD-ROMs and on the Internet, with most data available free of charge. As part of the increased use of electronic technology in the 1997 Economic Census, the issuance of paper products was reduced. The Census Bureau bridged the transition from hard copy to electronic media by providing users with the capability to access page images via portable document format (pdf) files. Users with the free Adobe Acrobat reader could print high quality pages for all key reports that-for earlier economic censuses-were issued in print. For previous censuses, the production processes leading up to the printed reports delayed data release, sometimes, for months. Releasing data electronically gave users far more immediate access—often on the day of release. MAJOR USERS AND USES OF ECONOMIC CENSUS Federal Reserve Board Chairman, Alan Greenspan, called the economic census "indispensable to understanding the American economy." Economic census data are studied and recombined into a vast array of patterns to yield essential information for government, business, industry, and the general public. The following were major users of economic census data: • The Federal Government uses the data for composite measures such as the Gross Domestic Product (GDP), input-output measures, production and price indexes, and for other statistical series that measure short-term changes in economic conditions. 4 Chapter 1 • Policymaking agencies of the Federal Government use the data for, among other things, monitoring economic activity. ■ State and local governments use the data to assess business activities and tax bases within their jurisdictions and to develop programs to attract new businesses. ■ Business firms compare their own internal statistics with published figures for their industry or geographic area. Then, they compute market shares and evaluate their own growth and product lines relative to how, and what, other businesses are doing. • Manufacturers and distributors that sell their products to (or through) other businesses use the data to study those markets to plan sales territories; locate plants, warehouses, and stores; and make economic or sales forecasts. • Small businesses use the data about their markets or their industry to enhance their business opportunity presentations to bank officers or venture capitalists, as they seek funds for expansion. • In colleges and universities, the data are used to teach marketing and business management. ■ In research units of all types, researchers apply the data in their study of long-term economic trends. • Trade associations, business journals, and the daily press widely disseminate facts derived from the economic census. Business magazines use census statistics as technical background for articles. Census statistics are available in most major public and college libraries designated as government depositories. Information services specialists in the Census Bureau's regional offices (located in 12 large cities) and the staffs of the Census Bureau's State Data Center and Business and Industry Data Center programs throughout all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands of the United States, Guam, and the Commonwealth of the Northern Mariana Islands have economic census reports. Finally, the Department of Commerce's International Trade Administration staff answers questions about the availability and uses of economic census data. DATA COLLECTION AND BASIC CONTENT For the 1997 Economic Census, questionnaires were mailed out in December 1997 to about 3.7 million companies to collect data on 5 million business locations. The Census Bureau requested that responses be mailed to the National Processing Center ((NPC)—the NPC was the Data Preparation Division until the Census Bureau's reorganization effective May, 1998) in Jeffersonville, IN, by February 12, 1998. History-1997 Economic Census Responding to the census can be particularly burdensome on small businesses. To save very small businesses the expense and effort of filling out census questionnaires, the Census Bureau used administrative records provided by the Internal Revenue Service (IRS) and the Social Security Administration (SSA) to obtain basic business information-such as payroll, total receipts, and the like-for approximately 1.5 million small employer and 14 million nonemployer businesses. (The sharing of records by these agencies was strictly one-way; IRS and SSA provided their records to the Census Bureau, but the Census Bureau did not share its respondents' data with any other agency.) Economic census data are collected at the level of the "establishment." An establishment is defined as a business or industrial unit at a single-physical location that produces or distributes goods or that performs services. An example would be a factory or a store. Each "establishment" is owned by a "company." A company may own just one establishment (a "single-establishment" company) or it may own many establishments spread across different geographic or political jurisdictions, or across industry types. These are "multiestablishment" companies. A set of companies under common ownership is an “enterprise." Economic census questionnaires are mailed to company headquarters. One mailing package to a company headquarters might contain scores or even hundreds of questionnaires for all the company's many establishments. The questionnaires requested basic information about each establishment, including Kind-of-business activity (manufacturing, wholesale, retail, etc.). classified into one of the 20 NAICS-defined economic sectors. The classification of industrial data formed the starting point for the Census Bureau's Industrial Report series. "Physical location" translated into geographic categories, and at the Census Bureau's NPC the data were subclassified into the following levels of geography: ■ Nation. ■ State. ■ Metropolitan area. ■ County. City or place. ■ ZIP Code. The classification of geographic data led, ultimately, to the Census Bureau's Geographic Area Report series; however, not all data items were published for each geographical level. The most detailed 1997 Economic Census statistics were published only for the United States as a whole. Key data were published for states, metropolitan areas, counties, and places with 2,500 or more inhabitants. Selected data also were provided at the five-digit ZIP Code level. The smaller the geographic area, the less detailed were the data released for that area. The Census Bureau follows this practice to make sure that the identity of the individual businesses that provided the data cannot be inferred.' ■ "Form of ownership" translated into categories of organizational structure, namely, single- or multiestablishment companies or enterprises. SUMMARY Each time economic data have been collected in a census-from 1810 to 1997-there has been a progression toward ■ Expansion in scope or content of business activity covered. • Increasing systematization in data collection, processing, presentation, or dissemination. 'For example, if there were just one auto dealership in a particular ZIP Code, it would violate the confidentiality of the answers provided by the dealership to publish payroll or sales receipts data on “Auto dealers by ZIP Code." In order to keep individual business identity confidential, in this example auto dealership data would need to be published for a larger geographic entity than for a ZIP Code. Perhaps countywide or even statewide data would be the only statistic that could protect the identity of the auto dealership. At the opposite end of the spectrum, of course, would be the publication of sales receipts for auto dealerships nationwide. Since no one can infer a single dealership from data covering an entire Nation, national level data can be published in great detail. Chapter 1 5 The Players and The Plans INTRODUCTION While an economic census is conducted every 5 years, preparations for each enumeration start well before the previous one is finished. Typically, preliminary planning for an upcoming census begins at about the time the principal data collection effort for the preceding census has been completed, and may continue (due to changes in perceived data publication requirements, available funding or even technological advances) well into the operational phase of the census. In planning and conducting the economic census, the U.S. Census Bureau must weigh the data needs of the Federal government and other public and private data users against the ability and willingness of private companies to provide the information requested. Every census planning effort involves extensive review of the data content of the questionnaires to make certain that only the most urgently required information is collected, while response burden is kept to a minimum. (Chapter 4, "Questionnaire Design and Development," treats this subject.) Costs are another major consideration. This was particularly true for the 1997 Economic Census: the continuing effort by the Administration and the Congress to reduce Federal spending had a significant impact on the Census Bureau's activities. This led the 1997 Economic Census planners, at one point, to prepare several alternative census plans based on the possible reduced appropriation levels. Continued funding uncertainty, from fiscal year to fiscal year, at times led to delays in finalizing plans. A significant new factor that had to be considered in planning the 1997 census was the decision by the Office of Management and Budget (OMB) to develop and adopt a new industrial classification system-the North American Industry Classification System (NAICS)1-to replace the Standard Industrial Classification (SIC) code. Since classification of economic activity is at the heart of the statistical tabulations derived from the census, the Census Bureau needed to integrate the new classification system at every level of the census, from mailout to publication. THE ECONOMIC DIRECTORATE REORGANIZATION 'Chapter 3 describes the North American Industry Classification System (NAICS) in detail. 8 Chapter 2 programs. The Census Bureau established the Economic Planning and Coordination Division (EPCD) to provide centralized planning. The EPCD was charged with (1) formulating and developing comprehensive plans and programs for the Economic Directorate, as well as (2) coordinating the planning efforts and related activities for conducting the census. These activities included mailout, data capture, editing, tabulation, and the like. The reorganization created a second new division—the Economic Statistical Methods and Programming Division (ESMPD)—to support and improve economic census and survey programs. This division was responsible for overseeing joint development and implementation of statistical programming and survey methods. In addition, the ESMPD ensured the consistent development and application of statistical methodologies, survey operations, automated processes, and computer programs and systems throughout the Census Bureau's economic statistical activities. Also in 1994, the Census Bureau merged the Construction Statistics and Industry Divisions to establish a new Manufacturing and Construction Division (MCD). The Business Division transferred its financial statistics functions and staff to the Agriculture Division (which became the Agriculture and Financial Statistics Division [AGFS]) and Business Division was renamed Services Division (SVSD). After the transfer of the agriculture census (and part of the personnel of the AGFS) to the Department of Agriculture,2 the remaining staff was reorganized once again. In June 1998, the AGFS was renamed the Company Statistics Division (CSD). At the same time, the SVSD was renamed the Service Sector Statistics Division (SSSD). MCD and SSSD retained responsibility within the 1997 census for developing plans for data content, questionnaire design, and publication of statistical data for business enterprises falling within their respective areas. These activities were coordinated by the EPCD. The CSD was primarily responsible for the 1997 Surveys of Minority- and Women-Owned Business Enterprises, and the 1997 Business Expenditures Survey-both components of the 1997 Economic Census industry-wide programs-as 2Funding and responsibility for the Census of Agriculture was transferred from the Census Bureau, Department of Commerce, to the Department of Agriculture (USDA), National Agricultural Statistics Service (NASS) effective October 1, 1996. Effective February 2, 1997, NASS also received the transferred program positions and staff from the Census Bureau. History 1997 Economic Census |