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Regional and industrial statistics on manufacturing

Content of statistics

Regional and industrial statistics on manufacturing include industry-specific data about manufacturing for the whole country. The statistics contain industry-specific data about the personnel, production, production inputs, exports and investments. Data are published in accordance with the Standard Industrial Classification (TOL 2002). Data for the whole country are released on the most accurate industry level as possible. The data can also be produced on all municipality-based regional classifications by industry. The accuracy of the industrial classification for regional statistics is governed by data secrecy regulations.

Data collection and coverage

For the regional and industrial statistics on manufacturing the data on enterprises and establishments are collected with questionnaires. The regional and industrial statistics cover all manufacturing establishments. The data are collected partly by sample-based direct data collection and partly by utilising the Tax Administration's business taxation register and Statistics Finland's Register of Enterprises and Establishments.

The direct data collection includes all single-establishment enterprises employing at least 20 persons and manufacturing establishments of multi-establishment enterprises employing at least 20 persons. The direct data collection also contains smaller enterprises than these if the scope of their activity corresponds to the activity of the enterprises in the direct inquiry, and establishments only at the investment stage.

The coverage of direct data collection varies by industry. On the level of whole manufacturing the coverage of direct data collection was over 90 per cent in 2005 measured by the number of personnel, almost 96 per cent when measured by gross value and almost 94 per cent measured by value added.

The accuracy of the direct inquiry data is checked by each questionnaire. To improve the quality of the inquiry attention has been paid to questionnaire design, filling instruction and verification of the correctness of the questionnaire data received. If the enterprise does not belong to the sample or its data cannot be acquired for some other reason, the data are imputed by means of the business taxation data and the Register of Enterprises and Establishment data and the direct inquiry data. The quality of the business taxation data is examined programmatically.

The reference period for the data collection has been from 1995 an accounting period, while previously it was a calendar year.

Comparability of data

The basic data of the statistics are based on administrative data and data collection from enterprises and their establishments.

The data on each enterprise in the structural statistics are for the most part derived direct from the enterprises' profit and loss accounts and balance sheets. Other data are also collected from larger enterprises, which are derived either from the enterprise's accountancy or payroll accounting.

In contrast, industry-specific data are always in some way methodologically produced figures, which are obtained either from the enterprise's reporting or they are inferred at Statistics Finland. Appreciation of the establishment data of a multi-establishment enterprise is often problematic, even if the valuation was made by the enterprises themselves. All enterprises do not have establishment-specific monitoring at the accuracy required by the statistics. Mergers, incorporations and enterprise reorganisations during the year make it more difficult to estimate establishment-specific data and they are especially reflected in regional level statistics.

Problems also accumulate in the case of an international enterprise group where the business activity can be organised in several different ways. This is then reflected in the enterprise's bookkeeping. A multinational enterprise can practise so-called trilateral trade, when into the bookkeeping of a Finnish enterprise get recorded such sales of an enterprise group abroad where the goods have not been produced in Finland or have not passed over the border of Finland.

Another problem related to the bookkeeping of a multinational enterprise, which enterprises solve in different ways, is in which country sales margins are recorded and 'profits are entered'. It is a problem how items of this kind and many others included in the data of the enterprise are divided between its establishments. Due to the above-explained reasons, temporal comparison of statistics is always somewhat difficult. The problem with comparability grows the more accurate classification level is used for compiling statistics.

The definitions and individual solutions used for the statistics compiled by Statistics Finland are made at Statistics Finland. The solutions rest on the recommendations on the UN statistics and the EU statistics regulations, which define such as the concept of domestic, establishment, production, valuation principles of production and processing rules for different economic activities (what is goods production, what is service production, what is capital income, etc.). International definitions need to be general in nature and in individual cases they must be interpreted.

As the skills develop and conditions change Statistics Finland will work on the definitions and solutions for individual cases aiming to produce the best possible statistical description. In compiling the statistics for the year 2003 Statistics Finland decided to change the grounds for dividing the enterprise's data into establishments. Changes in data for different areas from the previous year are partly due to this methodological change.

The data of the regional and industrial statistics on manufacturing differ from those given in the publication Corporate enterprises and personal businesses in Finland 2003. The numbers of establishments differ because establishments had to be combined in the collection of basic data for the regional and industrial statistics. There were also some differences in the classification of establishments into industries.

Statistical unit

The statistical unit for the regional and industrial statistics is establishment. An establishment refers to an economic unit where the production of goods and services as similar as possible is practised under the same ownership or supervision usually in one location. An establishment may as such form an enterprise (single-establishment enterprise) or be a clearly definable part of an enterprise (multi-establishment/multi-sector enterprise).

A municipality is, as a rule, the area unit of the establishment in structural statistics. For this reason and because of the needs for printing the statistics, the establishments of an enterprise located in different municipalities are considered as separate statistical units. In some cases an entity formed of several establishments has to be used as the statistical unit. The establishment need not necessarily comprise only activities to be included in production, but also so-called auxiliary and service activities, which are by their location linked to the establishment in question. Auxiliary manufacturing activities are services and repair and maintenance and energy production and supply. Other than auxiliary manufacturing activities and services are storage and transport, research and development, computer and related activities, and administration and sales.

If the auxiliary or service activity is closely connected to the actual establishment and serves mainly that establishment, their activities are not always separated into distinct establishments but their activities are combined into production activities.

The energy producing establishments functioning in connection with the actual manufacturing establishment are classified in the statistics as auxiliary units to the industry the establishment in question mainly serves.

Key concepts

Industry

The industry of an establishment is defined according to the commodities typical of which industry the establishment most produces. The definition proceeds by stages starting from the least accurate level of the industrial classification. First the 1-digit industry of the establishment is defined, followed by the 2-digit level up till the most accurate level. The definition of the most accurate industry level includes only the production of those commodities that determined the industry on the least accurate industry level.

The industry of the enterprises / establishments remaining outside the direct inquiry is derived from the Register of Enterprises and Establishments.

Gross value and value added of production

The gross value of production measures the actual production in the establishment. The production activity includes all profits connected to production, also production for own use and that supplied to the enterprise's other establishments. Gross value does not include profits from sales of fixed assets, which are not regarded as productive items but extraordinary income. In addition, acquisition of merchandise is deducted from profits from the productive activity so that the productive activity includes only the margin created from sales of merchandise.

Value added measures the combined value added produced by different production factors in the establishment's actual productive activity. Value added is calculated as a difference between profits received from the productive activity and costs caused by it. Profits also include the establishment's deliveries to the enterprise's other establishments and costs comprise acquisitions from the enterprise's other establishments. According to the definition, costs do not include costs caused by the establishment's labour force.

Gross value and value added of production are calculated by means of the imputed operating profit reported by the establishment. Since 1996 the formula for the gross value of production has been the following:

Turnover

+ deliveries to the use of other establishments of the enterprise

+ change in stock of finished products

+ production for own use

+ other profits from business operations

- profits from sales of fixed assets

- acquisition of merchandise

= GROSS VALUE

Since statistical year 2005, losses from sales of fixed assets is taken into account in the calculation of the value added as an item which decreases expenditure. Previously information on capital loss was not inquired.

GROSS VALUE

- purchases of materials and supplies

- purchases from other establishments of the enterprise

- change in inventories of materials and supplies

- external services

- other fixed and variable costs

(excl. staff expenses)

+ acquisition of merchandise

+ losses from sales of fixed assets

= VALUE ADDED

Investments in fixed assets

The definition investments in fixed assets comprises all acquisitions of fixed assets and renovations, from which sales of fixed assets are deducted. Fixed assets refer to tangible assets such as machinery and equipment, buildings and constructions and land and water areas. Until 1994, the concept used was gross increase in tangible assets. Its content is identical with that of the present concept.

Contact information

Name: Lång , Matti
Telephone: +358 9 1734 2472

Name: Pihlaja, Heikki
Telephone: +358 9 1734 2467

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Last updated 28.6.2007