This topic relates to businesses whose main activity is the manufacture of finished or semi-finished products. Also included is the assembly of component parts and the specialised maintenance and repair of industrial, commercial and similar machinery and equipment.
Publications
The Annual Business Inquiry (ABI) is conducted in two parts: employment and financial information. This release deals with the financial inquiry which collects information for about two thirds of the UK economy, covering agriculture (part), hunting, forestry and fishing; production; construction; motor trades; wholesale; retail; catering and allied trades; property; service trades. The financial variables covered include turnover, purchases, employment costs, capital expenditure and stocks. Approximate Gross Value Added (GVA) is calculated as an input into the measurement of Gross Domestic product (GDP).
The Annual Business Survey (ABS) collects financial information for about two thirds of the UK economy, covering agriculture (part), forestry and fishing; production; construction; motor trades; wholesale; retail; catering and accommodation; property; service trades. The financial variables covered include turnover, purchases, employment costs, capital expenditure and stocks. Approximate Gross Value Added (aGVA) is calculated as an input into the measurement of Gross Domestic Product (GDP).
PRODCOM reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of the individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individuals products covered by the PRODCOM inquiry, together with exports and imports data.
The PRODCOM series of reports contain data on the sales by UK based manufacturers of individual products covered by the PRODCOM inquiry, together with exports and imports data.
Estimates for the engineering sector. Estimates are published at current prices covering turnover and orders. The engineering sector covers classes 29 to 33 as defined by the Standard Industrial Classification (SIC92).
General measure of changes in output of production sector industries.
General measure of changes in output of production sector industries.
Output of UK-based manufacturers.
Data on the production of passenger cars and commercial vehicles.
Provides information on the value of the economic activity that businesses generate and associated expenditure across the main industrial sectors in Northern Ireland.
Provides information on the value of the economic activity that businesses generate and associated expenditure across the main industrial sectors in Northern Ireland.
The PRODCOM series of reports contain sales and volume data of UK based manufacturers by individual products as covered by the PRODCOM Survey. The reports also incorporate product export and import data, supplied by HMRC. Historical data (pre-2008) is available on request from prodcompublications@ons.gov.uk
The PRODCOM series of reports contain sales and volume data of UK based manufacturers by individual products as covered by the PRODCOM Survey. The reports also incorporate product export and import data, supplied by HMRC. Historical data (pre-2008) is available on request from prodcompublications@ons.gov.uk
The PRODCOM series of reports contain sales and volume data of UK based manufacturers by individual products as covered by the PRODCOM Survey. The reports also incorporate product export and import data, supplied by HMRC. Historical data (pre-2008) is available on request from prodcompublications@ons.gov.uk
Scottish exports from the manufacturing sector for the latest quarter.
Data estimates of the size and performance of the Northern Ireland Food and Drinks Processing Sector.
Data estimates of the size and performance of the Northern Ireland Food and Drinks Processing Sector.
Overview
Activities include:
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printing and reproduction of recorded media
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repair and installation of machinery and equipment
Other activities include the manufacture of:
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food and drink products, including farm animal feeds and pet food
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metals and minerals
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textiles, including carpets, and clothing
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organic and inorganic chemicals and chemical products including basic pharmaceuticals, rubber, plastics and petroleum products
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machinery and equipment including electronics and motor vehicles and
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other products including tobacco, coins and jewellery
Technical Data
Data are collected from a selection of businesses in the manufacturing industries via the Annual Business Inquiry (ABI/2), the annual PRODCOM survey and the Monthly Production Inquiry (MPI). All three are sample surveys but the data collected are weighted to provide an estimate covering the total population of the sector.
ABI/2 data totalled to industry level for the main variables feed into the UK National and Regional Accounts. They are also used to derive Gross Value Added (GVA), which measures the contribution of the manufacturing sector to the economy. Other measures such as turnover per head are derived using employment data collected by the Annual Business Inquiry (employment).
Sales and volume data for individual products are collected annually by the PRODCOM survey from most of the manufacturing sector (the manufacture of basic iron and steel and ferro-alloys is excluded). Data are used in the supply table which in turn forms an integral part of the annual input-output balance used to reconcile the three measures of Gross Domestic Product (GDP) and Gross National Income (GNI). Import and export information on manufactured products are collected by Her Majesty’s Revenue & Customs (HMRC).
Monthly turnover data for manufacturing industries are used to calculate short-term indicators for the production sector, which in turn, feed into GDP. All data produced are at current prices and non-seasonally adjusted.
Total Turnover
The total turnover of the business is collected by both the annual and monthly surveys. The annual turnover, together with the other variables, is used to derive industry level GVA. Monthly turnover data are used as a proxy for GVA as it is not possible to collect the individual variables each month.
Other main variables collected and used in the calculation of GVA are:
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employment costs
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purchase of energy goods, materials and services
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tax, duties and levies paid
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subsidies receivable
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value of stocks held
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capital expenditure
Gross Value Added (GVA)
GVA is used in the estimation of GDP, which is a key indicator of the state of the economy. In the UK, three theoretical approaches are used to estimate GDP: ‘production’, ‘income’ and ‘expenditure’. All three approaches are balanced annually using the Input-Output Supply and Use Tables accounting framework. The GVA for the manufacturing sector is used in the estimation of the GDP ‘production’ approach.
The link between GVA and GDP can be defined as:
GVA (at industry level current basic prices)
plus taxes on products (available at whole economy level only)
minus subsidies on products (available at whole economy level only)
equals GDP (at current market prices; available at whole economy level only)
The Standard Industrial Classification (SIC) defines the activities covered by the manufacturing industries. The main or principal activity of a business is defined as the activity that contributes most to the business’s total value added. In practice, variables such as employment, salaries and gross output are used instead of value added.
The UK Standard Industrial Classification (SIC), which defines all of the Office for National Statistics’ (ONS') business surveys, is based on the European Communities (EC) classification of Economic Activities, NACE (from January 2008, a major revision to NACE was introduced, NACE Rev.2). ONS is in the process of converting its surveys to NACE Rev.2, with the ABI/2 and PRODCOM 2008 surveys, to be despatched early in 2009, among the first selected on the new classification SIC 2007.
For the manufacturing sector as a whole the change in classification has very little effect other than the transfer of publishing activities from manufacturing to a new section ‘information and communication’ and recycling activities to the ‘water supply, sewerage, waste management and remediation’ sector. Within the manufacturing sector there are a number of changes reflecting the decline of some industries and the emergence of others. These will feed through to the statistics produced on the new classification.
All ONS business surveys will be converted to SIC 2007 over the next few years, with the National Accounts system being the last to be converted in 2011. In order to take full advantage of the change in classification, all survey samples will be re-optimised as each survey converts to SIC 2007.
Glossary
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Annual Business Inquiry (ABI)
An annual business survey covering most sectors of the economy. ABI/1 collects data on employment while ABI/2 collects financial data, for example, turnover, stocks and capital expenditure.
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Capital Expenditure (Including non-deductible VAT but excluding deductible VAT)
Capital Expenditure includes the purchase costs and disposal proceeds of fixed assets, together with any other amounts treated as capital items for taxation purposes. Grants and allowances from government sources, statutory bodies and local authorities should be included.
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Employment costs
The amount the business pays for its workforce to carry out the activities of the business. It includes wages and salaries paid to all employees (including overtime) and also the National Insurance and pensions contributions paid by the employer. Employment costs for subcontracted work where the employees are not directly employed by the business are excluded.
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Eurostat
The Statistical Office of the European Communities, based in Luxembourg.
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Generally Accepted Accounting Principles (GAAP)
The standard framework of guidelines for financial accounting. It includes the standards, conventions and rules accountants follow in recording and summarising transactions, and in the preparation of financial statements.
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Gross Domestic Product (GDP)
A measure of the value of the goods and services produced in the economy in the year. It is a good indicator of the wealth and economic development of a country. Developed countries typically have high GDPs and developing countries typically have low GDPs. Income earned abroad, such as overseas investments, is not counted in GDP, but is counted in a country’s Gross National Product (GNP).
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Gross Value Added (GVA)
A measure of the value of the goods and services produced in the economy and is used to monitor the performance of the national economy as a whole. It can also be used by individual businesses to monitor their performance, and therefore, the profitability of the business. GVA is calculated as: the value of sales of goods and services minus the cost of purchases of energy goods, materials and services.
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Manufacturing
The physical or chemical transformation of materials, substances or components into new products. Substantial alteration, renovation or reconstruction of goods is classed as manufacturing. The assembly of component parts of manufactured products, either self-produced or purchased, is included as is the specialised installation, maintenance and repair of industrial, commercial and similar machinery and equipment. The repair of computers and personal and household goods is excluded.
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Monthly Production Inquiry
A survey collecting monthly information on sales from businesses within the manufacturing sector. It also collects information on new orders within the engineering sector and a limited amount of employment information.
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Nomenclature of Economic Activities in the European Community (NACE)
This classification of economic activities has been developed by the Statistical Office of the European Communities (Eurostat) since 1970. It classifies statistical units (for example, companies and establishments) related to economic activity providing the base on which to develop a wide range of statistics such as products, consumption, capital formation and financial transaction (see Standard Industrial Classification).
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PRODCOM
The survey of manufactured products governed by EU Regulation 3924/91 and covers mining and quarrying, manufacturing, and electricity, gas and water supply. The product definitions are standardised across the EU to give comparability between member states’ data and the production of European aggregates at product level. The UK PRODCOM survey collects limited data from the mining and quarrying industry and nothing from the electricity, gas and water supply sector. Value and volume data are collected on a total of 4,400 products from UK manufacturers in 258 industries.
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Purchases of energy goods, materials and services
The amount paid by the business for all energy goods, materials and services used to carry out the activities of that business. This figure is exclusive of VAT but inclusive of other taxes, duties and levies.
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Standard Industrial Classification (SIC)
The system used by the Office for National Statistics (ONS) to classify businesses to particular industries or economic activity. The UK classification is based on the Statistical Office of the European Communities (Eurostat) NACE classification of economic activities. This is used widely throughout the EC and enables comparisons to be made between national and EC statistics. Any revisions to NACE are made under EC Regulation. All Member States are obliged to adopt the changes. Along with other Member States, ONS is in the process of converting to the revised version of NACE (NACE Rev.2), which under the UK classification is called SIC 2007.
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Stocks held
Stocks, or inventories, include all goods and materials on hand for sale or processing, including work in progress owned by the business in the UK. They should be valued in accordance with UK GAAP (Generally Accepted Accounting Practice) or International GAAP. Balances on long-term contracts included in stocks should exclude any progress payments made.
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Subsidies on products
Amounts receivable from UK government bodies or the European Commission (EC) to reduce the price of products (goods or services) sold to customers. Grants received from any source as one-off payments to lessen the burden of purchasing capital expenditure items are excluded.
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Tax, duties and levies paid
The total amount payable in taxes (excluding VAT), duties or levies on the energy goods, materials and products purchased by the business in order to carry out the activities of the business. It is paid to government, other statutory bodies and local authorities. Any amounts payable in taxes, duties and levies on the outputs of the business are also included.
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Turnover (excluding VAT)
Turnover consists of total takings or invoiced sales and receipts of the business in connection with the sale of goods and services. It should include any indirect taxes, duties and levies (except VAT) invoiced to the customer. Interest and similar income, other operating income and extraordinary income are excluded as are the net proceeds on the sale of capital items.
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Weighting
The process of estimating a total from a sample. (The process was previously called grossing but the Office for National Statistics' (ONS') Methodology Directorate has revised the term to 'weighting').
Contact Details
For statistical enquiries about this topic, please contact:
ONS Customer Services
Email: info@statistics.gov.uk
Telephone: +44 (0)845 601 3034
Office for National Statistics Room 1.015 Government Buildings Cardiff Road Newport NP10 8XG
