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Background Notes

Total turnover of €1,288.7 billion in the Structural Business Economy in 2022

CSO statistical publication, , 11am
Advisory Note

Under European Business Statistics (EBS) Regulation 2019/2152, the Sectors covered in Structural Business Statistics and Business Demography are now common as part of an EU-wide initiative to improve data processing and enhance coherency across a range of enterprise statistical products. This release provides data on NACE sectors B to S (excluding O and S94).

Further releases under the ‘Business in Ireland’ title are planned providing additional data and insights into the composition and constitution of enterprises across the economy.

Census of Industrial Production Enterprises

Introduction 

The Census of Industrial Production comprises two separate but closely related annual inquiries, namely:

(i)  The Census of Industrial Enterprises covers those enterprises which are wholly or primarily engaged in industrial;

(ii) The Census of Industrial Local Units which covers all industrial local.

The Census of Industrial Production is required under Regulation (EU) 2019/2152 of the European Parliament concerning business statistics and Statistics (Structural Business Inquiries) Order 2022 (S.I. No. 268 of 2022).

NACE refers to the classification NACE Revision 2 which is the European Union’s Statistical Classification of Economic Activity in the European communities Eurostat.

An enterprise is defined as the smallest combination of legal units that is an organisational unit producing goods or services, which benefits from a certain degree of autonomy in decision making, especially for the allocation of its current resources. A local unit is defined as an enterprise or part thereof situated in a geographically identified place. 

Appreciation is extended to firms that co-operate in this annual Census. The information they provide is treated as strictly confidential to the Central Statistics Office. Direct or indirect disclosure of information relating to individual respondents is avoided in the publication of results by applying confidentiality checks to categories containing small numbers of units and suppressing figures, etc.

Presentation of Results

All tables are available on PxStat on the Central Statistics Office website, please see:

Enterprises Industrial data

Period Covered by the Census

Although the Census relates in principle to the calendar year, respondents are permitted to return figures for their nearest accounting year. The end of the accounting year for all returns used falls between May of the reference year and April of the following year. Returns which cover a period of less than 12 months are accepted in cases where businesses have started or ceased trading during the year.

Data Collection

The Census is conducted by post and via e-forms. A permanent up-to-date register is kept of all relevant local units and enterprises known to be involved in Industrial Production. The register is maintained from the Central Business Register, administrative and public utility records, announcements in the press, business journals, field personnel contacts, etc. This register is constantly being updated. This results in differing estimates for the total number of enterprises/local units through the dissemination cycle.

An ‘enterprise’ questionnaire is sent to all enterprises whose activity is primarily industrial. The type of ‘enterprise’ questionnaire depends on the size of the enterprise. The most detailed form (form F) is generally sent to all enterprises with twenty or more persons engaged. A less detailed form (form C) is sent to enterprises with between three and twenty persons engaged. Enterprises with less than 3 persons engaged do not receive a survey form, but administrative data is used to estimate for such enterprises. In the case of multi-location enterprises, a ‘local unit’ questionnaire is sent to each local unit with three or more persons engaged which was in production during the year. For the majority of local units, this questionnaire is the standard form L. In a small number of exceptional cases, a single form L is issued to cover several local units operated by the same enterprise - see Scope of the Local Unit Census below. 

Visit the CSO website to view Survey forms.

All returns are scrutinised clerically for internal accuracy. They are compared with returns for previous years and in some instances with returns to other industrial inquiries. Local unit and enterprise returns relating to the same enterprise are examined together for consistency. A further set of consistency checks is carried out in the computer processing of the data. Substantial queries arising from these scrutiny operations are referred to the respondent by telephone or in writing. 

Industrial Activity Classification and Statistical Units

The 2022 results are classified by NACE Revision 2, which was first introduced for reference year 2008. A correlation table showing the relationship between headings of the old and new classifications is available on request. Each 4 digit class in NACE Revision 2 relates to a specific form of economic activity, e.g. manufacture of basic pharmaceuticals products (NACE 2110). The statistical units in the Census (local unit and enterprise) are coded to the NACE class relating to their principal industrial activity during the Census year. In the case of local units, this is determined on the basis of detailed information provided on their production of individual products. The activity classification of enterprises is based on the NACE codes of the constituent local units. An enterprise that operates several industrial local units coded to different NACE classes is classified to the activity which accounts for the highest proportion of the total value added of the enterprise.

The scope of the Census extends to NACE sections B, C, D and E, namely:

Section B:              Mining and quarrying

Section C:              Manufacturing

Section D:              Electricity, gas, steam and air conditioning supply

Section E:              Water supply; sewerage, waste management and remediation activities

The traditional category Transportable Goods Industries used in industrial statistics is equivalent to NACE sections B and C. The Manufacturing Industries grouping includes only section C.

Classification by Nationality of Ownership

The classification is determined by the nationality of the owners of 50 per cent or more of the share capital. The breakdown which can be provided at sectoral level is in many cases constrained by the need to preserve the confidentiality of data provided by individual units. For total manufacturing industry, however, a more detailed nationality classification is possible. 

Scope and Coverage

The enterprise Census covers all enterprises which are wholly or principally involved in industrial production (i.e. NACE Sections B to E). 

An enterprise is defined as the smallest combination of legal units that is an organisational unit producing goods or services, which benefits from a certain degree of autonomy in decision making, especially for the allocation of its current resources (e.g. company, partnership, individual proprietorship, etc.). An enterprise may be a sole legal unit. In practice, the enterprise is equivalent to a company or firm. Within a group of companies, each individual company is treated as a separate enterprise. The return for each enterprise relates to all of its activities and covers all local units operated by it, including those involved in non-industrial activity, e.g. wholesaling or retailing.

Estimation for Non-Respondents 

If information for key non-respondents is available from an alternative source, for example, Monthly Production, Quarterly Statistics or Prodcom or a return for the previous year, then the record is manually estimated; otherwise administrative data is used in conjunction with ratio extensions. The administrative data sources used relate to Corporation Tax (CT) records and/or Income Tax (IT) Form 11 data. Ratio extension involves the application of ratios between known variables to cases where only one subcomponent is known. The ratios are typically calculated at NACE class level before being applied, although some merging of NACE classes may take place in order to ensure that the ratio estimates are not based on very small populations.

Full data for enterprises filling in the more restricted C forms is derived using the ratio extension method also. All non-key non-respondents are estimated for using administrative data and ratio extensions.

Annual Services Inquiry

Introduction

The Annual Services Inquiry (ASI) has been conducted on an annual basis since 1991. The purpose of the survey is to provide estimates of the principal trading aggregates for all enterprises in the retail, wholesale, transportation and storage, accommodation and food, information and communication, real estate, professional, scientific, technical, administrative and other selected services sectors.

Legislation

The Annual Services Inquiry (ASI) is carried out in accordance with S.I. No. 268 of 2022 - Statistics (Structural Business Inquiry) Order 2022, made under the Statistics Act 1993 and Regulation (EU) 2019/2152 of the European Parliament concerning business statistics. 

Central Business Register

The CSO’s Central Business Register provides the sampling frame from which the Annual Services Inquiry sample is selected each year. The Business Register is updated continuously throughout the year.

Sample Design

The ASI is designed to provide estimates of the principal trading aggregates for all enterprises in the relevant sectors. The ‘enterprise’ is the unit used for survey purposes i.e. one return is sought in respect of each enterprise covering all constituent branches, local units or subsidiaries. The sample is selected based on number of persons engaged in the enterprise i.e. number of proprietors plus number of full-time and part-time staff. A census of enterprises with 50 or more persons engaged is selected. In addition a stratified random sample is selected for the enterprises with less than 50 persons engaged, with decreasing sampling proportions taken in the lower persons engaged ranges. All enterprises with 1 or more persons engaged are included in the survey frame. However, the units with less than 2 persons engaged are not surveyed; the data for those are imputed directly from administrative data sources.

Use of Administrative data

The original series was aggregated using grossing factors. This method has been revised in the new series. Instead of grossing, the use of administrative (tax) data is used instead.

For every non-respondent or non-surveyed enterprise a survey return is created using tax information. The primary financial value the survey uses is profit/loss data with estimates for labour costs added to arrive at a value for GVA. This is derived from the administrative data. Other financial variables normally received from the survey form are estimated using actual survey returns as the data is not available from the administrative data. This is done using ratio-estimators.  A basic example of the concept would be the ratio of turnover to gva. If the ratio for a particular Nace is 4:1 for turnover to GVA, we would simply multiply the derived administrative GVA by 4 to give us a turnover value.

Number of Persons Employed 

The number of persons employed includes all full time and part-time employees. It also includes proprietors, partners and family members who work for an enterprise. It excludes agency workers.

Service and Distribution

Service and Distribution in EU27 Ireland includes NACE groups G-S (excluding O and S94). From 2021 "Market Producer" (as defined in point 3.24 of Chapter 3 of Annex A to Regulation (EU) No 549/2013) from Groups P-S excluding S94 are included. The other EU Countries include NACE groups G-R (excluding S94).

Building and Construction Inquiry

Scope and Coverage

The Building and Construction Inquiry (BCI) introduced in 2009 for reference year 2008 onwards, replaces the Census of Building and Construction (CBC).  The CBC was intended to cover firms in the private (i.e non-State) sector with 20 or more persons engaged whose main activity is building, construction or civil engineering i.e firms classified to Section F of NACE Rev.2 of the NACE Industrial Classification of Economic Activity in the European Communities (NACE Rev. 2).  In addition to covering private firms with 10 or more persons engaged, the BCI also covers a sample of private firms with less than 10 persons engaged.

Introduction of NACE Rev. 2

The NACE Industrial Classification of Economic Activities developed in the European Community has been revised.  All Firms classified according to NACE Rev. 2.  Prior to 2008, CBC results were classified according to NACE Rev. 1.1. For further information on the NACE Rev. 2 classification of industrial activity visit the CSO website: Classification of Industrial Activity.

History

The Census of Building and Construction first appeared as a separate census in 1966.  Prior to that, data on the building and construction sector was collected and published in the Irish Statistical Bulletin/ Irish Trade Journal as part of the Census of Industrial Production (first inclusion in the 1926 Census). It was first published as a separate release document in 1981.  Data since 1981 is available electronically on our website www.cso.ie via CSO Statistical Databases/Statbank PxStat.

Section F of NACE Rev. 2 - All building and construction comprising: NACE Activity Classifications

Nace 41.1 Development of building projects
Nace 41.2 Construction of residential and non-residential buildings
Nace 42.1 Construction of roads and railways
Nace 42.2 Construction of utility projects
Nace 42.9 Construction of other civil engineering projects
Nace 43.1 Demolition and site preparation
Nace 43.2 Electrical, plumbing and other construction installation activities
Nace 43.3 Building completion and finishing
Nace 43.9 Other specialised construction activities

Definition of Variables

Employees are persons who are paid a fixed wage or salary.  Persons at work or temporarily absent because of illness, holidays, strike etc. are included. Persons working on a labour-only subcontract basis are excluded.

Manual Employees comprise skilled operatives, apprentices and unskilled operatives.

Other Employees comprise supervisory staff (foremen and supervisors), managerial, technical and clerical (male and female) employees.

Proprietors and family members, included here are those proprietors, partners etc. and members of their families who work regularly in the firm and are not paid a definite wage or salary.

Wages and salaries is the gross amount paid to employees before deduction of income tax, employees' social security contributions etc. plus payments to labour-only subcontractors.  Overtime pay, bonuses, holiday pay and sick pay are included.

Acquisitions and sales of capital assets where Capital assets are defined as new and second-hand goods with an expected life of more than one year intended for use by the firm itself.  Acquisitions include both purchases and construction by the firm itself of capital goods for its own use.

Production value represents the net selling value of work done during the year, whether sold or not.  It is valued exclusive of VAT.  It incorporates an element of double counting arising from the fact that work done on a subcontract basis by firms in a particular sector for other firms in the same sector is included in the turnover figures provided by both firms.  However, in the calculation of Gross Value Added and variable 43 (value of work done by own staff) this double counting is eliminated.

Intermediate consumption represents the value of building materials, fuel, industrial services and other goods and services used in production.  The definition of this variable has been changed from that given in the 1981 results (Statistical Bulletin, March 1985) to include payments to subcontractors as part of the cost of industrial services, thereby eliminating double counting from the Gross Value Added figures.

Gross Value Added is the difference between production value and intermediate consumption and represents the value added by the firm.  Because work done by subcontractors is treated as part of intermediate consumption, there is no double counting in this variable.

Use of Administrative Data

For every non-respondent or non-surveyed enterprise a survey return is created using tax information. The primary financial value the survey uses is profit/loss data with estimates for labour costs added to arrive at a value for GVA. This is derived from the administrative data. Other financial variables normally received from the survey form are estimated using actual survey returns as the data is not available from the administrative data. This is done using ratio estimators. A basic example of the concept would be the ratio of turnover to GVA. If for a particular NACE the ratio of turnover to GVA is 4:1, we would simply multiply the derived administrative GVA by 4 to give us a turnover value.

From reference year 2019 onwards the real-time PAYE Modernisation (PMOD) dataset is used for labour costs, rather than using estimates.

Gross Value Added (GVA) at Factor Cost

GVA can be expressed at Factor Cost or at Basic Prices. GVA at Basic Prices is the gross income from operating activities while GVA at Factor Cost is the gross income from operating activities adjusting for operating subsidies and indirect taxes. In the Business in Ireland Summary Results release GVA is expressed at Factor Cost. Data on GVA at Basic Prices is available on PxStat, for Industry and Construction.