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Manufacturing StatisticsManufacturing StatisticsCurrent trends and challengesCurrent trends and challenges

United Nations Statistics DivisionUnited Nations Statistics Division

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Are Manufacturing statistics still Are Manufacturing statistics still relevant?relevant?

• Often cited phrases:Often cited phrases:• ““Manufacturing activities are declining”Manufacturing activities are declining”• ““The share of manufacturing activities is The share of manufacturing activities is

declining and services dominate the declining and services dominate the economic production”economic production”

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Are Manufacturing statistics still Are Manufacturing statistics still relevant?relevant?

• Manufacturing activities are growing worldwideManufacturing activities are growing worldwide• While services play an increasing role today, While services play an increasing role today,

manufacturing as the source of all physical goods manufacturing as the source of all physical goods remains an essential key component of all economic remains an essential key component of all economic statisticsstatistics

• Many service industries support manufacturing or are Many service industries support manufacturing or are based on goods produced by the manufacturing based on goods produced by the manufacturing sectorsector

• Manufacturing statistics are a key input into the Manufacturing statistics are a key input into the national accounts, but have also important national accounts, but have also important applications in their own rightapplications in their own right

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Are Manufacturing statistics still Are Manufacturing statistics still relevant?relevant?

• Manufacturing sector plays leading role for growth in Manufacturing sector plays leading role for growth in most developing countries, while the services sector most developing countries, while the services sector does in developed countries, supported by strong does in developed countries, supported by strong technology-based manufacturing sectortechnology-based manufacturing sector

• Industrial development is particularly important for Industrial development is particularly important for economic prosperity because of its technological and economic prosperity because of its technological and high value adding nature and employment effecthigh value adding nature and employment effect

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Are Manufacturing statistics still Are Manufacturing statistics still relevant?relevant?

• Not all manufacturing industries have high growth Not all manufacturing industries have high growth potential, therefore research and policy makers seek potential, therefore research and policy makers seek potential sources of growth, with notions of potential sources of growth, with notions of comparative advantage, competitiveness, productivity comparative advantage, competitiveness, productivity and structural change as such at the sub-sectoral and structural change as such at the sub-sectoral level becoming relevantlevel becoming relevant

• Demand for internationally comparable data on Demand for internationally comparable data on detailed (structural) manufacturing statistics is detailed (structural) manufacturing statistics is increasing more than ever for industrial-growth increasing more than ever for industrial-growth empiricsempirics

• Statistics need to reflect effects of globalization of Statistics need to reflect effects of globalization of production, such as outsourcing, global supply chainsproduction, such as outsourcing, global supply chains

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Available statistics for manufacturingAvailable statistics for manufacturing

• Data collection at the international level:Data collection at the international level:• General industrial statistics General industrial statistics ((number of number of

establishments, employment, female employment, establishments, employment, female employment, wages and salaries, output*, value added*, gross fixed wages and salaries, output*, value added*, gross fixed capital formationcapital formation) ) (annual, 3 and 4-digit ISIC) (annual, 3 and 4-digit ISIC)

• Index numbers of industrial productionIndex numbers of industrial production(quarterly, 2-digit ISIC; monthly, 1-digit ISIC)(quarterly, 2-digit ISIC; monthly, 1-digit ISIC)

• Commodity production statisticsCommodity production statistics(annual, 600 products; monthly, 15 products)(annual, 600 products; monthly, 15 products)

• Indicators are based on “traditional” Indicators are based on “traditional” data collection by countrydata collection by country

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New ChallengesNew Challenges

• Manufacturing technologies and methods of Manufacturing technologies and methods of production have changed production have changed

• Manufacturing production has taken on a global Manufacturing production has taken on a global character, with production owners, production character, with production owners, production organizers, production contractors and clients located organizers, production contractors and clients located in different parts of the world (outsourcing, in different parts of the world (outsourcing, merchanting)merchanting)

• Specialization in support activities has changed the Specialization in support activities has changed the scope of activities of traditional manufacturing unitsscope of activities of traditional manufacturing units

• Some of these changes impact on time series for Some of these changes impact on time series for manufacturing statistics, while others are not visible manufacturing statistics, while others are not visible in traditional indicatorsin traditional indicators

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We need a consistent approach to:We need a consistent approach to:

• Scope of manufacturing activities and Scope of manufacturing activities and productsproducts

• Detail of statistics required Detail of statistics required • Selection of unitsSelection of units

• problems for continuity of historical time seriesproblems for continuity of historical time series• Measurement issuesMeasurement issues

• industry vs. product based measurementindustry vs. product based measurement• measurement of volatile industriesmeasurement of volatile industries• productivity measuresproductivity measures• valuation of outputvaluation of output

• Different forms of outsourcingDifferent forms of outsourcing

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Consistent approach (cont.)Consistent approach (cont.)

• Existing international guidelines:Existing international guidelines:• International Recommendations for Industrial International Recommendations for Industrial

Statistics (IRIS)Statistics (IRIS)• Last revision: 2008Last revision: 2008

• International Standard Classification of All International Standard Classification of All Economic Activities (ISIC)Economic Activities (ISIC)

• Last revision: 2008Last revision: 2008

• Central product classification (CPC)Central product classification (CPC)• Last revision: 2008Last revision: 2008

• Manual on index numbers of industrial productionManual on index numbers of industrial production• Last revision: 1950 (currently under revision)Last revision: 1950 (currently under revision)

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Current state of data collectionCurrent state of data collection• Index numbersIndex numbers

AnnualAnnual QuarterlyQuarterly MonthlyMonthly

CameroonCameroon XX XX

Dem. Rep. CongoDem. Rep. Congo XX XX

EgyptEgypt XX XX XX

GhanaGhana XX

KenyaKenya XX

MadagascarMadagascar XX XX

MalawiMalawi XX XX

MauritiusMauritius XX XX

South AfricaSouth Africa XX XX XX

SwazilandSwaziland XX

UgandaUganda XX XX

United Rep. TanzaniaUnited Rep. Tanzania XX XX

ZambiaZambia XX XX

ZimbabweZimbabwe XX XX XX

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Current state of data collectionCurrent state of data collection

• Industrial commodity statistics (of 588)Industrial commodity statistics (of 588)

MozambiqueMozambique 9494

NigeriaNigeria 7474

SeychellesSeychelles 1818

South AfricaSouth Africa 123123

SwazilandSwaziland 33

UgandaUganda 2727

United Rep. TanzaniaUnited Rep. Tanzania 7575

ZambiaZambia 33

ZimbabweZimbabwe 6868

BotswanaBotswana 1515

CameroonCameroon 3434

EgyptEgypt 202202

EthiopiaEthiopia 3434

GhanaGhana 1212

KenyaKenya 101101

LesothoLesotho 2121

MadagascarMadagascar 6161

MalawiMalawi 1212

MauritiusMauritius 1616