A User’s Guide to PRODCOM December 2015 Edition No.: 2 Editor: Simon Weakley Office for National Statistics 2 A User’s Guide to PRODCOM A National Statistics publication Copyright and reproduction National Statistics are produced to high professional standards set out in the Code of Practice for Official Statistics. They are produced free from political influence. © Crown copyright 2015 About us The Office for National Statistics The Office for National Statistics (ONS) is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly to Parliament. ONS is the UK government’s single largest statistical producer. It compiles information about the UK’s society and economy, and provides the evidence-base for policy and decision-making, the allocation of resources, and public accountability. The DirectorGeneral of ONS reports directly to the National Statistician who is the Authority's Chief Executive and the Head of the Government Statistical Service. 2 You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, go to: www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU email: psi@nationalarchives.gsi.gov.uk Any enquiries regarding this publication should be sent to: info@statistics.gsi.gov.uk This publication is available for download at: www.ons.gov.uk The Government Statistical Service The Government Statistical Service (GSS) is a network of professional statisticians and their staff operating both within the Office for National Statistics and across more than 30 other government departments and agencies. Contacts This publication For information about the content of this publication, contact the PRODCOM team. Tel: 01633 456746 Email: prodcompublications@ons.gsi.gov.uk Other customer enquiries ONS Customer Contact Centre Tel: 0845 601 3034 International: +44 (0)845 601 3034 Minicom: 01633 815044 Email: info@statistics.gsi.gov.uk Fax: 01633 652747 Post: Room 1.101, Government Buildings, Cardiff Road, Newport, South Wales NP10 8XG www.ons.gov.uk Media enquiries Tel: 0845 604 1858 Email: press.office@ons.gsi.gov.uk Office for National Statistics 2 A User’s Guide to PRODCOM 2 Contents A National Statistics publication ................................................................................................. 2 About us ........................................................................................................................................ 2 Contacts ........................................................................................................................................ 2 Copyright and reproduction ......................................................................................................... 2 Contents ........................................................................................................................................ 3 Introduction ................................................................................................................................... 4 What variables does PRODCOM provide? .................................................................................. 4 Individual product information ......................................................................................................... 4 Value .......................................................................................................................................... 5 Volume ....................................................................................................................................... 5 Unit value ................................................................................................................................... 5 SIC Totals ....................................................................................................................................... 5 UK manufacturer sales of individual products listed in this product group ................................... 5 All other income.......................................................................................................................... 5 Total UK manufacturer sales of products in this product group ................................................... 6 Merchanted goods...................................................................................................................... 6 Work done .................................................................................................................................. 6 Waste products .......................................................................................................................... 6 Non production income............................................................................................................... 6 Net carry-in/carry-out .................................................................................................................. 6 Total turnover of businesses classified to this industry ............................................................... 6 A note about HMRC trade data ....................................................................................................... 6 A guide to the Data Explorer ...................................................................................................... 12 PRODINDS: UK Manufacturers' Sales by Product Survey- Industry Breakdown. .......................... 14 PRODPRODS: UK Manufacturers' Sales by Product Survey- Product Breakdown. ...................... 17 A guide to the Excel spreadsheets ............................................................................................ 23 Annex A – Before and after views of Excel reference tables ................................................... 24 Annex B – Data Markers for Data Explorer (Open Data) and Excel Reference Tables ........... 26 Office for National Statistics 3 A User’s Guide to PRODCOM 2 Introduction The UK Manufacturers’ Sales by Product survey, more commonly known as PRODCOM, is the most comprehensive annual business survey conducted by the Office for National Statistics (ONS), covering product sales in the manufacturing industry. Prior to 1993 product information was collected through the Annual and Quarterly Sales Inquiries (ASI/QSI). The survey collects information from approximately 21,500 UK manufacturing businesses from a total of 234 manufacturing industries1, covering approximately 3,800 products2. Though every business is classified to a specific manufacturing industry, each business can span a variety of products depending on the diversity of its activity. This enables businesses to contribute to multiple industries product sales. In addition to product sales information, businesses supply nonmanufacturing income. This allows investigation of the proportion of manufacturing and nonmanufacturing activity in each manufacturing industry. Due to the complexity of the PRODCOM survey, this guide has been created to aid interpretation of the PRODCOM estimates and the tables they are presented in. The guide will be updated annually with any changes to the tables or variables provided. We welcome any comments or thoughts you might have about this guide, and would be particularly interested in any suggested improvements. Please contact us via email: prodcompublications@ons.gsi.gov.uk or telephone on +44 (0)1633 456746. What variables does PRODCOM provide? There are two ways to consider the PRODCOM data; in terms of businesses classified to an industry and in terms of products corresponding to an industry. Product information, either individual products or total product sales in the SIC totals table, relate to products corresponding to an industry irrespective of which SIC the business making the product is classified to. On the other hand, all other variables found in the SIC totals table refer to the activity of businesses classified to just the SIC in question. Individual product information Information is collected on approximately 3,800 products as defined in the PRODCOM list, which is updated every year by the European Statistical Office (Eurostat). Each product is identified by an 8-digit PRODCOM commodity code. The first 4 digits of the code correspond to the classes of NACE 2 (which corresponds to SIC07 in the UK1). The first 6 digits are the CPA code2, while the last 2 digits show the classification of a heading within this CPA code. See figure 1 for an example: 1 These industries are defined at the 4-digit SIC level. SIC is a Standard Industrial Classification used to classify business establishments by the type of economic activity they are engaged in. SIC07 is the latest revision of SIC 2 At the 8-digit PRODCOM commodity code level based on 6-digit CPA (Classification of Products by Activity) Office for National Statistics 4 A User’s Guide to PRODCOM 2 Figure 1: An example of how product classification breaks down. Value Value variables refer to the production sold for each product, rather than the total produced, and are reported in £ thousands. All “products” classified to an SIC starting with 33 (33XX) refer to industrial services rather than physical products; therefore the reported values refer to the fee paid. Volume Volume variables also refer to the production sold for each product, rather than the total produced. In some cases no volume data is required by Eurostat, therefore only value is reported. Furthermore when the product refers to an industrial service no volume is reported. Often businesses have difficulty providing volume information resulting in low response, and therefore a high level of estimation. This may impact on the quality of the estimates, and is highlighted by an E next to the relevant figures in the reference tables. Unit value Unit value is separately calculated if both value and volume information for a product has been supplied, and is provided in £s. SIC Totals The following SIC totals variables can be used when considering the data in terms of products corresponding to an industry, rather than businesses: UK manufacturer sales of individual products listed in this product group This variable is the total sales of all products corresponding to an industry that are not suppressed in the publication. A product value is suppressed if too few businesses respond to a question, or if there is a dominant contributor, which could lead to disclosure. Product volumes and unit values suppressed as disclosive are marked by an S, whereas product values suppressed as disclosive are marked by an S*. In the data explorer format all values suppressed as disclosive are marked by a c. All other income This variable is the manufacturers' sales of minor products; products with sales values of less than £25,000 each, and products that have been marked by an S*. Office for National Statistics 5 A User’s Guide to PRODCOM 2 Total UK manufacturer sales of products in this product group This variable can be used when considering the data in terms of products corresponding to an industry. This variable is the total sales of all products in the SIC07 industry. This is the sum of variables “all other income” and “UK manufacturer sales of individual products listed in this product group”. The remaining SIC totals variables can be used when considering the data in terms of businesses classified to an industry, rather than products: Merchanted goods Merchanted goods refers to the value of sales of goods that have been bought in and resold without being subject to any manufacturing process. Work done Work done refers to the amount charged to a customer by a business, for work done on material provided by the customer. The business does not report the final product in product sales as the materials are owned by the customer, not the business. Waste products Waste products refers to the value of sales of waste products and residues left over after manufacture. Non production income Non-production income is derived from the provision of services and other non-production activities not listed in the other variables above. This could include freight costs, payments for repairs, maintenance and installation of customers' plant and equipment (where not covered by an industrial services product code), amounts received for use of patents, trademarks, copyrights, royalties, technical knowledge, rent etc. Net carry-in/carry-out This variable refers to products classified to the SIC07 industry but manufactured by businesses classified outside the industry (Carry-in) and products classified outside the industry but manufactured by businesses classified within the industry (Carry-out). Net carry in/carry out is calculated Carry-out less Carry-in. When this figure is positive it means carry-out is greater than carry-in, but if the figure is negative carry-in is greater than carry-out. Total turnover of businesses classified to this industry This variable is the sum of all product sales, merchanted goods, work done, waste products, non production income and net carry-in/carry-out for all businesses classified to the SIC industry. A note about HMRC trade data Up to the June 2013 release, estimates of Intra and Extra EU Imports and Exports were also reported alongside the estimates of PRODCOM sales. These data are collected by HMRC, and were matched with the PRODCOM codes for the benefit of demonstrating the UK trade balance. However, there are several differences between the PRODCOM and International Trade statistics data sources therefore trade data has been removed until the comparability between the sources can be improved. Any updates will be provided on the PRODCOM news page. Office for National Statistics 6 A User’s Guide to PRODCOM Office for National Statistics 2 7 A User’s Guide to PRODCOM 2 Case Study: how can the data be used? Joe Bloggs is interested in SIC 1105, the manufacture of beer, and wants to use the PRODCOM data to learn more. Joe needs to select Division 11 in the Open Data explorer or go the Division 11 data tab of the Excel spreadsheets, and then navigate to SIC 1105: Table 1: SIC Totals for Manufacture of beer SIC(07) 1105 - Manufacture of beer £ Thousands SIC Totals and Non Production Headings 2012 Sales 2013 Sales 2014 Sales UK manufacturer sales of individual products listed in this product group All other income 3,269,155 173 3,296,963 184 3,285,923 251 Total UK manufacturer sales of products in this product group Merchanted goods Work done Waste Products Non production income Net carry in/carry out Total turnover of businesses classified to this industry 3,269,328 940,097 S S 91,487 489,314 4,885,877 3,297,147 1,027,641 73,125 1,846 89,346 398,694 4,887,798 3,286,174 1,009,721 68,991 1,388 82,039 496,922 4,945,235 Table 1 shows the total of all product sales in this industry in 2014 is £3.3 billion. Table 2 below provides further information on individual products within the industry which sum to give this figure. For example: Table 2: Product Sales data for Beer made from malt 11051000 (CN 2203) - Beer made from malt (EXCLUDING alcohol duty) EXCLUDING: - non-alcoholic beer - beer containing not more than 0.5% by volume of alcohol Value £000's Volume (Thousand litres) £ per Thousand litres £ Thousands 2012 Sales 3,227,365 4,933,592 654.16 2013 Sales 3,244,999 4,804,581 675.40 2014 Sales 3,244,872 4,894,065 663.02 Using this product information, Joe can calculate what proportion of the total beer product sales is contributed by this product: £3,244,872,000/£3,286,174,000 = 98.7% of total beer product sales. Unfortunately some of the data in this industry is suppressed so Joe will not be able to find out about all the products. There is further information available in the SIC totals table in addition to the product sales which will allow Joe to see the composition of the industry’s turnover. See figure 2: Office for National Statistics 8 A User’s Guide to PRODCOM 2 Figure 2: The composition of turnover in the manufacture of beer industry in 2014 This shows the majority of turnover in this industry comes from product sales at 76.5%; 66.5% from total product sales and 10.0% from net carry-in/carry-out. “Total UK manufacturer sales of products in this product group” refers to beer product sales from all businesses irrespective of which SIC they are classified to. The carry-in/carry-out figure refers to turnover generated by the sale of nonbeer products by businesses classified within the beer industry, and also by the sale of beer products by businesses not classified to the beer industry. A net carry in (positive figure) indicates beer businesses are making more products classified elsewhere than beer products made by businesses not classified to the beer industry, and vice versa for a net carry out (negative figure). The next largest portion of turnover comes from merchanted goods at 20.4%. Non production income and work done both only small amounts, 1.7% and 1.4% respectively, while the sale of waste products contributes a negligible amount to turnover so cannot be seen in figure 2. Joe could also compare the variables overtime but he must be cautious with this approach as the value figures are not adjusted for the effects of inflation. However, the possibility of adjusting for inflation will be investigated, and any updates provided on the PRODCOM news page. Office for National Statistics 9 A User’s Guide to PRODCOM 2 Open Data and Excel reference tables PRODCOM publishes tables of estimates on a Data Explorer (Open Data) platform and also via Microsoft Excel spreadsheets. For the December 2015 release the Data Explorer tables for PRODCOM have been restructured, with significant developments. There are now 2 tables: “UK Manufacturers’ Sales By Product Survey - Product Breakdown” containing 2-digit divisional totals and expanding to show figures at 8-digit product level, while “UK Manufacturers’ Sales By Product Survey - Industry Breakdown” contains the SIC totals and non production headings at 2-digit division level, expanding to show the same variables for the 4-digit industry within the division. Some data in each table will be suppressed to avoid disclosing information about specific businesses; if there are too few businesses for a variable for example, or a certain respondent is too dominant for a variable, then the data will be replaced by a marker. These are as described in the table within Annex B. A note about the Excel Reference Tables The Excel tables were redesigned in December 2014 to also contain the division totals, which will allow Joe to see what proportion of product sales for Division 11 (the manufacture of beverages) is contributed by products in SIC 1105. Table 3: UK Manufacturers’ Sales by Industrial Division Industry 2012 Other mining and quarrying Manufacture of food products Manufacture of beverages Manufacture of tobacco products Manufacture of textiles Manufacture of wearing apparel Manufacture of leather and related products Manufacture of wood and of products of wood and cork, except furniture; Manufacture paperand products manufacture of paper articlesand of straw plaiting materials Printing and reproduction of recorded media Manufacture of coke and refined petroleum products Manufacture of chemicals and chemical products Manufacture of basic pharmaceutical products and pharmaceutical Manufacture preparations of rubber and plastic products Manufacture of other non-metallic mineral products Manufacture of basic metals Manufacture of fabricated metal products, except machinery and equipment Manufacture of computer, electronic and optical products Manufacture of electrical equipment Manufacture of machinery and equipment n.e.c. Manufacture of motor vehicles, trailers and semi-trailers Manufacture of other transport equipment Manufacture of furniture Other manufacturing Repair and installation of machinery and equipment Total £ Thousands 2013 2014 S 62,897,838 12,375,786 1,793,420 4,134,488 1,634,262 646,669 5,739,940 10,018,458 8,672,310 S S 12,288,627 S 10,167,511 7,422,006 S S S 26,920,747 39,296,813 23,839,850 6,098,141 S S 2,302,028 65,714,088 12,384,102 1,723,231 S S S 6,213,525 S 7,896,087 S 22,844,184 12,070,913 S 10,269,350 6,817,405 24,353,416 12,078,897 S 26,466,408 44,949,620 27,474,402 6,274,505 S 13,585,576 S 66,845,706 12,768,718 1,831,971 S S 727,892 S 10,352,925 8,440,071 S S 11,991,298 S 10,657,478 6,490,140 25,497,562 12,511,492 S 28,249,127 45,966,075 26,539,951 6,448,532 5,125,728 13,637,870 341,984,772 354,521,368 362,318,559 Office for National Statistics 10 A User’s Guide to PRODCOM 2 The total product sales for the beer industry in 2014, was £3,286,174,000 whereas the total product sales for division 11 were £12,768,718,000. Therefore: £3,286,174,000/£12,768,718,000 = 25.9%. Office for National Statistics 11 A User’s Guide to PRODCOM 2 A guide to the Data Explorer The new Data Explorer tool enables users to manipulate the way you look at the PRODCOM data. Whereas the excel reference tables provide data in separate sheets for each division, the Data Explorer can provide all information in one dataset, allowing easier comparison between products classified to different divisions, and between SIC total variables classified to different divisions. As well as being viewable online, the complete datasets can be extracted and downloaded in a suitable format. Data is currently only available for 2013 and 2014; however more data for previous periods will be available in future. Information on further updates can be found on the PRODCOM news page. Some of the benefits of the open data format include: The views are highly customisable so you can see the data you need on a single screen The data is available as a direct download in a variety of formats including xlsx, csv or xml, which allows for easy manipulation of large amounts of data It can be viewed entirely through a web browser, without requiring any data to be downloaded When you click on the dataset link on the statistical bulletin you are brought to the page in Figure 3 which shows the two choices of dataset for PRODCOM. The first contains a breakdown by 2-digit division and 8 digit product group with value, volume and unit value The second contains a breakdown by 2 digit division and 4 digit industry with SIC totals. Figure 3: Data Explorer landing page for PRODCOM Office for National Statistics 12 A User’s Guide to PRODCOM 2 Once a dataset has been selected, more details about it are displayed as in Figure 4 and clicking on View allows you to see the data for that dataset. Alternatively, you can select Download to download the dataset as either a csv, xlsx or xml format, which will contain all the data from all levels of the hierarchy in the dataset in a single row per year, allowing for easy manipulation of large amounts of data. Office for National Statistics 13 A User’s Guide to PRODCOM 2 PRODINDS: UK Manufacturers' Sales by Product Survey- Industry Breakdown. Figure 4: UK Manufacturers' Sales by Product Survey- Industry Breakdown, main page. Once you have selected the Industry Breakdown dataset and clicked view as outlined above, you will see the dataset from figure 5: Office for National Statistics 14 A User’s Guide to PRODCOM 2 Figure 5: UK Manufacturers' Sales by Product Survey- Industry Breakdown, divisional view. When you first open the dataset, product sales total data is supplied for each division in rows with a different column for each year. A dropdown menu at the top allows you to select Total UK manufacturer sales of products in this product group (the default view) or any of the other SIC Office for National Statistics 15 A User’s Guide to PRODCOM 2 Totals variables explained previously. Clicking on a division displays the data of all industries comprising the division, as shown in figure 6 below. Figure 6: UK Manufacturers' Sales by Product Survey- Industry Breakdown, industry view The next section covers the second PRODCOM dataset. Office for National Statistics 16 A User’s Guide to PRODCOM 2 PRODPRODS: UK Manufacturers' Sales by Product Survey- Product Breakdown. Once you have selected the Industry Breakdown dataset and clicked view as outlined previously (see figure 3 above), you will see the dataset from figure 7: Figure 7: UK Manufacturers' Sales by Product Survey- Product Breakdown, main page Once you have selected the Product Breakdown dataset and clicked view as outlined above, you will see the dataset from figure 8: Office for National Statistics 17 A User’s Guide to PRODCOM 2 Figure 8: UK Manufacturers' Sales by Product Survey- Product Breakdown, divisional view Clicking on a division displays the value, volume or unit value information of all products comprising the division, depending on what has been selected in the dropdown list at the top. Office for National Statistics 18 A User’s Guide to PRODCOM 2 Please note: As different products within a division may be collected in different volume units, only value data will be displayed at divisional level. The sum of each product sales value will not equal the divisional total, as the divisional total includes data from “all other income.” Clicking on a division displays the data of all products comprising the division, as shown in figure 9 below. Office for National Statistics 19 A User’s Guide to PRODCOM 2 Figure 9: UK Manufacturers' Sales by Product Survey- Product Breakdown, product view Office for National Statistics 20 A User’s Guide to PRODCOM 2 Further information on the Data Explorer The views for either of these tables can be rearranged by clicking on customise view: Figure 10: Data Explorer options This opens the menu in figure 11: Figure 11: Customise view menu The items shown can be re-arranged depending on how you want to view the data. For example you may want to view the value, volume and unit value for each product; to do this, simply drag the Prodcom Elements box out of the wafer, to below the industry box in the row column. Further features allow you to choose which SICs or products you look at. For example if you are interested in a particular industry or product you can refine the dataset by clicking on “by topic” The window from figure 12 is then opened: Office for National Statistics 21 A User’s Guide to PRODCOM 2 Figure 12: Refining datasets by topic This allows you to choose whether you just want to view the value, volume or unit price, or a combination, the SICs and products you are interested in, and the year or years you are interested in. Once you have made your selection, and pressed submit, the data is shown in the data explorer previously shown. This can be downloaded to view in an excel table by clicking on download or viewed in a chart by clicking chart, as illustrated in figure 13: Figure 13: Data Explorer options, Chart or Download It is important to note new PRODCOM codes are introduced each year, and existing codes are changed or deleted, therefore blank spaces may be present for years where the code in question does not exist. A document outlining these question changes is located here on the PRODCOM web page. We aim to continuously improve our outputs and we would welcome thoughts on the new data explorer and comments on any improvements that would help users. Please contact us via email: prodcompublications@ons.gsi.gov.uk or telephone on +44 (0)1633 456746. Office for National Statistics 22 A User’s Guide to PRODCOM 2 A guide to the Excel spreadsheets Excel reference tables were redesigned for the December 2014 publication following the decision to remove HMRC trade data. This was due to the comparability issues between the data sources; further information can be found in the Quality & Methods Information document. In addition to the removal of trade data, further changes have been made to the tables based on user feedback to improve usability of the data and to aid navigation: Time series data are presented in the same table Ordering of the SIC totals table and removal of codes not required by users All data and the accompanying quality measures are available in one excel workbook, rather than having to separately download different workbooks for each division Before and after views of the spreadsheets can be found in Annex A. We hope these changes make the data much easier to use. Due to resource constraints, the intention is to gradually phase out the Excel spreadsheets once the Data Explorer tool is fully functional. Users will be consulted before this change is implemented. We aim to continuously improve our outputs and we would welcome thoughts on the new format and comments on any further improvements that would help users. Please contact us via email: prodcompublications@ons.gsi.gov.uk or telephone on +44 (0)1633 456746. Office for National Statistics 23 A User’s Guide to PRODCOM 2 Annex A – Before and after views of Excel reference tables Figure 14: Before view Office for National Statistics 24 A User’s Guide to PRODCOM 2 Figure 15: After view Office for National Statistics 25 A User’s Guide to PRODCOM 2 Annex B – Data Markers for Data Explorer (Open Data) and Excel Reference Tables Symbols used in the Excel Reference Tables: S S* N/A A volume or unit value suppressed as disclosive A value suppressed as disclosive and aggregated within the UK Manufacturer Sales of "Other" products * Data not available Data has low response, and therefore a high level of estimation, which may impact on the quality of the estimate Not able to provide data due to secondary disclosure, different units of measurement or other technical issues . Not able to calculate E Symbols used in the Open Data Tables: c Data suppressed as disclosive for any reason : Data not available for this question Data has low response, and therefore a high level of estimation, which may impact on the quality of the estimate The question is not on the PRODCOM List for the year in question E Office for National Statistics 26