An Integrated Approach to Economic Statistics “ The Canadian Experience” UNSD – IBGE Workshop on Manufacturing Statistics Kevin Roberts Rio de Janeiro, Brazil September, 2007 Statistics Canada Statistique Canada

Overview of the presentation 1.Unified Enterprise Statistics Program - Background 2.Integrated Approach Principles 3.Survey Characteristics 4.Integrated Questionnaire 5.Business Register Statistics Canada Statistique Canada

1.0 Unified Enterprise Statistics - Background Major project to improve provincial statistics (1996) Occasion to improve consistency, coherence, breadth and depth of business survey data More detailed Industry & Commodity data Creation of Enterprise Statistics Division (ESD) Gradual Expansion of Surveys; Covers 65% of GDP Statistics Canada Statistique Canada

2.0 Integrated Approach Principles Use of Single, Unduplicated Frame - the Business Register Common Sample Design Methodology Maximum Use of Tax Data Reduction of Response Burden Integrated Questionnaire - simple language; harmonized concepts / common variables Statistics Canada Statistique Canada

2.0 Integrated Approach Principles (continued) Centralized Data Collection Enterprise Portfolio Managers Common Generic Processing Systems and Methods Centralized Warehouse for processing and analytical purposes Statistics Canada Statistique Canada

3.0 Survey Characteristics Separate Enterprise & Establishment Surveys 64 Establishment Surveys Over 55,000 collection entities representing about 68,000 establishments (17K replaced by tax for Reference Year 2007) Smallest businesses estimated through tax data Statistics Canada Statistique Canada

4.0 Integrated Questionnaire - Objectives Facilitate operations at all survey steps Easier to add or delete content Reduce response burden Allow comparison of data from various sources Capacity to link survey cells with administrative data Statistics Canada Statistique Canada

4.1 Improvements to Survey Content Since 2002, initiatives to improve response rates and reduce response burden Reduce size of the questionnaire Consistency of questions Common concepts among surveys Questionnaire testing Chart of Accounts Survey instructions on the guide Meta data driven (IQMS) Statistics Canada Statistique Canada

DISSEMINATION COLLECTION 4.2 Chart of Accounts Sales Operating revenue Cost of sales Gross profit Expenses EBIT Outputs Inputs Value added Shipments Operating Surplus GDP LINK, BRIDGE, CONCORDANCE

4.2 Benefits of a Chart of Accounts Standardization in business data collection Higher survey response rates Increase in quality of data Comparison of data from various sources Increase efficiency in using administrative data Statistics Canada Statistique Canada

4.3 Integrated Questionnaire Metadata System (IQMS) Store Survey metadata Definitions of variables Codes Edits Derived variables Facilitate operations and changes Statistics Canada Statistique Canada

4.4 Bank of survey cells Consistency of questions Same meaning for manufacturing or services industries Operating revenue Investment income Depreciation/ amortization Total operating expenses Some cells specific to some industries Statistics Canada Statistique Canada

4.5 Characteristics Questions Specific to each Industry Commodities for manufacturing Details for services Services outputs Services inputs (to come) Statistics Canada Statistique Canada

5.0 Business Register (BR) Develop and maintain a register of all businesses in Canada (~2.3 million businesses) Provide business surveys with: Survey frames Browse, extract and updating capabilities Measure of respondent burden Disseminate business demographic data Statistics Canada Statistique Canada

5.1 Business Register - Coverage All businesses producing goods & services in Canada Including: Canadian subsidiaries of foreign enterprises Canadian embassies abroad Foreign subsidiaries of Canadian enterprises Statistics Canada Statistique Canada

5.2 Business Register – Key Variables Identification variables Legal & Operating name Legal & Operating Address Phone number Contact name Business Number assigned by the Canadian Revenue Agency Statistics Canada Statistique Canada

5.2 Business Register – Key Variables (continued) Stratification variables North American Industrial Classification (NAICS) 6 digit code that describes the industrial activity Geographic variables Provincial code Sub-Provincial codes Size variables Gross Business Income Number of Employees Statistics Canada Statistique Canada

5.3 BR Structure Business Accounting Operating Unit Business Entity  Investment center  Profit center  Cost center  Revenue center  Statistical Structure Statistical Unit Enterprise Company Establishment Location Statistics Canada Statistique Canada

5.4 Business Register – Source of Updates Complex Enterprises (Done manually) Annual face to face interview (375 largest) Business Register reaction profile (Tel. interview) Business survey feedback (~100 surveys) Non-Complex Enterprises (Automated) Administrative data (Canadian Revenue Agency) Business Number Registration (BN) Payroll Source Deduction Goods & Services Tax (GST) Corporation Tax (T2) Business survey feedback (~100 surveys) Statistics Canada Statistique Canada

5.5 Business Register – SUF Example Generic Survey Universe File Statistics Canada Statistique Canada IC S PC S RC S RC S RC S PC S CC S PC S Each row corresponds to a production unit (a box above).

5.6 Business Register – Overall Principals It is important to: Have a good source of administrative data Ensure that the data is of the best possible quality Develop a good trust with the large businesses Automate the updates as much as possible Standardize the procedures Use accepted standards (geographic, classification, etc) Use the business register to supply frame to all economic surveys (economy of scale and survey feedback) Statistics Canada Statistique Canada

Contact Information Kevin Roberts Manufacturing, Construction and Energy Division Statistics Canada Jean Talon Building, 11th Floor Tunney's Pasture Ottawa, Ontario, Canada KIA 0T6 Telephone: (613) Fax: (613) Statistics Canada Statistique Canada