1. PRODCOM Grant Subcontracting Work
Nina Waltner
Statistik Austria
Vienna
June 2019
PRODCOM Grant Subcontracting Work

2. Types of production (PRODCOM)
EA – Own production intended for sale
EW – Own production intended for futher processing within the enterprise
EI – Own production intended for internal deliveries and performances
DL – Subcontracted work carried out as a subcontractor
AP – Sold production
IL – internal deliveries, transactions and performances
VL – subcontraced work carried out by another unit (principal)
Total production
Sold production

3. Defintion of subcontracting work
Current definition and EUROSTAT proposal for subcontracting work:
PRODCOM-report
Actual concept
Concept with FRIBS
subcontractor
Subcontracted work carried out as a subcontractor DL
Value of subcontracted work = compensation of service according to invoice
Subcontracted work carried out as a subcontractor DL + sold production
Value of subcontracted work as well als sold production according to invoice.
principal
Subcontracting work carried out by another unit VL + sold production AP
Value of subcontracting work according to current market price of the (sold) product
no report!

4. Sold production with VL/without DL Sold production without VL/with DL
CPA-2
Units (KAU)
Sold production with VL/without DL
Sold production without VL/with DL
difference
in Mio. Euro
in % 06 4 G 07 2 08
253
977
980
-0,3% 09 12 65
0,0% 10
739
12.811
12.843
-0,2% 11 96
5.553
3.009
84,5% 13
127
1.266
1.136
11,4% 14 55
539
339
59,0% 15 26
757
558
35,7% 16
541
7.041
6.985
0,8% 17
113
5.672
5.670 18
191
1.838
1.867
-1,6% 19 5
4.149 20
152
6.982
6.223
12,2% 21 39
2.251
2.749
-18,1% 22
294
5.897
5.945
-0,8% 23
469
5.212
5.237
-0,5% 24
126
15.448
15.509
-0,4% 25
1.076
13.463
13.703
-1,8%
151
6.272
5.940
5,6% 27
210
9.357
9.099
2,8% 28
480
17.163
17.212 29
124
13.082
13.205
-0,9% 30 38
3.495
3.482
0,4% 31
396
2.329
2.331
-0,1% 32
189
3.020
2.885
4,7% 33
643
6.228
6.296
-1,1%
B+C
6.551
2,3%

5. EUROSTAT-Grant – Additional survey
Objective of this additional survey is to analyse the current unterstanding of subcontracting by our respondents, to clarify uncertainties and if needed correcting our explanations and adopting our help. Maybe we can also clarify some aspects on EUROSTAT-level.
Background: According to EUROSTAT-Definitions subcontracted work occurs, when at least 80% of material is provided by the principal. But our experience shows that usually subcontracting work is seen by the respondents on a much wider scale.
The additional survey was carried out in December 2018 and February 2019 as a voluntary survey.
Depending on the actual production reported by the respondent, different topics were targeted -> 4 different survey parts.

6. EUROSTAT-Grant – Additional survey
Part 1 for respondens reporting only own production and sold production and no subcontracting work.
Questions:
Is production carried out only within the enterprise?
Are materials, plans or patterns provided by others within the production process?
Objective of these questions is to look for hidden subcontracted work.

7. EUROSTAT-Grant – Additional survey
Part 2 for repondents reporting subcontracted work carried out as subcontractor.
Questions:
Is material supported totally, partly or not provided by a principal?
If partly, please specify the proportion of own-purchased material?
Objective is to see, when respondents use subcontracted work. Do they distinguish between subcontracted work (as defined by EUROSTAT) and subcontracting as it is defined under ISA (no material input).

8. EUROSTAT-Grant – Additional survey
Part 3 for respondents reporting subcontracted work carried out by another unit (as principal)
Questions:
Is material provided totally, partly or not to another unit?
Objective same as within part 2.

9. EUROSTAT-Grant – Additional survey
Part 4 for respondents reporting industrial services (IS).
Selection:
IS refer to installation, repair and maintenance.
IS refer to processing and finishing of materials
provided by a subcontractor
from own production
purchased

10. First Results - Response
Response rate: 22,2 % (mainly in December 2018) corresponding to 2646 units
Part1: 2318 units
Part2: 135 units
Part3: 31 units
Part4: 172 units
Within part2 to 4 multiple reports are possible.

11. First Results - Response
Results of Part 1 (no subcontracting work, no industrial services)
80 % of the production is only carried out within the enterprise
20 % of the production is not only carried out within the enterprise:
Comments: trade, subcontracted work carried out by another unit, production carried out by a subsidiary company.
We will have to analyse these reports in detail by contacting the entprises.

12. First Results - Response
Results Part units and 167 PRODCOM-preports:
In 54 % material is provided entirely
In 30% material provided partly (50 units):
28 units without specification of percentage,
8 units with 80% and more material provided by a principal
14 units with less than 80% material provided
In 11% no material was provided.
5% selected other.

13. First Results - Response
Results Part3: 31 units and 70 PRODCOM-reports
40 units reported material is provided totally
27 units reported material is provided partly
3 units reported material is not provided
Results Part4: 172 units – 178 reports:
108 units reported service and repair
18 processing and finishing of material provided by a principal
11 processing and finishing of own produced material
27 processing and finishing of purchased material
14 other

14. First Results – Main Problems
Enterprises do not report subcontracted work.
Distinction between subcontracted work (as defined by EUROSTAT) and subcontracting as it is defined under ISA (no material input).
In many cases the subcontractor does not know the value of material input and sold value (CPA-guideline of 80% material input) – this is usually only known by the principal.
Treatment of service codes (industrial services): Should entprises report subcontracted work within industrial services? When to report production and when industrial services if material is not supported by a subcontractor?

15. Thank you for your attention!