1. 27 th Voorburg Group Meeting Warsaw, Poland Operational Efficiency Strategies Session (Survey Design Considerations for Supporting Industry-by- Product Estimates for the Service Annual Survey) presented by Mark E. Wallace Chief, Service Sector Statistics Division U.S. Census Bureau mark.e.wallace@census.gov October 1–5, 2012

2. Agenda Introduction, Background, and Challenge Meeting the Challenge - 3 Different Phases Outcome Conclusion and Next Steps Questions 2

3. Introduction, Background, and Challenge –Requests for industry-by-product detail for service industries since the 1980s, primarily from the Bureau of Economic Analysis (BEA) –The 2007 Economic Census included the first-time collection of a rich variety of service industry-by-product detail –Expansion of industry coverage in the SAS (began for 2009 and expanded industry-by-product coverage began for 2011) –Pre-expansion and Post-expansion service industries in the Service Annual Survey 3

4. 4 Pre-Expansion and Post-Expansion Service Industries in the Service Annual Survey

5. 5 Total of Pre-expansion NAICS (30% of GDP) and Post-expansion NAICS (25% of GDP) = 55% of GDP Pre-Expansion and Post-Expansion Service Industries in the Service Annual Survey (continued)

6. Introduction, Background, and Challenge (continued) –It was necessary for the Census Bureau and BEA to determine priorities for specific industry-by-product combinations due to the availability of limited resources –Sample selection for prior SAS samples (e.g., 2000, 2006) did not account for industry-by-product combinations, resulting in: High CVs High imputation rates –2007 Economic Census included 2,000 new products across more than 350 service industries and would serve as important input into developing potentially collectable and publishable industry-by-product combinations for the 2011 SAS onward –Funding for current service expansion received in 2009 made it possible to carry out the expansion –New sample for SAS selected for 2011 data year, with work beginning in 2009 6

7. –Design a sample that will meet target CVs –For the first time use product CVs in the sample design –Design a sample for products & industries never collected in the SAS –Limit sample size to approximately 70,000 units to accommodate resource and funding constraints 7 Introduction, Background, & Challenge (continued)

8. Meeting the Challenge 3 Distinct Phases Phase 1: Working with BEA to get initial list of industry-by-product priorities prior to feasibility research Phase 2: Researching the feasibility of BEA’s industry-by-product priorities Phase 3: Working with BEA to get a final list of industry-by-product priorities 8

9. Meeting the Challenge (continued) Phase 1-Working with BEA to Get Initial List of Industry- by-Product Priorities Prior to Feasibility Research Obtaining a list of industry-by-product combinations BEA was requesting for the pre-expansion industries and for the post-expansion industries Initially, obtained additional industry-by-product combinations without identifying any existing industry-by-product combinations that could be eliminated from the SAS forms (due to non-reportability, high coefficients of variation, high imputation rates, or lack of economic significance-not enough companies could report a specific product) Begin focus on pre-expansion industry-by-product combinations, and determine whether they would require additional sampling units (for those that had CVs higher than 20%) See Attachment B of paper for the industry-by-product combinations identified during Phase 1 for the pre-expansion industries, along with an indication of whether they would require additional sampling units 9

10. 10 517111761+1762Business+Government Revenue Keycodes will be changed to breakout class of customer for cable revenue C 517216019Internet Access Services C 517216021Install. Serv. Telecom NetworksX TBD 517216022Resale of Telecom Equipment C 517216023Rental of Telecom EquipmentX C 517216024Repair/Maintenance Telecom Equip. C 517216027Mobile Telephony C 517216301Messaging ServicesX C 517216311Mobile Long DistanceX C 517216312Mobile All Distance C 517211761+1762Business+Government RevenueX C 517211763Household RevenueX C NAICS Level (2007 basis) Product/ Special Inquiry Name Products that require additional sampling units NotesCollect (C) or TBD Excerpt of Attachment B from Paper: Industry-by-Product Combinations Identified During Phase 1 for NAICS 51721, Wireless Telecommunications Carriers (except Satellite)

11. Meeting the Challenge Phase 2 – Researching the Feasibility of BEA’s Industry-by-Product Priorities Researching reportability of products for pre-expansion industries (e.g., contacting companies for record keeping and reporting practices Using industry-by-product data from the Economic Census Using prior (2005-2008) SAS estimates for pre-expansion industries See Attachment C of paper for the industry-by-product combinations previously identified by BEA in Phase 1 (see Attachment B) that were subsequently designated to be dropped Examining products for post-expansion industries See Attachment D of paper for industry-by-product combinations that could be added for post-expansion industries without requiring additional sampling units 11

12. Meeting the Challenge Phase 3 – Working with BEA to Get a Final List of Industry-by-Product Priorities Discuss results of Phase 1 and Phase 2 with BEA Present “Cost” of pre-expansion industry-by-product combinations where sample size would need to increase Provide a mechanism for BEA to prioritize industry- by-product combinations to be included in the Service Annual Survey See Attachment E of paper for the spreadsheet tool provided to BEA by the Census Bureau for prioritizing industry-by-product combinations to be included in the Service Annual Survey 12

13. Phase 3 - Mechanism for BEA Making Selections TABLE E Budget = 4000Cumlative Total =2850 Products for BEA's Selection Status =OKAY NAICSPRODUCT(S)DESCRIPTIONCOST BEA CHOICE - 1 or BLANKSELECTED COST 511116066 Online Revenue 501 511136103 General Reference Books 80 0 511146135 Rental or sale of mailing lists 101 511216005 Application Service Provisioning 80 0 5121X6195 Outright Sale of AV Works 9001 512196222 Motion Picture Film Lab Services 551 512236231, 6008, 6009 Admin. of Copyrights of Others; Licensing of Rights-Musical Compositions; Licensing of rights-musical recordings 1201 5151126254 Public and Non-Commercial Prog. 1751 515126254 Public and Non-Commercial Prog. 551 517116023 Rental of Telecom Equipment 1901 517216021 Install. Serv. Telecom Networks 801 519196391 Info. Search/Retrieval Services 251 54123070 Computerized Accounting Sys Serv. 1050 0 541313081 Single Family Residential Projects 930 0 541333111 Residential Engineering Projects 460 0 5417E3208 Licensing of Rights to Use Int. Prop. 651 5417T3209 Original Works of Int. Property 2450 0 541813225 Direct Marketing 165 0 561313264 Long-Term Staffing 55 0 5615X3285 Commissions: Cruises 3551 5629X3363 Sale of Nonhaz Recyclable Material 7701 Budget = 4000Cumlative Total =2850 DUE DATE FOR BEA TO SEND TO CENSUS - AUGUST 13, 2010Status =OKAY 13

14. Outcome BEA’s choices resulted in being 1150 sampling units under budget Extra available sampling units allowed us to expand the sample size for a few health industries, resulting in the Center for Medicare and Medicaid Studies receiving estimates of source of funding for additional industries 14

15. Conclusion and Next Steps The 2012 Business Sample Revision achieved its goal of considering industry-by-product combinations in the design of the SAS sample A carefully planned and implemented three-phase approach produced an outcome that maximized the usefulness of SAS industry-by-product data for BEA, while maintaining sustainable workload and resource levels Next steps will be to: –Evaluate the results of the 2011 SAS –For expansion industries, determine what possible additional industry level estimates to provide to BEA –Make necessary adjustments to future SAS forms based on: Ongoing BEA needs Reporting issues Consistency with the Economic Census products Sample size & burden considerations –Research how to incorporate the 2012 Economic Census results into future sample designs 15

16. Questions 16