1. United Nations Statistics Division ISIC Rev.4 Changes in manufacturing / industry

2. ISIC Rev.4  ISIC Rev.4 has been officially released in 2008 Language versions available Correspondence tables available  Unlike ISIC Rev.3.1, this new version introduced significant changes

3. ISIC structure changes  Increase in top-level categories  Increase in overall detail  New concepts (information, professional services, support services)  New application rules (vertical integration, top-down method, outsourcing)

4. High-level concordance ISIC Rev.4 AAgriculture, forestry and fishing BMining and quarrying CManufacturing D Electricity, gas, steam … E Water supply; sewerage, waste … FConstruction G Wholesale and retail trade; … HTransportation and storage IAccommodation and food service activities JInformation and communication KFinancial and insurance activities LReal estate activities MProfessional, scientific and technical activities NAdministrative and support service activities O Public administration … PEducation QHuman health and social work activities RArts, entertainment and recreation SOther service activities T Activities of households … U Activities of extraterritorial organizations … ISIC Rev.3.1 AAgriculture, hunting and forestry BFishing CMining and quarrying DManufacturing EElectricity, gas and water supply FConstruction G Wholesale and retail trade; … HHotels and restaurants ITransport, storage and communications JFinancial intermediation K Real estate, renting and business … L Public administration … MEducation NHealth and social work O Other community, social, personal … PActivities of private households QExtraterritorial organizations and bodies

5. Continuity in ISIC Rev.4  Despite many changes, a lot of areas in ISIC have not changed  Manufacturing as a “ historical ” area remains relatively stable  Most application rules remain intact

6. Changes in ISIC Rev.4 ISIC 3.1ISIC4 Sections1721 Divisions6288 Groups161238 Classes298419  Changes in detail

7. ISIC Rev.4  Changes in “Mining” Separate identification of support services Uranium mining moved to lower level (no longer a Division) Separation of oil and gas extraction Higher level comparability remains

8. ISIC Rev.4  Changes in “Utilities” Concept of utilities not maintained Water production and waste water treatment combined  Based on organization of production  Now combined with other environment- related activities to produce high-level category  Impacts previous concept of “industry”

9. Changes in ISIC Rev.4 ISIC 3.1ISIC4 Sections11 Divisions2324 Groups6171 Classes127137  Changes in detail for Manufacturing

10. Changes to the scope of Manufacturing  Publishing is now part of the “ Information ” section Activity is the mass distribution of information, not a physical transformation process Separate transformation component (Printing) remains in manufacturing  “ Recycling ” is now part of “ Waste treatment ” ( “ Materials recovery ” ) Process converts waste into other forms of waste A manufacturing process cannot result in waste as the main output

11. Structural changes in ISIC Rev.4  Structural changes take different forms: Splitting of existing divisions, i.e. elevating of activities to a higher level Separation of certain activities, i.e. recognition as separate activities Complete reorganization of clusters of activities

12. ISIC3.1-ISIC4 (manufacturing)

13. Structural changes in ISIC Rev.4  Splitting of existing divisions, i.e. elevating of activities to a higher level Food and beverage manufacturing Furniture manufacturing Pharmaceuticals  These changes can be implemented through recoding

14. Structural changes in ISIC Rev.4  Separation of certain activities, i.e. recognition as separate activities Repair and maintenance and installation of machinery and equipment  Requires surveying to identify the units that specialize in repair and/or installation

15. Structural changes in ISIC Rev.4  Complete reorganization of a cluster of activities ISIC 3 Divisions 29-33 have been regrouped into ISIC 4 Divisions 26-28 This a major change (but the only one).

16. ISIC3.1-ISIC4 (manufacturing)

17. Changes for machinery (1)

18. Changes for machinery (2)  Repair and installation is a major change  Other changes based on product detail

19. Other issues affecting recoding  Vertical integration May affect only textile manufacturing  Outsourcing Requires question on whether unit operates own production facility Can shift units out of manufacturing

20. Changes in implementation rules  Vertical integration Unit is now classified to production step that generates the most value added Expected impact: minimal Previous exceptions in ISIC will become obsolete Companion guide to ISIC and CPC will provide a list of default assignments in case of missing data to make a clear decision

21. Changes in implementation rules  Outsourcing treatment clarifies previous ISIC treatment (not a change)  For manufacturing activities: Contractor is classified in Manufacturing (producing a good or service) Principal is classified in Manufacturing only if he owns the raw materials  Consistent with SNA and BOP for “ goods for processing ”  Impact: depends on interpretation of previous rule

22. Correspondence tables  Developed for two purposes: Complete correspondence  Used for recoding individual units  Includes all theoretical links “Essential” correspondence  Used to convert data  Ignores insignificant links

23. Thank you