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Changes between Changes between ISIC Rev.3.1 and ISIC Rev.4 ISIC Rev.3.1 and ISIC Rev.4

for Manufacturing activitiesfor Manufacturing activities

United Nations Statistics DivisionUnited Nations Statistics Division

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Major changes in ISIC Rev.4Major changes in ISIC Rev.4

• New conceptsNew concepts• e.g. “Information”, “Administrative and support e.g. “Information”, “Administrative and support

activities”activities”

• Regrouping / separation of important activitiesRegrouping / separation of important activities• e.g. “Waste management”, support activitiese.g. “Waste management”, support activities

• More detailMore detail• At all levelsAt all levels

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Major changes in ISIC Rev.4Major changes in ISIC Rev.4

• Some application rules have changed or Some application rules have changed or have been made more explicithave been made more explicit• Vertical integrationVertical integration• OutsourcingOutsourcing

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Continuity in ISIC Rev.4Continuity in ISIC Rev.4

• Despite many changes, a lot of areas in ISIC Despite many changes, a lot of areas in ISIC have not changedhave not changed

• Manufacturing as a “historical” area remains Manufacturing as a “historical” area remains relatively stablerelatively stable

• Most application rules remain intactMost application rules remain intact

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Changes in ISIC Rev.4Changes in ISIC Rev.4

ISIC 3.1ISIC 3.1 ISIC4ISIC4

SectionsSections 1717 2121

DivisionsDivisions 6262 8888

GroupsGroups 161161 238238

ClassesClasses 298298 419419

• Changes in detailChanges in detail

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Changes in ISIC Rev.4Changes in ISIC Rev.4

ISIC 3.1ISIC 3.1 ISIC4ISIC4

SectionsSections 11 11

DivisionsDivisions 2323 2424

GroupsGroups 6161 7171

ClassesClasses 127127 137137

• Changes in detail for ManufacturingChanges in detail for Manufacturing

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Changes to the scope of Changes to the scope of ManufacturingManufacturing

• Publishing is now part of the “Information” sectionPublishing is now part of the “Information” section• Activity is the mass distribution of information, not a physical Activity is the mass distribution of information, not a physical

transformation processtransformation process• Separate transformation component (Printing) remains in Separate transformation component (Printing) remains in

manufacturingmanufacturing

• ““Recycling” is now part of “Waste treatment” Recycling” is now part of “Waste treatment” (“Materials recovery”)(“Materials recovery”)• Process converts waste into other forms of wasteProcess converts waste into other forms of waste• A manufacturing process cannot result in waste as the main A manufacturing process cannot result in waste as the main

outputoutput

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Structural changes in ISIC Rev.4Structural changes in ISIC Rev.4

• Structural changes take different forms:Structural changes take different forms:• Splitting of existing divisions, i.e. elevating Splitting of existing divisions, i.e. elevating

of activities to a higher levelof activities to a higher level• Separation of certain activities, i.e. Separation of certain activities, i.e.

recognition as separate activitiesrecognition as separate activities• Complete reorganization of clusters of Complete reorganization of clusters of

activitiesactivities

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Structural changes in ISIC Rev.4Structural changes in ISIC Rev.4

• Splitting of existing divisions, i.e. elevating of Splitting of existing divisions, i.e. elevating of activities to a higher levelactivities to a higher level

• Food and beverage manufacturingFood and beverage manufacturing• Furniture manufacturingFurniture manufacturing• PharmaceuticalsPharmaceuticals

• These changes can be implemented through These changes can be implemented through recodingrecoding

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Structural changes in ISIC Rev.4Structural changes in ISIC Rev.4

• Separation of certain activities, i.e. Separation of certain activities, i.e. recognition as separate activitiesrecognition as separate activities• Repair and maintenance and installation of Repair and maintenance and installation of

machinery and equipmentmachinery and equipment

• Requires surveying to identify the units Requires surveying to identify the units that specialize in repair and/or that specialize in repair and/or installationinstallation

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Structural changes in ISIC Structural changes in ISIC Rev.4Rev.4

• Complete reorganization of a Complete reorganization of a cluster of activitiescluster of activities• ISIC 3 Divisions 29-33ISIC 3 Divisions 29-33

have been regrouped into have been regrouped into ISIC 4 Divisions 26-28ISIC 4 Divisions 26-28

• This a major change (but the only This a major change (but the only one).one).

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Regrouping of machinery Regrouping of machinery categoriescategories

ISIC 3.129 Manufacture of machinery and equipment n.e.c.30 Manufacture of office, accounting and computing machinery31 Manufacture of electrical machinery and apparatus n.e.c.32 Manufacture of radio, television and communication equipment and apparatus33 Manufacture of medical, precision and optical instruments, watches and clocks

ISIC 426 Manufacture of computer, electronic and optical products27 Manufacture of electrical equipment28 Manufacture of machinery and equipment n.e.c.

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Division 26Division 26• 261 Manufacture of electronic components and boards261 Manufacture of electronic components and boards• 262 Manufacture of computers and peripheral equipment262 Manufacture of computers and peripheral equipment• 263 Manufacture of communication equipment263 Manufacture of communication equipment• 264 Manufacture of consumer electronics264 Manufacture of consumer electronics• 265 Manufacture of measuring, testing, navigating and 265 Manufacture of measuring, testing, navigating and

control equipment; watches and clockscontrol equipment; watches and clocks• 2651 Manufacture of measuring, testing, navigating and control 2651 Manufacture of measuring, testing, navigating and control

equipmentequipment• 2652 Manufacture of watches and clocks2652 Manufacture of watches and clocks

• 266 Manufacture of irradiation, electromedical and 266 Manufacture of irradiation, electromedical and electrotherapeutic equipmentelectrotherapeutic equipment

• 267 Manufacture of optical instruments and photographic 267 Manufacture of optical instruments and photographic equipmentequipment

• 268 Manufacture of magnetic and optical media268 Manufacture of magnetic and optical media

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Changes at lower levelsChanges at lower levels

• A number of other changes have taken A number of other changes have taken place at group or class level, e.g.place at group or class level, e.g.• Move of weapons and ammunitions to division Move of weapons and ammunitions to division

2525• Creation of class 2812 for fluid power Creation of class 2812 for fluid power

equipmentequipment• Creation of class 1075 for Prepared meals and Creation of class 1075 for Prepared meals and

dishesdishes

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ISIC changesISIC changes

• How big is the difference between 3- and 4-How big is the difference between 3- and 4-digit categories in ISIC Rev.4?digit categories in ISIC Rev.4?

• Should only selected industries be targeted Should only selected industries be targeted for more detailed data collection?for more detailed data collection?

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Changes in implementation rulesChanges in implementation rules

• Vertical integrationVertical integration• Unit is now classified to production step that Unit is now classified to production step that

generates the most value addedgenerates the most value added• Expected impact: minimalExpected impact: minimal

• Previous exceptions in ISIC will become Previous exceptions in ISIC will become obsoleteobsolete

• Companion guide to ISIC and CPC will provide Companion guide to ISIC and CPC will provide a list of default assignments in case of missing a list of default assignments in case of missing data to make a clear decisiondata to make a clear decision

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Changes in implementation Changes in implementation rulesrules

• Outsourcing treatment clarifies previous ISIC Outsourcing treatment clarifies previous ISIC treatment (not a change)treatment (not a change)

• For manufacturing activities:For manufacturing activities:• Contractor is classified in Manufacturing Contractor is classified in Manufacturing

(producing a good or service)(producing a good or service)• Principal is classified in Manufacturing only if he Principal is classified in Manufacturing only if he

owns the raw materialsowns the raw materials

• Consistent with SNA and BOP for “goods for Consistent with SNA and BOP for “goods for processing”processing”

• Impact: depends on interpretation of previous Impact: depends on interpretation of previous rulerule

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Relationship ISIC – NAICSRelationship ISIC – NAICS

• Links have improved with ISIC Rev.4Links have improved with ISIC Rev.4• Mostly on servicesMostly on services

• Grouping in manufacturing is often just Grouping in manufacturing is often just different (not better in either version)different (not better in either version)

• In many cases, NAICS detail will aggregate In many cases, NAICS detail will aggregate to ISICto ISIC• Agreed minimum level: 2-digit ISICAgreed minimum level: 2-digit ISIC

• US, Canada and Mexico version may differUS, Canada and Mexico version may differ

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CPC Ver.2CPC Ver.2

• Most of CPC changes are in agriculture Most of CPC changes are in agriculture and food products, information products and food products, information products and servicesand services

• Changes in HS have been reflectedChanges in HS have been reflected• Little impact on products grouped by Little impact on products grouped by

industryindustry

• Changes in food products (based on Changes in food products (based on FAO work) will be submitted for next HS FAO work) will be submitted for next HS revisionrevision

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CPC Ver.2CPC Ver.2

• Additional detail (relevant for Mfg.):Additional detail (relevant for Mfg.):• Food products (meat etc.)Food products (meat etc.)

• Computer equipmentComputer equipment

• Manufacturing servicesManufacturing services• Now exist separately for each ISIC Now exist separately for each ISIC

industryindustry