Usage Statistics

For business decision making, it is very important to understand the composition and breakdown of business activity. For this, industry statistics provide data in a meaningful format. Industry statistics define each and every aspect of a particular industry and assist business operators to extract and manipulate data to assist strategic decision making.

Generally, industry statistics include hard data such as production volumes, sales revenues, employment statistics, accounting records, and anything to do with industry demographics and industry trends. If you are starting a business or already own one, it is very important to have a way to benchmark progress and assess critical data. The use of industry statistics provides a consistent framework of reference that allows business owners to draw meaningful conclusions from data that has a consistent reporting format.

Since 1999, industry statistics are published by the use of NAICS (North American Industrial Classification System). The NAICS is a joint endeavor between statistical agencies in United States, Canada and Mexico. NAICS was formed with particular emphasis on the classification of new and emerging industries. Different industries have different operational factors. Hence, statistics for different industries provide data in a consistent and meaningful way that is consistent with the mandate of the industry.

For illustration purposes, consider manufacturing industries. The industry statistics for computer and electronic products include all the manufacturers of computers & peripherals, semiconductors, navigational and electro-medical instruments. Non-manufacturing industries include scientific services and technical services. Their industry statistics include information about publishing, broadcasting & telecommunications.

After 1999, the categorization for company size was increased from 6 to 10. This has permitted provision for small sized companies in the industry statistical reporting. Also, it has contributed to producing much more detailed industry statistics. This has facilitated efficient international comparison with other country's industry statistics.

At regular time intervals, the coding system used for developing industry statistics by the federal agencies is revised. This is to reflect the dynamic composition of United States and North American industries in response to market demands and changing business practices. For example, if a company faces a loss in a specific product then it may stop manufacturing it. Also, the company may shift its emphasis to a new product as new trends emerge and old products and practices become redundant. The shifting of a company base can also impact industry statistics to a great extent. The introduction of new companies and closure of existing ones can change the nature and composition of the industry.

The dynamic nature of business and industry requires that industry analysis and statistics stay responsive to current market needs. The changing nature of reporting reflects this.

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