Manufacturing activity involves the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembly of component parts of manufactured products is considered manufacturing, except in cases where the activity is appropriately classified in Sector 23, Construction. Report separate data for each establishment. Report all activities (manufacturing, fabricating, processing, and assembling) conducted by the establishment.

INCLUDE:

• Maintenance of plant and equipment.
• Receiving and shipping activities.
• Warehousing and storage.
• Research.
• Recordkeeping.
• Health and Safety.
• Cafeteria (without seating) and other services unless operated as separate establishments.

EXCLUDE:

• Sales branches and sales offices.
• Research laboratories.
• Retail stores.
• Mining activities.
• General administrative offices.

The manufacturing sector does include establishments engaged in the following activities that are often thought to be in the services sector:

• Apparel jobbing and contracting.
• Assembling from purchased components.
• Commission processing of materials owned by others.
• Job casting, stamping, and machining.
• Lapidary work.
• Machine shops, including those operating on a job-order basis.
• Manufacturing and delivering ready-mixed concrete.
• Milk pasteurizing and bottling.
• Milling of grains and vegetables
• Plating, galvanizing, polishing, etc., of materials owned by others.
• Poultry dressing.
• Printing books, periodicals, etc.
• Repair of ships.
• Research and development, engineering and other services directly related to aerospace industries.
• Sawmills.
• Seafood, fresh-packaged or frozen.
• Wood preserving.

Assembly of finished goods into a new product (value added) is considered manufacturing and we need you to complete the survey.

• Cash sales.
• Credit sales.
• Service receipts.
• Rental receipts.
• Leasing receipts.
• Service agreements.
• R&D and prototyping.

The value in Item 5A should be the same as the value reported in Item 22, (code 9900000000). Also, this value should be comparable to the total reported for (2021). If the two figures are not comparable, please explain in the remarks section at the end of the survey.

Yes. Please report the value of shipments in Item 5, Line A and Item 22.

E-Shipments include the sales or receipts from any transaction completed over the Internet, EDI Network, Intranet, Extranet, electronic mail (E-mail) or other online system. Transactions are agreements between buyer and seller to transfer ownership of, or rights to use goods or services. Payment for these goods or services may or may not be made online.

INCLUDE:

• Online orders accepted for manufactured products by customers.
• Online orders for manufactured products by other domestic plants of your company for further assembly, fabrication, or manufacture.
• Online orders accepted by a corporate sales office but filled by the manufacturing plant.
• Any agreement negotiated online, including electronic mail (E-mail) between buyer and seller on price and terms of a transfer of ownership of, or rights to use goods or services.
• Telephone transactions using interactive voice response systems.

EXCLUDE:

• Orders for manufactured products by customers over facsimile machine or switched telephone network.
• Online billing where the order or contract was not negotiated online.

Report the number of employees working at this establishment, both full and part time, whose payroll was reported on IRS form 941 (Employer's Quarterly Federal Tax Form Return) and filed under Employer Identification Number (EIN) shown in or corrected in Item 1.

INCLUDE:

• All persons on paid sick leave, paid holidays, and paid vacation during these pay periods.

Report the payroll that was included on IRS Form 941 (Employer's Quarterly Federal Tax Form Return).

INCLUDE:

• Employee's Social Security contributions, withholding taxes, group insurance premiums, union dues, and savings bonds.
• In gross earnings: commissions, dismissal pay, paid bonuses, employee contributions to pension plans such as 401(k), vacation and sick leave pay, and the cash equivalent of compensation paid in kind.
• Spread on stock options that are taxable to employees as wages.
• Salaries of officers of this establishment, if a corporation.
• Paid holiday, personal, funeral, jury-duty, military, and family leave.
• Nonproduction bonuses**
  • Cash profit-sharing.
  • Employee recognition.
  • End-of-year.
  • Holiday.
  • Payment in lieu of benefits.
  • Referral.
  • Other.

**Report only the extent that these are included in the employees' taxable pay. Costs associated with these programs that are not taxable to the employee should be reported in Employer-Paid Annual Cost for Fringe Benefits (Item 7E)

Employees in the following job categories:

INCLUDE:

• Officers at this establishment, if a corporation.
• Supervision above line-supervisor level.
• Sales employees, including delivery (truck driver and helpers).
• Advertising, clerical, credit, collection, purchasing, finance, legal, executive, and technical employees.
• Employees installing and servicing this establishment’s products.

EXCLUDE:

• Proprietors and partners, if an unincorporated concern.

Report the employer's annual cost at this establishment for legally required programs and programs not required by law.

Item 7, Line E1 – Health Insurance

Report the employer’s annual cost for health insurance, including insurance premiums on hospitals, medical plans, and single service plans such as dental, vision, and prescription drug plans.

Item 7, Line E2 – Retirement Plans

Line E2 a – Defined Benefit Pension Plans (Qualified and Non-Qualified)

Plans that specify the benefit to be paid to employees upon retirement, generally either a specific amount or a percentage of compensation. Employer contributions are based on actuarial computations that include the employee’s compensation and years of service and are not allocated to specific accounts maintained for employees.

Line E2 b – Defined Contribution Plans

Plans that define the employer contributions to a separate account provided for each employee. The employee “benefit” at retirement depends on the amount contributed and the results of the account’s activity.

Examples:

• Profit sharing plans.
• Money purchases (e.g., 401k, 403b).
• Stock bonus plans (e.g., ESOPs).

Item 7, Line E3 – Payroll Taxes, Employer Paid Insurance Premiums (Excluding Health), and Other Employer Paid Benefits

INCLUDE:

• Legally-required fringe benefits, [e.g.: Social Security, Workers’ compensation insurance, State disability insurance programs, Long- and short-term disability, Unemployment tax, Medicare].
• Quality of life benefits.
• Employer contribution to pretax benefit accounts****, including:
  • Health savings account.
  • Section 125 “cafeteria” benefits:
    • Flexible benefits.
    • Dependent care reimbursements accounts.
    • Health care reimbursements accounts.
• Cash or deferred arrangements without employer contributions

**** Employer contributions to these plans for benefits not taxable to the employees should be reported in the plan categories associated with the benefit type. Cash or benefits taxable to the employees should be reported in Item 7, Line E.

Item 7, Line E4 – Total Employer-Paid Annual Cost for Fringe Benefits

 Add the values reported in Item 7, Line E1, Line E2a, E2b, and Line E3.

Report inventories owned by this establishment at cost or market as of December 31 of the survey year, using generally accepted accounting practices but before any valuation method adjustments; and report all inventories owned by this establishment regardless of where the inventories are held.

LIFO is defined as the last inventory item in will be the first used or sold, in terms of the dollar value of the item. The physical item is not necessarily the last item used or sold, it is the cost associated with that last inventory item that is being expensed first. To use LIFO valuation method, you will need to have filed IRS Form 970, Application to Use LIFO Inventory Method.

All expenses during the year for buildings and other structures, machinery, and equipment that are chargeable to the fixed asset account, and for which depreciation or amortization reserves are maintained.

INCLUDE:

• Capital Expenditures during the year that were actually made during the year, not the final value of equipment put in place or the buildings completed during the year. (For long-term projects, use the cost of additions completed during the year only.)
• Capital improvements or new additions in progress are considered assets, as well as capital expenditures, and should be included in both figures.
• Capital Expenditures during the year for new construction whether on contract or by your own work force.
• Assets include the value of all machinery and equipment, buildings, and capitalized improvements and repairs whether purchased or produced by employees of your own company.
• Assets include the value of any machinery and equipment or structure transferred to the use of this establishment by the parent company or one of its subsidiaries.

EXCLUDE:

• Tools that are expensed, should be reported in Item 16, Line A1 - Cost of Materials, Parts, Containers, Packaging, etc.

If your rental payment for your building represents your charge for use of both the land and the building (report this figure in item 14A).

Cost is the delivered cost, which is defined as the amount paid or payable after discounts and including freight and other direct charges incurred by the establishment in acquiring the materials. 

The delivered cost figures should cover all raw materials, containers, scrap, supplies, etc., if (a) put into production, (b) used as operating supplies, or (c) used in repair and maintenance. If the establishment produces items subsequently consumed in further production, report cost of original materials consumed only.

Report the delivered cost of materials. That is, the amount paid or payable after discounts, including freight and other direct charges incurred by the establishment in acquiring the materials.

If the establishment produces items subsequently consumed in further production, ONLY report the cost of original materials consumed.

INCLUDE:

• Value of the specific materials used to produce products reported in Item 5, Line A - Total Value of Products Shipped and Other Receipts.
• Only physical goods used or put into production.
• Total cost of the materials actually consumed or put in production during the year.
• Value of materials purchased by this establishment for other companies (contractors).
• Purchases from other companies.
• Transfers from other establishments of your own company. See definition of Economic Value in Section 1 C.
• Withdrawals from inventories.

 EXCLUDE:

• Amounts paid to other establishments for contract work and associated freight charges for shipping the materials to the contract producer and the finished products to you. Report these in Item 16, Line A3.
• Value of materials purchased but not used in the survey year, should be reported in Item 9, Line C – Materials, Supplies, Fuels, etc.
• Non-production-related expenses that were paid to other companies (contractors), should be reported in Item 16, Line D.

MATERIALS:  Lumber, plywood, paper, resins, sulfuric acid, alcohols, rubber, coking coal, crude petroleum, cement, clay, glass, steel sheet, steel scrap, copper rods, iron castings, metal stampings, and wire.

PARTS:  Pumps, wheels, bearings, engines, gears, motors, hardware, and compressors.

CONTAINERS:  Pails, drums and barrels, tubes, boxes and bags, and crates.

SUPPLIES:  Bolts, screws and nuts, drills, tools, dies, jigs and fixtures which are charged to current accounts, welding rods, electrodes, acetylene, lubricating oils, cleaning supplies, stationery and office supplies, first aid and safety supplies, dunnage, and water.

• Value of materials purchased but not used in the survey year, should be reported in Item 9, Line C – Materials, Supplies, Fuels, etc.
• Rent and rental allowances, interest payments, royalties and patent fees.
• Machinery, equipment, materials and supplies chargeable to fixed asset accounts (These should be reported as capital expenditures in Item 13.).
• Overhead costs (advertising, telephone, insurance, engineering and marketing charges) UNLESS charges for such services are included in the price of the materials.

Report the total amount actually paid or payable during the year for all fuels consumed for heat, power, or the generation of electricity.

INCLUDE:

• Total amount actually paid or payable during the year for all fuels consumed for heat, power, or the generation of electricity.
• Anthracite and bituminous coal, coke, natural and manufactured gas, fuel oil, liquefied petroleum gas, gasoline, and all other fuels including purchased steam.
• Fuels to power on site trucks, forklifts, and other motor vehicles associated with the establishment.

EXCLUDE:

• Estimated cost of fuels, such as sawdust or blast furnace gas, produced as a byproduct of your manufacturing activities.
• Cost of fuels when consumed as raw materials, should be reported in Item 16, Line A1.

Fuels used as raw material in the production of a product should be reported in Item 16, Line A1 - "Cost of materials, parts, containers, packaging, supplies, etc. used for manufacturing processes, repairs, services for others, or other operating supplies."  Fuels used for energy in the production of a product should be reported in Item 16, Line A4 - Cost of Purchased Fuels Consumed.

Report the total amount actually paid or payable for electric energy purchased during the year from other companies, or received from other establishments of your company.

EXCLUDE:

The value of electricity generated and used at this establishment. The quantity (kilowatt hours) of such electricity should be included in Item 16, Line B2.

If included in a lease or rental payment, should be reported in Item 14, Line A – Rental or Lease of Buildings and Other Structures.

If any contract work was done by others on materials furnished by your establishment, report the total payments made during the year for such work, including freight in and out in Item 16, Line A3.

EXCLUDE:

The cost of materials worked upon, which should be reported in Item 16, Line A1.

INCLUDE:

• Research and Development.
• Travel.
• Training.
• Sales commissions (not reported in Item 7 "Payroll").
• Janitorial services.
• Transportation and delivery (not reported in Item 7 "Payroll").
• Franchise fees.
• Trademark, and trade name usage costs.
• Charitable contributions.
• Selling, general and administrative costs.
• Insurance.
• Utilities not covered elsewhere.
• Storage and overhead.

EXCLUDE:

• Interest.
• Losses or sales of securities.
• Buildings.
• Machinery, or equipment.
• Extraordinary losses (bad debt, fire, flooding, etc.).
• Reserve funds.
• Depreciation.