Part V--Proposed New Industry Structure for Printing and Related Support Activities. Section A--NAICS Structure North American Industry Classification System (NAICS) Agreement Number 15 This Document represents the proposed agreement on the structure of the North American Industry Classification System (NAICS) for the following subsector: Printing and Related Support Activities The detailed NAICS structure along with a brief description of the structure is attached (Attachments 1 and 2). Each country agrees to release a copy of the proposed NAICS structure to interested data users. Comments received will be shared among the countries and additional discussions will be held before a final decision on the structure is made. Each country may add additional detailed industries, below the 4-digit level of NAICS, as necessary to meet national needs, so long as this additional detail aggregates to a 4-digit NAICS level in order to ensure full comparability among the three countries. This NAICS structure was presented and provisionally accepted at the NAICS Committee meeting held on September 27, 1995 - September 29, 1995 in Mexico City, Mexico. Accepted Signature Date Canada /S/ Jacob Ryten 9/29/95 Mexico /S/ Enrique Ordaz 9/29/95 United States /S/ Jack E. Triplett 9/29/95 ATTACHMENT 1--NAICS STRUCTURE XX Printing and Related Support Activities XXX Printing and Related Support Activities XXXX Printing XXXX Support Activities for Printing Attachment 2--North American Industry Classification System Draft Classification for: Printing and Related Support Activities Representatives of the statistical agencies of Canada, Mexico, and the United States agree to a draft industrial classification for these industries. The draft classification applies to the subsector, Printing and Related Support Activities. The subsector is subdivided into a single industry group and two industries. The subsector will be part of the Manufacturing sector of the classification. A General Outline Printing and Related Support Activities industries print products such as newspapers, books, periodicals, business forms, greeting cards, and other material. Support activities, such as bookbinding, plate making, and data imaging are also included in this subsector. These activities are an integral part of the printing industry, and a product (a printing plate, a bound book, or a computer disk or file) that is an integral part of the printing industry is almost always provided by these operations. Processes used in printing include a variety of methods used to transfer an image from a plate, screen, or computer file to some medium, such as paper, plastic, metal, textile articles or wood. The most prominent of these methods is to transfer the image from a plate or screen to the medium (lithographic, gravure, screen and flexographic printing). A rapidly growing new technology uses a computer file to "drive" the printing mechanism directly to create the image (non-impact printing). A number of important boundary issues involving printing and other sectors are noted in the Some Changes to National Classifications section. In contrast to many other classification systems that locate publishing of printed materials in manufacturing, NAICS locates the publishing of printed products in a separate subsector, Publishing, which is part of the new NAICS Information sector, to be published separately. Though printing and publishing are often carried out by the same enterprise (a newspaper, for example), it is less and less the case that these distinct activities are carried out in the same establishment. More information on this change is contained in the text to the proposed NAICS Information sector. Limitations and Constraints of the Classification Most of the printing activities that take place in one country exist in the others. It is not possible in all countries to identify separately production process industries or specialized end use production categories. For example, in Canada and the United States, unique production establishments exist for the printing of books and business forms, and these processes can be recognized in the U.S. classification. In Mexico, however, book or business forms printers also print other types of products. Similarly, printing in Canada and the United States occurs largely in establishments that use a single printing process, such as lithographic or screen printing; in Mexico, diverse types of printing equipment are used in the same establishment. For these reasons, only broad categories for printing (of all types) and support activities for printing were created for NAICS. Each country will publish additional categories that comprise subdivisions of NAICS industries, to present data for activities that are nationally significant. For those users requiring detailed commodity information, each country will publish information on the products of these industries. Efforts are also underway to harmonize the commodity classifications to allow for greater comparability of these statistics. Relationship to ISIC Both 4-digit industries in this subsector are contained within Division 22, Publishing Printing, and Reproduction of Recorded Media, of the current Standard Industrial Classification of all Economic Activities (ISIC, Revision 3) of the United Nations. However, two activities that are included in the NAICS Printing and Related Support Activities subsector are classified elsewhere in ISIC. Printing on textile articles is included in ISIC 1729, Manufacture of Other Textiles, NEC. Lithographic and gravure commercial printing of labels and tags is included in ISIC 2109, Manufacture of Other Articles of Paper and Paperboard. Some Changes to the National Classifications For all three countries, publishing, including integrated publishing and printing establishments, has been moved out of the Printing and Related Support Activities subsector into the new NAICS Information sector. For Canada, a major change to the Printing and Related Support Activities subsector is to move printing on purchased fabric articles (mostly "T" shirts) from the Clothing Industries major group to this subsector. The production process involved here is printing, and not the manufacture of clothing. Another change is the redefinition of certain types of printing, sometimes referred to as "quick printing." This printing is done in relatively small, often "store front" establishments; these establishments use small printers, and usually bundle printing with other services, such as mailing, fax and similar types of activities. Because printing is only one of a number of services performed in the same establishment, "quick printers" have been located in the NAICS Management, Employment, Administrative and Support Services subsector. This redefinition must be carefully constructed to ensure that commercial printing is not misclassified in the Management, Employment, Administrative and Support Services subsector. For Mexico, changes to this subsector are minor. For the United States, changes parallel those made for Canada. Printing on purchased fabric articles and the redefinition of quick printing were made for the United States, as they were in Canada. Printing on signs and advertising specialties was also moved here from its current U.S. classification in Miscellaneous Manufacturing in order to attain comparability with Canada and Mexico, and because the production process is primarily printing. A similar change, made for the identical reasons, involves printing on tags and labels. Achievement of Objectives The classification meets the objectives for the North American Industry Classification System (NAICS). It includes industries that group establishments with similar production processes, that is, it applies the production-oriented economic concept. In the main, the hierarchical structure of the classification also follows the production concept. Other objectives of the NAICS project are not as relevant in this area of the classification as in others. These objectives are the delineation of new and emerging industries, service industries and industries engaged in the production of advanced technologies. The industrial sector in question is relatively mature, generally produces goods and has employed relatively stable technology. An evolving new technology in the printing industry involves the creation of a computer file that directly drives printing equipment. Thus, no printing plate is needed. This technology, however, does not yet account for a significant share of production in any of the three countries, and therefore has not been separated in the classification. The industries have high specialization ratios, and they are economically significant. While disruptions to time series exist, they have been minimized. The statistical agencies can develop statistical "links," to enable the re-tabulation of time series on the new NAICS classification structure. The classification achieves comparability for the three participating countries. Based on existing data, all three countries expect to be able to publish data regularly at the industry (4-digit) level of the structure. All countries agree on the detailed definitions of the industries. Section B-Annex: United States National Industry Detail As explained in the Structure presentation of this notice, for a number of reasons 4-digit industries in the NAICS industry subsector presented in Part V, Section A--Attachment 1, contain less detail than is currently in the U.S. SIC system, and less detail than is required to meet important analytical requirements in the U.S. The three country agreement on NAICS envisions that each country may develop national detailed industries below the NAICS industry level, so long as the national detail can be aggregated to the NAICS classification, thus assuring full North American comparability. The ECPC is proposing U.S. 5-digit industry detail for the NAICS industry subsector covered in Part V of this notice. For cases where no 5-digit detail is shown, the ECPC is proposing that the NAICS 4-digit industries will also represent the most detailed U.S. industries. TABLE 1 The definitions of status codes are as follows: E-existing industry; L-null industry for the U.S.; N-new industry R-revised industry;; and * means "part of". The abbreviations NEC is used for Not Elsewhere Classified. 1997 NAICS and U.S. description Status code 1987 SIC code 1987 SIC description XX Printing and Related Support Activities XXX Printing and Related Support Activities XXXX Printing XXXXX Book Printing E 2732 Book Printing XXXXX Commercial Lithographic Printing R *2752 Commercial Printing, Lithographic (Except Quick Printing) *2771 Greeting Cards (lithographic printing of greeting cards) *2782 Blankbooks, Loose-leaf Binders and Devices (lithographic printing of checkbooks) *3993 Signs and Advertising Specialties (lithographic printing of advertising specialties) *3999 Manufacturing Industries, NEC (lithographic printing of eyeglass frames for the trade) XXXXX Commercial Gravure Printing R 2754 Commercial Printing, Gravure *2771 Greeting Cards (gravure printing of greeting cards) *2782 Blankbooks, Loose-leaf Binders and Devices (gravure printing of checkbooks) *3993 Signs and Advertising Specialties (gravure printing of advertising specialties) *3999 Manufacturing Industries, NEC (gravure printing of eyeglass frames for the trade) XXXXX Commercial Screen Printing N *2759 Commercial Printing, NEC (screen printing) *2771 Greeting Cards (screen printing of greeting cards) *2782 Blankbooks, Loose-leaf Binders and Devices (screen printing of checkbooks) *3993 Signs and Advertising Specialties (screen printing of advertising specialties) *3999 Manufacturing Industries, NEC (screen printing of eyeglass frames for the trade) XXXXX Commercial Flexographic Printing N *2759 Commercial Printing, NEC (flexographic printing) *2771 Greeting Cards (flexographic printing of greeting cards) *2782 Blankbooks, Loose-leaf Binders and Devices (flexographic printing of checkbooks) *3993 Signs and Advertising Specialties (flexographic printing of advertising specialties) *3999 Manufacturing Industries, NEC (flexographic printing of eyeglass frames for the trade) XXXXX Other Commercial Printing R *2759 Commercial Printing, NEC (other commercial printing) *2771 Greeting Cards (other printing of greeting cards) *2782 Blankbooks, Loose-leaf Binders and Devices (other printing of checkbooks) *3993 Signs and Advertising Specialties (other printing of advertising specialties for the trade) *3999 Manufacturing Industries, NEC (other printing of eyeglass frames for the trade) XXXXX Manifold Business Form Printing E 2761 Manifold Business Forms XXXXX Bankbook, Loose-leaf Binder and Device Manufacturing R *2782 Blankbooks, Loose-leaf Binders and Devices (except checkbooks) XXXXX Printing on Apparel N *2396 Automotive Trimmings, Apparel Findings, and Related Products (Printing and Embossing on Fabric Articles) XXXX Support Activities for Printing XXXXX Tradebinding and Related Work E 2789 Bookbinding and Related Work XXXXX Prepress Services R 2791 Typesetting 2796 Platemaking and Related Services TABLE 2 The abbreviation "pt" means "part of". @ means time series break has been created that is greater than 3% of the 1992 revenues for the 1987 SIC industry. 1987 SIC code 1987 SIC description 1997 U.S. description 2711 Newspapers: Publishing, or Publishing and Printing Included in new Information sector 2721 Periodicals: Publishing, or Publishing and Printing Included in new Information sector 2731 Books: Publishing, or Publishing and Printing Included in new Information sector 2732 Book Printing Book Printing 2741 Miscellaneous Publishing Included in new Information sector 2752 Commercial Printing, Lithographic Commercial Printing, Lithographic (Except Quick Printing) Quick Printing Commercial Lithographic Printing (pt) Commercial Lithographic Printing (pt) Included in Other Services sector 2754 Commercial Printing, Gravure Commercial Gravure Printing (pt) 2759@ Commercial Printing, NEC Screen Printing Commercial Screen Printing (pt) Flexographic Printing Commercial Flexographic Printing (pt) Other Commercial Printing Other Commercial Printing (pt) 2761 Manifold Business Forms Manifold Business Form Printing (pt) 2771@ Greeting Cards Lithographic Printing of Greeting Cards Commercial Lithographic Printing (pt) Gravure Printing of Greeting Cards Commercial Gravure Printing (pt) Flexographic Printing of Greeting Cards Commercial Flexographic Printing (pt) Screen Printing of Greeting Cards Commercial Screen Printing (pt) Other Printing of Greeting Cards Other Commercial Printing (pt) Publishing Greeting Cards Included in new Information sector 2782@ Blankbooks, Loose-leaf Binders and Devices Lithographic Printing of Checkbooks Commercial Lithographic Printing (pt) Gravure Printing of Checkbooks Commercial Gravure Printing (pt) Flexographic Printing of Checkbooks Commercial Flexographic Printing (pt) Screen Printing of Checkbooks Commercial Screen Printing (pt) Other Printing of Checkbooks Other Commercial Printing (pt) Blankbooks, Loose-leaf Binders and Devices Blankbook, Loose-leaf Binder and Device Manufacturing 2789 Bookbinding and Related Work Tradebinding and Related Work 2791@ Typesetting Prepress Services (pt) 2796@ Platemaking and Related Services Prepress Services (pt) 3993@ Signs and Advertising Specialties Lithographic Printing of Advertising Specialties Commercial Lithographic Printing (pt) Gravure Printing of Advertising Specialties Commercial Gravure Printing (pt) Flexographic Printing of Advertising Specialties Commercial Flexographic Printing (pt) Screen Printing of Advertising Specialties Commercial Screen Printing (pt) Other Printing of Advertising Specialties Other Commercial Printing (pt) Electric Signs Electric Signs (Included in Electrical Equipment, Appliance, and Component Manufacturing subsector) Non-Electric Wood Signs Other Wood Product Manufacturing (pt) (Included in Wood Product Manufacturing, Except Furniture subsector) Non-Electric Metal Signs All Other Fabricated Metal Product Manufacturing (pt) (Included in Fabricated Metal Product Manufacturing subsector) Non-Electric Plastics Signs All Other Plastic Product Manufacturing (pt) (Included in Rubber and Plastic Product Manufacturing subsector) 3999@ Manufacturing Industries, NEC Lithographic Printing of Eyeglass Frames for the Trade Commercial Lithographic Printing (pt) Gravure Printing of Eyeglass Frames for the Trade Commercial Gravure Printing (pt) Flexographic Printing of Eyeglass Frames for the Trade Commercial Flexographic Printing (pt) Screen Printing of Eyeglass Frames for the Trade Commercial Screen Printing (pt) Other Printing of Eyeglass Frames for the Trade Other Commercial Printing (pt) Other Other Miscellaneous Manufacturing (pt) (To Be Included in Miscellaneous Manufacturing subsector) 2396@ Automotive Trimmings, Apparel Findings, and Related Products Printing and Embossing on Fabric Articles Printing on Apparel Automotive Trimmings Motor Vehicle Fabric Accessory and Seat Manufacturing (pt) (Included in Transportation Equipment Manufacturing subsector) Apparel Findings and Trimmings Apparel Belts, Apparel Accessories, and Other Apparel Manufacturing (pt) (Included in Apparel Manufacturing subsector) Other Apparel Trimmings All Other Miscellaneous Textile Product Mills (pt) (Included in Textile Product Mills subsector) Description of Changes to the U.S. System Three new industries were added to the 1997 industry structure for this industry subsector. Commercial Screen Printing was created from part of 1987 SIC 2759, Commercial Printing, NEC; part of 1987 SIC 2771, Greeting Cards; part of 1987 SIC 2782, Blankbooks, Loose-leaf Binders, and Devices; part of 1987 SIC 3993, Signs and Advertising Specialties; and part of 1987 SIC 3999, Manufacturing Industries, NEC. This change was made in response to a proposal from the industry and it corresponds to the production-oriented industry concept accepted for NAICS. Commercial Flexographic Printing was created from part of 1987 SIC 2759, Commercial Printing, NEC; part of 1987 SIC 2771, Greeting Cards; part of 1987 SIC 2782, Blankbooks, Loose-leaf Binders, and Devices; and part of 1987 SIC 3993, Manufacturing Industries, NEC, and part of 1987 SIC 3999, Manufacturing Industries, NEC. This change corresponds to the production-oriented industry concept accepted for NAICS. Printing on Apparel was created from part of 1987 SIC 2396, Automotive Trimmings, Apparel Findings, and Related Products. This change was made for international comparability, and because the process involved is printing, not apparel manufacture. Four industries were removed from this industry group and transferred to the new NAICS Information sector. They are: 1987 SIC 2711, Newspapers: Publishing, or Publishing and Printing. 1987 SIC 2721, Periodicals: Publishing, or Publishing and Printing. 1987 SIC 2731, Books: Publishing, or Publishing and Printing. 1987 SIC 2741, Miscellaneous Publishing. These four industries were transferred to the newly created Information sector in response to the increased use of electronic and other means for information transformation, manipulation, and dissemination, and because the production processes that characterize publishing are neither printing nor manufacturing. Where printing of newspapers, periodicals and books takes place in a separate establishment (increasingly the case), these printing activities remain in manufacturing. More information is contained in the text for the NAICS Information sector, published separately. Two activities were transferred into the 1997 NAICS Printing and Related Support Activities subsector. Advertising specialty manufacturing transferred from part of 1987 SIC 3993, Signs and Advertising Displays, into Commercial Printing, depending on the printing process. Printing eyeglasses for the trade transferred from part of 1987 SIC 3999, Manufacturing Industries, NEC, into Commercial Printing, depending on the printing process. Transferring these two activities into the Printing and Related Support Activities subsector was necessary to align the U.S. classification with those of Canada and Mexico, and because the activities are printing processes. One activity was transferred out of the 1977 NAICS subsector for Printing and Allied Industries. Quick printing, 1987 industry code 2752 with transferred to the Other Services subsectors. This change was made to better conform with production services. Also, several activities were transferred within the Printing and Related Support Activities subsector. The number of printing industries decreased from 14 in 1987 to 11 in 1997. For time series linkage, 5 of the 14 1987 industries are comparable within three percent of the 1997 industries.