Supporting Statement Part B

Page 3 of 3

SUPPORTING STATEMENT

U.S. Department of Commerce

U.S. Census Bureau

2017 Economic Census – Industry Classification Report

OMB Control Number 0607-XXXX

PART B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL

METHODS

1. Universe and Respondent Selection

The 2017 Economic Census Industry Classification Report collects data from establishments in all NAICS sectors that are covered by the economic census with the purpose of assigning an accurate 8-digit NAICS based code for use in the 2017 Economic Census. The universe is derived from the Census Bureau’s Business Register and is comprised of partially classified establishments in the 50 states and the District of Columbia. The Industry Classification Report collects data about businesses in such areas as: primary business activity, class of customer (if the establishment is a wholesaler or retailer), and primary goods sold or services provided.

Assigning proper classification is crucial for the Economic Census. Collecting this classification information will ensure the mailing list for the targeted sectors is complete and accurate prior to the mailing of the 2017 Economic Census. The information gathered will also be used to determine whether an establishment will be included in the data collection for the 2017 Economic Census, and if so, what are the appropriate North American Product Classification System (NAPCS) product lines to be displayed for that establishment on their 2017 Economic Census questionnaire. Many businesses are small and will not be asked to participate in the 2017 Economic Census. Therefore, this survey is the only way to obtain an accurate 8-digit NAICS-based code for these small businesses, represented in the census through the use of administrative data only.

	FY 2017	FY 2018
Number of establishments to be mailed	125,000	125,000
Expected response rate (85 percent)	106,250	106,250

2. Procedures for Collecting Information

The Census Bureau will mail an Industry Classification Report letter that requests respondents to report via the Internet using the Centurion software. The Industry Classification Report will contain lists of classification codes and business activities. An establishment is to select the activity that best describes its business by clicking on the radio button next to the activity listed.

3. Methods to Maximize Response

This information collection will maximize response through the following means:

1. mailing materials that emphasize the mandatory and confidential nature of Census reports, as provided by Title 13, U.S.C.;

2. effective Census questionnaires that simplify reporting and minimize reporting burden;

3. systematic mail follow-up for nonresponse; and

4. providing telephone assistance to respondents.

4. Testing of Procedures

This information collection will use procedures that are based on the 2012 Economic Census Classification Reports (NC-99026 and NC-99023), and a considerable body of other experience with the Economic Census and surveys. Previous Economic Censuses also have been the subject of evaluation studies that have examined methodology, conceptual issues, and related statistical questions.

5. Contact for Statistical Aspects and Data Collection

Statistical methodology is developed under the direction of William Davie, Jr., Assistant Division Chief for the Business Register, Economic Census, and Related Surveys, 301-763-7182. The 2017 Industry Classification Report is conducted under the direction of John B. Murphy, Assistant Division Chief for Industry and Product Classification,

301-763-5172, Scott P. Handmaker, Chief, Classification Processing Branch,

301-763-7107, and Michelle Karlsson , Assistant Division Chief for Collection Instruments and Preparation, 301-763-6769.

Attachments

1. Initial letter

2. Overdue letter

3. Screenshots of Industry Classification Report questions

4. Spreadsheet of industry codes and titles