International Sourcing.vp - Central Statistics Office

Transcription

Published by the Stationery Office, Dublin, Ireland.
December 2008
© Government of Ireland 2008
Material compiled and presented by the
Central Statistics Office.
Reproduction is authorised, except for commercial
purposes, provided the source is acknowledged.
Contents
Page
Executive Summary
5
1.0 Introduction
1.1
Overview
7
1.2
Survey Population and Response Rates
8
1.3
Reference Periods
9
1.4
Business Function
10
1.5
Questionnaire Design
11
1.5
Comparison of results with other European countries
11
2.0 Level and Pattern of International Sourcing
2.1
Level of International Sourcing
2.2
Group Structure of Enterprises Engaged in International
2.3
17
Sourcing
20
Business Functions Sourced Internationally
21
3.0 Destination and Types of Business Partners for International Sourcing
3.1
Destinations for International Sourcing
29
3.2
Types of Business Partners for International Sourcing
35
4.0 Impact on Employment
39
5.0 Motivations, Impacts and Barriers
5.1
Motivations for International Sourcing
3
45
5.2
Impacts of International sourcing
49
5.3
Barriers to International Sourcing
51
6.0 Future Plans for International Sourcing 2007-2009
6.1
Future Plans 2007-2009
53
6.2
Expected impact of Future Plans for International Sourcing on
Employment
57
Definitions
59
The Questionnaire
63
Appendix 1
Appendix 2
Appendix 3
Statistical Classification of Economic Activities in the European Community NACE
Rev.1.1 (2002)
73
4
Executive Summary
This report presents results from an ad-hoc survey on international sourcing conducted in 2007.
The purpose of the survey was to establish data on the movement of Irish business activity abroad
during the reference period 2001-2006 and to further establish enterprises’ future plans for the
period 2007-2009.
It provides evidence and information on the level, patterns and impacts of
international sourcing for the Irish economy.
The results show that between 2001-2006 38% of large Irish enterprises engaged in international
sourcing. This level of international sourcing is higher than reported by other European countries
who conducted a similar survey. The level of international sourcing of Irish business activity is
highest in the manufacturing sector (57%) and transport, storage & communication sector (54%).
The results show 30% of all large Irish enterprises sourced core business internationally.
Furthermore, 29% of enterprises sourced non-core support business functions internationally.
The support business functions most likely to be sourced internationally by Irish enterprises are
distribution (16%), marketing and sales (13%) and engineering (13%).
By far the most popular destination for Irish international sourcing activity was the other member
states of the EU15. Of those Irish enterprises engaged in international sourcing during the
reference period 79% sourced some business functions within the EU15. One third sourced some
business functions to the new member states of the EU (NMS12), 25% sourced to the USA &
Canada and 24% sourced to China.
Amongst those enterprises engaged in international sourcing 15% reported that jobs were created
as a direct result of international sourcing. Furthermore 9% of these enterprises reported the
creation of high skilled jobs due to international sourcing. The results show that 23% of those
enterprises engaged in international sourcing reported that jobs were lost as a direct result of
international sourcing, with 15% of these enterprises reporting the loss of high skilled jobs.
The survey highlights that efficiency seeking factors are the main motivations driving Irish
enterprises to source internationally. Both the reduction of labour costs and the reduction of other
costs ranked highest amongst the reported motivating factors, whilst the focus on core business
activity is the fourth highest motivating factor.
From an Irish perspective it is interesting to note that the third highest motivation factor is the
strategic decisions taken by the group head considering such a large proportion of large Irish
enterprises are subsidiaries of larger groups.
5
Enterprises reported that international sourcing has had a positive impact on the enterprise, with
improved competiveness being the most significant outcome. Over half of Irish enterprises
reported that international sourcing improved their competiveness. Other prominent positive
impacts are the reduction of labour costs and the reduction other costs.
Almost one third of Irish enterprises currently engaged in international sourcing plan to increase
the level of core production sourced internationally over the three year period 2007 to 2009. Only
2% of enterprises plan to decrease the level of core business function they currently source
internationally. Enterprises also plan to increase the level of support business functions sourced
internationally over the reference period and very few enterprises plan to decrease the level of
support business functions.
6
1.0 Introduction
1.1
Overview
The phenomenon of international sourcing has generated widespread debate and commentary in
recent decades. However these debates have taken place in the context of very little data and are
usually only supported by anecdotal evidence that is difficult to compare on an international level.
Therefore the Central Statistics Office (CSO) in conjunction with EUROSTAT, the statistical office
of the European Commission, and a number of the national statistical offices in the Member
States1 has launched an ad-hoc survey on international sourcing.
The overall objective of the survey is to provide policy-makers, researchers and other users with
relevant statistical evidence and information about the level, patterns and possible impacts of
international sourcing for the Irish economy.
Issues addressed in this survey include; the
motivations behind international sourcing, the perceived barriers to international sourcing and the
impact of international sourcing on individual enterprises in terms of competitiveness, employment
and the reduction of costs.
This survey focuses primarily on the relocation of Irish domestic production of goods and services
to producers located abroad. Sourcing refers to the movement of activities from one enterprise to
another enterprise within the same enterprise group or to an unrelated enterprise. The movement
of activities from one enterprise to another enterprise within the same enterprise group is referred
to as insourcing. The movement of activities from one enterprise to an unrelated enterprise is
known as outsourcing. The movement of activities within Ireland is referred to as either domestic
insourcing or domestic outsourcing.
The movement of activities outside the state is either
international insourcing or international outsourcing.
Table 1.1.1 provides a conceptual
framework for analysing international sourcing.
1 The following countries participated in the survey: Germany, Czech Republic, Netherlands, Denmark, Spain, Ireland, Italy, Portugal,
Finland, Slovenia, Sweden, the United Kingdom and Norway.
7
Table 1.1.1. A conceptual framework for analysing international sourcing
CONTROL
LOCATION
Domestic Sourcing
International Sourcing
(Outsourcing)
(Outsourcing)
External
production
Production outside the
outside the
enterprise or group by
enterprise or
non-affiliated
enterprise group
enterprises but within
the Ireland.
Domestic Sourcing
(Insourcing)
Internal
production
Production within the
within the
enterprise group to
enterprise group which the enterprise
belongs and within
Ireland.
1.2
Production outside the
enterprise or group and
Ireland by non-affiliated
enterprises. This involves
foreign subcontracting.
International Sourcing
(Insourcing)
Production within the
group to which the
enterprise belongs but
abroad (by affiliated
enterprises).
Survey Population and Response Rates
This survey on international sourcing is an economy-wide survey and covers the non-financial
business economy. The sectors2 targeted by the survey are briefly outlined in Table 1.2.1. A more
detailed description and breakdown of the business sectors covered by this survey is provided in
Appendix 3.
Table 1.2.1 Description of NACE sectors covered by the international sourcing survey
NACE
Sector
C
Description
D
Manufacturing
E
Electricity, gas and water supply
F
Construction
G
Wholesale and retail trade
H
Hotels and restaurants
I
Transport, storage and communication
K
Real estate, renting and business activities.
Total
Non-Financial Business Economy
Mining and Quarrying
The statistical unit used in this survey is the enterprise. The target population is all enterprises in
the non-financial sector having 100 or more employees. A census was conducted on the currently
active enterprises on the CSO’s central business register within the selected NACE sectors and
having 100 or more employees. The participation in the survey was voluntary.
2 Defined by Statistical Classification of Economic Activities in the European Community, NACE Rev. 1.1 (2002)
8
The survey was conducted in 2007. In total 1,292 enterprises were surveyed and 636 enterprises
responded giving an overall response rate of 49%. The response rates varied across NACE
sectors. Table 1.2.2 provides a more detailed breakdown of the population and survey response
rates by NACE sector.
Table 1.2.2 Breakdown of the survey population and response rate by NACE sector.
NACE
Sector
C&E
Population of
Enterprises with
100 employees or
greater
19
Number of
Respondents
Response Rate
9
47%
190
46%
D
413
F
134
83
62%
G
221
109
49%
H
186
69
37%
I
75
39
52%
K
244
137
56%
1292
636
49%
Total
1.3 Reference Period
The reference period for this particular survey is the 6-year period from 2001 to 2006.
If
international sourcing took place prior to this period it is excluded from the results. Enterprises
were also asked to detail their future plans on international sourcing over the period 2007-2009.
During the reference period overall employment in the non-financial business sector3 increased by
14% from a yearly average of 1.12 million in 2001 to 1.28 million in 2006, i.e. an increase of over
157,000. Increases in employment were seen in the following non-financial business sectors;
construction (+ 88,775), real estate, renting & other businesses services (+ 31,325), retail trade &
wholesale (+ 20,275), hotels & restaurants (+ 20,275) and transport, storage and communication
(+10,175). However in contrast the manufacturing sector saw employment drop by 31,200 over
the reference period.
During the reference period unemployment averaged around 4.3% for the overall economy4. Also
over the six year reference period over 143,000 redundancies were notified by employers to
Department of Enterprise Trade and Employment under the redundancy scheme. In 2001 real
gross domestic product (GDP) for the overall economy, at 2006 prices, was at just over €135 billion
and by 2006 GDP had grown to over €177 billion, a 31% increase.
3 Source: CSO QNHS
4 Source: CSO QNHS
9
1.4
Business Functions
In this survey the activity of the main statistical unit has been broken down further in order to better
understand the extent of and trace the development of international sourcing both across the
economic sectors and over time. Consequently the concept of business function has been
introduced and implemented in this survey on international sourcing. The following definitions of
business functions have been introduced:
Core business function:
Production of final goods or services intended for the market/for third parties carried out by the
enterprise and yielding income. Core business function equals in most cases the primary activity of
the enterprise. It may also include other (secondary) activities if the enterprise considers these to
comprise part of their core functions.
Support business function:
Support business functions (ancillary activities) are carried out in order to permit or facilitate
production of goods or services intended for the market/for third parties by the enterprise. The
outputs of the support business functions are not themselves intended directly for the market/for
third parties. The support business functions are in this project divided into:
Distribution and logistics:
This support function consists of transportation activities, warehousing and order processing
functions. In figures and tables “Distribution” is used as an abbreviation for this function.
Marketing, sales and after sales services including help desks and call centres:
This support function consists of market research, advertising, direct marketing services
(telemarketing), exhibitions, fairs and other marketing or sales services. Also including call-centre
services and after sales services such as help-desks and other customer supports services. In
figures and tables “Marketing and sales” is used as an abbreviation for this function.
ICT services:
This support function includes IT-services and telecommunication. IT services consist of hardware
and software consultancy, customised software data processing and database services,
maintenance and repair, web-hosting, other computer related and information services. Packaged
software and hardware are excluded.
Administrative and management functions:
This support function includes legal services, accounting, book-keeping and auditing, business
management and consultancy, HR management (e.g. training and education, staff recruitment,
provision of temporary personnel, payroll management, health and medical services), corporate
financial and insurance services. Also included are procurement functions. In figures and tables
“Administration” is used as an abbreviation for this function.
Engineering and related technical services:
This support function includes engineering and related technical consultancy, technical testing,
analysis and certification. Also included are design services. In figures and tables “Engineering” is
used as an abbreviation for this function.
10
Research and Development:
This support function includes intramural research and experimental development. In figures and
tables “R&D” is used as an abbreviation for this function.
Further definitions of variables and concepts are provided in Appendix 1.
1.5
Questionnaire Design
The questionnaire on international sourcing is designed as a general survey tool applicable for all
economic activities. In addition, the core of the questionnaire is based on a qualitative approach,
which is considered to be the most useful basis to provide harmonised data allowing comparisons
between the participating countries in this difficult and not well-established area. The survey
deliberately asked relatively simple questions which can be answered by tick-marking an answer.
A copy of the survey questionnaire is provided in Appendix 2.
1.6
Comparison of results with other European countries
Due to differences in the target population and survey methodologies one should be careful in
comparing results with those from other participating countries. For example some countries
chose a target population of all the enterprises in the non-financial economy with 50 or more
employees while others (including Ireland) limited the target population to all enterprises in the
non-financial business economy with 100 or more employees. Furthermore some countries
conducted a census of the population whereas other countries chose a sample.
The international comparison tables published in this report have been sourced from Eurostat. It
should be noted that although Eurostat report combined results for the EU27, these aggregates
are based only on those countries who participated in the survey and provided results.
11
12
2.0 Level and Pattern of International
Sourcing
2.1 Level of international sourcing
Figure 2.1.1 and Table 2.1.1 show the level of international sourcing within the Irish non-financial
business economy. This survey shows 38% of enterprises, with 100 or more employees, engaged
in international sourcing during the period 2001 to 2006.
The level of international sourcing is
highest in the manufacturing (57%) and transport, storage and communication (54%) sectors.
In Table 2.1.1 the manufacturing sector is further broken down into high technology manufacturing
(HIT5) and medium-low technology manufacturing (MLT6). HIT consists of enterprises in the
chemical, pharmaceutical and electronics sector. MLT includes enterprises in the more traditional
manufacturing sector. The level of sourcing is 64% in the HIT sector and is 52% in the MLT sector.
5 High and Medium High Technology Manufacturing (including the following NACE codes: 24, 29, 30, 31, 32, 33, 34, 35.2, 35.3, 35.4, 35.5)
6 Low and Medium Low Technology Manufacturing (including the following NACE codes: 15, 16, 17, 18, 19, 20, 21, 22, 23, 25, 26, 35.1, 27,
28, 36, 37)
17
Table 2.1.1 also provides levels of international sourcing for a combined services sector KIBS7
which is based on knowledge intensive enterprises in the transport, storage & communication
sector and the business services sector. The level of international sourcing is 48% in the KIBS
sector.
Figure 2.1.2 places the Irish levels of international sourcing within an wider European context. With
the exception of the UK, the level of international sourcing amongst Irish enterprises for the
reference period is significantly higher than the levels reported by most other European countries.
Within the EU’s non-financial business economy 15% of enterprises with 100 or more employees
engaged in international sourcing during the period 2001 to 2006. After Ireland, the UK has the
second highest levels of international sourcing at 35% followed by Denmark with levels of 25%.
The Czech Republic has the lowest levels of international sourcing at 5%.
7 Knowledge intensive business services (including the following NACE codes: 64.2, 72, 73, 74.1-74.4)
18
19
2.2
Group Structure of Enterprises Engaged in International Sourcing
Figure 2.2.1 Irish enterprises having sourced internationally
2001-2006 broken down by group structure
8%
18%
10%
64%
Global group head of multinational
Group head of domestic group
Subsidiary of group
Not a group
Figure 2.2.1 provides a breakdown of Irish enterprises engaged in international sourcing by the
overall group structure that the enterprise operates within. Of those enterprises that engaged in
international sourcing 8% of enterprises are global group heads of multinational organizations. A
further 10% of enterprises are group heads of a domestic group and 18% are not part of a group.
The remaining 64% of enterprises are subsidiaries of a group.
Figure 2.2.2 Subsidiaries having sourced internationally 20012006 broken down by location of group head
20%
40%
40%
Group head outside EU27
Foreign group head inside EU27
Irish group head
Figure 2.2.2 provides a further breakdown of those Irish enterprises engaged in
international sourcing and describing themselves as a subsidiary. Of those enterprises
engaged in international sourcing and describing themselves as subsidiaries 40% have a
foreign group head within the European Union (EU), 40% have a group head outside the
EU and 20% are part of an Irish group.
20
2.3
Business Functions Sourced Internationally
Figure 2.3.1 shows the distribution of business function sourced internationally by Irish enterprises
during the reference period. The results show 30% of all Irish enterprises sourced core business
internationally.
Furthermore, 29% of the enterprises sourced support business functions
internationally. The support business functions most likely to be sourced internationally by Irish
enterprises are distribution (16%), marketing and sales (13%) and engineering (13%).
Figure 2.3.2 shows the distribution of business function sourced internationally by Irish
manufacturing enterprises during the reference period. In manufacturing the levels of international
sourcing during the reference period are higher than in the wider economy. Almost half of all
manufacturing enterprises had sourced core business functions internationally and 42% of
manufacturing enterprises sourced support business functions internationally.
21
The support
functions in manufacturing most likely to be sourced internationally are distribution (29%) and
engineering (23%).
Just over one in eight of manufacturing enterprises sourced R&D
internationally during the reference period.
Figure 2.3.3 shows the distribution of business functions sourced internationally by Irish services
enterprises during the reference period. In the services sector support business functions are
more likely to be sourced internationally than core business functions. For example, in the
transport, storage and communication sector 49% of enterprises outsourced some support
business functions during the reference period. In the transport, storage and communication
sector the support functions most likely to be sourced internationally are ICT services (25%),
administration (23%) and distribution (21%). Just under one third of enterprises in the transport,
storage and communication sector reported sourcing some core business functions internationally
during the period 2001-2006.
22
Figure 2.3.4 shows the distribution of business function sourced internationally by enterprises
within the European Union (EU) during the reference period. Throughout the EU just over one in
ten enterprises within the non-financial business sector sourced core business internationally and
a similar percentage of the enterprises sourced support business functions internationally. The
support business function most likely to be sourced internationally is distribution (4%).
23
24
3.0 Destinations and Types of Business
Partners for International Sourcing
3.1
Destinations for International Sourcing
Table 3.1.1 provides information on the distribution of international sourcing by destination8. By far
the most popular destination for Irish international sourcing activity during the reference period
was the other member states of the EU159. Of those Irish enterprises engaged in international
sourcing during the reference period 79% sourced some business functions within the EU1510.
One third sourced some business functions to the new member states of the EU (NMS12)11, 25%
sourced to the USA and Canada and 24% sourced to China.
8 It should be noted that enterprises may report sourcing core or support business functions to more than one destination.
9 UK, Spain, Portugal, France, Belgium, Netherlands, Germany, Luxembourg, Austria, Italy, Greece, Denmark, Sweden and Finland.
10 The phenomenon of sourcing business activity to neighbouring countries is often referred to a near-shoring (as opposed to off-shoring).
11 Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Romania, Poland, Slovakia and Slovenia.
29
Figure 3.1.1 provides information on the distribution of international sourcing of both core and
support business functions by destination.
Of those Irish enterprises engaged in international
sourcing during the reference period 58% sourced core business functions within the EU15. One
quarter of enterprises sourced some core business function to the new EU member states of the
EU, while a similar number (23%) of Irish enterprises sourced core business functions to China.
Other significant destinations for the international sourcing of core business function by Irish
enterprises are the USA & Canada (17%), Asia, excluding China and India, (13%) and the other
European countries not in the EU (13%).
The survey showed that 62% of Irish enterprises engaged in international sourcing sourced
support business functions during the reference period within EU15. Other significant destinations
for the international sourcing of support business function by Irish enterprises are the EU New
Member States (20%) and the USA & Canada (17%).
30
Figure 3.1.2 and Figure 3.1.3 provide a more detailed breakdown of the individual support
functions sourced internationally from Ireland by destination. The most popular destination for all
support functions is clearly within the EU15, with 38% of Irish enterprises sourcing distribution to
other countries within the EU15 and one third of enterprises sourcing engineering within the EU15.
Outside of the EU15 the new EU member states and the USA & Canada are the next most likely
destinations for international sourcing. The support functions most likely to be sourced to the new
EU member states are distribution (7%), marketing & sales (7%) and engineering (6%). The
support functions most likely to be sourced to the USA & Canada are R & D (8%), engineering (7%)
and distribution (6%). Just 5% of Irish enterprises sourced the distribution support business
function to China and 4% of enterprises reported outsourcing of ICT services to India.
Table 3.1.2 and Table 3.1.3 provide similar information on the distribution of international sourcing
by destination in the wider European context. European enterprises also primarily source business
functions from other countries within the EU.
Of those European enterprises engaged in
international sourcing 31% sourced core business functions to the EU15 and 33% sourced some
core business function to the NMS12. Similarly, 43% of European enterprises engaged in
international sourcing sourced support business functions to the EU15 and 29% sourced support
business functions to the NMS12.
31
32
33
34
3.2
Types of Business Partners for International Sourcing
Figure 3.2.1 provides information on the business relationship between the enterprise sourcing
business activity abroad and the foreign enterprise accepting the sourced activity. Two thirds of
Irish enterprises engaged in international sourcing source to another enterprise within the same
enterprise group, i.e. insourcing. A slightly lower share (64%) of Irish enterprises engaged in
international sourcing source to an unrelated enterprise outside of the enterprise group, i.e.
outsourcing. This general pattern of sourcing holds for the manufacturing sector but in the
services sector Irish enterprises are more likely to insource rather than outsource.
35
Figure 3.2.2 focuses on the business relationship between the enterprise sourcing business
activity abroad and the foreign enterprise accepting the sourced activity for the instances of
insourcing. For those Irish enterprises engaged in international insourcing 59% are sourced to an
existing enterprise within the enterprise group, 14% are sourced to an existing enterprise acquired
by the group and the remaining 15% are sourced to a newly established enterprise. This general
pattern of insourcing is also evident in both the manufacturing and the services sectors.
36
37
38
4.0 Impact on Employment
International sourcing may result in both employment gains and/or employment losses within an
enterprise. Figure 4.1.1 outlines the percentage of Irish enterprises engaged in international
sourcing that reported job gains domestically as a direct result of international sourcing. The
results are further broken down by economic activity.
Amongst those enterprises engaged in international sourcing 15% reported that jobs were created
as a direct result of international sourcing. Furthermore 9% of these enterprises reported the
creation of high skilled jobs due to international sourcing.
Within the high technology manufacturing sector (HIT) one in every four enterprises engaged in
international sourcing reported jobs gains as a direct result of international sourcing. Moreover
15% of these high technology enterprises engaged in international sourcing reported the creation
of high skilled jobs due to international sourcing.
In the knowledge intensive business services sector (KIBS) 26% of enterprises engaged in
international sourcing reported that jobs were created as a direct result of international sourcing
with 20% of those enterprises engaged in international sourcing reporting the creation of high
skilled jobs.
39
However in the medium, low technology manufacturing sector (MLT) only 6% of enterprises
engaged in international sourcing reported job creation due to international sourcing and only 2%
reported the creation of high skilled jobs.
Figure 4.1.2 outlines the percentage of Irish enterprises engaged in international sourcing that
reported job losses due to international sourcing.
Amongst those enterprises engaged in
international sourcing 23% reported that jobs were lost as a direct result of international sourcing.
Furthermore 15% of these enterprises reported the loss of high skilled jobs due to international
sourcing.
Within the high technology manufacturing sector 40% of enterprises engaged in international
sourcing reported job losses as a direct result of international sourcing. Moreover 26% of those
high technology enterprises engaged in international sourcing reported the loss of high skilled jobs
due to international sourcing.
In the knowledge intensive business services sector 26% of enterprises engaged in international
sourcing reported that jobs were lost as a direct result of international sourcing with 17% of those
enterprises engaged in international sourcing reporting the loss of high skilled jobs.
In the medium, low technology manufacturing sector 26% of enterprises engaged in international
sourcing reported job losses due to international sourcing and 19% reported the loss of high skilled
jobs.
40
In the original survey form enterprises were asked to report the actual number of job losses and job
gains that resulted from international sourcing during the reference period. The data gathered
from this question is not considered to be of a high enough quality to be published. Therefore only
general patterns are published in the publication.
Figure 4.1.3 shows the share of Irish job losses to job gains due to international sourcing. The
figure also further divides the job losses and gains into high and low skilled jobs. Within the overall
Irish target population for ratio of job losses to job gains due to international sourcing is
approximately two to one.
The survey shows around 70% of the job losses in the overall
population are low skilled with the remaining 30% of the jobs lost being high skilled jobs.
Conversely, 60% of the jobs gained overall are high skilled with the remaining 40% of the jobs
gained being low skilled jobs.
Figure 4.1.4 shows the share of Irish job losses to job gains in manufacturing due to international
sourcing. In manufacturing the ratio of job losses to job gains due to sourcing is nearing six to one.
The survey results indicated that about three quarters of the job losses in manufacturing are low
skilled with the remaining quarter being high skilled jobs.
41
Figure 4.1.5 shows the distribution of Irish job losses due to international sourcing broken by
business activity. The sector suffering the largest job losses as a result of international sourcing
was manufacturing. Of the overall job losses due to international sourcing 79% were in
manufacturing. The retail & wholesale sector and the real estate, renting and business activities
sector experienced 10% and 9% of the job losses respectively.
Figure 4.1.6 shows the distribution of Irish job gains due to international sourcing broken by
business activity. The largest percentage of jobs created as a result of international sourcing, with
48% of the employment gains, was in the real estate, renting and business activities sector. Just
over a quarter of the jobs created due international sourcing were in the manufacturing sector and
11% were created in the transport, storage and communication sector.
42
43
44
5.0 Motivations, Impacts and Barriers
5.1
Motivations for International Sourcing
Figure 5.1.1 outlines the initial motivation of Irish enterprises to engage in international sourcing. It
is clear from Figure 5.1.1 that efficiency seeking factors motivate Irish enterprises to source
internationally. Both the reduction of labour costs and the reduction of other costs ranked highest
amongst the motivating factors, whilst the focus on core business activity is the fourth highest
motivating factor. From an Irish perspective12 it is interesting to note that the third highest
motivation factor is the strategic decisions taken by the group head considering such a large
proportion of large Irish enterprises are subsidiaries of larger groups.
12
Data from the CSO (ASI 2006 and CIP 2006) shows that Irish owned enterprises make up 64% of the
population of enterprises with 100 or more employees in the non-financial business economy but account
for only approximately 27% of the gross value added (GVA).
45
Figure 5.1.2 and Figure 5.1.3 outlines the initial motivation of Irish high technology manufacturing
enterprises and Irish medium, low technology manufacturing enterprises, respectively, to engage
in international sourcing. It is interesting to note that 57% of high technology manufacturing
enterprises marked the reduction in labour costs as a very important motivating factor in their
decision to source business functions internationally. This is a much higher percentage than in the
overall population at 39%, or in the medium low technology manufacturing sector at 43%. In fact in
the medium low technology manufacturing sector the reduction of other costs, at 48% ranks above
the reduction of labour costs as a motivating factor to source business function internationally.
46
Figure 5.1.4 outlines the initial motivation of the Irish knowledge intensive business sector to
engage in international sourcing.
Figure 5.1.4 suggests that the motivating factors driving
international sourcing in the knowledge intensive business sectors are different than in both the
manufacturing sector and in the wider population. The reduction of other costs as a motivating
factor is ranked only eight. In this sector the reduction of labour costs is ranked first as a motivating
factor and the strategic decision of the group head is ranked second.
47
48
5.2
Impacts of International Sourcing
Figure 5.2.1 outlines whether international sourcing has had a positive or a negative impact on the
enterprises engaged in international sourcing. Looking at Figure 5.2.1 it is clear that management
within enterprises engaged in international sourcing have found international sourcing to have had
a positive impact on the enterprise. The largest positive impact on Irish enterprises of international
sourcing is in terms of improved competiveness.
Over half of enterprises reported that
international sourcing improved their competiveness.
Other prominent positive impacts are the reduction of labour costs and the reduction of other costs.
This is consistent with the initial motivations reported in section 5.1 above. The only factor having
any significant negative impact on Irish enterprises is the issue of logistics with 9% of enterprises
reporting that international sourcing had a negative impact on their logistics.
49
50
5.3
Barriers to International Sourcing
Figure 5.3.1 outlines the perceived barriers to international souring as reported by Irish
enterprises. The outcome relates to the total target population and not just to those enterprises
engaged in international sourcing. It is clear from Figure 5.3.1 that no one factor dominates as a
perceived barrier to international sourcing.
However, the most important barriers to Irish
enterprises to moving functions abroad are legal or administrative barriers and taxation issues.
Other prominent barriers are the need to be close to both existing clients and producers.
Looking at Table 5.3.1 it is evident that the least important barriers are concerns over the violation
of patents and/or intellectual property rights, linguistic or cultural barriers and conflicts with the
social values of the company.
51
52
6.0 Future Plans for International
Sourcing 2007-2009
6.1
Future Plans 2007-200913
Figure 6.1.1 outlines the future sourcing plans of Irish enterprises currently engaged in
international sourcing. Almost one third of Irish enterprises currently engaged in international
sourcing plan to increase the level of core production sourced internationally over the three year
period 2007 to 2009. Only 2% of enterprises plan to decrease the level of core business function
they currently source internationally.
Just over one in six Irish enterprises currently engaged in international sourcing plan to increase
the level of engineering sourced internationally over the three year period 2007 to 2009, while 14%
of Irish enterprises plan to increase the level of distribution sourced internationally. As with core
production very few enterprises plan to decrease the level of support business functions over the
three year period 2007-2009.
13 It may be worth noting that the International Sourcing survey took place in 2007 and that actual outcomes and expectations may have
changed substantially in the intervening period
53
Figure 6.1.2 shows the share of the target population that engaged in international sourcing during
the period 2001 to 2006 and the share of the target population that did not engage in international
sourcing during the reference period but who plan to during the period 2007 -2009. The shares of
enterprises with plans to source some business functions internationally in 2007-2009, having not
sourced internationally in 2001-2006, is 3% of the overall target population. Therefore by the end
of 2009 it is expected that 41% of all enterprises in the target population will have sourced some
business functions internationally, see Table 6.1.2.
By the end of 2009 it is expected that 68% of Irish enterprises in the high technology sector, 58% in
the medium and low technology manufacturing and 53% in knowledge intensive business services
sector will have sourced internationally.
54
55
56
6.2
Expected impact of Future Plans for International Sourcing in 2007-2009 on
Employment
Only Irish enterprises with international sourcing activities during 2001-2006 and/or having plans
to source internationally in the period 2007-2009 were asked to estimate the expected impact on
employment of international sourcing in 2007-2009.
Looking at figure 6.2.1 and figure 6.2.2 it is evident that Irish enterprises do not expect a substantial
impact domestically on either high or low skilled job creation during 2007-2009 from international
sourcing activity. However, 37% of Irish enterprises expect there to be some but not substantial
impact on job creation from international sourcing.
57
Figure 6.2.3 shows that only 3% of Irish enterprises expect there to be a substantial impact on the
movement of high skilled jobs abroad due to international sourcing during the period 2007-2009. A
further 17 % of Irish enterprises expected there to be some impact on the movement of high skilled
jobs abroad due to international sourcing during the period 2007-2009.
Figure 6.2.4 suggests that 8% of Irish enterprises expect there to be a substantial impact on the
movement of low skilled jobs abroad due to international sourcing during the period 2007-2009. A
further 27 % of Irish enterprises expected there to be some impact on the movement of low skilled
jobs abroad due to international sourcing during the period 2007-2009.
58
Appendix One
Definitions
Sourcing
The total or partial movement of business functions (core or support
business functions) currently performed in-house of a resident
enterprise to either non-affiliated (external suppliers) or affiliated
enterprises located either domestically or abroad.
International
The total or partial movement of business functions (core or support
sourcing
business functions) currently performed in-house or currently
domestically sourced by the resident enterprise to either non-affiliated
(external suppliers) or affiliated enterprises located abroad.
Exemptions:
Movement of business functions (core or support business functions)
abroad without reducing activity and / or jobs in the enterprise
concerned (if you set up a new production line abroad without
reductions, even if you could have set up the line also in the compiling
country).
Temporary subcontracting abroad (one year limit could be used).
Enterprise group
An enterprise group is a set of enterprises controlled by the group head.
The group head is a parent legal unit which is not controlled either
directly or indirectly by any other legal unit. An enterprise group
comprises of the group head and subsidiaries. The subsidiary
enterprises of a subsidiary enterprise are considered to be subsidiaries
of the parent enterprise.
An enterprise group is an association of enterprises bound together by
legal and/or financial links. A group of enterprises can have more than
one decision-making centre, especially for policy on production, sales
and profits. It may centralise certain aspects of financial management
and taxation. It constitutes an economic entity which is empowered to
make choices, particularly concerning the units which it comprises.
59
Multinational
enterprise group
An enterprise group with at least two enterprises located in different
countries.
Resident
An enterprise is said to have a centre of economic interest and to be
enterprises
resident unit of a country (economic territory) when the enterprise is
engaged in a significant amount of production of goods and /or services
there or when it owns land or buildings located there. The enterprises
must maintain at least one production establishment in the country and
must plan to operate the establishment indefinitely or over a long period
of time.
All-resident
enterprise group
Group head
An enterprise group composed only of legal units that are all resident in
the same country.
A parent legal unit which is not controlled either directly or indirectly by
any other legal unit.
Control refers to the dominant influence of a parent unit over the medium
and long-term strategies of one or more subsidiaries; i.e. the parent unit
must be able to influence (directly or indirectly) the decision in the
ordinary or extraordinary meetings of all the subsidiaries.
Global group
head
A group head which is not controlled either directly or indirectly by any
other legal unit
Ultimate
Ultimate controlling institutional unit of a foreign affiliate is the
controlling
institutional unit, proceeding up a foreign affiliate’s chain of control,
institutional unit
which is not controlled by another institutional unit.
Control means the ability to determine the general policy of an
enterprise by choosing appropriate directors, if necessary. Enterprise A
is deemed to be controlled by an institutional unit B when B controls
-directly or indirectly- more than half of the shareholders’ voting power or
more than half of the shares.
Subsidiary
A single institutional unit secures control over a corporation by owning
more than half the voting shares or otherwise controlling more than half
the shareholders’ voting power.
Corporation C is said to be a subsidiary of corporation B when: either
corporation B controls more than half of the shareholders’ voting power
in corporation C or corporation B is a shareholder in C with the right to
appoint or remove a majority of the directors of C.
In order to control more than half the shareholders’ voting power, an
institutional unit need not own any of the voting shares itself. A
corporation C could be a subsidiary of another corporation B in which a
third corporation A owns a majority of the voting shares.
60
High skill job
Associate professionals, managers, senior officials, researchers or
other technical occupations, generally employing persons with tertiary
education.
61
62
Appendix Two
The Questionnaire
63
64
CONFIDENTIAL
Barriers for international sourcing
1672
Question 12 on barriers is addressed to all enterprises
12. Please assess the importance of the following barriers when considering or carring out international sourcing
(Tick all that apply
X
)
Very important
Some
importance
Not important
Not applicable/
Do not know
Legal or administrative barriers
Taxation issues
Enquiries to:
CENTRAL STATISTICS OFFICE
PO BOX 208
SKEHARD ROAD
CORK
Trade tariffs
Concerns of the employees
(including the Trade Unions)
INTERNATIONAL SOURCING SURVEY
Concern of violation of patents
and/or Intellectual Property Rights
LoCall 1890 313414 (ROI)
0870 876 0256 (UK/NI)
021 453 5012
or 021 453 5211
Fax 021 453 5799
Website www.cso.ie
This questionnaire must be completed and returned by 10 August 2007
Conflicting with social values of
your company (e.g. corporate
social responsibility issues)
This survey focuses on the relocation of existing Irish domestic production of goods and services to producers
located abroad.
Problems with the distance to
producers
The overall objective of the survey is to provide policy makers at national and EU level with relevant statistical
evidence and information about factors driving international sourcing. This includes the impact on
competitiveness, motivations, perceived barriers and indications of the consequences for employment on a
short and long-term basis.
Proximity to existing clients
needed
Difficulties in identifying
potential/suitable providers abroad
The information you provide will be treated as strictly confidential in accordance with Section 33 of the
Statistics Act, 1993 and with European Law and cannot be accessed under the terms of the Freedom of
Information Act, 1997. It will be used only for statistical purposes and will not be divulged to any other
Government Department or body.
Overall concerns of the sourcing
operations exceeding expected
benefits
Sourcing refers to the movement of existing activities from your enterprise to another enterprise within the same
enterprise group or to an unrelated enterprise. The former is referred to as insourcing and the latter is known
as outsourcing.
Other reasons please specify:
The movement of activities within Ireland is referred to as domestic insourcing or domestic outsourcing.
The movement of activities outside the state is either international insourcing or international outsourcing.
Linguistic or cultural barriers
Further information and definitions are outlined in the attached Guidelines on the International Sourcing
Survey.
Certification
Your comments and feedback on the International Sourcing Survey
How long did it take you to complete this form?
1. Are you part of an enterprise group?
Yes, the group head (ultimate controlling
institutional unit) of an all-resident group.
mins
Yes, the global group head (ultimate controlling
institutional unit) of a multinational group.
Comments:
Yes, a subsidiary - what is the
location of the global group head?
1672
No
Signature ...........................................................................
Phone (
Position in enterprise ........................................................
e-mail ................................................................................
Date ................../.................../ 2007
Website WWW...................................................................
) ................................................................
THANK YOU FOR COMPLETING THIS FORM
Page 8
Own Country
Another EU
Outside EU
Sourcing activities of your Enterprise
10. Into which countries does your enterprise expect to source activities 2007-2009? (Tick all that apply X )
Domestically*
Internationally
X
)
EU 15 (old EU 12 (new
No functions sourced
member
states)*
Core business functions
China
Other
Asian
USA &
India countries
Canada
& Oceania
South &
Central
America
Africa
Production of goods and
services for the market
Support business functions
Distribution and logistics
Marketing, sales and after
sales services, including
help desks and call centres
ICT services
ICT services
Administrative and
management functions
Administrative and
Engineering and related
technical services
technical services
R&D
Other types of functions
please specify :
R&D
* Please note - If your enterprise has NOT sourced any functions internationally 2001-2006,
go to question 8 on future plans.
Sourcing activities of your enterprise carried out internationally during 2001-2006
Please note that the objective of this section of the survey is to focus on international sourcing. Therefore the following
questions will only relate to the sourcing activities carried out by your enterprise to foreign countries during 2001-2006.
3. To what kind of business partners has your enterprise sourced functions internationally during 2001-2006? (Tick all that apply X )
Within the enterprise group
To existing foreign
enterprise of the
same group
To new foreign
enterprise of
the same group
(by acquisition)
To newly created
foreign enterprise
of the same group
please specify :
*EU 15 (old member States) - Belgium, Denmark, Germany, Greece, Spain, France, Italy, Luxembourg, Netherlands, Austria,
Portugal, Finland, Sweden, United Kingdom.
**EU 12 (new member states) - Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia,
Slovak Republic, Bulgaria, Romania.
Other European countries - Switzerland, Norway, Turkey, Russia, Belo Russia, Ukraine and Balkan states.
To other foreign
enterprises
(no ownership or
50 percent or less)
Future impact on employment
Question 11 is addressed only to enterprises with international sourcing activities during 2001 to 2006 and/or having plans
to source internationally 2007 to 2009
11. Please estimate the expected impact on employment in your enterprise in 2007 to 2009 due to international sourcing
X
)
Substantial impact
Some impact
Moving existing high
skill jobs abroad
ICT services
Moving other types
of jobs abroad
Administrative and
Creating new high
skill jobs
domestically in
your enterprise
technical services
Creating other types
of jobs domestically
in your enterprise
R&D
1672
member
states)**
Other
European
countries
please specify :
Page 2
Page 7
No impact
Not applicable
Do not know
1672
2. What types of functions has your enterprise sourced in the period 2001-2006?
Into which Countries has your enterprise sourced activities during 2001-2006?
Questions 8 -10 are addressed only to enterprises without international sourcing activities 2001-2006
8. Does your enterprise have plans to source internationally 2007 to 2009?
Yes
No
member
states)*
member
states)**
Other
European
countries
China
Other
Asian
USA &
India countries
Canada
& Oceania
X
South &
Central
America
)
Africa
1672
4.
Plans to source internationally
If no please go to question 12.
9. Please indicate the importance of the following motivation factors for your decision to source internationally
2007-2009 (Tick all that apply X )
Very important
Reduction of labour costs
Some
importance
Not important
Not applicable/
Do not know
ICT services
Reduction of costs other than labour
costs
Administrative and
Access to new markets
technical services
Following the behaviour/example of
competitors/clients
R&D
Improved quality or introduction of new
products
please specify :
Strategic decisions taken by the group
head
Focus on core business
Access to specialised knowledge/
technologies
Tax or orther financial incentives
Other motivations, please specify :
5. Please give your best estimate of the number of jobs lost and created within the enterprise 2001-2006 domestically as
an impact of the international sourcing activities
Of which
high skill
Total
Number of jobs lost
1672
Number of jobs created
Page 6
Page 3
Not applicable
Do not
know
Very important
Some
importance
Not important
Remain at
Increase current
level
Not applicable/
Do not know
Decrease
Sourcing the
total function
back domes
tically again
costs
competitors/clients
products
head
ICT services
Administrative and
technoligies
technical services
R&D
please specify :
Please evaluate the impacts of the international sourcing activities 2001-2006 for your enterprise (Tick all that apply X )
Negative impact
No impact
Positive
impact
Not applicable/
Do not know
costs
Logistics
products
Competitiveness
In-house know-how
technoligies
Other impacts, please specify :
1672
7.
7a. What are your future plans concerning international sourcing for 2007 to 2009? (Tick all that apply X )
Page 4
Page 5
No
plans
exist
No decision
power in
the
enterprise
Not
applicable/
Do not
know
1672
6. Please indicate the importance of the following motivation factors for your decision to carry out international
sourcing activities (Tick all that apply X )
Very important
Some
importance
Not important
Remain at
Increase current
level
Not applicable/
Do not know
Decrease
Sourcing the
total function
back domes
tically again
costs
competitors/clients
products
head
ICT services
Administrative and
technoligies
technical services
R&D
please specify :
Please evaluate the impacts of the international sourcing activities 2001-2006 for your enterprise (Tick all that apply X )
Negative impact
No impact
Positive
impact
Not applicable/
Do not know
costs
Logistics
products
Competitiveness
In-house know-how
technoligies
Other impacts, please specify :
1672
7.
7a. What are your future plans concerning international sourcing for 2007 to 2009? (Tick all that apply X )
Page 4
Page 5
No
plans
exist
No decision
power in
the
enterprise
Not
applicable/
Do not
know
1672
6. Please indicate the importance of the following motivation factors for your decision to carry out international
sourcing activities (Tick all that apply X )
Into which Countries has your enterprise sourced activities during 2001-2006?
Questions 8 -10 are addressed only to enterprises without international sourcing activities 2001-2006
8. Does your enterprise have plans to source internationally 2007 to 2009?
Yes
No
member
states)*
member
states)**
Other
European
countries
China
Other
Asian
USA &
India countries
Canada
& Oceania
X
South &
Central
America
)
Africa
1672
4.
Plans to source internationally
If no please go to question 12.
9. Please indicate the importance of the following motivation factors for your decision to source internationally
2007-2009 (Tick all that apply X )
Very important
Some
importance
Not important
Not applicable/
Do not know
ICT services
costs
Administrative and
technical services
competitors/clients
R&D
products
please specify :
head
technologies
5. Please give your best estimate of the number of jobs lost and created within the enterprise 2001-2006 domestically as
an impact of the international sourcing activities
Of which
high skill
Total
Number of jobs lost
1672
Number of jobs created
Page 6
Page 3
Not applicable
Do not
know
Sourcing activities of your Enterprise
10. Into which countries does your enterprise expect to source activities 2007-2009? (Tick all that apply X )
Domestically*
Internationally
X
)
No functions sourced
member
states)*
China
Other
Asian
USA &
India countries
Canada
& Oceania
South &
Central
America
Africa
ICT services
ICT services
Administrative and
Administrative and
technical services
technical services
R&D
please specify :
R&D
* Please note - If your enterprise has NOT sourced any functions internationally 2001-2006,
go to question 8 on future plans.
Sourcing activities of your enterprise carried out internationally during 2001-2006
Please note that the objective of this section of the survey is to focus on international sourcing. Therefore the following
questions will only relate to the sourcing activities carried out by your enterprise to foreign countries during 2001-2006.
3. To what kind of business partners has your enterprise sourced functions internationally during 2001-2006? (Tick all that apply X )
Within the enterprise group
To existing foreign
enterprise of the
same group
To new foreign
enterprise of
the same group
(by acquisition)
To newly created
foreign enterprise
of the same group
please specify :
To other foreign
enterprises
(no ownership or
50 percent or less)
Future impact on employment
Question 11 is addressed only to enterprises with international sourcing activities during 2001 to 2006 and/or having plans
to source internationally 2007 to 2009
11. Please estimate the expected impact on employment in your enterprise in 2007 to 2009 due to international sourcing
X
)
Substantial impact
Some impact
Moving existing high
skill jobs abroad
ICT services
Moving other types
of jobs abroad
Administrative and
Creating new high
skill jobs
domestically in
your enterprise
technical services
Creating other types
of jobs domestically
in your enterprise
R&D
1672
member
states)**
Other
European
countries
please specify :
Page 2
Page 7
No impact
Not applicable
Do not know
1672
2. What types of functions has your enterprise sourced in the period 2001-2006?
CONFIDENTIAL
Barriers for international sourcing
1672
Question 12 on barriers is addressed to all enterprises
12. Please assess the importance of the following barriers when considering or carring out international sourcing
X
)
Very important
Some
importance
Not important
Not applicable/
Do not know
Legal or administrative barriers
Taxation issues
Enquiries to:
CENTRAL STATISTICS OFFICE
PO BOX 208
SKEHARD ROAD
CORK
Trade tariffs
Concerns of the employees
(including the Trade Unions)
INTERNATIONAL SOURCING SURVEY
Concern of violation of patents
and/or Intellectual Property Rights
LoCall 1890 313414 (ROI)
0870 876 0256 (UK/NI)
021 453 5012
or 021 453 5211
Fax 021 453 5799
Website www.cso.ie
This questionnaire must be completed and returned by 10 August 2007
Conflicting with social values of
your company (e.g. corporate
social responsibility issues)
This survey focuses on the relocation of existing Irish domestic production of goods and services to producers
located abroad.
Problems with the distance to
producers
The overall objective of the survey is to provide policy makers at national and EU level with relevant statistical
evidence and information about factors driving international sourcing. This includes the impact on
competitiveness, motivations, perceived barriers and indications of the consequences for employment on a
short and long-term basis.
Proximity to existing clients
needed
Difficulties in identifying
potential/suitable providers abroad
The information you provide will be treated as strictly confidential in accordance with Section 33 of the
Statistics Act, 1993 and with European Law and cannot be accessed under the terms of the Freedom of
Information Act, 1997. It will be used only for statistical purposes and will not be divulged to any other
Government Department or body.
Overall concerns of the sourcing
operations exceeding expected
benefits
Sourcing refers to the movement of existing activities from your enterprise to another enterprise within the same
enterprise group or to an unrelated enterprise. The former is referred to as insourcing and the latter is known
as outsourcing.
Other reasons please specify:
The movement of activities within Ireland is referred to as domestic insourcing or domestic outsourcing.
The movement of activities outside the state is either international insourcing or international outsourcing.
Linguistic or cultural barriers
Further information and definitions are outlined in the attached Guidelines on the International Sourcing
Survey.
Certification
Your comments and feedback on the International Sourcing Survey
How long did it take you to complete this form?
1. Are you part of an enterprise group?
Yes, the group head (ultimate controlling
institutional unit) of an all-resident group.
mins
Yes, the global group head (ultimate controlling
institutional unit) of a multinational group.
Comments:
Yes, a subsidiary - what is the
location of the global group head?
1672
No
Signature ...........................................................................
Phone (
Position in enterprise ........................................................
e-mail ................................................................................
Date ................../.................../ 2007
Website WWW...................................................................
) ................................................................
THANK YOU FOR COMPLETING THIS FORM
Page 8
Own Country
Another EU
Outside EU
Appendix Three
Statistical Classification of Economic Activities in the European Community,
NACE Rev.1.1 (2002)
NACE Rev
1.1 Code
Description
C
Mining and quarrying
10
Mining of coal and lignite; extraction of peat
11
Extraction of crude petroleum and natural gas; service activities
incidental to oil and gas extraction, excluding surveying
12
Mining of uranium and thorium ores
13
Mining of metal ores
14
Other mining and quarrying
D
Manufacturing
15
Manufacture of food products and beverages
16
Manufacture of tobacco products
17
Manufacture of textiles
18
Manufacture of wearing apparel; dressing and dyeing of fur
19
Tanning and dressing of leather; manufacture of luggage, handbags,
saddlery, harness and footwear
20
Manufacture of wood and of products of wood and cork, except furniture;
manufacture of articles of straw and plaiting materials
21
Manufacture of pulp, paper and paper products
22
Publishing, printing and reproduction of recorded media
73
NACE Rev
1.1 Code
Description
23
Manufacture of coke, refined petroleum products and nuclear fuel
24
Manufacture of chemicals and chemical products
25
Manufacture of rubber and plastic products
26
Manufacture of other non-metallic mineral products
27
Manufacture of basic metals
28
Manufacture of fabricated metal products, except machinery and
equipment
29
Manufacture of machinery and equipment n.e.c.
30
Manufacture of office machinery and computers
31
Manufacture of electrical machinery and apparatus n.e.c.
32
Manufacture of radio, television and communication equipment and
apparatus
33
Manufacture of medical, precision and optical instruments, watches and
clocks
34
Manufacture of motor vehicles, trailers and semi-trailers
35
Manufacture of other transport equipment
36
Manufacture of furniture; manufacturing n.e.c.
37
Recycling
E
Electricity, gas and water supply
40
Electricity, gas, steam and hot water supply
41
Collection, purification and distribution of water
F
Construction
45
Construction
G
Wholesale and retail trade; repair of motor vehicles, motorcycles and
personal and household goods
50
Sale, maintenance and repair of motor vehicles and motorcycles; retail
sale of automotive fuel
74
NACE Rev
1.1 Code
Description
51
Wholesale trade and commission trade, except of motor vehicles and
motorcycles
52
Retail trade, except of motor vehicles and motorcycles; repair of personal
and household goods
H
55
I
Transport, storage and communication
60
Land transport; transport via pipelines
61
Water transport
62
Air transport
63
Supporting and auxiliary transport activities; activities of travel agencies
64
Post and telecommunications
K
Real estate, renting and business activities
70
Real estate activities
71
Renting of machinery and equipment without operator and of personal
and household goods
72
Computer and related activities
73
Research and development
74
Other business activities
75
Medium Low Technology Manufacturing (MLT)
NACE Rev
1.1 Code
Description
15
Manufacture of food products and beverages
16
Manufacture of tobacco products
17
Manufacture of textiles
18
Manufacture of wearing apparel; dressing and dyeing of fur
19
Tanning and dressing of leather; manufacture of luggage, handbags,
saddlery, harness and footwear
20
Manufacture of wood and of products of wood and cork, except furniture;
manufacture of articles of straw and plaiting materials
21
Manufacture of pulp, paper and paper products
22
Publishing, printing and reproduction of recorded media
23
Manufacture of coke, refined petroleum products and nuclear fuel
25
Manufacture of rubber and plastic products
26
Manufacture of other non-metallic mineral products
27
Manufacture of basic metals
28
Manufacture of fabricated metal products, except machinery and
equipment
35.1
Building and repairing of ships and boats
36
Manufacture of furniture; manufacturing n.e.c.
37
Recycling
76
High Technology Manufacturing (HIT)
NACE Rev
1.1 Code
Description
24
Manufacture of chemicals and chemical products
29
Manufacture of machinery and equipment n.e.c.
30
Manufacture of office machinery and computers
31
Manufacture of electrical machinery and apparatus n.e.c.
32
Manufacture of radio, television and communication equipment and
apparatus
33
Manufacture of medical, precision and optical instruments, watches and
clocks
34
Manufacture of motor vehicles, trailers and semi-trailers
35.2
Manufacture of railway and tramway locomotives and rolling stock
35.3
Manufacture of aircraft and spacecraft
35.4
Manufacture of motorcycles and bicycles
35.5
Manufacture of other transport equipment n.e.c.
77
Knowledge Intensive Business Services (KIBS)
NACE Rev
1.1 Code
Description
64.2
Telecommunications
72
Computer and related activities
73
Research and development
74.1
Legal, accounting, book-keeping and auditing activities; tax consultancy;
market research and public opinion polling; business and management
consultancy; holdings
74.2
Architectural and engineering activities and related technical consultancy
74.3
Technical testing and analysis
74.4
Advertising
78

International Sourcing.vp - Central Statistics Office

Transcription

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