2009 support_stat_part_B.wpd

SUPPORTING STATEMENT - PART B

U.S. Department of Commerce

U.S. Census Bureau

Survey of Plant Capacity Utilization

(Form MQ-C2)

(OMB Control No. 0607-0175)

2. Collection of Information Employing Statistical Methods

1. Universe and Respondent Selection

The sample for the quarterly Survey of Plant Capacity Utilization was used starting with the first quarter of survey year 2008. The sample is an establishment-based sample selected from the 2006 Business Register. The sampling frame for the quarterly survey excludes administrative records. Therefore, the sampling frame for the quarterly survey contains roughly 217,000 manufacturing plants and 13,000 publishing plants.

Sampling probabilities for the quarterly survey were assigned proportionate to

total value of shipments. Actual probabilities of selection were based upon sample allocations determined for each specified industry group. These sample allocations were determined by the priority industry requirements specified by the FRB. The sample industry requirements proposed by the FRB included 95 industry groups (92 encompassing the manufacturing sector and 3 from the publishing sector). These industry groups correspond predominantly to 4-digit NAICS industries or combinations of 4-digit NAICS industries, with a few exceptions. Each of these 95 industry groups were sampled independently to satisfy the total sample size constraint of approximately 7,500 establishments. The sampling procedure being used for the quarterly survey ensures that the allocated sample size for each sample industry group is exactly realized.

The sample panel will be augmented each year by a sample of plants that came into existence each year following the initial sample. This is done to account for attrition and to maintain the initial sample size.

2. Procedures for Collecting Information

The quarterly survey will present full production utilization rates. The full production utilization rate for each industry group is estimated based upon those plants reporting both actual value of production and full value of production. Simple weighted estimates of these two variables are computed by applying each establishment’s sampling weight to its respective data values and summing these weighted values across all reporting plants in the given industry group. The full production utilization rate for each given industry group is then calculated as the ratio of total weighted actual production to total weighted full production. Estimates are based on approximately 70-75% response.

3. Methods to Maximize Response

a. Follow-up Procedures

Respondents will be asked to return the initial form within 20 days. Those who do not respond to the survey will receive a follow-up letter. A duplicate form and instructions will be sent with the follow-up.

We telephone plants that still have not responded after the mail follow-up and ask them to provide data over the telephone or to return the form by mail.

b. Estimating for Missing Data

Since we produce rates, we do not estimate for plants not responding in time to meet publication deadlines because we would merely be imputing the industry group level average.

c. Reliability

For each industry group level, relative standard errors will be published for the full rates.

4. Tests of Procedures or Methods

Periodically, Census Bureau staff interviews survey respondents to assess our data requests and to keep abreast of the current record keeping practices. For the quarterly survey, we contacted potential respondents and inquired about the frequency of the quarterly collection, response time, electronic reporting and policy pertaining to voluntary surveys.

5. Contacts for Statistical Aspects and Data Collection

Person responsible for statistical methodology:

Paul Hsen, Assistant Chief

For Research and Methodology

Manufacturing and Construction Division

U. S. Census Bureau

(301) 763-4586

Person responsible for data collection:

Julius Smith Jr., Chief

Special Studies Branch

Manufacturing and Construction Division

U. S. Census Bureau

(301) 763-4683

List Of Appendices

Appendix A. Form MQ-C2 and instructions

Appendix B. Copy of 2009 cover letter