Session No. 5 Paper No. 3 Country: USA-BOC NAICS Implementation Plan for the United States Thomas L. Mesenbourg Bureau of the Census.

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1 Session No. 5 Paper No. 3 Country: USA-BOC NAICS Implementation Plan for the United States Thomas L. Mesenbourg Bureau of the Census Introduction 1. This paper describes U.S. statistical agency plans to implement the new North American Industry Classification System(NAICS). NAICS, a system jointly developed by the statistical agencies of Canada, Mexico, and the United States, will replace each country s existing classification system. Implementation of a fundamentally redesigned classification system is a major undertaking in any country, and the decentralized nature of the U.S. statistical system makes the challenges even more daunting. 2. This paper will focus primarily on NAICS implementation efforts at the U.S. Bureau of the Census. Our plans for implementing NAICS into the business register through the quinquennial economic censuses will be described as well as our preliminary plans for implementing NAICS into current surveys. The paper also briefly describes the Bureau of Labor Statistics plans for implementing NAICS into their business register. Additional background information describing BLS plans and issues related to implementing NAICS into BLS major surveys is available on the Statistics Canada Roundtable web site ( 3. In general, plans related to introducing NAICS into the business register and into the 1997 Economic Census are firm, while plans regarding introducing NAICS into current economic surveys are more uncertain. Over the past several years resources have concentrated on the development of NAICS industries and implementation plans have focused primarily on the introduction of NAICS into the business registers and the 1997 Economic Census. Only recently have the agencies started outlining issues and NAICS implementation schedules for current surveys. Shrinking agency budgets also contribute to the greater uncertainty regarding when NAICS will be introduced into our current surveys. For example, the Bureau of the Census requested $2.4 million for NAICS in FY95, $5.5 million in FY96, and $6.5 million per year through FY99. To date, we have received $1 million in FY95, nothing in FY96, and possibly $2-3 million in FY97, though that is far from certain. NAICS implementation in the 1997 Economic Census has been a Census Bureau priority In order to free resources for NAICS, we have eliminated activities, programs, and reports; redirected staff; and stopped some corporate programs and initiatives to free funds for NAICS. Nonetheless, if we do not get additional appropriated funds for NAICS, the implementation in current surveys will be slowed.

2 2 NAICS in the U.S 4. In 1992, the Office of Management and Budget (OMB) established the U.S. Economic Classification Policy Committee (ECPC), chaired by the Bureau of Economic Analysis (BEA), and including representatives from the Bureau of the Census (BOC) and the Bureau of Labor Statistics (BLS). The charter of the group was to develop a concept-based classification system that mirrored the economy of the 21st Century. One of the early decisions of the ECPC was to design the new system by grouping industries on the basis of production similarities, providing a conceptual basis for the classification system for the first time. The growing importance of North American trade and the signing of the North American Free Trade Agreement in 1994 set the stage for making the development of a new classification system a North American initiative. NAICS was developed jointly by the ECPC, Statistics Canada, and Mexico s Instituto Nacional de Estadistica, Geografia, e Informatica (INEGI). 5. NAICS groups the economy into 19 broad sectors, an increase from the 10 divisions of the Standard Industrial Classification (SIC). NAICS sectors include: Agriculture, Forestry, Hunting, and Fishing Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation Information Finance and Insurance Real Estate, Rental and Leasing Professional, Technical, and Scientific Services Management, Support, Waste Management, and Remediation Services Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Accomodation, Food Services, and Drinking Places Other Services (Except Public Administration) Public Administration 6. The increased recognition of services is clearly reflected in many of the new sectors. Grouping industries according to their production similarities also resulted in significant industry movement between sectors. Several sectors include industries formerly included in different SIC divisions. For example, the new Information sector includes industries from the Transportation, Communications, and Utilities division (broadcasting and telecommunications), Manufacturing (publishing), and Services (software publishing, data processing, information services, motion pictures, and sound recordings). The Accomodation, Food Services, and Drinking Places sector includes hotels and other lodging, formerly in Service Industries, and eating and drinking places, formerly in Retail Trade.

3 7. NAICS industries will be defined by a 5-digit numeric code; the national classification systems of each country will extend that to a 6-digit numeric code to define industries that are important in an individual country, but may not be important in the other countries. The hierarchic structure of NAICS is illustrated below: NAICS level NAICS code Description Sector Manufacturing Subsector 334 Computer and Electronic Product Manufacturing Industry group 3346 Manufacturing and Reproduction of magnetic Magnetic and Optical Media NAICS Industry Manufacturing and Reproduction of magnetic and Optical Disk U.S. Industry Reproduction of Software 8. Additional information about NAICS can be found in a background paper available on the Statistics Canada Roundtable web site. Introducing NAICS in the 1997 Economic Census 3 9. The Bureau of the Census conducts economic censuses every 5 years, collecting data for years ending in "2" and "7". The 1997 Economic Census will survey some 5 million of the 7 million U.S. business establishments that have paid employees. The censuses will employ some 500 different variations of report forms, tailoring inquiries to specific industry groups. For all but the smallest establishments, the census forms will collect detailed information on inputs and outputs. The detailed information on products, merchandise and commodity lines sold, and services offered permit the Census Bureau to assign industry codes based on reported data, rather than relying on written descriptions of primary activity which is usually the case in noncensus years. In the U.S., classification system revisions are always implemented for economic census years because of the scope, coverage, and detailed establishment data uniquely collected in the economic censuses. 10. Existing budget constraints will not permit us to conduct a 1997 Economic Census of the same scope as the 1992 censuses. In FY 1997, we face a budget shortfall of over $6 million and will probably have to eliminate the Census of Mineral Industries, Economic Censuses of Puerto Rico and other territories, the Survey of Women-Owned Businesses, and posssibly several current surveys. With the exception of census components that may be dropped, 1997 Economic Census industry coverage will be the same as in That is, SIC industries covered in 1992 will be covered in 1997 even if they are no longer in scope of the censuses. For example, logging which has moved to Agriculture, Forestry, Hunting and Fishing will be covered, but we will use a short form to minimize burden. Conversely, industries not covered in 1992 will not be covered in 1997, even if under NAICS they are in-scope (for example, veterinary services).

4 11. The 1997 Economic Census mail list will be selected in August 1997 from the 1997 Standard Statistical Establishment List (SSEL), the Census Bureau business register of all U.S. establishments. In preparation for selecting the census mailing list and to facilitate the effect of implementing NAICS in the 1997 Economic Census, we plan to introduce two special classification initiatives in calendar year First, in January 1997, we will mail classification forms to all single establishment enterprises (about 250,000) that currently have an industry code that will be split in NAICS and moves into a different sector. Classification information collected in this Refiling Survey will permit us to assign a 6-digit "bridge SIC" code. The first 4-digits of the code will match an existing 4-digit SIC code, while the last two digits will point to an unique 6-digit NAICS code. This "bridge SIC" will be the key to linking the subindustry detail collected in the 1992 Economic Census to the 1997 NAICS industry and the related subindustry data that will be published on a NAICS basis. Second, for multi-establishment enterprises mailed in the 1996 Company Organization Survey (COS), (approximately 60,000 of the 200,000 multiestablishment companies and 2/3 of the 1.5 million establishments affilated with all multi-unit establishment enterprises), we have highlighted all establishments classified in industries that will be significantly affected by NAICS. Special instructions and supplemental classification information will permit the respondent to assign a "bridge SIC" code to flagged establishments. Collection of the "bridge SIC" will insure that the great majority of all establishments mailed in the 1997 Economic Census will receive the correct report form. 13. The 1997 SSEL will include "bridge SIC" codes for all 7 million establishments with employees. The results of the 1996 Refiling Survey and the 1996 COS will be used to update the "bridge SIC" code in the SSEL. In addition, all SIC codes that can be directly recoded to a NAICS code will be assigned a "bridge SIC", others establishments will be assigned "rule-based" (available information is used to establish "if...then" rules) codes, while the remainder will be "force" (either assigned a specific code or codes are randomly assigned within a subsector) coded. Single unit establishment records added to the SSEL since the 1992 Economic Census will have classification codes provided by the Internal Revenue Service (IRS) and the Social Security Administration (SSA). Previously all new employer businesses requesting an Employer Identification (EI) number from IRS were assigned SIC codes by the Social Security Administration. Recently, IRS has begun assigning EI numbers by telephone and very often the supplemental classification information that is supposed to be mailed in, is never received, and consequently, no reliable SIC can be assigned. In between censuses, the number of unclassified establishments usually grows to about 800,000 cases, but use of BLS SIC codes has managed to reduce substantially the number of unclassified and partially classified establishments. Any SSEL establishment with an inadequate bridge SIC code will be mailed a short classification form in the 1997 census Economic Census report forms will be determined based on the "bridge SIC". In general, industries that switched sectors will receive a report form designed for the new sector. An exception will be publishing. Publishers will receive a manufacturing form so we can

5 5 provide BEA with needed information on material inputs, but aggregate data will be included in the Information Sector reports. For most report forms, detailed information provided for products, merchandise lines, or services will permit the assignment of 6-digit NAICS codes; check boxes and special inquiries will also aid the assignment of codes. Classification forms will be mailed to unclassified single unit establishments and selected establishments in apparel and textile industries. 15. We will mail 5 million economic census forms in December Of this total, some 1.5 million establishments owned by multi-establishment enterprises will receive the "long" form as will another 2.5 million single establishment enterprises; some 500,000 smaller single units will receive a "short" form which collects limited data on outputs, while the remaining 500,000 establishments will receive a classification form. Establishments receiving a classification form that are over a certain size (varies by sector) will be mailed the appropriate economic census form. We expect to complete data collection and initial data review in early September NAICS Database 16. Resource shortages, both monetary and personnel, forced us to seek NAICS implementation strategies that would minimize changes to the myriad processing systems supporting both the SSEL and the 1997 Economic Censuses. The NAICS database plays a vital role in implementing NAICS. The NAICS database has several objectives: first, it provides our analysts with an early look (October 1998) at the economic census data on a NAICS and SIC basis; second, it serves as the data repository for a new series of consolidated Economic Census reports that would provide NAICS and SIC industry data for the Nation and States, 13 months after the census mailout; and third, it provides a simple method for updating classification codes on the business register. 17. The NAICS database is being created on a UNIX platform and will use SAS datasets to provide easy querying and tabulating capabilities. The database will contain 1992 and 1997 Economic Census establishment and summary data, including the "bridge SIC" and the NAICS code, state codes, employment, payroll, and shipments/sales/revenue data for each establishment as well as the summary data; 1997 NAICS database files will be updated weekly from the economic census detailed establishment files, and tabulations will be generated. 18. The NAICS database will provide our analysts with a number of tools to help "prove in" NAICS. For example, worksheets will be available interactively that link the 6-digit bridge SIC, the NAICS industry code, and the specific kind- of-business (KB) activity within the industry for both 1992 and For example, in the 1992 censuses we published information on computers in both a wholesale and retail trade SIC industries and with the subindustry detail (KB) shown below:

6 6 SIC SIC KB Description 5045 (Wholesale) Computers and Computer Peripheral Equipment and Software Computer Peripheral Equipment for Resale Computer and Peripheral Equipment for End Use Computer Software 5734 (Retail) Computer and Compter Software Stores Computer Stores, Selling Primarily to Household Consumers for Personal Use Computer Software Stores, Selling Primarily to Household Consumers for Personal Use Under NAICS we will have: NAICS NAICS KB Description (Wholesale) Computer and Computer Peripheral Equpment and Software Computers and Computer Peripheral Equipment Computer Software (packaged) (Retail) Computer and Software Stores Computer Stores Prepackaged Software Stores The comparative bridge SIC worksheet will link the old and new KB detail as described below: SICKBNAICB Bridge SIC Description (Processing System) pt Computer and Peripheral Equipment for Resale pt Computer and Peripheral Equpment for End Use, Retail Method pt Computer and Peripheral Equpment for End Use, Wholesale Method pt Computer Software, Retail Method Computer Software, Wholesale Method pt Computer Stores, Sales to Household Consumers pt Computer Software Stores, Sales to Household Consumers

7 7 19. Our analysts also will have access to the following kinds of summary tables showing 1992 and 1997 data: NAICS Description NAICSKB SICKBBridge SIC 1992 Data 1997 Data Computer Equipment for Resale Computer Equipment Wholesale method pt NA 250 Computer Equipment Resale & Wholesale pt NA 375 Computer Software Wholesale method pt NA 300 Computers, Computer Peripherals, and pt NA 675 Software 1997 Economic Census Publication Plans 20. NAICS implementation will establish approximately digit industries, an increase from the existing digit SIC industries. NAICS will define over 360 new industries not previously recognized. Of the remaining industries, 480 are substantially unchanged, while 330 represent revisions to the scope of old industries. The significant changes being introduced in NAICS will make it difficult to maintain time series comparability with data collected on a SIC basis. The ECPC recognized this problem early on, but concluded a July 1993 Issues paper by stating: The Committee recognizes... that it is uproductive to collect and maintain time series data that have questionable value. Thus, it may be preferable to accept a one-time break in historical continuity if the benefits of conversion to a new classification structure are apparent and accepted by users. 21. The Census Bureau will publish 1997 Economic Census on a NAICS basis while providing limited information which will permit some comparisons with prior census data. In order to provide data users with NAICS data as early as possible we have developed an entirely new product - the 1997 Core Business Statistics Series. This series will be generated from the NAICS database. An "advance" report, covering the entire economy, will be the first product from the 1997 Economic Census and is scheduled for release in January or February This report will provide 1997 data for the number of establishments, employment, payroll, and sales/receipts/shipments/revenue information at the NAICS sector, subsector (3-digit), and industry group (4-digit NAICS) for the U.S, and at the sector level for States. Comparative statistics for 1992 and 1997 will be shown for the U.S. at the SIC 2- and 3-digit level and at the SIC level for states.

8 22. Roughly a year later, in early 2000, we will publish detailed bridge tables covering all industries at the national level, and comparative statistics for all industries at both state and national levels All other 1997 Economic Census reports, such as the industry and geographic series, will only provide data on a NAICS basis. All substate data from the 1997 census also will be published only on a NAICS basis. We have taken a different approach for our "nonemployer" series which provides counts of businesses without paid employees and their associated sales and revenues by industry group. These data are tabulated entirely from IRS tax records. The IRS is scheduled to implement NAICS in tax year 1998, but pressing budget problems may jeopardize implementation. Since 1997 tax year records will be classified on a SIC-basis, 1997 nonemployer statistics will be published on a SIC basis and released as part of the annual County Business Patterns Program, rather than as a economic census series. These businesses, while numbering over 15 million account, for less than 3% of all business receipts. 24. Since we will collect 1997 Economic Census data on a "bridge SIC" basis and then use reported data to assign NAICS codes, we could have chosen to publish the 1997 census data on a SIC basis to begin with and to show limited NAICS data. While this approach would have maintained time series comparability, it would have meant preserving an inferior classification system that no longer mirrors the structure of the U.S. economy. The disclosure analysis also would have been significantly complicated, and most likely we would have had to severely restrict the NAICS information. We rejected the SIC option early on and rather than apologizing for the loss of time series comparability, we plan to aggressively market the advantages of NAICS. NAICS Implementation in the Business Register (SSEL) 25. Declining personnel and fiscal resources made it obvious from the beginning of the census planning cycle that we needed to adopt new, simpler processing methods if we were complete census planning activities and implement NAICS within our resource constraints. To free resources, we "froze" our 1997 Economic Census processing systems and postponed our plans to restructure the SSEL. In fact, minimizing changes in the complex SSEL processing subsystems while making maximum use of the register and the NAICS database, are keys to successful NAICS implementation. Consequently, we minimized changes to register data structures and sought new ways to take maximum advantage of the NAICS database and the SSEL.

9 SSEL 26. In order to satisfy the needs of both the 1997 Economic Census and our current economic surveys, special SSEL operations will be undertaken to facilitate NAICS implementation. As mentioned earlier, the 1997 SSEL, created in August 1997, will serve as the frame for the 1997 census mail list. Economic Census processing will begin in early 1998 and continue into the year For economic census processing purposes, we will maintain the 1997 SSEL through the end of census processing. Periodically, we will update SSEL classification information from the NAICS database. For example, in September of 1998 after we have completed initial data collection and initial data review in our Data Preparation Division, the NAICS database, the 1997 SSEL, and the 1998 SSEL (created in October 1998) all will be updated with the most current economic census classification information. In 1999, the subject divisions will begin preparing the 1997 Economic Census geographic and industry series; the associated review of these data will generate a significant number additonal of classification code changes; during this period the NAICS database will be updated on a flow basis weekly and the SSEL probably quarterly. At the end of census processing the 1997 SSEL will be maintained in a read-only mode. 27. The 1997 SSEL will be available as a SAS data set to facilitate subject matter analyst access and will play a major role as a research tool. The 1997 SSEL will be available for exploring new NAICS-based samples for our current surveys and it will provide comprehensive information linking the old SIC, the Principal Business Activity (PBA) code assigned by the IRS, and the new NAICS code. If IRS funding constraints delay NAICS implementation, we may have to use the SSEL classification code relationships to force code the IRS administrative information SSEL 28. The 1998 SSEL will be created in October 1998 and classification codes will be updated with available Economic Census SIC bridge and NAICS codes. The bridge SIC will be the primary code used for sampling most current surveys. However, County Business Patterns (CBP), a special product derived from the register, will publish data for the first time on a NAICS basis. The 1998 CBP also will include NAICS data for nonemployers. In the past we have not updated the post-census SSEL with Economic Census classification codes during the year. However, publishing CBP on a NAICS-basis will require that the 1998 SSEL be updated with census codes in March 1999 to include classification codes changed since the creation of the register in October Administrative record data supplied by the IRS for single unit establishments will be carried to the SSEL, but we will rely on economic census codes whenever possible. For births, nonrespondents, and unmatched records, we will use BLS classification codes whenever possible, mail classification forms if funds are available, or force code the records to NAICS using 1997 SSEL NAICS/SIC relationships. For nonemployers we will use IRS NAICS codes (if they implement NAICS for tax year 1998), otherwise we will use the 1997 SSEL classification code relationships to force code these records to NAICS.

10 SSEL 29. The 1999 SSEL, created in October 1999, will incorporate economic census classification information, codes changed as a result of the 1998 Annual Survey of Manufacturers (ASM) or COS, and codes assigned to unclassified or partially classified records by BLS. The 1999 SSEL will be used to select new NAICS-based samples for most of our annual nonmanufacturing surveys. Annual manufacturing surveys will continue to use the 1997 Census of Manufactures as the frame SSEL 30. The 2000 SSEL will be used as the frame for monthly and quarterly nonmanufacturing surveys. The 2000 SSEL and subsequent registers will continue to carry multiple classification codes, namely the SIC code, the bridge SIC, and the NAICS code. NAICS Implementation in the Bureau of Labor Statistics Business Establishment List (BEL) 31. The BLS will implement NAICS into the BEL over a 3-year (10/97-10/2000) period. In October 2000, the BLS and the States will have completed the dual coding of all 7 million employer records. The BLS collects most of the information included in the BEL under cooperative arrangements with the States and the States are the source of all the classification information collected for BLS establishment-based surveys. Funding for the data collection is included in the States annual Labor Market Information budget, but additional funds are needed to cover the dual coding. 32. The ES-202 program calls for the States to manually dual code the approximately 3.5 million establishments that are presently classified in SIC industries that will be "split" into multiple NAICS industries; the other 3.5 million establishments can be directly coded (one-toone industry matches). This classification work will begin in October 1997 when the states will begin the dual coding of half of the affected establishments; the remaining half will be done in FY 1999; and non-respondents, births, and any other relevant records will be coded in FY Cooperative Opportunities Related to NAICS Implementation 33. Clearly, sharing of classification information between the BLS and the Census Bureau can reduce reporting burden on the business community, reduce NAICS implementation costs, and improve the quality of classification codes. For the past several years, the Census Bureau has been procuring classification codes for unclassified and partially classified establishments from the BLS, and this cooperative arrangement has significantly reduced the number of unclassified Census Bureau establishments. In FY 1998, we will collect information from 5 million employer establishments, while BLS and the States will be collecting classification information from approximately 1.75 million establishments. A coordinated approach to

11 11 collecting classification information, combined with expanded sharing of classification codes could reduce collection costs and reporting burden. For example, Census could provide BLS with updated classification for the 5 million economic census establishments as early as October 1999 and provide an updated file in late summer of 2000 that would incorporate all subsequent economic census classification code changes. Conversely, if BLS and the States concentrated on the economic census non-mail cases and births, the Census Bureau could reduce census collection costs while improving the quality of industry codes. This makes such eminent sense that one could wonder why are two agencies are not implementing such a plan. 34. The Office of Management and Budget (OMB) in 1996 submitted to the Congress legislation that would permit expanded sharing of data for statistical purposes among statistical agencies. Even in the absence of new legislation, Census could possibly share classification information, if the BLS could insure that the States would use this data only for statistical purposes. However, building a "firewall" around the classification information that would be provided to the BLS and the States appears to be impossible, given the myriad non-statistical uses the States make of this information, including regulatory enforcement. Unless we can insure that classification codes will be used only for statistical purposes, a golden opportunity to reduce burden and NAICS implementation costs will be lost. NAICS Implementation for Current Surveys - Bureau of the Census 35. As mentioned earlier, plans for implementing NAICS in our current surveys are more tentative than economic census plans. We only recently turned our attention to current surveys and it already is clear that NAICS current survey implementation will be more complex than implementing NAICS in the economic census because of the diverse surveys we conduct, the variety of statistical units surveyed, and the difficult issues that need to be addressed. We plan to address these issues by working very closely with the business and user communities throughout this next year an extensive outreach program will be implemented to expalin NAICS, address and resolve issues, and refine implementation plans. Extensive electronic materials providing industry descriptions, index items and explanatory notes will be available through the Internet. Finally, supplemental NAICS funding will be required to meet our ambitious implementation schedule. 36. As you recall, Economic Census industry and geographic products will be published on a NAICS basis, with most data products becoming available in late Current surveys covering calendar year 1997 will be collected and published using the SIC, but as we implement NAICS in our current surveys we want to provide users with NAICS-based data that will link to the 1997 Economic Census. This strategy will be implemented for both annual manufacturing and nonmanufacturing surveys, though it is more straight-forward in manufacturing surveys because the industry changes are not as extensive. 37. Our annual manufacturing surveys covering data year 1998 will provide data on a NAICS basis even though the surveys utilize SIC-based samples. To provide NAICS data we will supplement the 1998 samples to account for new NAICS industries. The 1998 Annual Survey of

12 12 Manufactures will be mailed on a NAICS basis using 1997 census data available in the fall 1998 and NAICS-based statistics will be available in early We also will collect information from publishers (in NAICS they move to the new Information sector) though the information will not be included in the ASM report, but will be released by our Services division. The 1999 ASM will be the first to use a new NAICS-based sample. The Current Industrial Reports program collects and publishes data for manufacturing products, no information is provided by industry. In order to link SIC- and NAICS-based product codes, we have extended the 7-digit SIC product code to 10 digits in NAICS, the additional digits linking the different product codes, similar to the bridge SIC. The calendar year 1998 reports will provide NAICS-based product data for both 1998 and 1997 in late New samples using NAICS-based product codes will be selected for the 1999 surveys and monthly and quarterly surveys will switch to NAICS for data year NAICS results in significant changes to nonmanufacturing industries, not surprisingly, implementing NAICS in these annual surveys will lag manufacturing surveys by a year. For the 1997 calendar year, nonmanufacturing surveys will collect and publish data on a SIC basis. New NAICS-based samples will be selected in late 1999 (two years earlier than usual) for 1999 surveys. In order to link with 1997 Economic Census data, the 1999 annual surveys will collect 1999 and 1998 data on a NAICS basis, with results available in March As described earlier, NAICS has significantly expanded service industries and established entirely new sectors. We have just begun considering how we may have to modify our existing programs to begin providing annual statistics on these industries, probably in an environment of constrained resources. For example, industries currently covered in our Service Annual Survey, will be included in 9 different NAICS sectors. 39. Implementing NAICS into our monthly surveys presents us with a whole host of challenges. First, the monthly Manufacturers Shipments, Inventories, and Orders (M3) survey, the monthly Retail Trade survey, and the monthly Wholesale Trade survey must implement NAICS concurrently because inventories data collected in all three surveys are published in a monthly economic indicator, the Manufacturing and Trade Inventories and Sales report. Second, NAICS will require us to re-examine survey coverage. For example, the retail surveys currently cover restaurants. Under NAICS, should we continue to cover restaurants or perhaps even further broaden coverage to selected personal services? A number of issues related to seasonal adjustment and time series also must be addressed. We plan to address these issues by working very closely with the data suppliers and key users, including the BEA, the Council of Economic Advisers, and the Federal Reserve Board. Given the complex issues that must be addressed, our monthly surveys probably will not begin officially releasing monthly statistics on a NAICS basis until NAICS Implementation in Current Surveys - Bureau of Labor Statistics 40. The BLS has a number of important current economic surveys that will be converted to NAICS assuming that necessary resources are available. Information regarding the NAICS implementation schedule for BLS current surveys is provided in the background paper available on the Statistics Canada Roundtable web site. Tentative NAICS

13 implementation dates for selected BLS surveys are provided below: 13 Current Employment Survey national benchmark is scheduled for June 2003 Occupational Employment Statistics Program will release NAICS estimates for 1999, 2000, and 2001 in September 2002 Hours at Work Survey will release data for 2001 and 2002 in November 2003 Producer Price Index Program is scheduled to publish all 1997 NAICS industry net output indexes in January 2004 Survey of Occupational Injuries and Illnesses will begin releasing NAICS data in late 2003 Census of Fatal Occupational Injuries data covering 2001 will be released in August 2002 Conclusion 41. NAICS will be officially recognized as the new economic classification system for Canada, Mexico, and the United States in December The persistence, expertise, and creativity of the numerous people that have worked on this seminal project have been instrumental in creating an economic classification system that can meet the user demands of the 21st Century. Over the past 3 years we have created a system that has the potential to change the way we view our economies. But now the focus changes from design to implementation. All three countries face the myriad challenges associated with beginning to collect and publish data using NAICS. This paper has outlined implementation plans and described some of the challenges facing the U.S. statistical system. Over the next years, additional challenges and numerous other problems will surface and have to be resolved. Nonetheless, I am confident, that if statistical agencies continue to work closely together, these problems will be resolved. The design work is nearly done and now the heavy lifting must begin. How good a job we do implementing NAICS ultimately will be the true measure of the success of NAICS.