View stunning SlideShares in full-screen with the new iOS app!Introducing SlideShare for AndroidExplore all your favorite topics in the SlideShare appGet the SlideShare app to Save for Later — even offline
View stunning SlideShares in full-screen with the new Android app!View stunning SlideShares in full-screen with the new iOS app!
NACE has to maintain a close relationship with the UN’s ISIC (International Standard Industrial Classification). ISIC is also being revised in 2007
The UN now participates directly in the work of the Convergence Group. The Group’s recommendations are now also inputs to the 2007 ISIC revision
Convergence Scenario (cont)
Convergence is a significant factor in negotiations between EU member states and Eurostat in arriving at proposals for NACE 2007 BUT The EU is not bound by the convergence scenario and this is an opportunity for the UK to contribute completely new ideas and directions
Fully harmonising NACE and NAICS is a long term goal, perhaps taking 20 years or so….
What are the criteria to use to reach a useful and deliverable degree of comparability before then?
What is the optimum number of major categories and more detailed classes for the 2007 revision?
What sort of process is desirable to maintain, eventually to increase, the converged state in future?
The scenario does not contain any recommendations concerning numbering. Some issues are: • current systems do not have sufficient ‘free’ numbers in some areas to allow the addition of new categories • maintaining (or not) the one-to-one relationship between NACE classes and products of the EU CPA (Classification of Products by Activities) • the cost and disruption to users of the SIC faced with large-scale changes to codes
The following slides summarise the main changes HOWEVER
• the scenario actually involves a large number of changes affecting most of the SIC • a small change overall might be a major revision for someone interested in a particular part of the SIC It is essential to examine the complete convergence scenario in detail to obtain a complete picture of the impact.
Some industries would be relocated. For example, textile dye preparations and other household dye or tinting preparations would move to paints, adhesives and sealers manufacturing as they have similar production processes.
New Administrative and support services sector would have a major impact on NACE
Many parts of NACE would have to be moved to form the new grouping, for example: • employment services • call centres • travel arrangements and reservation services • investigation and security services
Convergence will probably not be sought below sector level given the major differences between NACE and NAICS
The scenario is currently unclear on whether various activities, fire-fighting for example, should be part of public administration (as in NACE) or classified to specific headings outside public administration (as in NAICS)
Issues We have just seen the convergence scenario proposals by sector. It is useful to end this presentation with some further examples of the broader issues which extend across the whole classification system
how far NACE should line up with NAICS and in what time-scale
methodological issues, including the numbering system to adopt for the revised classification system, the top-down approach, vertical integration and stability rules
how the revision should take into account issues relating to time-series
… .. Etc.
And finally.… • Although we have to consider the convergence scenario, we are not bound by it. • Operation 2007 is an opportunity to propose any desirable change. • The aim is to create a structure (and methodology) which best reflects modern economic activity