C

MANUFACTURING

sectionLevel 1

This section includes the physical, chemical or biological transformation of materials, substances, or components into new products, although this cannot be used as the single universal criterion for defining manufacturing (see remark on processing of waste below). The materials, substances, or components undergoing transformation are either raw materials or products of agriculture, forestry, fishing, mining or quarrying as well as products of other manufacturing activities. Substantial alteration, renovation or reconstruction of goods is generally considered to be manufacturing. The output of a manufacturing process may be finished in the sense that it is ready for utilisation or consumption, or it may be semi-finished in the sense that it is to become an input for further manufacturing. For example, the output of alumina refining is the input used in the primary production of aluminium; primary aluminium is the input to aluminium wire drawing; and aluminium wire is the input for the manufacture of fabricated wire products. This section includes factoryless goods producers (FGPs) that outsource most or all of the transformation process but still control the production process and supplies critical intellectual property inputs, regardless of whether the principal owns the material inputs or not. The FGPs are classified in the same class where they would have been classified if they carried out the manufacturing process themselves. However, this section excludes units that completely outsources the transformation process but neither controls the production process, nor supplies the critical intellectual property inputs, nor owns the material inputs. These units are in fact buying the completed goods from the manufacturer with the intention to re-sell them. Such an activity is classified in section G 'Wholesale and retail trade', specifically according to the type of sale and the specific type of goods being sold. Manufacture of specialised components and parts of, and accessories and attachments to, machinery and equipment is, as a general rule, classified in the same class as the manufacture of the machinery and equipment for which the parts and accessories are intended. Manufacture of unspecialised components and parts of machinery and equipment, e.g. engines, pistons, electric motors, electrical assemblies, valves, gears, roller bearings, is classified in the appropriate class of manufacturing, without regard to the machinery and equipment in which these items may be included. Assembly of the component parts of manufactured products is considered manufacturing. This includes the assembly of manufactured products from either self-produced or purchased components. The recovery of waste, i.e. the processing of waste into secondary raw materials is classified in group 383 'Materials recovery'. While this may involve physical, chemical or biological transformations, this is not considered to be a part of manufacturing. The primary purpose of these activities is considered to be the treatment or processing of waste and they are therefore classified in Section E 'Water supply; sewerage, waste management and remediation activities'. However, the manufacture of new products from secondary raw materials is classified in manufacturing, even if these processes use waste as an input. For example, the production of silver from film waste is considered to be a manufacturing process. Specialised installation, maintenance and repair of industrial, commercial and similar machinery and equipment is, in general, classified in the same sub-class since units manufacturing such goods often also provide these services for the same goods. However, the repair and maintenance of computers, personal and household goods and motor vehicles and motorcycles is classified in division 95 'Repair of computers, personal and household goods and vehicles'. Maintenance, repair and installation of equipment that forms an integral part of buildings or similar structures, such as maintenance, repair and installation of escalators or of air-conditioning systems, is classified as construction in section F 'Construction', if carried out at the construction site. As a general rule, the activities in the manufacturing section involve the transformation of materials into new products, and the repair and installation of machinery and equipment. The output is either a new product or a product that has gone through factory rebuilding and remanufacturing. As clarification, the following activities are considered manufacturing in SSIC: - fresh fish processing (oyster shucking, fish filleting), not done on a fishing boat, see 10200 - milk pasteurising and bottling, see 10501 - leather converting, see 15110 - wood preserving, see 16102 - printing and related activities, see 181 - tyre retreading, see 2212 - ready-mixed concrete production, see 23951 - electroplating, plating, and metal heat treating, see 2592 - rebuilding or remanufacture of machinery (e.g. automobile engines, see 29100) - refilling or recharging of fire extinguishers, see 28199 Conversely, there are activities that, although sometimes involving transformation processes, are classified in other sections of SSIC; in other words, they are not considered as manufacturing.