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Detailed structure and explanatory notes
ISIC Rev.3.1 code DStructure
This Section is divided into the following Divisions:
Manufacturing comprises units engaged in the physical or chemical transformation of materials, substances, or components into new products. The materials, substances, or components transformed are raw materials that are products of agriculture, forestry, fishing, mining or quarrying as well as products of other manufacturing activities.
The units in the manufacturing section are often described as plants, factories or mills and characteristically use power-driven machines and materials-handling equipment. However, units that transform materials or substances into new products by hand or in the worker's home and those engaged in selling to the general public products made on the same premises from which they are sold, such as bakeries and custom tailors, are also included in this section.
Manufacturing units may process materials or may contract with other units to process their materials for them. Both types of units are included in manufacturing.
The new product of a manufacturing unit may be finished in the sense that it is ready for utilization or consumption, or it may be semi-finished in the sense that it is to become an input for further manufacturing. For example, the product of the alumina refinery is the input used in the primary production of aluminium; primary aluminium is the input to an aluminium wire drawing plant; and aluminium wire is the input for a fabricated wire product manufacturing unit.
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. Assembly of self-produced prefabricated components of constructions at the construction site is classified as manufacturing when the manufacturing and assembly are integrated activities. When the assembly is performed by separate units, the activity is appropriately classified in division 45 (Construction). Therefore, assembly on the site of not self-produced prefabricated, integral parts into bridges, water tanks, storage and warehouse facilities, railroad and elevated rights of way, lift and escalator, plumbing, sprinkler, central heating, ventilating and air conditioning, lighting, electrical and telecommunications wiring systems of buildings, and all kinds of structures, is classified in Construction.
Assembly and installation of machinery and equipment in mining, manufacturing, commercial or other units, when carried out as a specialized activity, are classified in the same class of manufacturing as manufacture of the item installed.
Assembly and installation of machinery and equipment that are performed as a service incidental to the sale of the goods by a unit primarily engaged in manufacturing, wholesale trade or retail trade, are classified with its main activity.
Activities of units primarily engaged in maintenance and repair of industrial, commercial and similar machinery and equipment are, in general, classified in the same class of manufacturing as those specializing in manufacturing the goods. However, units engaged in repair of office and computing machinery are classified in class 7250. Units the main activity of which is repair of household appliances, equipment and furnishings, motor vehicles and other consumer goods are, as a general rule, classified in the appropriate class of division 50 (Sale, maintenance and repair of motor vehicles and motorcycles; retail sale of automotive fuel) or 52 (Retail trade, except of motor vehicles and motorcycles; repair of personal and household goods) in accordance with the kind of goods that are repaired.
Substantial alteration, renovation or reconstruction of goods is generally considered to be manufacturing.
Manufacture of specialized 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 unspecialized 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. However, making specialized components and accessories by moulding or extruding plastics materials is included in class 2520.
The recycling of waste is also included in Manufacturing.
Remark: The boundaries of manufacturing and the other sectors of the classification system can be somewhat blurry. As a general rule, the units in the manufacturing sector are engaged in the transformation of materials into new products. Their output is a new product. However, the definition of what constitutes a new product can be somewhat subjective. As clarification, the following activities are considered manufacturing in ISIC:
- Milk pasteurizing and bottling (see 1520);
- Fresh fish processing (oyster shucking, fish filleting), not done on a fishing boat (see 1512);
- Printing and related activities (see 2221, 2222);
- Ready-mixed concrete production (see 2695);
- Leather converting (see 1911);
- Wood preserving (see 2010);
- Electroplating, plating, metal heat treating, and polishing (see 2892);
- Rebuilding or remanufacturing machinery (e.g., automobile engines, see 3410);
- Ship repair and renovation (see 3511);
- Tyre retreading (see 2511).
Conversely, there are activities that though sometimes considered manufacturing, are classified in another section of ISIC (in other words, they are not classified as manufacturing). They include:
- Logging, classified in section A (Agriculture, hunting and forestry);
- Beneficiating of ores and other minerals, classified in section C (Mining);
- Construction of structures and fabricating operations performed at the site of construction, classified in section F (Construction);
- Activities of breaking of bulk and redistribution in smaller lots, including packaging, repackaging, or bottling products, such as liquors or chemicals; the customized assembly of computers; sorting of scrap; mixing paints to customer order; and cutting metals to customer order, produce a modified version of the same product, not a new product, and are classified to section G (Wholesale and retail trade).
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