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Quarterly Survey of Plant Capacity Utilization: 2010

The U.S. Census Bureau reports U.S. domestic manufacturing plants used an estimated 71.0 percent (+/- 3.6 percent) of their full
production capacity for the third quarter 2010, compared with 68.7 percent (+/- 2.0 percent) for the second quarter 2010 and 65.5
percent (+/- 3.0 percent) for the third quarter 2009, not adjusted for seasonal variation, holiday or trading-day differences.

In 2010, we began releasing national emergency utilization rates. An explanation of how these rates are calculated appears in the Appendix.

The industry classifications for this report are based on the 2007 edition of the North American Industry Classification System (NAICS)
manual published by the Office of Management and Budget. The Federal Reserve Board (FRB), a funding agency, developed the
industry groups shown.

Data are obtained from a sample of manufacturing and publishing establishments by means of a mailed questionnaire or an electronic
instrument. Selected establishments are asked to report actual production and estimates of their full production and emergency
production capability. We derive utilization rates from these reported dollar values that are not adjusted for price changes.

The third quarter 2010 rates in this release are based on unit response from approximately 70% of the survey sample. The Census
Bureau also tracks and measures item response for each component used to calculate the utilization rates and the average plant hours
per week in operation. These items are reported with a response rate of approximately 68%. The item response rates are available
upon request.

Address inquiries concerning this report to U.S. Census Bureau, Manufacturing and Construction Division, HQ-7K145, 4600 Silver Hill
Rd., Washington DC 20233, or call survey staff at 800-201-4647 and choose option 5.

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TABLE 1. Quarterly Survey of Plant Capacity Utilization Full Rates: 2010

2010 2010
Quarter 3 Quarter 2
Average Average
Plant hours Plant hours
Utilization Standard per week in Standard Utilization Standard per week in Standard
NAICS Code(s) Description Rate Error operation Error Rate Error operation Error

31-33 All manufacturing 1/ 71.0 1.8 62.0 0.9 68.7 1.0 61.6 0.9
3111, 7, 8
Animal food, bakery and tortilla mfg,
seafood product preparation and packaging 68.2 3.7 84.8 6.3 74.3 5.6 85.2 6.3
3112, 5, 6 Grain and oilseed milling, dairy, and animal
slaughtering and processing 83.9 1.9 85.1 8.0 82.4 2.1 86.7 8.5
3113, 4 Sugar and confectionary product, fruit and
vegetable preserving and specialty food
mfg. 66.9 2.9 73.5 9.6 60.3 4.0 66.9 8.7
31191 Snack food mfg. 71.3 2.4 77.1 15.4 71.8 2.4 66.0 11.7
31192 Coffee and tea mfg. 70.8 2.4 117.3 9.9 72.5 2.5 131.9 4.7
31193, 4, 9 Other food mfg. 64.5 1.8 60.9 7.0 63.2 1.7 59.4 5.7
3121 Beverage mfg. 78.9 1.9 80.7 11.6 80.8 1.7 85.9 13.6
3122 Tobacco mfg. 63.0 3.0 65.3 18.7 66.9 3.4 65.1 18.6
3131 Fiber, yarn, and thread mills 82.1 3.0 132.4 6.6 83.1 4.4 126.2 7.5
3132 Fabric mills 70.1 5.8 79.7 11.1 70.2 5.9 76.3 10.4
3133 Textile and fabric finishing, and fabric
coating mills 60.4 13.8 50.2 7.7 52.0 12.1 49.1 8.4
3141 Textile furnishings mills 59.3 3.2 48.9 5.1 58.0 4.0 45.5 5.6
3149 Other textile product mills c 69.8 5.9 52.1 5.1 71.7 5.0 52.1 5.2
31511 Hosiery and sock mills 54.0 4.7 101.5 14.7 51.1 4.0 82.2 11.3
31519 Other apparel knitting mills 84.1 6.0 46.0 6.1 86.5 2.0 46.0 6.1
31521 Cut and sew apparel contractors c 70.6 1.7 35.5 5.5 c 72.8 6.8 35.5 5.7
Men's andand
31522 Women's boy's cutcut
girl's andand
sew apparel
sew mfg.
apparel c 63.1 6.4 41.4 1.0 64.2 7.9 43.9 3.4
31523 mfg. c 77.5 1.8 30.4 2.4 c 74.1 2.3 30.4 2.4
31529 Other cut and sew apparel mfg. 64.5 13.9 46.4 4.0 64.3 10.5 55.2 3.8
3159
Apparel accessories and other apparel mfg. 79.8 5.4 37.2 1.0 77.3 5.4 37.2 1.7
3161 Leather and hide tanning and finishing 61.4 14.0 36.1 2.9 64.7 10.8 41.1 0.7
3162 Footwear mfg. 56.3 5.4 41.8 1.8 62.5 3.8 39.9 2.2
3169 Other leather and allied product mfg. c 49.1 14.9 44.5 3.0 c 44.2 3.1 40.9 2.0
3211 Sawmills and wood preservation 53.3 5.6 47.6 2.7 50.2 5.2 47.1 2.9
3212 Veneer, plywood, and engineered wood
product mfg. 54.5 5.6 62.4 7.5 60.3 6.6 59.5 6.6
3219 Other wood product mfg. 56.9 2.9 45.3 2.2 61.0 4.3 46.0 2.2
32211 Pulp mills c 78.3 9.4 115.8 22.5 c 84.5 7.9 136.0 18.3

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TABLE 1. Quarterly Survey of Plant Capacity Utilization Full Rates: 2010

2010 2010
Quarter 3 Quarter 2
Average Average
Plant hours Plant hours
Utilization Standard per week in Standard Utilization Standard per week in Standard
NAICS Code(s) Description Rate Error operation Error Rate Error operation Error
32212 Paper mills 80.6 3.4 141.7 18.3 82.5 3.0 140.5 17.6
32213 Paperboard mills c 94.0 3.2 156.5 5.5 c 96.2 2.0 157.1 5.2
3222 Converted paper product mfg. 72.6 2.7 87.6 6.6 71.8 2.4 89.4 6.1
3231 Printing and related support activities c 60.0 2.9 57.4 3.6 60.1 2.7 60.8 3.5
32411 Petroleum refineries 89.6 0.8 166.2 0.9 88.0 1.8 166.2 0.9
32412, 9 Paving, roofing, and all other petroleum and
coal products mfg. 58.2 4.1 66.1 6.9 58.8 3.7 67.5 9.3
32511 Petrochemical mfg. 77.1 5.2 165.4 2.4 76.3 4.8 164.9 2.7
325193 Ethyl alcohol mfg. 93.2 3.0 157.2 9.6 98.7 4.7 151.3 10.6
325191, 2, 9 Gum, wood chemical, cyclic crude and
intermediate, and all other basic organic
chemical mfg. 80.3 1.6 130.0 21.3 81.7 1.6 151.5 9.4
32512, 3,8 Industrial gas, synthetic organic dye and
pigment, and other basic inorganic
chemical mfg. 72.8 2.5 130.8 18.2 70.4 4.4 134.5 18.6
325211 Plastics material and resin mfg. 78.6 4.0 95.1 18.6 76.9 3.4 86.4 20.0
325212 Synthetic rubber mfg. 62.8 7.9 58.8 10.9 73.5 4.2 59.2 10.9
32522 Artificial and synthetic fibers and filaments
mfg. c 91.0 1.4 49.8 9.4 c 91.9 2.1 49.8 9.4
32531 Fertilizer mfg. 65.0 8.2 82.2 12.7 79.0 3.2 94.7 10.6
32532 Pesticide and other agricultural chemical
mfg. 38.5 2.3 65.9 13.0 56.5 4.7 69.7 16.8
3254 Pharmaceutical and medicine mfg. c 64.7 3.4 66.9 14.3 c 61.7 4.2 66.9 14.6
3255 Paint, coating, and adhesive mfg. c 69.1 3.7 53.6 5.8 c 67.5 3.8 55.2 5.6
3256 Soap, cleaning compound, and toilet
preparation
Other mfg.product and preparation
chemical c 66.0 2.7 61.0 7.7 c 66.8 2.9 60.9 7.4
3259 mfg. 68.7 3.7 73.5 9.5 65.4 3.7 76.6 9.7
3261 Plastics product mfg. c 66.2 4.4 84.8 6.5 67.0 3.5 86.2 6.3
Tireother
32621 All mfg.rubber product (excluding tires) 84.5 2.4 67.2 15.6 85.9 2.3 61.5 14.3
32622, 9 mfg. 65.6 4.0 68.3 7.7 67.2 3.5 72.2 9.2
3271 Clay product and refractory mfg. 55.2 4.9 76.0 16.4 47.4 6.0 101.2 20.2
3272 Glass and glass product mfg. 81.1 3.1 75.4 10.1 77.2 3.0 73.4 8.8

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TABLE 1. Quarterly Survey of Plant Capacity Utilization Full Rates: 2010

2010 2010
Quarter 3 Quarter 2
Average Average
Plant hours Plant hours
Utilization Standard per week in Standard Utilization Standard per week in Standard
NAICS Code(s) Description Rate Error operation Error Rate Error operation Error
32731 Cement mfg. 68.6 3.8 136.7 16.6 68.8 3.2 138.1 17.4
32732, 9 Ready-mix concrete; concrete pipe, brick,
and block; and other concrete mfg. c 29.7 5.2 44.5 1.6 c 33.4 5.4 44.2 1.5
3274 Lime and gypsum product mfg. c 41.3 6.8 56.2 9.9 c 43.5 6.4 56.7 10.0
3279 Other nonmetallic mineral product mfg 66.4 3.3 44.1 2.0 64.9 3.2 45.6 2.7
3311, 2
Iron and steel mills and ferroalloy mfg.; and
steel product mfg from purchased steel 67.7 2.4 107.6 17.3 76.1 2.2 113.0 17.4
3313 Alumina and aluminum production and
processing c 53.6 16.4 112.6 24.4 53.5 18.8 148.4 12.1
3314 Nonferrous metal (except aluminum)
production and processing 63.2 3.9 79.2 14.9 61.6 3.3 80.3 14.6
3315 Foundries 71.1 2.1 68.9 11.3 73.2 2.0 66.4 9.4
3321, 2, 4, 5, 6 Forging and stamping; cutlery, handtool,
boiler, tank, shipping container, hardware,
and spring and wire mfg. 68.1 3.1 68.0 5.5 61.6 4.1 64.3 5.0
3323, 7, 8, 9 All other fabricated metal product mfg. 64.4 2.1 60.0 2.6 54.4 10.2 59.9 2.6
3331 Agriculture, construction, and mining
machinery mfg. 58.7 3.5 56.3 7.0 64.6 3.7 56.5 7.2
3332 Industrial machinery mfg. 67.8 3.3 54.6 5.1 57.3 8.6 53.7 5.3
3333 Commercial and service industry machinery
mfg. c 78.5 3.6 61.0 8.4 80.9 2.5 71.5 11.5
3334 Ventilation, heating, air-conditioning, and
commercial refrigeration equipment mfg. 60.0 2.9 59.9 5.8 62.3 4.5 54.4 4.8
3335 Metalworking machinery mfg. 64.7 3.8 57.8 3.8 56.2 3.4 56.5 3.9
3336 Engine, turbine, and power transmission
equipment mfg. 56.4 2.8 83.1 11.5 56.8 2.1 78.3 13.7
3339 Other general purpose machinery mfg. 64.6 2.3 53.4 4.4 63.0 2.2 51.3 3.8
3341 Computer and peripheral equipment mfg. c 74.3 5.6 45.0 3.7 c 78.8 4.4 49.3 5.1
3342 Communications equipment mfg. c 76.7 3.4 65.7 7.2 68.4 2.5 62.3 6.1
3343, 6 Audio and video equipment mfg; and
manufacturing and reproducing magnetic
and optical media c 62.8 3.2 78.7 29.9 65.1 7.9 54.3 7.6
334411 Electron tube mfg. 77.1 4.2 51.1 5.9 63.6 2.5 55.1 9.0
334412, 4-9 Bare printed circuit board, electronic
capacitor, and other electronic component
mfg. c 61.5 5.6 48.2 3.2 c 55.1 4.5 50.4 3.7

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TABLE 1. Quarterly Survey of Plant Capacity Utilization Full Rates: 2010

2010 2010
Quarter 3 Quarter 2
Average Average
Plant hours Plant hours
Utilization Standard per week in Standard Utilization Standard per week in Standard
NAICS Code(s) Description Rate Error operation Error Rate Error operation Error
334413 Semiconductor and related device mfg. 81.6 4.4 56.4 9.5 80.6 4.0 52.1 7.0
3345 Navigational, measuring, electromedical,
and control instruments mfg. c 70.5 3.0 44.9 2.8 c 69.8 2.8 44.5 2.2
3351 Electric lighting equipment mfg. c 52.5 3.6 40.4 5.4 51.1 3.6 40.4 6.0
3352 Household appliance mfg. 67.9 3.3 55.8 8.3 69.8 2.7 59.5 12.9
3353, 9 Electrical equipment and component mfg. 66.0 3.7 58.8 5.5 66.6 3.2 51.1 2.8
336111 Automobile mfg. 55.1 3.0 77.9 2.1 54.5 3.7 77.5 1.2
336112 Light truck and utility vehicle mfg. 78.3 7.2 87.0 9.6 78.4 5.2 88.9 11.4
33612 Heavy duty truck mfg. 34.9 2.3 72.8 8.0 32.2 3.6 70.8 7.6
3362 Motor vehicle body and trailer mfg. 54.6 3.9 46.1 3.3 58.8 3.7 46.6 2.8
3363 Motor vehicle parts mfg. 53.6 5.5 67.2 5.5 57.9 4.5 67.4 5.4
3364 Aerospace product and parts mfg. 86.6 3.1 77.9 16.0 75.7 2.1 72.4 16.9
3365, 6, 9 Railroad rolling stock, ship, boat, and other
transportation equipment mfg. 38.7 12.5 49.4 5.1 42.7 13.4 55.7 6.0
3371 Household and institutional furniture and
kitchen cabinet mfg. 57.6 3.1 39.7 1.3 62.6 2.4 40.8 0.5
3372 Office furniture (incl. fixtures) mfg. 64.3 3.8 46.8 4.8 65.2 3.5 49.8 5.8
3379 Other furniture related product mfg. 66.5 8.7 45.2 6.2 69.7 5.7 47.4 4.9
3391 Medical equipment and supplies mfg. 73.5 2.6 49.3 3.1 72.1 2.5 46.7 2.5
33991,2, 3 Jewelry, silverware, sporting and athletic
goods, and doll, toy and game mfg. 53.4 4.1 45.1 3.3 65.1 4.4 44.1 3.1
33994-5 Office supplies (except paper) and sign
mfg. 73.9 3.2 43.9 1.9 63.8 2.9 42.4 1.3
33999 All other miscellaneous mfg. 79.6 10.1 61.0 9.0 76.3 9.9 59.2 7.4
51111, 3 Newspaper and book publishers c 66.9 6.6 47.0 2.6 c 59.7 8.2 55.7 6.5
51112 Periodical publishers c 96.6 2.6 40.0 2.7 c 94.8 4.0 41.9 1.4
51114, 9 All other publishers c 80.1 7.8 70.3 10.5 c 78.2 7.3 51.5 10.3

Note: Data may differ from that previously published due to data revisions made during the processing of the current quarter.

1/ Includes manufacturing plants without specific NAICS industry codes as specified within the table and excludes publishers (51111-51119).

S Withheld because estimate did not meet publication standards.

c The full utilization rate is based on responses with industry coverage of less than 50 percent. Coverage is calculated by industry group as the ratio of the weighted measure of size for respondents to the
weighted measure of size for the entire sample.

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TABLE 2. Quarterly Survey of Plant Capacity Utilization National Emergency Rates : 2010

2010 2010
Quarter 3 Quarter 2
Utilization Standard Utilization Standard
NAICS Code(s) Description Rate Error Rate Error

31-33 All manufacturing 1/ 50.9 1.9 50.2 1.4


3111, 7, 8
Animal food, bakery and tortilla mfg,
seafood product preparation and packaging 60.4 3.3 62.6 4.0
3112, 5, 6 Grain and oilseed milling, dairy, and animal
slaughtering and processing 70.3 3.3 67.7 3.2
3113, 4 Sugar and confectionary product, fruit and
vegetable preserving and specialty food
mfg. 27.3 13.1 24.0 11.6
31191 Snack food mfg. 64.6 3.6 64.5 3.8
31192 Coffee and tea mfg. 58.2 4.5 62.9 6.6
31193, 4, 9 Other food mfg. 46.2 2.4 46.8 2.3
3121 Beverage mfg. 55.0 6.3 61.4 6.5
3122 Tobacco mfg. 53.3 2.0 56.6 2.1
3131 Fiber, yarn, and thread mills 72.6 4.8 72.5 5.6
3132 Fabric mills 57.3 4.7 56.6 5.0
3133 Textile and fabric finishing, and fabric
coating mills 37.9 5.9 41.2 8.5
3141 Textile furnishings mills 35.8 2.6 35.3 2.8
3149 Other textile product mills 57.3 5.2 55.4 4.4
31511 Hosiery and sock mills 47.0 4.1 44.8 3.4
31519 Other apparel knitting mills 60.8 18.8 62.3 14.1
31521 Cut and sew apparel contractors c 53.8 9.1 c 24.5 1.8
31522 Men's and boy's cut and sew apparel mfg. c 35.8 4.1 35.8 4.2
31523 Women's and girl's cut and sew apparel
mfg. c 34.6 9.6 c 32.7 8.5
31529 Other cut and sew apparel mfg. 43.2 7.1 45.8 6.3
3159
Apparel accessories and other apparel mfg. 42.7 9.0 40.8 8.5
3161 Leather and hide tanning and finishing c 48.4 10.6 44.6 7.0
3162 Footwear mfg. 28.6 1.4 30.2 2.2
3169 Other leather and allied product mfg. c 42.8 11.0 c 42.3 2.8
3211 Sawmills and wood preservation 31.6 3.3 30.7 2.7
3212 Veneer, plywood, and engineered wood
product mfg. 46.1 4.0 50.8 5.1
3219 Other wood product mfg. 32.7 2.7 34.4 5.0
32211 Pulp mills c 78.3 9.4 c 84.5 7.9
32212 Paper mills 67.2 3.8 72.1 3.3
32213 Paperboard mills c 85.9 4.5 c 92.8 2.4
3222 Converted paper product mfg. 54.2 2.5 53.8 2.4
3231 Printing and related support activities c 44.2 2.5 41.5 3.7
32411 Petroleum refineries 88.5 0.8 87.2 1.8
32412, 9 Paving, roofing, and all other petroleum and
coal products mfg. 35.5 5.3 44.9 5.4
32511 Petrochemical mfg. 76.1 5.0 75.2 4.6
325193 Ethyl alcohol mfg. 90.2 3.6 95.7 5.1
325191, 2, 9 Gum, wood chemical, cyclic crude and
intermediate, and all other basic organic
chemical mfg. 79.3 1.9 78.4 1.9
32512, 3,8 Industrial gas, synthetic organic dye and
pigment, and other basic inorganic
chemical mfg. 64.5 4.4 65.9 5.0
325211 Plastics material and resin mfg. 76.7 4.7 75.4 3.9
325212 Synthetic rubber mfg. 44.8 11.2 52.4 11.5
32522 Artificial and synthetic fibers and filaments
mfg. c 89.3 1.4 c 89.9 2.0
32531 Fertilizer mfg. 53.9 8.6 67.6 4.4
32532 Pesticide and other agricultural chemical
mfg. 35.5 2.4 c 45.8 2.2
3254 Pharmaceutical and medicine mfg. c 48.5 3.6 c 47.5 3.8
3255 Paint, coating, and adhesive mfg. c 45.6 5.1 c 44.9 4.9
3256 Soap, cleaning compound, and toilet
preparation mfg. c 54.4 3.6 c 52.4 3.8
3259 Other chemical product and preparation
mfg. 50.3 5.6 48.2 5.0
3261 Plastics product mfg. 53.4 4.3 53.1 3.9
32621 Tire mfg. 77.7 2.8 77.7 3.2
32622, 9 All other rubber product (excluding tires)
mfg. 53.3 3.0 53.6 3.0
3271 Clay product and refractory mfg. 33.1 5.3 37.7 6.2
3272 Glass and glass product mfg. 51.7 7.8 49.9 6.5
32731 Cement mfg. 66.4 3.6 65.9 3.4
32732, 9 Ready-mix concrete; concrete pipe, brick,
and block; and other concrete mfg. c 12.9 2.7 c 14.1 2.9
3274 Lime and gypsum product mfg. c 37.9 6.7 c 37.6 5.4
3279 Other nonmetallic mineral product mfg 44.2 5.4 45.8 5.2
3311, 2
Iron and steel mills and ferroalloy mfg.; and
steel product mfg from purchased steel 44.4 7.2 52.7 8.0
3313 Alumina and aluminum production and
processing 47.4 9.8 50.2 17.9
3314 Nonferrous metal (except aluminum)
production and processing 48.7 6.1 46.0 5.1
3315 Foundries 55.0 3.8 57.4 3.7
3321, 2, 4, 5, 6 Forging and stamping; cutlery, handtool,
boiler, tank, shipping container, hardware,
and spring and wire mfg. 53.6 3.0 45.7 5.4
3323, 7, 8, 9 All other fabricated metal product mfg. 34.4 5.3 38.2 5.8
3331 Agriculture, construction, and mining
machinery mfg. 40.1 4.3 45.4 5.1
3332 Industrial machinery mfg. 38.2 2.4 33.1 5.3
3333 Commercial and service industry machinery
mfg. c 49.1 6.1 47.7 4.0
3334 Ventilation, heating, air-conditioning, and
commercial refrigeration equipment mfg. 38.2 4.5 37.7 5.6
3335 Metalworking machinery mfg. 41.4 3.8 38.1 3.5
3336 Engine, turbine, and power transmission
equipment mfg. 45.9 2.5 45.6 2.0
3339 Other general purpose machinery mfg. 45.4 2.3 43.3 2.2
3341 Computer and peripheral equipment mfg. c 46.0 12.2 c 44.2 9.7
3342 Communications equipment mfg. c 45.4 3.1 45.8 3.3
3343, 6 Audio and video equipment mfg; and
manufacturing and reproducing magnetic
and optical media c 48.9 4.4 47.4 9.6
334411 Electron tube mfg. 60.0 4.8 52.1 2.6
334412, 4-9 Bare printed circuit board, electronic
capacitor, and other electronic component
mfg. c 45.7 6.6 c 42.3 5.1
334413 Semiconductor and related device mfg. c 60.2 8.0 c 58.8 7.6
3345 Navigational, measuring, electromedical,
and control instruments mfg. c 46.4 3.4 c 42.3 4.0
3351 Electric lighting equipment mfg. 35.0 3.9 34.8 4.0
3352 Household appliance mfg. 52.7 4.6 58.1 4.7
3353, 9 Electrical equipment and component mfg. 45.6 3.9 45.5 3.8
336111 Automobile mfg. 32.4 1.5 34.2 2.1
336112 Light truck and utility vehicle mfg. 61.4 6.6 62.2 5.2
33612 Heavy duty truck mfg. 27.6 2.2 23.6 2.7
3362 Motor vehicle body and trailer mfg. 31.9 3.5 32.1 3.3
3363 Motor vehicle parts mfg. 32.5 6.6 36.6 6.1
3364 Aerospace product and parts mfg. 62.9 2.8 54.6 2.2
3365, 6, 9 Railroad rolling stock, ship, boat, and other
transportation equipment mfg. 24.4 7.1 27.5 8.1
3371 Household and institutional furniture and
kitchen cabinet mfg. 35.5 2.6 40.6 2.7
3372 Office furniture (incl. fixtures) mfg. 41.9 3.4 42.4 3.1
3379 Other furniture related product mfg. 39.5 5.0 40.5 3.6
3391 Medical equipment and supplies mfg. 44.8 5.4 48.8 5.4
33991,2, 3 Jewelry, silverware, sporting and athletic
goods, and doll, toy and game mfg. 34.4 3.0 35.6 3.4
33994-5 Office supplies (except paper) and sign
mfg. 51.7 3.9 44.8 3.1
33999 All other miscellaneous mfg. 60.2 14.5 59.6 13.1
51111, 3 Newspaper and book publishers c 47.7 7.4 c 50.3 6.6
51112 Periodical publishers c 76.6 8.1 c 72.0 8.4
51114, 9 All other publishers c 68.9 9.7 c 67.0 9.1

Note: Data may differ from that previously published due to data revisions made during the processing of the current quarter.

1/ Includes manufacturing plants without specific NAICS industry codes as specified within the table and excludes publishers (51111-51119)

c The emergency utilization rate is based on responses with industry coverage of less than 50 percent. Coverage is calculated by industry group as the ratio of the w
measure of size for respondents to the weighted measure of size for the entire sample.
stry group as the ratio of the weighted
Appendix
Survey Methodology

The sample for the 2010 third quarter release is a continuation of a new sample of establishments selected from the 2008 Business Register with updated information from
the 2007 Economic Census. The sample frame contained approximately 210,000 manufacturing establishments and 13,000 publishing establishments. Sampling
probabilities for the quarterly survey were assigned proportionate to the total value of shipments. The actual sample allocation was determined by the priority industry
requirements specified by the Federal Reserve Board (FRB). The resulting sample size was approximately 7,500 establishments.

The FRB’s requirements include 95 industry groups corresponding predominantly to the 4-digit NAICS industries or combinations. Each of these 95 industry groups is
sampled independently to satisfy the total sample size constraint. The sampling procedure ensured that the allocated sample size for each industry group was exactly
realized.

The full production utilization rate for an industry is estimated based on those plants in the industry reporting both the actual value of production and the full production
estimate. Simple weighted estimates of the two variables are formed by applying the plant’s sample weight to its respective values and adding these weighted values
across the reporting plants. The utilization rate for a particular industry group is formed as the ratio of the actual production weighted sum to the full production weighted
sum for that given industry. A similar procedure is used to estimate the national emergency production utilization rates, using the actual value of production and the
national emergency production estimate.

The average plant hours per week in operation for an industry are estimated based on those plants in the industry reporting plant hours. Simple weighted estimates of the
plant hours are formed by applying the plant’s sample weight to its respective values and adding these weighted values across the reporting plants. The average is formed
as the ratio of the plant hours weighted sum to the sum of the weights for the reporting plants.

Reliability of the Estimates

The survey estimates presented in this report are subject to both sampling and nonsampling errors. Potential nonsampling errors include various response and operational
errors, such as errors during data collection, reporting errors, transcription errors, and bias due to nonresponse. These are all types of errors that could also occur if a
complete enumeration had been done under the same conditions as the sample survey. Most of the important operational errors were detected and corrected during the
course of reviewing data for reasonableness and consistency. Though nonsampling error is not measured directly, quality control procedures are employed throughout the
survey process to minimize this type of error.

Sampling error is the difference between estimates obtained from the sample and results theoretically obtainable from a comparable complete enumeration of the sampling
frame. This error results because only a subset of the sampling frame is measured in a sample survey. Standard errors of the estimates shown in this publication, which
are estimated measures of the sampling variability, are displayed along with the corresponding estimates in Tables 1 and 2 of this report. These standard errors may be
used to define confidence intervals about the corresponding estimates with a desired level of confidence. Only one of many possible samples was selected. If confidence
intervals were constructed for each of these possible samples, then it would be expected that the percentage of confidence intervals containing the complete coverage
result would equal the percent of the level of confidence. For example, the interval defined by one standard error below the estimate to one standard error above the
estimate approximately yields a 68-percent confidence interval, the interval defined by two standard errors approximately yields a 95-percent confidence interval, and the
interval defined by two and a half standard errors approximately yields a 99-percent confidence interval.