Commercial and Industrial Machinery and Equipment Rental and Leasing Services Price Index (CIMERLPI)

Status:
Active
Frequency:
Quarterly
Record number:
5137

This survey collects information needed to produce indexes that measure the monthly changes in the prices for the Commercial and Industrial Machinery and Equipment Rental and Leasing Industry. The estimates are produced on a quarterly basis.

Detailed information for first quarter 2014

Data release - July 23, 2014

Description

This survey collects information needed to produce indexes that measure the monthly changes in the prices for the Commercial and Industrial Machinery and Equipment Rental and Leasing Industry. The estimates are produced on a quarterly basis.

The CIMERLPI series is a useful indicator of the industry's economic activity, and can also prove helpful as a tool for performance evaluation, cost monitoring, contract assessment, and benchmark comparisons. In addition, the indexes are used as price deflators by the Canadian System of National Accounts in order to arrive at estimates of real output for the industry.

Statistical activity

This index is part of the Services Producer Price Index program (SPPI) at Statistics Canada.

The SPPI program develops and produces price indexes for a number of business service categories. This initiative fills an important data gap in the area of economic statistics and has resulted in a more comprehensive set of service price indexes. These indexes allow Statistics Canada to produce more accurate estimates of real-value added (Gross Domestic Product) and changes in productivity.

Reference period:
The time period for which the CIMERLPI equals 100; currently this is the year 2007.
Collection period:
Data are collected quarterly for monthly prices the quarter following the reference quarter.

Subjects

  • Business, consumer and property services
  • Prices and price indexes
  • Rental and leasing and real estate
  • Service price indexes

Data sources and methodology

Target population

The Commercial and Industrial Machinery and Equipment Rental and Leasing survey covers establishments primarily engaged in renting or leasing commercial and industrial machinery and equipment, without operator. The types of firms included in this industry group are generally involved in providing capital or investment-type equipment that clients use in their business operations. They typically serve businesses who are knowledgeable of the products offered and of their usage in the industry.

The target population consists of all statistical establishments classified as belonging to the Commercial and Industrial Machinery and Equipment Rental and Leasing industry group (NAICS 5324) during the reference year, according to the North American Industry Classification System 2007 (NAICS 2007). This industry group contains three industries: Construction, Transportation, Mining and Forestry Equipment Rental and Leasing (NAICS 53241), Office Machinery and Equipment Rental and Leasing (NAICS 53242) and Other Commercial and Industrial Machinery and Equipment Rental and Leasing (NAICS 53249).

Instrument design

The questionnaire used for the CIMERLPI was developed and tested in consultation with numerous respondents and experts in the commercial and industrial machinery and equipment rental and leasing industry.

Sampling

This is a sample survey with a cross-sectional design and a longitudinal follow-up.

For the CIMERLPI, the target population consists of all establishments primarily engaged in commercial and industrial machinery and equipment rental and leasing services as identified on Statistics Canada's Business Register. The respondents are selected through a probability sample survey proportional to the significance of their revenue and based on the region they are located in. The sample size is approximately 350 establishments.

Weighting information is derived from the Annual Survey of Service Industries - Commercial and Industrial Machinery and Equipment Renting and Leasing (see record number 2441).

Data sources

Responding to this survey is mandatory.

Data are collected directly from survey respondents.

New respondents are sent an initial questionnaire which identifies and collects baseline information on the main pieces of equipment rented or leased by the firm, as well as details on the contracts, clients, units of measure, and prices charged.

In the second phase (which includes all subsequent quarters), respondents are sent pre-filled questionnaires and asked only to provide rental or leasing prices for the items identified during the initial phase. Each quarter respondents are asked to authorize the use of these pre-filled questionnaires, and note if there have been any changes in the recorded information.

Contact with respondents takes place throughout the collection process, for example when questionnaires have not been received after a specified period of time or if the provided responses require clarification. In the case of late responses, various follow-up contacts can be made, such as sending out a reminder letter or completing the questionnaire over the phone.

View the Questionnaire(s) and reporting guide(s) .

Error detection

A set of systematized error detection procedures are in place to identify outliers and possible reporting errors. Records that fail processing edits are reviewed and corrected when necessary or edit failure may trigger a follow-up with the respondent. For example, the respondent will be contacted to verify a larger than average increase or decrease in the price of a contract. The post-collection processing programs also check the data to ensure that there are no duplicates or missing values for a given series.

Imputation

For the preliminary data, estimates are imputed for respondents who were unable to respond on time or who provided unreliable reported values, while late responses are incorporated in the revised index (in subsequent releases). Imputation is automatically carried out during estimation; group averages by sub-industry and region are calculated from the available records to be used for imputation purposes.

Estimation

Weights:

The company weights from Statistics Canada's Business Register, represent the revenue of each establishment at the time of sample selection, which are price updated every collection period. The sub-industry weights are based on aggregate operating income from the Annual Survey of Service Industries: Commercial and Industrial Machinery Equipment Rental and Leasing and are used at the final level of aggregation.

Prices:

The prices collected for the CIMERL represent the contract prices charged for representative items. Each firm is asked to provide three representative lease or rental contracts and changes in price are tracked over time. The reason for the price change is recorded in one or more of the following terms: market conditions, inflation, exchange rates, or a change in equipment, contract or another aspect of service provided.

Equally weighted geo-mean of available prices for items by establishment are used to aggregate to stratum level indexes which are then used to estimate national level indexes. A Laspeyres index formula is used to calculate indexes at all published levels.

Quality evaluation

The data are subject to collection and processing validations on all data provided. The indexes are compared with price indices and economic indicators from other industrial areas, especially for industries that produce industrial machinery & equipment or related materials, at various stages of aggregation.

Much time and effort is devoted to detecting and following up unusual fluctuations over time in the pricing patterns. Prior to dissemination, the price indexes are analyzed and historic trends are reviewed.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Collected data will be converted to price indexes and data will be released as such, so that it will not be possible to identify the suppliers of the original raw data used to derive information on prices.

Revisions and seasonal adjustment

The data are not seasonally adjusted. There will be one revision period, plus an annual revision released with second quarter data of the following reference year.

Data accuracy

The statistical accuracy of this index depends on price and weight data. Price data are obtained from a sample survey and weights are obtained from Statistics Canada's Business Register, and both sources are therefore subject to their own errors. The quality of the price data depends largely on the response rate and degree of imputation for the survey, and in this regard the quality of the price information is judged to be high, with a response rate of about 80% and degree of imputation is minimal.

Though CIMERLPI uses a sample survey methodology to obtain the necessary information, confidence intervals are not currently estimated, due to the longitudinal nature of price index series. Indexes are released only for levels of aggregation that are considered statistically reliable.