Annual Survey of Service Industries: Commercial and Industrial Machinery and Equipment Rental and Leasing (CIME)

Detailed information for 2013

Status:

Active

Frequency:

Annual

Record number:

2441

This survey collects the financial and operating data needed to develop national and regional economic policies and programs.

Data release - June 25, 2015

Description

This annual sample survey collects data required to produce economic statistics for the Commercial and Industrial Machinery and Equipment Rental and Leasing industry in Canada.

Data collected from businesses are aggregated with information from other sources to produce official estimates of national and provincial economic production for this industry.

Survey estimates are made available to businesses, governments, investors, associations, and the public. The data are used to monitor industry growth, measure performance, and make comparisons to other data sources to better understand this industry.

Statistical activity

The survey is administered as part of the Integrated Business Statistics Program (IBSP). The IBSP has been designed to integrate approximately 200 separate business surveys into a single master survey program. The IBSP aims at collecting industry and product detail at the provincial level while minimizing overlap between different survey questionnaires. The redesigned business survey questionnaires have a consistent look, structure, and content.

The integrated approach makes reporting easier for firms operating in different industries because they can provide similar information for each branch operation. This way they avoid having to respond to questionnaires that differ for each industry in terms of format, wording and even concepts. The combined results produce more coherent and accurate statistics on the economy.

This survey is part of the Service Industries Program. The survey data gathered are used to compile aggregate statistics for over thirty service industry groupings. Financial data, including revenue, expense and profit statistics are available for all of the surveys in the program. In addition, many compile and disseminate industry-specific information.

Reference period: Calendar year

Subjects

  • Business, consumer and property services
  • Business performance and ownership
  • Financial statements and performance
  • Rental and leasing and real estate

Data sources and methodology

Target population

The target population consists of all statistical establishments (sometimes referred to as firms or units) classified as Commercial and Industrial Machinery and Equipment Rental and Leasing (NAICS 5324) according to the North American Industry Classification System (NAICS 2012) during the reference year. The Commercial and Industrial Machinery Equipment and Rental sector covers three NAICS: Construction, Transportation, Mining and Forestry Equipment Rental and Leasing Rental (NAICS 53241), Office Machinery and Equipment Rental and Leasing (NAICS 53242) and Other Commercial and Industrial Machinery and Equipment Rental and Leasing (NAICS 53249).

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 establishments included in this industry group are generally involved in providing capital/investment-type equipment that clients use in their business operations. These establishments typically serve businesses and do not generally operate a retail-like or store-front facility.

The financing arm of the commercial and industrial machinery and equipment rental and leasing industry is excluded from this survey. Data for these companies are found in NAICS 52222 because of their sales financing activities.

The observed population consists of all statistical establishments (sometimes referred to as firms or units) classified as Commercial and Industrial Machinery and Equipment Rental and Leasing (NAICS 5324) according to the North American Industry Classification System (NAICS 2012) found on Statistics Canada Business Register as of the last day of the reference year (including establishments active for a part of the reference year).

Instrument design

The survey questionnaire contains generic modules designed to cover several service industries. These include revenue and expense modules.

In order to reduce response burden, most of the firms receive a characteristic questionnaire (shortened version) that is industry-specific which does not include the revenue and expense modules. This shortened version is designed to collect both financial and non-financial characteristics, while revenue and expense data are extracted from administrative files.

Sampling

This is a sample survey with a cross-sectional design.

The Business Register is a repository of information reflecting the Canadian business population and exists primarily for the purpose of supplying frames for all economic surveys in Statistics Canada. It is designed to provide a means of coordinating the coverage of business surveys and of achieving consistent classification of statistical reporting units. It also serves as a data source for the compilation of business demographic information.

The major sources of information for the Business Register are updates from the Statistics Canada survey program and from Canada Revenue Agency's (CRA) Business Number account files. This CRA administrative data source allows for the creation of a universe of all business entities.

Included in the Business Register are all Canadian businesses* which meet at least one of the three following criteria:

(1) Have an employee workforce for which they submit payroll remittances to CRA; or

(2) Have a minimum of $30,000 in annual sales revenue; or

(3) Are incorporated under a federal or provincial act and have filed a federal corporate income tax form within the past three years.

The data provided in our products reflects counts of statistical locations by industrial activity (North American Industry Classification System), geography codes, and employment size ranges.

SAMPLING UNIT
The sampling unit is the enterprise, as defined on the Business Register.

STRATIFICATION METHOD
Prior to the selection of a random sample, enterprises are classified into homogeneous groups (i.e., groups with the same NAICS codes and same geography) based on the characteristics of their establishments. Then, each group is divided into sub-groups (i.e. small, medium, large) called strata based on the annual revenue of the enterprise.

SAMPLING AND SUB-SAMPLING
Following stratification, a sample, of a predetermined size, is allocated into each stratum, with the objective of optimizing the overall quality of the survey while respecting the available resources. The sample allocation can result in two kinds of strata: take-all strata where all units are sampled with certainty, and take-some strata where a sample of units are randomly selected.

The total sample size for this survey is approximately 510 enterprises.

Data sources

Data collection for this reference period: 2014-04-28 to 2014-10-24

Responding to this survey is mandatory.

Data are collected directly from survey respondents and extracted from administrative files.

Data are collected primarily through electronic questionnaire, which can be responded to in either official language. Respondents also have the option of receiving a paper questionnaire, replying by telephone interview or using other electronic filing methods. Follow-up is conducted via email, telephone or fax and dynamically prioritized on the basis of weighted response rates and for data validation on discrepancies from predicted values.

Administrative data

A strategy to replace survey data with tax data has been introduced to reduce the response burden and survey costs. The strategy involves using tax data instead of survey data for most of the simple units (for example, a single location and a single activity).

As part of the Integrated Business Statistics Program (IBSP), T1 tax data are used for unincorporated businesses and T2 tax data for incorporated businesses. Data replacement may be used to correct outliers or to replace partially or completely missing data. Tax data may also be used to reconcile survey data.

Data integration combines data from multiple data sources including survey data collected from respondents, administrative data from the Canada Revenue Agency or other forms of auxiliary data when applicable. During the data integration process, data are imported, transformed, validated, aggregated and linked from the different data source providers into the formats, structures and levels required for IBSP processing. Administrative data are used in a data replacement strategy for a large number of financial variables for most small and medium enterprises and a select group of large enterprises to avoid collection of these variables. Administrative data are also used as an auxiliary source of data for editing and imputation when respondent data are not available.

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

Error detection

Error detection is an integral part of both collection and data processing activities. Automated edits are applied to data records during collection to identify reporting and capture errors. These edits identify potential errors based on year-over-year changes in key variables, totals, and ratios that exceed tolerance thresholds, as well as identify problems in the consistency of collected data (e.g., a total variable does not equal the sum of its parts). During data processing, other edits are used to automatically detect errors or inconsistencies that remain in the data following collection. These edits include value edits (e.g., Value > 0, Value > -500, Value = 0), linear equality edits (e.g., Value1 + Value2 = Total Value), linear inequality edits (e.g., Value1 >= Value2), and equivalency edits (e.g., Value1 = Value2). When errors are found, they can be corrected using the failed edit follow up process during collection or via imputation. Extreme values are also flagged as outliers, using automated methods based on the distribution of the collected information. Following their detection, these values are reviewed in order to assess their reliability. Manual review of other units may lead to additional outliers identified. These outliers are excluded from use in the calculation of ratios and trends used for imputation, and during donor imputation. In general, every effort is made to minimize the non-sampling errors of omission, duplication, misclassification, reporting and processing.

Imputation

When non-response occurs, when respondents do not completely answer the questionnaire, or when reported data are considered incorrect during the error detection steps, imputation is used to fill in the missing information and modify the incorrect information. Many methods of imputation may be used to complete a questionnaire, including manual changes made by an analyst. The automated, statistical techniques used to impute the missing data include deterministic imputation, replacement using historical data (with a trend calculated, when appropriate), replacement using auxiliary information available from other sources, replacement based on known data relationships for the sample unit, and replacement using data from a similar unit in the sample (known as donor imputation). Usually, key variables are imputed first and are used as anchors in subsequent steps to impute other, related variables.

Imputation generates a complete and coherent microdata file that covers all survey variables.

Estimation

The sample used for estimation comes from a single-phase sampling process. An initial sampling weight (the design weight) is calculated for each unit of the survey and is simply the inverse of the probability of selection that is conditional on the realized sample size. The weight calculated for each sampling unit indicates how many other units it represents. The final weights are usually either one or greater than one. Sampling units which are "Take-all" (also called "must-take") have sampling weights of one and only represent themselves.

Estimation of totals is done by simple aggregation of the weighted values of all estimation units that are found in the domain of estimation. Estimates are computed for several domains of estimation such as industrial groups and provinces/territories, based on the most recent classification information available for the estimation unit and the survey reference period. It should be noted that this classification information may differ from the original sampling classification since records may have changed in size, industry or location. Changes in classification are reflected immediately in the estimates.

When some enterprises have reported data combining many units located in more than one province or territory, or in more than one industrial classification, data allocation is required. Factors based on information from sources such as tax files and Business Register profiles are used to allocate the data reported on the combined report among the various estimation units where this enterprise is in operation. The characteristics of the estimation units are used to derive the domains of estimation, including the industrial classification and the geography.

Units with larger than expected size are seen as misclassified and their weight is adjusted so that they only represent themselves (large units found in a stratum of small units for example).

The weights can be modified and adjusted using updated information from taxation data. Using a statistical technique called calibration, the final set of weights is adjusted in such a way that the sample represents as closely as possible the taxation data of the population of this industry.

Quality evaluation

Prior to the data release, combined survey results are analyzed for comparability; in general, this includes a detailed review of individual responses (especially for the largest companies), general economic conditions and coherence with results from related economic indicators, historical trends, and information from other external sources (e.g. associations, trade publications or newspaper articles).

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects that 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.

In order to prevent any data disclosure, confidentiality analysis is done using the Statistics Canada Generalized Disclosure Control System (G-Confid). G-Confid is used for primary suppression (direct disclosure) as well as for secondary suppression (residual disclosure). Direct disclosure occurs when the value in a tabulation cell is composed of or dominated by few enterprises while residual disclosure occurs when confidential information can be derived indirectly by piecing together information from different sources or data series.

Revisions and seasonal adjustment

There is no seasonal adjustment. Data from previous years may be revised based on updated information.

Data accuracy

All surveys are subject to sampling and non-sampling errors. Sampling error occurs because population estimates are derived from a sample of the population rather than the entire population. Non-sampling error is not related to sampling and may occur for various reasons during the collection and processing of data. For example, non-response is an important source of non-sampling error. Under or over-coverage of the population, differences in the interpretations of questions and mistakes in recording, coding and processing data are other examples of non-sampling errors. To the maximum extent possible, these errors are minimized through careful design of the survey questionnaire, verification of the survey data, and follow-up with respondents when needed to maximize response rates.

Measures of sampling error are calculated for each estimate. Also, when non-response occurs, it is taken into account and the quality is reduced based on its importance to the estimate. Other indicators of quality are also provided such as the response rate.

Both the sampling error and the non-response rate are combined into one quality rating code. This code uses letters that ranges from A to F where A means the data is of excellent quality and F means it is unreliable. These quality rating codes can be requested and should always be taken into consideration.

Documentation

  • The Integrated Business Statistics Program
    Statistics Canada launched the Integrated Business Statistics Program to provide a more efficient model for producing economic statistics. The main objective was to enhance the economic statistics program so that it remains as robust and flexible as possible while reducing the burden on business respondents. The program changes ensure that Statistics Canada will continue to produce a consistent and coherent set of economic statistics. As well, data users and researchers can more easily combine economic data with information from other sources to undertake their analyses.
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