Use of National Statistics Data in the Manufacturing Technologies Association

1. Use of National Statistics Data in the Manufacturing Technologies Association Presentation for the International Business Statistics Users Group Geoff Noon, MTA Statistician

2. National Statistics Series Used by MTA • PRODCOM • Exports/Imports • Index of Production • Investment • Producer Price Indices • Average Earnings Data • Plus others for general reference

3. PRODCOM • On its own, it is of limited use other than in sizing the domestic industry

4. Source: Gardner Publications Inc

5. PRODCOM • On its own, it is of limited use other than in sizing the domestic industry, but … • Combined with data on exports & imports it can be a valuable tool to calculate market size, … • … but this needs consistent headings between PRODCOM and the CN • Limitations • PRODCOM only Annual and subject to confidentiality

6. Exports/Imports • Obvious use for tracking trade, by product • Also feeds into a project to track external markets by compiling export totals from major manufacturing countries • Use in forecasts (return to this later)

7. Index of Production • Valuable series • Monthly timing (much better than PRODCOM) • Engineering Digest gives orders and shipments • Useful for tracking our sector; we use it as part of a global exchange of orders (8 European countries, plus 4 others)

9. Index of Production • Valuable series • Monthly timing (much better than PRODCOM) • Engineering Digest gives orders and shipments • Useful for tracking our sector; we use it as part of a global exchange of orders (8 European countries, plus 4 others) • Also used in a domestic context to track key end-user industries

11. Index of Production • Valuable series • Monthly timing (much better than PRODCOM) • Engineering Digest gives orders and shipments • Useful for tracking our sector; we use it as part of a global exchange of orders (8 European countries, plus 4 others) • Also used in a domestic context to track key end-user industries • Key input to our forecasting process

12. Forecasts of Machine Tool Demand • MTA commissions forecasts for the UK Machine Tool Market • Based on our own data • Model uses a structure which uses output data by sector

14. Forecasts of Machine Tool Demand • MTA commissions forecasts for the UK Machine Tool Market • Based on our own data • Model uses a structure which uses output data by sector • We also forecast exports by region

16. Forecasts of Machine Tool Demand • MTA commissions forecasts for the UK Machine Tool Market • Based on our own data • Model uses a structure which uses output data by sector • We also forecast exports by region • Also part of a wider Global Forecast • This uses investment data to divide the market

18. Forecasts of Machine Tool Demand • MTA commissions forecasts for the UK Machine Tool Market • Based on our own data • Model uses a structure which uses output data by sector • We also forecast exports by region • Also part of a wider Global Forecast • This uses investment data to divide the market • Forecast by regions and for each country

20. Price Indices • Main use is as part of Contract Price Adjustment process for long term contracts

22. Price Indices & Earnings Data • Main use is as part of Contract Price Adjustment process for long term contracts • Price data for Materials & Fuels purchased • For some series, these are special indices produced by the ONS from data supplied by BEAMA • Series also uses Average Earnings Data to calculate the Labour Cost Index at an Industry level • BEAMA also use the PPI at a European Level

24. Conclusion • A wide range of National Statistics are used by Trade Associations • We have not mentioned other data series (GDP, inflation, unemployment, profits, productivity, etc) that give a general overview of the economy • The “final user” is often unaware of the data which goes into the information that they use