DIVISION C – MANUFACTURING
The Manufacturing Division includes units mainly engaged in the physical or chemical transformation of materials, substances or components into new products (except agriculture and construction). The materials, substances or components transformed by units in this division are raw materials that are products of agriculture, forestry, fishing and mining, or products of other manufacturing units.
Units in the Manufacturing Division are often described as plants, factories or mills and characteristically use power-driven machines and other materials-handling equipment. However, units that transform materials, substances or components into new products by hand, or in the unit's home, are also included. Activities undertaken by units incidental to their manufacturing activity, such as selling directly to the consumer products manufactured on the same premises from which they are sold, such as bakeries and custom tailors, are also included in the division. If, in addition to self-produced products, other products that are not manufactured by the same unit are also sold, the rules for the treatment of mixed activities have to be applied and units classified according to their predominant activity.
Assembly of the component parts of manufactured products, either self-produced or purchased from other units, is considered manufacturing. For example, assembly of self-manufactured prefabricated components at a construction site is considered manufacturing, as the assembly is incidental to the manufacturing activity. Conversely, when undertaken as a primary activity, the on-site assembly of components manufactured by others is considered to be construction.
The boundaries between the Manufacturing Division and other divisions in ANZSIC can sometimes be unclear. The units in the Manufacturing Division 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 examples of manufacturing activities included in the Manufacturing Division in ANZSIC 2006:
- Milk bottling and pasteurising;
- Both processing and canning or bottling;
- Fresh fish packaging (including oyster shucking, fish filleting);
- Printing and related support activities;
- Ready-mixed concrete production;
- Leather tanning and dressing;
- Grinding of lenses to prescription;
- Wood preserving and treatment;
- Electroplating, plating, metal heat treating, and polishing;
- Fabricating signs and advertising displays;
- Tyre retreading;
- Ship, boat, railway rolling stock and aircraft repair and maintenance; and
- Substantial alteration, renovation or reconstruction of goods such as transport equipment.
There are some other activities that are often considered 'manufacturing', but for ANZSIC, these are classified in another division. These activities include:
- Logging and production of crops or livestock (included in the Agriculture, Forestry and Fishing Division);
- Construction of structures and fabricating operations performed at the site of construction by contractors (included in the Construction Division);
- Publishing and the combined activity of publishing and printing (included in the Information Media and Communications Division); and
- Beneficiation (included in the Mining Division).
The subdivisions in the Manufacturing Division generally reflect distinct production processes related to material inputs, production equipment and employee skills.
Refer to Chapter 5 for a guide to the coding of certain activities such as contract manufacturing.
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