A Statistical Overview of the Construction Industry from 2000 to 2008

Transcription

1 A Statistical Overview of the Construction Industry from 2000 to 2008

2 Reproduction of material Material in this report may be reproduced and published, provided that it does not purport to be published under government authority and that acknowledgement is made of this source. Citation Statistics New Zealand. (2009). A Statistical Overview of the Construction Industry from 2000 to Christchurch: Author Published in March 2009 by Statistics New Zealand Tatauranga Aotearoa Wellington, New Zealand ISBN (online)

3 Preface A Statistical Overview of the Construction Industry from 2000 to 2008 brings together a variety of Statistics New Zealand data sources relating to the construction industry over the 2000 to 2008 period. It illustrates the range of data available and how these can be used to gain an overview of a chosen industry. Statistics NZ welcomes any comments or feedback from users of this report. It is being released as a one-off publication to evaluate the potential usefulness of the data to the stakeholder community. Geoff Bascand Government Statistician 1

4 Standards and further information Percentage changes Percentage movements are, in a number of cases, calculated using data of greater precision than published. This could result in slight variations. Rounding procedures On occasion, figures are rounded to the nearest thousand or some other convenient unit. This may result in a total disagreeing slightly with the total of the individual items as shown in tables. Where figures are rounded the unit is in general expressed in words below the table headings, but where space does not allow this the unit may be shown as (000) for thousands, etc. Source All data is compiled by Statistics New Zealand, except where otherwise stated. Both administrative and survey data have been used in this report. Liability statement While all care and diligence has been used in processing, analysing and extracting data and information in this report, Statistics New Zealand gives no warranty it is error free and will not be liable for any loss or damage suffered as a result of the use, directly or indirectly, of information in this report. Statistics New Zealand s Information Centre For further information on the statistics in this report or for help finding and using statistical information available on our website or in the INFOS database, contact the Information Centre: info@stats.govt.nz Phone toll-free: Phone international: Fax: Post: PO Box 2922, Wellington, 6140, New Zealand Website: 2

5 Contents Preface... 1 Standards and information... 2 List of tables and figures by chapter Introduction Overview Business demographics Industry activity Industry inputs Industry investment Industry performance Gross domestic product Definitions Tables by chapter 2.1 Summary statistics for the construction industry, Number of geographic units in the construction industry, by broad region Percentage of geographic units by employee size group, by broad region Number of enterprises in the construction industry, by ANZSIC96 classification Building consents issued, by building type Total weekly gross earnings and paid hours, construction and all other industries Gross fixed capital formation all sectors by asset type, actual current prices and chain-volume series expressed in 1995/96 prices Financial performance of the construction industry, financial years Number of enterprises in the construction industry, by turnover range Figures by chapter 3.1 Number of enterprises by industry, at February Number of enterprises in the construction industry, February Employee count by industry, at February Enterprises and employees in the construction industry, by employee size group Value of work put in place by building type, constant price values at March 2000 prices Capital goods price index, March year Filled jobs in the construction industry, March quarter Gross fixed capital formation construction industry, current price Net capital stock by asset type, current price Change in total income and surplus before income tax, construction industry ANZSIC group contributions Total income in the construction industry, by sales turnover range Profitability in the construction industry, 2005 financial year Profitability in the construction industry by employee size group, 2005 financial year Gross domestic product by industry, year ended March Gross domestic prodcut in the construction industry, March year

6 1. Introduction The construction industry covers general construction and construction trade services. Activities within it include building and peripheral construction services, such as plumbing, site preparation, and other installation trade services. Because it contributes around 5 percent to gross domestic product, the construction industry is important to New Zealand s economy. With over 50,000 businesses it is the third largest industry by business count in our economy. Almost two-thirds of all construction enterprises have an employee count of zero. Those with an employee count greater than zero account for around 7 percent of total employment across all industries. 2. Overview Changes in interest rates, business and consumer confidence, employment, house prices, and migration impact on the performance of this industry. The construction industry had a period of substantial growth from This growth was driven primarily by residential building construction, where increased economic activity and the so-called housing boom led to strong increases in building activity. Increasing numbers of new housing consents flowed into construction industry income, in turn leading to new business births, employment growth, and increased contribution to gross domestic product. Since 2007, the housing market has cooled in line with general economic conditions. Residential building activity has slowed, although relative strength remains in the nonresidential segment of the construction industry. Short-term indicators suggest a pattern of ongoing contraction. Table 2.1 summarises key statistics relating to the construction industry for the period. These statistics are discussed in detail in this report. Table 2.1 Summary Statistics for the Construction Industry Percentage change Enterprises (figure 3.2) Geographic units (table 3.1) Building consent values (table 4.1) Filled jobs (figure 5.2) Total income (table 7.1) (1) GDP (figure 8.2) (1) Percentage change is calculated between 2006 and 2007 as 2008 data is not yet available. 4

7 3. Business demographics The Australian and New Zealand Standard Industrial Classification (ANZSIC) 1996 industry groupings have been used for all statistics in this report. An updated version of the ANZSIC classification (ANZSIC06) is currently being introduced within Statistics New Zealand. Because this transition is still underway, the 1996 version was used in this report to ensure consistency between data sources. More information about ANZSIC06 is available on the Statistics NZ website at: Business demography statistics provide an annual snapshot (as at February) of the structure and characteristics of New Zealand businesses. The series covers economically significant individual, private sector, and public sector enterprises that are engaged in the production of goods and services in New Zealand. These businesses form the population for Statistics NZ s economic collections. With 50,665 enterprises as at February 2008, the construction industry was the third largest industry in the New Zealand economy in terms of counts of businesses, accounting for 10.8 percent of all enterprises in New Zealand. Property and business services, and agriculture, forestry and fishing were the only industries larger than construction. This is shown in figure 3.1. Figure 3.1 Number of Enterprises by Industry (1) At February 2008 Industry Agriculture, forestry and fishing Mining Manufacturing Electricity, gas and water supply Construction Wholesale trade Retail trade Accommodation, cafes and restaurants Transport and storage Communication services Finance and insurance Property and business services Government administration and defence Education Health and community services Cultural and recreational services Personal and other services (1) These figures are provisional (000) 5

8 Figure 3.2 shows a relatively rapid growth in the number of enterprises in the construction industry between February 2002 and Since February 2002, the number of construction enterprises increased by 38.0 percent, compared with a 23.7 percent increase in all other industries combined over the same period. Figure (000) Number of Enterprises in the Construction Industry (1) February (1) 2008 figures are provisional. 6

9 Although the construction industry had the third highest number of enterprises in the New Zealand economy as at February 2008, it was the sixth largest employing industry. With 130,180 people employed, the construction industry accounted for 6.6 percent of the total all industry employee count. This is shown in figure 3.3. Figure 3.3 Employee Count by Industry (1) At February 2008 Industry Agriculture, forestry and fishing Mining Manufacturing Electricity, gas and water supply Construction Wholesale trade Retail trade Accommodation, cafes and restaurants Transport and storage Communication services Finance and insurance Property and business services Government administration and defence Education Health and community services Cultural and recreational services Personal and other services (1) These figures are provisional (000) 7

10 Figure 3.4 shows that in February 2008, there were 31,121 enterprises that had an employee count of zero while only 922 enterprises had more than 20 employees. During the year to February 2008, the strongest growth in employment within the construction industry came from businesses with employees (up 1,140 employees or 13.9 percent), followed by businesses with 1 5 employees (up 1,630 employees or 5.2 percent). Overall, the number of employees in the industry increased by 5,030, or 4.0 percent. Figure 3.4 Enterprises and Employees in the Construction Industry By employee size group (1) At February 2008 Employee size group Enterprises Employees Percent (1) These figures are provisional. 8

11 When creating regional splits, geographic units rather than enterprises are used, as an enterprise can have more than one geographic unit and these can be in different regions. Table 3.1 shows that the Rest of the South Island was the only region to consistently record an annual increase in the number of geographic units over the period. The number of geographic units in this region increased by 65.3 percent over the seven-year period. The Auckland region recorded a fall in the number of geographic units between 2006 and 2007; this was the only fall recorded by any of the regions since Table 3.1 Number of Geographic Units in the Construction Industry By broad region Year ended February Broad region P Auckland 14,972 14,323 13,771 14,256 15,529 16,478 16,820 16,691 16,858 Wellington 4,503 4,485 4,430 4,524 4,775 5,086 5,291 5,394 5,614 Rest of North Island 11,758 11,453 11,405 11,875 13,041 14,343 15,585 16,447 17,037 Canterbury 4,238 4,188 4,150 4,302 4,777 5,261 5,599 5,876 6,135 Rest of South Island 3,557 3,633 3,799 4,122 4,682 5,164 5,551 5,712 6,007 Symbol: P provisional In the Auckland region, 67.3 percent of all geographic units in the construction industry had an employee count of zero. This is a larger proportion than the other four broad regions. Construction geographic units with more than 100 employees are concentrated in the Auckland region (see table 3.2). Table 3.2 Percentage of Geographic Units by Employee Size Group By broad region At February 2008 Broad region Employee size group 0 P 1 5 P 6 9 P P P P 100+ P Auckland Wellington Rest of North Island Canterbury Rest of South Island Symbol: P provisional 9

12 Table 3.3 shows the ANZSIC96 groups classified under construction, together with the number of economically significant enterprises in each of the groups. Table 3.3 Number of Enterprises in the Construction Industry (1) By ANZSIC96 classification At February 2008 ANZSIC96 classification Enterprises Number P Percent Building construction 18, Non-building construction 1, Site preparation services 2, Building structure services 3, Installation trade services 9, Building completion services 11, Other construction services 3, Total construction 50, (1) Includes only economically significant enterprises, that is, those with an annual GST expenses or sales greater than $30,000. Symbol: P provisional 10

13 4. Industry activity Data for building consents is obtained each month from all territorial authorities. Values include GST and are not inflation adjusted. Consents below $5,000 are excluded. As shown in table 4.1, building consent values for new dwellings totalled $6,272 million in the March 2008 year, 2.8 percent higher than for the same period in However, the number of new dwellings authorised fell by 4.7 percent over the same period. Consent values for new non-residential buildings increased 10.3 percent, while nonbuilding construction consent values rose 10.6 percent between the March 2007 and March 2008 years. Table 4.1 Building Consents Issued By building type Year ended March Non-building Dwellings Non-residential buildings construction (1) Year Value Floor area Value Floor area Value Number $(million) m 2 (000) $(million) m 2 (000) $(million) ,858 3,533 4,261 1,249 2, ,370 2,833 3,382 1,392 2, ,262 3,353 3,876 1,621 2, ,320 4,549 4,983 1,589 2, ,823 5,657 5,814 1,873 3, ,255 5,896 5,465 2,730 3, ,406 5,461 4,894 2,845 3, ,740 6,104 4,983 2,733 3, ,533 6,272 4,852 3,015 3, (1) Works that require building consents but are not buildings, for example, retaining walls and swimming pools. Many civil engineering works, such as roads, require resource consents but not building consents, so are excluded. 11

14 Building Work Put in Place data estimates the gross dollar value of actual building work done on residential and non-residential buildings. Measured quarterly, it is used to supplement building consent information and to give a more accurate economic indicator of building activity. Figure 4.1 shows that the constant price value of residential building work for the March 2008 year was $5,759 million, an increase of 6.8 percent from the previous year. At $3,734 million, non-residential building work accounts for a smaller proportion of total building work and recorded a 2.4 percent decrease in constant price values from the March 2007 year. Figure $(billion) Value of Work Put in Place by Building Type Constant price values at March 2000 prices March year (1) Residential buildings Non-residential buildings All buildings (1) Deflated using the Capital Goods Price Index series for residential and non-residential construction. 12

15 5. Industry inputs The Capital Goods Price Index (CGPI) is used to measure the movements in the average levels of prices of fixed capital assets within the New Zealand economy. The same survey data used to measure the purchase and construction of new dwellings in the Consumers Price Index is used in the residential buildings index in the CGPI. This information is supplemented with additional data from the Producers Price Index, collected through the Commodity Price Survey. Figure 5.1 shows that in the year ended March 2008, the residential building, nonresidential building, and other construction asset groups of the CGPI continued to increase. The largest annual increase in the period observed occurred between the 2004 and 2005 year, for both the residential and non-residential building series. Between the 2007 and 2008 March years, the residential building index increased 5.0 percent, the non-residential building index increased 2.1 percent, and the other construction index increased by 3.4 percent. Figure 5.1 (1) Capital Goods Price Index March year Index Residential buildings Non-residential buildings Other construction (1) Base: March 2000 (=1000). 13

16 The purpose of the Quarterly Employment Survey (QES) is to measure quarterly estimates of the changes in, and levels of, average hourly and average weekly (pre-tax) earnings, average weekly paid hours, and the number of filled jobs. Data for each March quarter, as shown in table 5.1, relates to the payweek ending on, or immediately before, the 20th of February. Between the 2007 and 2008 period, total weekly gross earnings in the construction industry increased by 14.2 percent, compared with a 7.0 percent increase in all other industries combined. Total weekly paid hours increased by 8.6 percent in the construction industry, and 2.4 percent in all other industries combined. Both total weekly gross earnings and total weekly paid hours for the construction industry have been increasing since The largest increases were recorded between the 2004 and 2005 March quarters, when total weekly gross earnings increased by 24.5 percent and total weekly paid hours increased by 19.4 percent. Table 5.1 Total Weekly Gross Earnings and Paid Hours Construction and all other industries Quarter ended March Quarter Total weekly gross earnings $(000) Construction Total weekly paid hours (000) Total weekly gross earnings $(000) All other industries Total weekly paid hours (000) ,662 2, ,570 39, ,136 2, ,659 40, ,593 2, ,930 41, ,061 2, ,426 43, ,421 3, ,671 44, ,017 3, ,524 45, ,605 3,954 1,019,239 46, ,645 4,120 1,082,995 47, ,824 4,472 1,158,855 48,649 14

17 The filled jobs series of the QES comprises businesses that have employees, therefore only accounts for around one-third of all construction enterprises in New Zealand. It should also be noted that the QES measures the number of filled jobs, not the number of people employed. Individuals with more than one job are counted at each workplace. The number of full-time employees in the construction industry increased by 9.0 percent between March 2007 and 2008 while the number of part-time employees fell by 13.7 percent. This is shown in figure 5.2. In all other industries combined, an increase of 3.5 percent in the number of full-time employees and a fall of 0.1 percent in the number of part-time employees was recorded over the same period. Figure 5.2 Filled Jobs in the Construction Industry March quarter (000) Part-time paid employee Full-time paid employee

18 6. Industry investment Gross fixed capital formation measures the outlays of producers on durable fixed assets, such as buildings, plant, and machinery. In measuring the outlays, sales of similar goods are deducted. Land is excluded from gross fixed capital formation. Included is the value of construction work done by a business own employees. The term 'gross' indicates that consumption of fixed capital has not been deducted from the value of the outlays. Table 6.1 shows that for the year ended March 2008, investment in residential buildings across all sectors increased by 9.0 percent in current price terms, while the chainvolume series increased by 4.3 percent. Before this increase, the chain-volume series had shown decreases in the 2006 and 2007 March years. The chain-volume series for investment in non-residential buildings continued to show a fall in the year ended March The 2.1 percent decrease to $3,943 million follows an annual decrease of 8.4 percent in the year ended March Table 6.1 Gross Fixed Capital Formation All Sectors by Asset Type Actual current prices and chain-volume series expressed in 1995/96 prices Year ended March Year Residential buildings Non-residential buildings Other construction Current Chain-volume Current Chain-volume Current Chain-volume $(million) ,222 5,839 2,736 2,700 2,807 2, ,540 5,061 2,965 2,908 2,603 2, ,771 5,160 3,335 3,201 2,799 2, ,450 6,376 3,450 3,239 2,996 2, ,226 7,330 3,615 3,231 3,464 2, ,377 7,545 4,521 3,717 3,954 3, ,532 7,155 5,569 4,397 4,527 3, ,863 6,993 5,388 4,026 5,381 3, ,839 7,295 5,394 3,943 5,917 4,121 16

19 As shown in figure 6.1, between 2000 and 2002 the construction industry recorded a 7.1 percent increase in investment as gross fixed capital formation. This was followed by a percent increase between 2002 and Of the total increase of $620 million over this period, an increase of $294 million occurred between 2004 and Data is only available in current prices, and has not yet been released for the 2006 to 2008 period. Figure 6.1 1,500 $(million) Gross Fixed Capital Formation Construction Industry Current price March year ,

20 Net capital stock is the accumulated written-down value of fixed assets valued in current prices. It is equal to accumulated investment, less retirement of assets, less accumulated depreciation for assets still in existence. The net capital stock series for residential buildings, non-residential buildings, and other construction are shown in figure 6.2. These have all increased over the 2000 to 2008 period. The residential building series recorded strong growth between 2003 and 2005 when net capital stock increased by $42 billion or 25.1 percent. Figure 6.2 Net Capital Stock by Asset Type Current price March year $(billion) Residential buildings Non-residential buildings Other construction

21 7. Industry performance The Annual Enterprise Survey (AES) is the most comprehensive source of financial information provided to Statistics NZ. It provides annual financial performance and financial position information about industry groups operating within New Zealand. The most recent AES data available is for the 2007 financial year. As the predominant balance date by total income in the construction industry is 31 March, the AES data for this industry will reflect the year ended March Table 7.1 shows AES data for the construction industry. An annual increase in both total income and surplus before income tax was recorded over the entire 2000 to 2007 period. The largest increase during this period was recorded between 2004 and 2005 when total income increased by 20.8 percent and surplus before income tax increased by 29.1 percent. Between 2006 and 2007, the increase in total income slowed to 5.7 percent. Salaries and wages paid to working proprietors increased by 10.0 percent between 2006 and 2007, while salaries and wages paid to employees increased by 10.3 percent. 19

22 Table 7.1 Financial Performance of the Construction Industry Financial years P 2007 P $(million) Total income 15,669 16,261 16,570 18,819 21,030 25,404 28,596 30,222 Sales of goods and services 15,563 16,148 16,463 18,714 20,871 25,219 28,408 29,912 Interest, dividends and donations 61 C C Government funding, grants and subsidies Non-operating income 42 C C Total expenditure 14,607 15,121 15,232 17,347 19,480 23,253 26,244 27,573 Interest and donations C C C Indirect taxes 67 C C C C C C C Depreciation C Salaries and wages paid to employees 2,523 2,535 2,492 2,872 3,218 3,885 4,464 4,924 Redundancy and severance Salaries and wages to working proprietors ,035 1,139 Purchases and other operating expenses 10,823 11,346 11,434 13,121 14,586 17,465 19,598 20,066 Non-operating expenses 84 C C C C C C C Opening stocks ,016 1,334 1,728 Closing stocks ,045 1,188 1,541 1,827 Surplus before income tax 1,650 1,654 1,952 2,100 2,360 3,046 3,387 3,788 Symbols: P provisional C confidential 20

23 All four ANZSIC groups that make up the construction industry recorded an increase in total income between the 2006 and 2007 financial years. Residential building construction recorded the largest increase in total income, at $759 million or 11.9 percent, while non-building construction recorded the largest increase in surplus before income tax, at $91 million or 22.5 percent. This is shown in figure 7.1. Figure Percent Total income Change in Total Income and Surplus Before Income Tax Construction industry ANZSIC group contributions (1) Financial year Surplus before income tax -5 Residential building Non-residential building Non-building Trade services Construction industry group (1) These figures are provisional. 21

24 AES data is often used to create customised outputs for external organisations. Some examples of these non-standard outputs are provided below. These are counts of enterprises by sales turnover ranges, total income by sales turnover ranges, and profitability performance indicators. Table 7.2 shows that the majority of enterprises in the construction industry have annual sales turnover of less than $1 million. Table 7.2 Number of Enterprises in the Construction Industry By turnover range Financial years Turnover range $(000) P 2007 P ,438 34,374 33,001 33,384 37,334 40,205 43,143 44,399 1,000 1,999 1,369 1,203 1,134 1,531 1,657 2,287 2,304 2,102 2,000 4, ,028 1,160 1,135 1,308 5,000 9, ,000 19, ,000 49, ,000 99, , , C , C Total 36,837 36,617 35,231 36,172 40,396 44,200 47,261 48,529 (1) The Annual Enterprise Survey is a sample survey. Sampled units are given a weight depending on how many other units they are deemed to represent in the total population. The counts of the units in each turnover range are equal to the sum of the weights of all enterprises in that turnover range. For this reason the count is an approximate figure only. Symbols: P provisional C confidential 22

25 As shown in figure 7.2, enterprises with less than $1 million sales per year contributed 28.4 percent to total income in the construction industry for the 2007 financial year. The second largest contribution came from enterprises with annual sales turnover of greater than $150 million. This group of enterprises contributed 15.8 percent to total industry income. Figure 7.2 Total Income in the Construction Industry By sales turnover range (1) 2007 financial year $(000) 1,000 1,999 2,000 4,999 5,000 9,999 10,000 19,999 20,000 49,999 50,000 99, , , ,000+ (1) These figures are provisional $(billion) 23

26 The profitability performance indicator can be used to compare the profitability of an individual construction business against that of other similar businesses. Business profitability is calculated as: Profit before tax and interest x 100 Value of sales Figure 7.3 uses business profitability data derived from construction enterprises in the Annual Enterprise Survey for the 2005 financial year 1. The data is arranged in a cumulative frequency graph from worst to best performance. The data are then divided into 100 percentiles to allow the benchmark score to be calculated 2. Figure Profitability in the Construction Industry 2005 financial year Profitability score (percent) 6% 47% Benchmark score (percent) To use this performance indicator, calculate an individual business profitability using the formula above and plot the score on the profitability axis. The benchmark score shows the rank of the business when compared with other construction businesses. An example is shown below. Profit before tax and interest = $180,000 Value of sales = $3,000,000 Profitability = 180,000 x 100 = 6% 3,000,000 1 Profitability indicators have not been calculated for the AES 2006 and 2007 years. 2 The methodology used to calculate these indicators was supplied by the New Zealand Centre for Advanced Engineering (CAENZ). CAENZ provides a range of construction industry performance benchmarks including time, cost, and service delivery benchmarks for projects ( 24

27 As shown in figure 7.3, profitability of 6 percent equates to a benchmark score of 47 percent. This means that 47 percent of all construction businesses have a profitability score of 6 percent or less, and 53 percent have a profitability score of greater than 6 percent. Figure 7.4 shows the data broken into size bands based on a business rolling mean employment. By choosing the appropriate line on the graph, businesses can compare their profitability with other construction businesses of a similar size. Figure 7.4 Profitability in the Construction Industry by Employee Size Group 2005 financial year (RMEs 1 ) Profitability score (percent) RMEs: Less than Over Benchmark score (percent) (1) Rolling mean employees. 25

28 8. Gross domestic product Gross domestic product (GDP) is the total market value of goods and services produced in New Zealand after deducting the cost of goods and services utilised in the process of production, but before deducting allowances for the consumption of fixed capital. Figure 8.1 shows that for the year ended March 2008, the construction industry contributed 4.8 percent to total GDP. The largest contributors were the manufacturing industry (14.1 percent) and the real estate and business services industry (14.0 percent). These figures are calculated using the annual chain-volume series which removes the effects of price changes. Figure 8.1 Gross Domestic Product by Industry Year ended March 2008 (1) Industry Agriculture, forestry and fishing Mining Manufacturing Electricity, gas and water supply Construction Wholesale trade Retail trade Accommodation, cafes and restaurants Transport and storage Communication services Finance and insurance Ownership of owner-occupied dwellings Real estate and business services Government administration and defence Education Health and community services Culture and recreational services Personal and other community services Unallocated (1) Annual chain-volume series expressed in 1995/96 prices Percent 26

29 Figure 8.2 shows that the annual chain-volume GDP series for the construction industry was $6,527 million for the year ended March This was a 4.4 percent increase from March 2007 and followed a 1.8 percent fall between the March 2006 and 2007 years. The construction industry s contribution to total GDP grew from 4.0 percent in the year ended March 2001 to 4.9 percent in the year ended March 2006, and has remained stable at 4.8 percent in the years ended March 2007 and GDP in the construction industry increased by $2,234 million, or 52.0 percent, over the March 2001 to 2008 period. Figure $(billion) Gross Domestic Product in the Construction Industry March year (1) (1) Annual chain-volume series expressed in 1995/96 prices. 27

30 Definitions Detailed information on these and other terms is available on our website or by request. Economically significant An enterprise that meets at least one of the following criteria: has greater than $30,000 annual GST expenses or sales has RMEs greater than two is in a GST-exempt industry (except residential property leasing and rental) is part of a group of enterprises is a new GST registration that is compulsory, special or forced is registered for GST and involved in agriculture or forestry. Enterprise A single business entity operating in New Zealand either as a legally constituted body such as a company, partnership, trust, local or central government trading organisation, incorporated society, or a self-employed individual. Geographic unit A separate operating unit engaged in New Zealand in one, or predominantly one kind of economic activity from a single physical location or base. Australian and New Zealand Standard Industrial Classification (ANZSIC) The ANZSIC has been developed for use in Australia and New Zealand for the production and analysis of industry statistics. Employee count (EC) Head count of salary and wage earners sourced from taxation data. Employee count data is available on a monthly basis. This data is mostly of employees but can include a small number of working proprietors (who pay themselves a salary or wage). Rolling mean employment (RME) Rolling mean employment is a 12-month moving average of the monthly employee count figure. 28