Bureau of Economic Analysis Forms

							Robert Carreira
Director, Center for Economic Research
Cochise College
901 N. Colombo Ave.
Sierra Vista, AZ 85635
Phone: 520-515-5486
e-mail: cer@cochise.edu

For release: November 8, 2007

              Census Bureau set to launch economic census

In December, the U.S. Census Bureau will mail out more than 4 million Economic

Census forms to businesses across the nation. This includes about 84,000 businesses in

Arizona and more than 2,300 businesses here in Cochise County.



The Economic Census is conducted every 5 years, in years ending in a 2 or 7. The

completed 2007 Economic Census forms are due back to the Census Bureau no later than

February 12, 2008. Participation in the survey is required by law, under Title 13 of the

U.S. Code.



The Economic Census is the most comprehensive measure of business and industry

nationwide. The data collected during the census are used in computing Gross Domestic

Product, the most comprehensive measure of U.S. productivity and economic growth.

GDP is calculated by the U.S. Bureau of Economic Analysis. Both the BEA and the

Census Bureau are part of the U.S. Department of Commerce.
Economic Census data are also used in the Census Bureau’s County Business Patterns

and ZIP Business Patterns. These products provide business and public policy decision-

makers with valuable information to make better-informed decisions.



Information collected in the Economic Census can help businesses assess the competition

when looking at expanding to offer new products and services. For example, a firm that

specializes in new single-family residential construction might consider expanding into

residential remodeling to offset losses resulting from the recent downturn in the new

home market.



The firm’s manager might turn to the Census Bureau’s County Business Patterns, which

relies on Economic Census data. There, the manager can find that, in 2005, there were 68

new single-family homebuilders in Cochise County, but only 14 residential remodelers.

Of these, half employed fewer than 5 workers, and 12 of the 14 employed fewer than 10

workers. Two residential remodelers in the county were larger, employing between 20

and 49 workers each.



The construction firm might also compare wage levels and find that the average wage per

employee for residential remodeling was $21,621, compared to $23,585 for new single-

family residential construction. This might impact the firm’s ability to compete in

residential remodeling from a cost factor, if the firm plans to keep the same employees

and maintain the same wage levels.
Information from the Economic Census can also be used to determine market share. For

example, a family clothing store with two locations in Cochise County might have found

it did $3.4 million in business between both locations in 2002. By comparing this to

countywide sales for that year, available through the Economic Census, the manager

might find that both stores accounted for 15.1 percent of the countywide market for

family clothing stores. The manager can then use this information to set goals with regard

to adding a third store. A goal might be that the three stores combined achieve a market

share of 22 percent, based on the addition of the new store. Or the firm might consider

adding a store in another county, and set a goal of achieving a market share similar to that

it achieved in Cochise County.



Data from the Economic Census can also help in site selection. By comparing total sales

in a particular industry to the population in the area, the firm can identify other areas that

might be underserved.



For example, an electronics and appliance store can find that, in 2002, these stores did

$7.7 million in sales in Cochise County. This amounted to $61.79 per resident, when

compared to Arizona Department of Economic Security population estimates for Cochise

County that year. The store manager might then check Coconino County and find that

sales totaled $156.27 per person in that county. This might indicate an unmet demand for

electronics and appliances in Cochise County, at least as of 2002. Of course, we’ve seen

new electronics and appliance stores in the county since 2002. Part of the reason for this

was likely this type of analysis.
Data from the Economic Census has numerous other applications. According to the

Census Bureau, data can be used to design sales territories and set sales quotas, enhance

business opportunity presentations to banks or venture capitalists, and evaluate new

business opportunities.



As an economic development tool, Economic Census information can be used to attract

new businesses to the area by comparing local industry growth rates to those at the state

or national level. Data can also be used to assist local businesses by computing such

factors as sales per capita and establishments per 100,000 residents. The data can also be

used to identify industries that are underrepresented compared to state and national

norms.



To learn more about the Economic Census for 2007, including how it can be used to help

businesses, visit www.business.census.gov. At this website, you’ll also find economic

snapshots of selected industries and important facts about every industry.



If you run a business in Cochise County, please ensure you return your Economic Census

form to the Census Bureau by February 12. Information about individual firms is kept

confidential, and only aggregate industry data are published. Also, please keep in mind

that participation is mandated by law.



If you have any questions on the economy, please contact the CER at 515-5486 or email

us at cer@cochise.edu. Check out the CER’s website at www.cochise.edu/cer.
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