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.