7. INDUSTRY, ENERGY, CONSTRUCTION AND FIXED ASSETS

INDUSTRY

The concept “industry” includes activities classified in the CZ-NACE classification under sections C – Mining and quarrying, D – Manufacturing and E – Electricity, gas and water supply, which are carried out by enterprise turning out industrial products of a similar economic purpose.

The basic reporting unit of industrial statistics is the enterprise whose principal activity is classified to divisions 10 - 41 of the CZ-NACE in force since 1 January 1992

Data are obtained by the enterprise approach, i.e. for enterprises having their head office in the region concerned, including their establishments and plants situated in other regions. Due to a rather low degree of data relevance for the given region, the data are not further broken down into districts. A 100% survey was applied to the category of enterprises with 100 employees and more.

 Industrial activity sales include sales of own goods and services of industrial nature to external customers, valued at current prices (enterprise accounts Nos. 601 and 602. VAT, consumer tax and customs duty are not included in the sales.

Employees in industry are given as actual persons. The average registered number of employees (in terms of actual persons) includes all permanent and temporary employees who have a contract of employment with the employer and receive wages from the employer for the work done. The average registered number of employees does not include e.g. women on maternity leave, temporary members of the armed forces (including persons on compulsory community service service, apprentices, students on practical training, persons working under contracts for work or of service, etc.

The average gross monthly wage per employee in industry is based on the wage bill (gross) (without deductions imposed by law or agreed upon with the employee), to be paid in the given period. The wage bill does not include funds paid from the other personnel expenses account. To calculate the average gross wage, the wages paid are divided by the average number of employees and the number of months in the reference period.

ENERGY

Information on consumption of fuels and energy in all industries of the national economy is obtained through an annual statistical questionnaire (EPS-01) completed by incorporated enterprises employing 20 people and over.

Consumption of solid, liquid and gaseous fuels includes consumed individual fuels in terms of energy units - i.e. both production and non-production consumption, including consumption of inputs for generation of electricity and heat and for fuel upgrading; gas oils used to drive motors (formerly diesel oil) also include gas oils consumed for intra-enterprise transport.

Consumption of electricity – also includes in-house consumption of the production of electricity.

CONSTRUCTION

Construction comprises enterprises having their head offices in the area concerned, whose principal activity is construction (CZ-NACE 45) and which employ 20 employees and more.

Construction work of contractors and sub-contractors (the value “S”) comprises total output resulting from construction activities and accepted sub-deliveries of work done by other organisations. It includes neither sub-delivery to other construction work contractors nor deliveries of work implemented between units of one organisation. They data are reported excluding value added tax.

Basic construction output (construction work done by own employees) is the volume of work carried out by employees on the organization’s books, including productive work of apprentices.

Data on housing construction refer to the entire housing construction in the area (including all types of extensions) that results in new dwellings attained by all forms of construction). Dwellings arising from changes in the purpose of use without any prior construction modifications are not included. The number of dwellings includes dwellings located in constructions for housing as well as elsewhere.

Constructions for housing are multi-dwelling buildings in which the function of housing prevails, plus family houses. The dwelling refers to one or more rooms designed for living by the planning authority and can serve the purpose of living as independent dwelling units. The dwellings started are dwellings, whose construction was started in the reference period, as laid down in the builder’s diary, irrespective of whether they were completed or not. The dwellings completed are dwellings approved for use by the planning authority, the approval taking effect in the reference period. Dwellings under construction are dwellings whose construction was started (in the reference year or earlier), but not yet finished by the end of the reference period. The habitable floor area is the floor area of habitable rooms. The habitable room is a room directly lit and ventilated, of at least 8 m2 in floor area, which can be directly or indirectly heated and which is designed for living all the year round.

Data on building permits are processed from figures reported on questionnaires submitted by individual planning authorities. The building permit pursuant to Article 66 of Act No. 83/1998 Coll., which amends Act No. 50/1976 Coll., on Planning and Construction Order (Construction Act), lays down binding conditions for the implementation and use of the construction. Estimated value of constructions comprises total costs (at current prices), including technology, spent on preparing and implementing the construction and on putting it into operation.

Environmental protection refers to construction activities aimed to control water pollution, dispose of or use waste, reclaim land, and reduce impact of physical factor on the environment.

Construction trades survey (designated as STAV 2002) was mounted to upgrade basic information on construction output. Its aim was to get more accurate information on the share of tradesmen in total construction output and to determine key territorial and industrial activities of the measured group of businesses. The reporting duty concerned all natural persons (legal forms 101 and 102) engaged in construction business and having no employees.

The presented data on construction are comparable to the data released in previous years.

FIXED ASSETS

Acquisition of tangible and intangible fixed assets is statistically measured for all investors classified to the business sphere, which employ 20 or more employees (in banking and insurance irrespective of the number of employees). In the non-business sphere, data measured since 2001 refer to semi-budgeted organizations and private and public universities disregarding the number of employees and the volume of fixed assets (before 2001, the measurement also included budgetary organizations, municipalities and districts). Territorially, the fixed assets are broken down by head office of the investor concerned (enterprise approach) and the CZ-NACE division is determined according to the investor’s principal activity.

The data include expenditure spent on procurement of tangible and intangible fixed assets by purchase, own activity (on own account) or of rights to use results of intellectual activity. It also includes the value of fixed assets acquired by free transfer and on financial leasing (at acquisition price). The expenditure does not include costs of assets low in value (CZK 40 000 and CZK 60 000 for tangible and intangible fixed assets, respectively), whose life does not exceed one year.

The data on investments are comparable with data for the year 2001.

RESEARCH AND DEVELOPMENT

Domestic R&D expenditure as regional data according to places of work have been measured since 2001.

By R&D employees is the full-time equivalent (FTE) used to convert part-time employment into full-time employment (full working hours). The conversion gives a true picture of the time spent on R&D, avoiding underestimation and/or overestimation of the number of employees engaged in R&D.