2.1.1.1Industry (Division)
In 2014, there were approximately 21,000 Manufacturing, Mining and Quarrying establishments (self-employed or establishments with employees). The largest number of establishments was found in Manufacture of furniture (18%), and in Manufacture of fabricated metal products, except machinery and equipment (17%). The smallest number was found in Manufacture of other transport equipment (0.2%).
The total number of jobs in Manufacturing, Mining and Quarrying industries in 2014 was 362,000. The industry with the largest number of jobs was Manufacture of computer, electronic and optical products (approximately 18% of all jobs in Manufacturing, Mining and Quarrying industries), whereas the industry with the smallest number of jobs was Manufacture and processing of leather and related products (0.4%).
The highest output was found in Manufacture of petroleum products, chemicals and chemical products (21% of the total output) and in Manufacture of computer, electronic and optical products (20%), whereas the lowest output was found in Manufacture and processing of leather and related products (0.1%).
The highest value added was found in Manufacture of computer, electronic and optical products (27% of the total value added), and in Manufacture of food products (10%). The lowest value added was found in Manufacture and processing of leather and related products (0.2%).
The percentage of value added in output was 33% on the average. The lowest percentage of the value added in output was found in Manufacture of petroleum products, chemicals and chemical products (13%) and Manufacture of basic metals (19%); the highest percentages were found in the Mining and Quarrying industries (65%) and in Repair and installation of machinery and equipment (51%).
Analysis of the data by industry (division) indicates that output per job was highest in Manufacture of petroleum products, chemicals and chemical products (NIS 3.5 million), and lowest in Manufacture of wearing apparel (NIS 333,000) and in Manufacture of furniture (NIS 376,000).
Value added per job was highest in the Mining and Quarrying industries (NIS 2.2 million, more than 6 times the average), and the lowest was found in Manufacture of wearing apparel (NIS 137,000).
The highest compensation per job was found in Mining and Quarrying industries (NIS 327,000), and the lowest compensation per job was in Manufacture of wearing apparel (NIS 92,000).
In 2014, the percentage ofprofit in the output[1]measured for Manufacturing, Mining and Quarrying establishments was 12%.
Selected data are presented in Tables E, F, and G.
Table E. Selected Data, by Industry (Division) 2014
Percentages
Code / Industry (division) / Income from manufacturing activity as percentage of total revenue / Value added as percentage of total output / Compensation for jobs as percentage of value added / Consumption of materials as percentage of inputs33–05 / Manufacturing; Mining and quarrying – total / 98.9 / 33.0 / 51.7 / 68.7
09–05 / Mining and quarrying / 98.6 / 65.1 / 15.2 / 18.9
33–10 / Manufacturing – total / 99.0 / 31.7 / 60.4 / 69.7
10 / Manufacture of food products / 99.6 / 24.2 / 61.3 / 77.0
12–11 / Manufacture of beverages and tobacco products / 99.0 / 39.1 / 49.1 / 67.2
13 / Manufacture of textiles / 99.3 / 27.5 / 54.8 / 58.5
14 / Manufacture of wearing apparel / 99.5 / 41.1 / 67.1 / 52.3
15 / Manufacture and processing of leather and related products / 99.1 / 41.9 / 58.1 / 57.3
16 / Manufacture of wood, cork and straw products except furniture / 99.7 / 30.7 / 64.2 / 73.3
17 / Manufacture of paper and paper products / 98.0 / 27.2 / 68.6 / 69.4
18 / Printing and reproduction of recorded media / 97.9 / 43.9 / 70.0 / 56.1
20–19 / Manufacture of petroleum products, chemicals and chemical products / 99.3 / 13.0 / 50.0 / 87.7
21 / Manufacture of pharmaceutical products, including homeopathic preparations / 99.4 / 41.2 / 35.1 / 35.0
22 / Manufacture of rubber and plastics products / 97.7 / 33.1 / 58.6 / 74.3
23 / Manufacture of other non-metallic mineral products / 99.2 / 26.2 / 52.0 / 64.8
24 / Manufacture of basic metals / 99.7 / 19.2 / 64.5 / 83.4
25 / Manufacture of fabricated metal products, except machinery and equipment / 99.6 / 47.4 / 76.9 / 62.6
26 / Manufacture of computer, electronic and optical products / 98.4 / 44.7 / 58.7 / 56.1
27 / Manufacture of electrical equipment / 99.1 / 31.7 / 76.4 / 74.7
28 / Manufacture of machinery and equipment n.e.c. / 97.2 / 38.1 / 61.0 / 66.7
29 / Manufacture of motor vehicles, trailers and semi-trailers / 99.1 / 33.8 / 91.3 / 61.4
30 / Manufacture of other transport equipment / 99.9 / 44.3 / 88.1 / 26.5
31 / Manufacture of furniture / 98.1 / 38.5 / 71.0 / 67.3
32 / Other manufacturing / 98.9 / 42.4 / 72.1 / 60.0
33 / Repair and installation of machinery and equipment / 99.4 / 51.3 / 72.8 / 64.3
Table F. Establishments, Jobs, Output, Value Added,and Compensation for Jobs, by Industry (Division)2014
Percentages
Code / Industry (division) / Establishments / Jobs / Output / Value added / Compensation for jobs33–05 / Manufacturing; Mining and quarrying –total / 100.0 / 100.0 / 100.0 / 100.0 / 100.0
09–05 / Mining and quarrying / 1.0 / 1.1 / 3.7 / 7.4 / 2.0
33–10 / Manufacturing – total / 99.0 / 98.9 / 96.3 / 92.6 / 98.0
10 / Manufacture of food products / 12.0 / 15.7 / 13.1 / 9.6 / 10.3
12–11 / Manufacture of beverages and
tobacco products / 1.1 / 1.4 / 1.3 / 1.5 / 1.3
13 / Manufacture of textiles / 1.8 / 1.3 / 1.1 / 0.9 / 0.8
14 / Manufacture of wearing apparel / 4.4 / 2.0 / 0.7 / 0.8 / 1.0
15 / Manufacture and processing of leather and related products / 0.8 / 0.4 / 0.1 / 0.2 / 0.2
16 / Manufacture of wood, cork and straw products except furniture / 2.7 / 0.8 / 0.4 / 0.4 / 0.5
17 / Manufacture of paper and paper products / 1.0 / 2.1 / 1.7 / 1.4 / 1.7
18 / Printing and reproduction of recorded media / 7.6 / 2.7 / 1.0 / 1.4 / 1.7
20–19 / Manufacture of petroleum products,chemicals and chemical products / 2.2 / 6.0 / 20.8 / 8.2 / 7.2
21 / Manufacture of pharmaceutical products, including homeopathic preparations / 0.3 / 3.5 / 6.6 / 8.3 / 5.1
22 / Manufacture of rubber and plastics products / 3.4 / 6.0 / 4.5 / 4.5 / 4.6
23 / Manufacture of other non-metallic mineral products / 5.5 / 2.8 / 3.5 / 2.8 / 2.5
24 / Manufacture of basic metals / 1.7 / 1.9 / 2.4 / 1.4 / 1.6
25 / Manufacture of fabricated metal products, except machinery and equipment / 16.7 / 10.8 / 5.4 / 7.8 / 10.5
26 / Manufacture of computer, electronic and optical products / 2.6 / 18.2 / 19.9 / 27.0 / 27.8
27 / Manufacture of electrical equipment / 1.5 / 2.7 / 1.6 / 1.6 / 2.1
28 / Manufacture of machinery and equipment n.e.c. / 3.5 / 5.1 / 4.3 / 5.0 / 5.3
29 / Manufacture of motor vehicles, trailers and semi-trailers / 0.5 / 1.5 / 0.8 / 0.8 / 1.3
30 / Manufacture of other transport equipment / 0.2 / 4.2 / 3.1 / 4.2 / 6.4
31 / Manufacture of furniture / 17.9 / 4.8 / 1.8 / 2.1 / 2.6
32 / Other manufacturing / 7.9 / 3.8 / 1.6 / 2.1 / 2.7
33 / Repair and installation of machinery and equipment / 3.6 / 1.1 / 0.5 / 0.7 / 0.9
Table G. Selected Data of Sales, Administration and General Expenditures,(1) by Industry (Division), 2014
Percentages
Compensation for jobs in sales and administration as percentage of total compensation for jobs / Compensation for jobs in sales and administration as percentage of total sales and administration expenditures / General inputs, as percentage of total revenue from manufacturing activity / Industry (division) / Code29.5 / 40.1 / 6.4 / Manufacturing; Mining and quarrying – total / 33–05
18.4 / 16.1 / 6.2 / Mining and quarrying / 09–05
29.7 / 40.8 / 6.4 / Manufacturing – total / 33–10
40.0 / 35.2 / 7.5 / Manufacture of food products / 10
56.0 / 31.8 / 10.2 / Manufacture of beverages and tobacco products / 12–11
32.4 / 39.6 / 3.9 / Manufacture of textiles / 13
64.0 / 48.7 / 10.8 / Manufacture of wearing apparel / 14
49.3 / 40.8 / 12.3 / Manufacture and processing of leather and related products / 15
36.1 / 37.4 / 7.7 / Manufacture of wood, cork and straw products except furniture / 16
26.7 / 42.1 / 6.0 / Manufacture of paper and paper products / 17
37.6 / 52.0 / 8.7 / Printing and reproduction of recorded media / 18
32.3 / 32.7 / 3.2 / Manufacture of petroleum products, chemicals and chemical products / 20–19
37.2 / 21.4 / 17.6 / Manufacture of pharmaceutical products, including homeopathic preparations / 21
29.8 / 39.7 / 5.9 / Manufacture of rubber and plastics products / 22
29.5 / 40.9 / 5.1 / Manufacture of other non-metallic mineral products / 23
25.7 / 43.4 / 3.1 / Manufacture of basic metals / 24
44.2 / 68.7 / 5.6 / Manufacture of fabricated metal products, except machinery and equipment / 25
19.0 / 44.8 / 5.3 / Manufacture of computer, electronic and optical products / 26
31.1 / 49.9 / 5.5 / Manufacture of electrical equipment / 27
29.5 / 45.8 / 6.3 / Manufacture of machinery and equipment n.e.c. / 28
23.0 / 51.5 / 9.3 / Manufacture of motor vehicles, trailers and semi-trailers / 29
8.7 / 52.2 / 3.2 / Manufacture of other transport equipment / 30
36.5 / 42.0 / 10.7 / Manufacture of furniture / 31
34.0 / 39.4 / 11.5 / Other manufacturing / 32
45.8 / 58.3 / 9.1 / Repair and installation of machinery and equipment / 33
(1) After deduction of commissions for sales in Israel and export commissions.
2.1.1.2Research and Development
There were 488 establishments that reported on research and development activity.[2] Those establishments provided 141,000 jobs (approximately 39% of the total jobs in Manufacturing, Mining and Quarrying); their output amounted to approximately 44% of the total output in these industries, and their value added was approximately 56% of the total value added. It should be noted that exports comprised approximately 76% of the sales from manufacturing activity in these establishments, whereas the proportion of exports for all Manufacturing, Mining and Quarrying industries amounted to 45%. Value added constituted 42% of the output in these establishments, and it exceeded that of the other establishments, in which the gross value added comprised 33% of their output on the average.
The net total research and development expenditure in Manufacturing, Mining and Quarrying amounted to approximately NIS 12 billion in 2014 (after deducting subsidies).[3] The leading industries in research and development were: Manufacture of pharmaceutical products, including homeopathic preparations; and Manufacture of computer, electronic and optical products, in which 81% of the total expenditure for research and development and 89% of the total R&D subsidies were invested. These industries contributed 55% of the output and 59% of the total value added in Manufacturing, Mining and Quarrying.
2.1.1.3Export-Intensive Establishments[4]
There were 1,067 export-intensive establishments. The percentage of the value added in the output of these establishments (33%) was equal to the percentage in all Manufacturing, Mining and Quarrying industries. The percentage of profit in the output of export-intensive establishments (13%) was slightly higher than the percentage recorded in all Manufacturing, Mining and Quarrying industries (12%). However, the percentage of compensation for jobs in the value added of export-intensive establishments (56%) was slightly lower than in all Manufacturing, Mining and Quarrying industries (57%).
For selected data on the components of output and value added in manufacturing and in export-intensive establishments, see Table H, and Table 3 in the Tables section.
Table H. Components of Output and Value Added in Total Manufacturing,
Mining and Quarrying and in Export-Intensive Establishments 2014
13 / 12 / Percentage of profit in output
33 / 33 / Percentage of value added in output
56 / 57 / Percentage of compensation for jobs
in value added
39 / 37 / Percentage of profit in value added
Of all Manufacturing, Mining and Quarrying establishments operating in the economy in 2014, there were approximately 153,000 jobs in export-intensive establishments (42% of all jobs in Manufacturing). The share of those establishments amounted to approximately 98% of the sales of manufacturing exports, approximately 61% of the total annual manufacturing output, and approximately 62% of the total value added.
2.1.1.4Comparison of the Data Presented in this Publication (Manufacturing, Mining and Quarrying Survey) with Current Data Indices
The data on revenue presented in the Manufacturing, Mining and Quarrying Survey are at basic prices, and do not include export expenditure and agents’ commissions. The current monthly data (in the framework of the Manufacturing, Mining and Quarrying indices) are at purchaser’s prices (including taxes and VAT, and not including subsidies). For the purpose of comparison, the monthly data were adjusted to basic prices (VAT and other taxes were deducted, and subsidies were added). In the financial statement data, non-industrial revenue was deducted, and export expenditure as well as commissions that were deducted in the data processing stage, were added. Table I presents differences between annual data in the Manufacturing, Mining and Quarrying Survey and the current indices based on monthly data.
Table I. Manufacturing, Mining and Quarrying Survey Data and Current
Manufacturing Indices Data, 2014
NIS million
Revenue and Compensation for jobs / Manufacturing, Mining and Quarrying Survey data(annual data)
2014 / Current Manufacturing indices
(annual sums based on monthly data)
2014
Revenue(at basic prices) / 376,065 / 378,214
Compensation for jobs / 69,046 / 64,764
The above table reveals that although there was a difference of less than 1% in revenue between the data in financial statements and the monthly series data, there was a difference of approximately 7% in compensation for jobs. That difference can be attributed to adjustments in the financial statements (e.g., imputations for accumulated vacation, special payments, bonuses, and wages of managers). Moreover, the data on compensation for jobs in the Manufacturing, Mining and Quarrying Survey include wages of kibbutz members and imputation of wages for non-employee jobs.[5]
1.1.2Manufacturing industries[6] (Section C)
1.1.2.1Sector
The division of manufacturing establishments by sector was prepared in accordance with the requirements of the System of National Accounts 2008.[7] The requirements were formulated jointly by five international institutions: the UN, the IMF, the OECD, Eurostat, and the World Bank.
Classification of each dealer by sector was determined by control of shares in the company.
The definition of households[8] included individuals who function as consumers or as entrepreneurs who produce market goods. Corporations with at least 50% of their shares under government ownership were classified as government corporations.
Selected data on Manufacturing establishments by sector are presented in Table J and in Tables 11–16 in the Tables section.
Table J. Selected Data, by Sector 2014
House-holds / Cooper-atives / Foreign controlled private corporations / National private corporations / Government corporations / Manufacturing (SectionC) / Selected Data
Percentages / Percentages / Percentages / Percentages / Percentages / Percentages / Percentages
55.3 / 1.1 / 1.7 / 41.8 / 0.1 / 100.0 / Establishments
4.7 / 5.5 / 16.8 / 65.2 / 7.8 / 100.0 / Jobs
1.1 / 5.9 / 21.2 / 65.1 / 6.7 / 100.0 / Output
1.3 / 4.8 / 27.6 / 56.8 / 9.5 / 100.0 / Value added
0.1 / 4.6 / 31.1 / 54.8 / 9.4 / 100.0 / Exports
38.0 / 25.8 / 41.3 / 27.7 / 45.1 / 31.7 / Percentages of value added in output
0.8 / 34.1 / 65.5 / 37.7 / 64.5 / 44.8 / Share of exports in total revenue
NIS thousand at current prices / NIS thousand at current prices / NIS thousand at current prices / NIS thousand at current prices / NIS thousand at current prices / NIS thousand at current prices / NIS thousand at current prices
232.2 / 1,061.0 / 1,247.8 / 988.3 / 839.9 / 988.3 / Output per job
88.3 / 273.4 / 515.4 / 273.4 / 378.9 / 313.4 / Value added per job
48.4 / 154.8 / 238.7 / 164.6 / 400.4 / 189.4 / Compensation per job
1.1.2.2Size Group
Number of Jobs per Dealer (Establishment)
In 2014, approximately 20,000 establishments (94%) had less than 50 jobs, which amounted to approximately 28% of all jobs in Manufacturing. The findings indicate that on the average, output per job increased with the size of the establishment, and ranged from approximately NIS 524,000 in establishments with up to 49 jobs, to NIS 1.4 million in establishments with over 250 jobs.
In the group of small establishments (up to 49 jobs), the average value added per job (NIS 170,000) was lower than the average in Manufacturing (NIS 313,000), and compensation per job (NIS 112,000) was also lower than the average (NIS 189,000).
In 2014, the percentage of the profit in the output was 11% for total Manufacturing. Establishments with more than 250 jobs recorded the highest percentage of profit (12%), whereas the lowest percentage of the profit (8%) was recorded for the group of establishments with 50–99 jobs.
The distribution of establishments and jobs by number of jobs per dealer (establishment) is presented in Table K and in Tables 17–22 in the Tables section.
Table K. Selected Data, by Size Group of Jobs per Dealer (Establishment) 2014
No. of jobs per dealer (establishment)250+ jobs / No. of jobs per dealer (establishment)100-249 jobs / No. of jobs per dealer (establishment)50-99 jobs / No. of jobs per dealer (establishment)Up to 49 jobs / Manufactu-ring (Section C) / Selected DataPercentages / Percentages / Percentages / Percentages / Percentages / Percentages
1.0 / 2.4 / 3.0 / 93.6 / 100.0 / Establishments
38.7 / 21.1 / 12.5 / 27.7 / 100.0 / Jobs
56.3 / 20.3 / 8.7 / 14.7 / 100.0 / Output
57.0 / 19.1 / 8.9 / 15.0 / 100.0 / Value added
72.2 / 18.1 / 5.8 / 3.9 / 100.0 / Exports
32.1 / 29.8 / 32.3 / 32.3 / 31.7 / Percentage of value added in output
12.4 / 10.4 / 8.4 / 9.2 / 11.1 / Percentage of profit in output
58.1 / 39.5 / 29.3 / 11.8 / 44.8 / Share of exports in total revenue
NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices
1,438.3 / 950.7 / 689.9 / 524.2 / 988.3 / Output per job
462.1 / 283.7 / 223.0 / 169.6 / 313.4 / Value added per job
262.8 / 176.3 / 155.8 / 112.3 / 189.4 / Compensation per job
Revenue per Dealer (Establishment)
In 82% of the manufacturing establishments, the annual revenue was less than NIS 5 million, whereas most of the jobs (61%) were in establishments with high revenue levels (over NIS 50 million). Those establishments also contributed approximately 84% of the output and 81% of the value added. For selected data by size groups of total revenue per dealer (establishment), see Table L and Tables 23–28 in the Tables section.
Table L. Selected Data, by Size Groups of Revenue per Dealer (Establishment)2014
Total annual revenue per dealer (establishment)(NIS Million)50+ / Total annual revenue per dealer (establishment)
(NIS Million)20-49.9 / Total annual revenue per dealer (establishment)
(NIS Million)5-19.9 / Total annual revenue per dealer (establishment)
(NIS Million)Up to 4.9 / Manufac-turing (Section C) / Selected Data
Percentages / Percentages / Percentages / Percentages / Percentages / Percentages
4.4 / 3.8 / 9.8 / 82.0 / 100.0 / Establishments
61.1 / 12.5 / 13.0 / 13.4 / 100.0 / Jobs
84.2 / 6.6 / 5.7 / 3.5 / 100.0 / Output
81.0 / 7.8 / 6.6 / 4.6 / 100.0 / Value added
95.9 / 2.5 / 1.2 / 0.4 / 100.0 / Exports
30.7 / 37.1 / 36.6 / 42.1 / 31.7 / Percentage of value added in output
11.7 / 9.5 / 7.0 / 8.3 / 11.1 / Percentage of profit in output
51.1 / 16.7 / 9.6 / 4.6 / 44.8 / Share of exports in total revenue
NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices
1,359.7 / 524.6 / 436.5 / 259.4 / 988.3 / Output per job
415.0 / 194.4 / 159.7 / 109.3 / 313.4 / Value added per job
237.3 / 135.2 / 127.5 / 81.5 / 189.4 / Compensation per job
1.1.2.3District
Each Manufacturing establishment in the sample was classified by the district in which it is located (see Table M). For more comprehensive data on the distribution of Manufacturing establishments by district and sub-district, see Tables 29–33 in the Tables section.
Table M. Selected Data on Manufacturing Establishments, by District2014
District Judea and Samaria Area(1) / District Southern / District Tel-Aviv and Central / District Haifa and Northern / District Jerusalem / Manufac-turing (Section C) / SelectedDataPercentages / Percentages / Percentages / Percentages / Percentages / Percentages / Percentages
2.9 / 9.8 / 47.5 / 32.5 / 7.3 / 100.0 / Establishments
2.5 / 16.7 / 35.1 / 39.9 / 5.8 / 100.0 / Jobs
1.4 / 23.4 / 28.4 / 41.6 / 5.2 / 100.0 / Output
1.3 / 23.2 / 32.6 / 36.6 / 6.3 / 100.0 / Value added
1.2 / 25.6 / 27.9 / 39.4 / 5.9 / 100.0 / Exports
27.9 / 31.5 / 36.4 / 27.9 / 38.6 / 31.7 / Percentage of value added in output
7.8 / 15.0 / 8.8 / 9.6 / 19.9 / 11.1 / Percentage of profit in output
37.2 / 48.8 / 44.1 / 42.4 / 51.5 / 44.8 / Share of exports in total revenue
NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices / NIS thousand, at current prices
567.0 / 1,382.2 / 798.4 / 1,029.6 / 901.2 / 988.3 / Output per job
158.0 / 435.1 / 290.8 / 287.3 / 347.5 / 313.4 / Value added per job
109.6 / 205.3 / 210.0 / 171.7 / 175.7 / 189.4 / Compensation per job
(1) Israeli localities.
1.1.2.4Technological Intensity
In accordance with the 2011 Standard Industrial Classification, the classification of industries by technological intensity includes only Manufacturing and does not include Mining and Quarrying.[9],[10] The classification of Manufacturing establishments by technological intensity revealed that most of the jobs in Manufacturing were in industries classified as high technology and low technology (59%). The shares of the output and value added for those establishments in total Manufacturing were 53% and 63%, respectively. High technology industries include: Manufacture of pharmaceutical products, including homeopathic preparations; Manufacture of computer, electronic and optical products; and Manufacture of air and spacecraft and related machinery. The share of jobs in high technology industries out all Manufacturing industries was 26%, and their share of the output was 31%. The value added in these industries amounted to 42% of the total value added in Manufacturing. High technology manufacturing establishments contributed 52% to the total Manufacturing exports. The percentage of the profit in the output in these industries was 19% (more than 1.5 times the percentage in total Manufacturing, which was 11%). Compensation per job in high technology industries amounted to NIS 290,000 in 2014 – 53% higher than the average compensation per job in total Manufacturing (NIS 189,000), and more than approximately 2.4 times higher than the compensation per job in low technology industries.
Low technology industries include: Manufacture of food products; Manufacture of beverages; Manufacture of tobacco products; Manufacture of textiles; Manufacture of wearing apparel; Manufacture and processing of leather and related products; Manufacture of wood, cork and straw products, except furniture; Manufacture of paper and paper products; Printing and service activities related to printing; and Manufacture of furniture and other manufacturing industries, except Manufacture of medical, dental and orthopedic instruments and supplies. The share of jobs in low technology industries out all Manufacturing industries was 33%, whereas their share of the output was only 23% of the total output in Manufacturing. The value added in these industries amounted to 21% of the total value added in Manufacturing. The percentage of the profit in the output in these industries was 9% (approximately 18% less than the percentage in total Manufacturing).
For selected data on technological intensity, see Table N and Tables 39–47 in the Tables section.