Value added ($1,000)

{
  "id": "MLC-T-ECS-002076",
  "term": "Value added ($1,000)",
  "field": "Economic statistics",
  "definition": "The value added is the measure of construction, manufacturing, or mining activities to avoid the duplication in the figure for sales, value of shipments, or revenue.\n\nData are shown in thousands of dollars ($1,000).\n\nSector-Specific Information:\n\nConstruction Sector\n\nThis measure of construction activity is equal to value of business done, less costs for construction work subcontracted out to others and costs for materials, components, supplies, and fuels.\n\nManufacturing Sector\n\nThis measure of manufacturing activity is derived by subtracting the cost of materials, supplies, containers, fuel, purchased electricity, and contract work from the value of shipments (products manufactured plus receipts for services rendered). The result of this calculation is adjusted by the addition of value added by merchandising operations (i.e., the difference between the sales value and the cost of merchandise sold without further manufacture, processing, or assembly) plus the net change in finished goods and work-in-process between the beginning- and end-of-year inventories.\n\n\"Value added\" avoids the duplication in the figure for value of shipments that results from the use of products of some establishments as materials by others. Value added is considered to be the best value measure available for comparing the relative economic importance of manufacturing among industries and geographic areas.\n\nMining Sector\n\nThis measure of mining activity is derived by subtracting the cost of supplies, minerals received for preparation, purchased machinery installed, purchased fuel, purchased electricity, and contract work from the sum of the value of shipments and receipts for services (mining products plus receipts for services rendered) and capital expenditures. The result of this calculation is adjusted by the addition of value added by merchandising operations (i.e., the difference between the sales value and the cost of products sold without further processing).\n\n\"Value added\" avoids the duplication in the figure for value of shipments and receipts for services that results from the use of products of some establishments as supplies, energy sources, or materials by others. Moreover, it provides a measure of value added not only in mineral production but also in the development of mineral properties. Value added is considered to be the best value measure available for comparing the relative economic importance of mining among industries and geographic areas.",
  "references": [
    "U.S. Census Bureau Glossary"
  ],
  "url": "https://mlchart.com/terminology/economic-statistics/value-added-1000/"
}