Construction and Public Utilities

Abstract

This chapter estimates gross profit in the construction trades and in the public utilities, which correspond respectively to minimum list headings 500 and 601–3 in the 1958 Standard Industrial Classification, with the qualification that the building and contracting activities of local and central government authorities are excluded from construction. Public utilities comprise the electricity, gas and water supply establishments operated by local government authorities and by companies. It must be remembered that the gross profit being measured is before interest on loan capital so that even if these public utilities did not attempt to maximize their profits at all times, because of their social obligations, they had to earn at least enough profit to cover their loan charges. However, it is difficult to estimate value added in the inter-Census years, and such a series is necessary in order to obtain the required estimates of gross margin by subtracting employee compensation.