2020 US Business Locations And Business Summary Data .

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JUNE 2020Methodology Statement:2020 US BusinessLocations and BusinessSummary Data

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Methodology Statement: 2020 US Business Locations and Business Summary DataTable of ContentsData Sources and Content . 4Business Locations . 5AN ESRI TECHNICAL PAPER3

Methodology Statement: 2020 US Business Locations and Business Summary DataMethodology Statement: 2020 USBusiness Locations and BusinessSummary DataEsri extracts its business data from a comprehensive list ofbusinesses licensed from Infogroup . This list contains data onnearly 13 million US businesses—including the company name,location, franchise code, industry classification code, number ofemployees, and sales volume. The industry data in the BusinessSummary dataset is current as of January 2020. Business locationsare current as of April 2020.1 However, depending on the product ordata delivery mechanism, location data may be updated morefrequently throughout the calendar year.2Data Sourcesand ContentIn maintaining and adding to its business database, Infogroup referencesnumerous sources including directory listings such as Yellow Pages andbusiness white pages; annual reports; 10-K and Securities and ExchangeCommission (SEC) information; federal, state, and municipal government data;business magazines; newsletters and newspapers; and information from the USPostal Service. To ensure accurate and complete information, Infogroupconducts annual telephone verifications with each business listed in thedatabase.Esri provides reports and file extracts from the business database that include thenumber of businesses by industry classification and employment size or salesvolume; total employment; and, when available and applicable, information abouttotal sales. Also included are both versions of industry classification—the former fourdigit Standard Industrial Classification (SIC) system and the updated and expandedsix-digit 2017 North American Industry Classification System (NAICS). In addition tothe typical SIC and NAICS summary-level codes, the database also includesInfogroup's proprietary six-digit SIC and eight-digit NAICS industry codes and aspecial industry code for select industries. These codes provide more detailedinformation such as the number of rooms in hotels or motels or the number of beds inhospitals and nursing homes.Infogroup's sales data for private companies must be modeled since this sensitiveinformation is proprietary and virtually impossible to obtain. Its primary source data tomodel this variable comes from the US Department of Commerce. Infogroup's total1Regarding coronavirus disease 2019 (COVID-19) and the US business registry, Infogroup anticipates itsdatabase will reflect the impact from the pandemic. But the degree to which it will reflect these changesat any one point in time will be a function of its cumulative daily verification efforts to update a business'soperational status and current workforce levels.2Please consult the product release notes or visit htmto obtain the current business data vintages.JUNE 20204

Methodology Statement: 2020 US Business Locations and Business Summary Dataannual sales volume is estimated by applying a county-level six-digit NAICS industrysales per employee multiplier to its location employment data and corresponding sixdigit NAICS industry code. Furthermore, a corporate sales volume is only availableon records coded as a parent or subsidiary headquarters. The data reflects actualsales compiled from annual reports, newspapers, and periodicals. If this informationis not available, sales estimates are "inferred" by using a median value of existingreported sales data across the different combinations of employee size classes andindustry classifications. Lastly, total annual sales volume data is reported inthousands of dollars for all business locations.BusinessLocationsAn address list of businesses is compiled by Infogroup from its sources and telephoneverifications. These addresses are geocoded to assign latitude and longitudecoordinates to the business site and append census geographic codes via spatialoverlay. This year, the new style of locators from the ArcGIS StreetMap Premiumwas used for geocoding addresses. These are similar to the locators used in theArcGIS World Geocoding Service. In addition to improved address matching logic, thenew locators leverage up-to-date reference data from authoritative sources, includingcommunity, commercial, and governmental providers. The quality of address matchingvaries depending on the quality of the input address as well as the availability ofreference data in the area. Overall, nearly 94 percent of all business addresses weregeocoded to a ranged street centerline or detailed address location such as the centerof a building or parcel.Esri also uses the geographic codes to report business data for summary areas suchas states, counties, census tracts, and block groups. Aggregations by ZIP codes arecreated from the business database. ZIP codes from Infogroup may differ from theresidential ZIP codes in the Esri demographic databases because Infogroupincludes business-only ZIP codes that are unique to particular establishments andinclude no residential area.Lastly, records for ATMs, electric vehicle charging stations, and addresses with postoffice box numbers or missing entries have been omitted from the geographicsummary files. However, these records remain in the business locations database.For more information about business data, call 1-800-447-9778.AN ESRI TECHNICAL PAPER5

Methodology Statement: 2020 US Business Locations and Business Summary DataEsri's Data Development TeamLed by chief demographer Kyle R. Cassal, Esri's data development team has a35-year history of excellence in market intelligence. The team's economists,statisticians, demographers, geographers, and analysts produce independentsmall-area demographic and socioeconomic estimates and forecasts for theUnited States. The team develops exclusive demographic models andmethodologies to create market-proven datasets, many of which are now industrybenchmarks such as Tapestry Segmentation, Consumer Spending, MarketPotential, and annual Updated Demographics. Esri demographics powersArcGIS through dynamic web maps, data enrichment, reports, and infographics.JUNE 20206

For more information, visitesri.com/data/esri data.

Summary dataset is current as of January 2020. Business locations are current as of April 2020. 1 However, depending on the product or data delivery mechanism, location data may be updated more frequently throughout the calendar year. 2 Data Sources and Content In maintaining and adding to its business database, Infogroup references