Data Quality Improvement – Majority Market Share Rule Increased
The International Statistics on Vacuum Technology (ISVT) Working Group is pleased to announce that in the interests of improving the quality of the statistical data provided to its members, it has been agreed to raise the majority market share rule threshold from 50% to 75%.
The Working Group met in Berlin on October 27th, 2006 with representatives of AVEM, EVTA and JVIA. The Working Group believes that the summary data for the product groups and markets continues to give a realistic overview of the vacuum components market for the participating companies who represent about 80% of the total market (with the main shortfall in ‘Rough Vacuum Pumps’ which is not significantly represented).
However, the Working Group recognises that there are problems with many of the sub-categories with about half of the individual category fields being blocked each quarter, mainly by “the 50% rule." The ‘majority market share rule’ is the rule that states if "…one company represents more than 50% of the sales of that product category into that region, the sales of this product category (for all regions) shall not be reported."
The Working Group has made several improvements to the reporting process in an attempt to reduce the number of blocked fields. Whilst this has helped to improve the summary data, the number of blocked fields has remained about the same.
It is expected that this change to 75% will result in the majority of the detailed market data becoming available to participating companies. This change will take effect starting in the third quarter of 2006 and will be reviewed in 2007. This change was agreed by the representatives of the AVEM, EVTA and JVIA.
Please note that the reporting process will stay exactly the same. There will be no changes to the other blocking rules (minimum three company or the summary calculation inference rules).
The Working Group has set up a Quality Improvement Committee with the objective of making further improvements to the quality of the data. This will involve a detailed review of the accuracy of the information provided by each participating company. It is possible that you may be contacted by your regional association to help with reviewing the understanding of definitions and the validity of each reporting field. No data will be disclosed.
This update is being circulated on behalf of ISVT by the AVEM, EVTA and JVIA to their members who are participating in the ISVT statistics program.