Federal Register, Volume 74, Number 84, May 4, 2009, Pages 20405-20558 Page: 20,436
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Federal Register/Vol. 74, No. 84/Monday, May 4, 2009/Proposed Rules
replacement) for two airplanes. compliance cost for each airplane. The owners have no more than two affected
Individual airplane compliance costs ownership table below shows the airplanes. The average (mean) number
will likely result in costs to the small variation in the number of owners with of affected airplanes held is 1.48, while
entities that own these airplanes. The particular numbers of airplanes. The the median number held is just 1.00, so
exact cost will vary, depending on the table shows that almost 75% of the 546 the median airplane cost is equivalent to
number of affected Thrush airplanes individual owners have only one the median owner cost.
owned by the entity and the specific affected airplane, and more than 90% of
NUMBER OF THRUSH AD OWNERS HAVING PARTICULAR NUMBERS OF AFFECTED AIRPLANES
Number of affected
airplanes held by Number of owners Cumulative %
single owner
1 406 74.4
2 86 90.1
3 26 94.9
4 13 97.3
5 7 98.5
6 2 98.9
7 2 99.3
8 1 99.5
9 2 99.8
13 1 100.0
Total .............................................. 808 546
Mean ........................................ 1.48
Median .............................................. 1.00
Source: FAA Registry. Data downloaded on 4/18/08.In the "Cost of Compliance" section
of this proposed AD, the FAA estimates
total cost (undiscounted) to be $37.1
million and the present value cost to be
$25.2 million. The FAA estimates that
545 of the 546 airplanes affected by this
proposed AD are small firms, and, in
fact, 98.8% of the proposed AD's
estimated cost is attributed to small
entities. The following documents and
analyzes the impact of this cost on the
substantial number of small firms
identified in this proposed AD.Economic Impact on Small Entities
Because the Registry does not collect
financial or business data on these
entities, and such data is not readily
available elsewhere, the FAA also used
Census Bureau size distribution data to
assess the economic impact on small
firms. The FAA used data from the 2002
Census since this is the latest Census for
which size distribution by business
receipts is readily available. These data
are available in a special Census
compilation for the SBA.3 The FAA
used the data for NAICS 115112-Soil
Preparation, Planting, and Cultivating
(including Crop Dusting, CropSpraying), but did not use the data for
NAICS 115310-Support Activities for
Forestry (including Forest Fire
Suppression) since, as noted above, a
very high percentage of the affected
small firms, if not all, meet the
classification standard of NAICS
115112. Moreover, the size distribution
of NAICS 115310 appears to be similar
to that of NAICS 115112. The
concentration of the affected airplanes
in one NAICS industry, noted above,
makes the use of Census data feasible
and appropriate.
The relevant Census data are provided
in the table below:2002 CENSUS DATA FOR NAICS 115112-SOIL PREPARATION, PLANTING, AND CULTIVATING (INCLUDING CROP DUSTING,
CROP SPRAYING)-SMALL SIZE CLASSES
$100,000- $500,000- $1,000,000- $5,000,000-
Measure Total $0-$99,999 $499,999 $999,0000 $4,999,999 $10,000,000
Firms ..................... ........... .... 2336 509 992 412 394 29
Percentage of firms ................... ........ ....................... 21.8% 42.5% 17.6% 16.9% 1.2%
Upper bound percentile ......... ........ ....................... 21.8% 64.3% 81.9% 98.8% 100.0%
Est. Receipts ($000) ................................ $1,531,004 $25,681 $257,447 $286,462 $772,401 $189,013
Receipts/Firm ($) ..................................... $655,396 $50,454 $259,523 $695,296 $1,960,409 $6,517,690
Source: "Firms" and "Est. Receipts" from Small Business Administration, Office of Advocacy. http://www.sba.gov/advo/research/us recO2.txt.The table shows the number of firm
and business receipt data for the five
smallest size classes of NAICS 115112
that encompass the size range of the
firms affected by this proposed AD. In
3 Small Business Administration, Office of
Advocacy. http://www.sba.gov/advo/research/
us recO2.txt.the "Percentage of firms" row, for each
size class, the FAA calculates that
class's number of firms as a percentage
of the total number of firms in the five
size classes. Cumulating this percentagefrom the smallest to largest size class
establishes the "Upper bound
percentile"-the cumulated percentage
of firms of business receipt size ranging
up to the upper bound of the size class.20436
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United States. Office of the Federal Register. Federal Register, Volume 74, Number 84, May 4, 2009, Pages 20405-20558, periodical, May 4, 2009; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc132946/m1/39/: accessed April 17, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.