|
|
|
|
|
North American Industry Classification System FAQs
What is NAICS?NAICS is the North American Industry Classification System. It replaced the Standard Industrial Classification (SIC) system on January 1, 1997. Federal government agencies that collect establishment based statistics are now required to use NAICS instead of SIC. Why is NAICS used instead of SIC?NAICS, first of all, classifies over 350 more industries than SIC does - that's 15% more. Most of these new industries are in the Services Sectors. NAICS identifies industries that SIC does not, industries that are more relevant to today's economy. For example, NAICS includes industries that manufacture semiconductor machinery and fiber optic cable, reproduce software, provide satellite telecommunications, paging, cellular and other wireless telecommunications. Warehouse clubs and superstores, telemarketing bureaus, hazardous waste collection and casinos are also new in NAICS. NAICS is more consistent than SIC. Businesses that use similar production processes are grouped together. NAICS gives special attention to new and emerging industries, service industries in general, and industries that produce advanced technology. The SIC system, which was last revised in 1987, does not include many of these industries, or at least does not describe them well, and it will never be updated or changed. How do I find out what my NAICS code is?Simply enter your product or service in the description area and then locate your business area on the NAICS website. Where can I find more information about small business size standards and NAICS together?You may find more information about NAICS on the organization's website. |
