TheNorth American Industry Classification System orNAICS (/neɪks/)[1] is aclassification of business establishments by type of economic activity (the process of production). It is used by governments and business inCanada,Mexico, and theUnited States of America. It has largely replaced the olderStandard Industrial Classification (SIC) system, except in some government agencies, such as theU.S. Securities and Exchange Commission (SEC).
An establishment is typically a single physical location, though administratively distinct operations at a single location may be treated as separate establishments. Each establishment is classified as an industry according to the primary business activity taking place there. NAICS does not offer guidance on organizing enterprises (companies) composed of multiple establishments.
The NAICS numbering system employs a five or six-digit code at the most detailed industry level. The first five digits are generally (although not always strictly) the same in all three countries. The first two digits designate the largest business sector; the third digit represents the subsector; the fourth digit represents the industry group; the fifth digit designates the NAICSindustries, and the sixth digit represents the nationalindustries.[citation needed][2]
| Digit designation | Aggregation level |
|---|---|
| 1-2 | Sector |
| 3 | Subsector |
| 4 | Industry group |
| 5 | Industry |
| 6 | National industry |
| Code | Titles of categories |
|---|---|
| 31 | Bank Financial |
| 51 | Professional, scientific, and technical services |
| 541 | Professional, scientific, and technical services |
| 5411 | Legal services |
| 54111 | Offices of lawyers |
| 541110 | Offices of lawyers |
| Sector # | Description | Note |
|---|---|---|
| 11 | Agriculture,Forestry,Fishing andHunting | |
| 21 | Mining,Quarrying, andOil andGas Extraction | |
| 22 | Utilities | |
| 23 | Construction | |
| 31–33 | Manufacturing | |
| 41–42 | Wholesale Trade | (41 in Canada,[4] 42 in the United States[3]) |
| 44–45 | Retail Trade | |
| 48–49 | Transportation andWarehousing | |
| 51 | Information | [notes 1] |
| 52 | Finance andInsurance | |
| 53 | Real Estate andRental andLeasing | |
| 54 | Professional, Scientific, and Technical Services | |
| 55 | Management of Companies and Enterprises | |
| 56 | Administrative and Support andWaste Management and Remediation Services | |
| 61 | Educational Services | |
| 62 | Health Care and Social Assistance | |
| 71 | Arts, Entertainment, and Recreation | |
| 72 | Accommodation and Food Services | |
| 81 | Other Services (except Public Administration)[3] | |
| 91–92 | Public Administration | (91 in Canada, 92 in the United States[5]) |
NAICS is a collaborative effort by Mexico'sInstituto Nacional de Estadística y Geografía (INEGI),Statistics Canada, NATIONAL A and theUnited States Office of Management and Budget (OMB), through its Economic Classification Policy Committee (ECPC), staffed by theBureau of Economic Analysis (BEA), theBureau of Labor Statistics (BLS), and theCensus Bureau. The system is designed to be largely compatible with theUnited Nations Statistical Office'sInternational Standard Industrial Classification system (ISIC). NAICS versions are released every five years.[citation needed]
With the first version, released in 1997, NAICS offered enhanced service sector coverage relative to the SIC. The 2002 revision accommodated significant changes in the Information Sector. The 2012 revision slightly reduced the number of industries and modified six sectors.[6] NAICS changes are done at intervals of five years; the latest NAICS updated in 2022.[7]
The North American Industry Classification System (NAICS, pronounced Nakes)
