HOW IS NAICS DIFFERENT FROM THE SIC?
NAICS is based on a consistent, economic concept. Establishments that use the same or similar processes to produce goods or services are grouped together. The SIC, developed in the 1930s and revised periodically over the past 50 years, was not based on a consistent economic concept. Some industries are demand based while others are production based. NAICS recognizes the changing and growing services-based economy of the United States and its North American neighbors. NAICS includes 1,170 industries of which 565 are service-based industries. The SIC had 1,004 industries of which 416 were service related industries. Three hundred and fifty eight new industries are recognized in NAICS, 250 of which are services producing industries. There are 20 sectors in NAICS of which 16 are services related. The SIC had ten divisions of which five were service-related. NAICS provides for comparable statistics among the North American countries. In addition, it provides for more comparable information.
