What is NAICS?
NAICS (pronounced “nakes”) is the new North American Industry Classification System. NAICS is an industry classification system that groups establishments into 1,170 industries based on their primary economic activity. NAICS replaces the old Standard Industrial Classifications (SIC). NAICS was developed jointly by the U.S., Canada, and Mexico to provide comparability in statistics about business activity across North America. NAICS also recognizes that the service sector has grown more important and that new industries have emerged in the global economy.
The North American Industry Classification System (NAICS) was developed as the standard for use by federal statistical agencies in classifying business establishments for the collection, analysis, and publication of statistical data related to the U.S. business economy. NAICS was developed under the auspices of the Office of Management and Budget (OMB), and adopted in 1997 to replace the old Standard Industrial Classification (SIC) system. It was developed in cooperation with the statistical agencies of Canada and Mexico to establish a 3-country standard that allows for a high level of comparability in business statistics among the three countries. NAICS is the first economic classification system to be constructed based on a single economic concept. To learn more about the background, the development and the difference between NAICS and the SIC, see www.census.gov/epcd/www/naicsdev.htm. • Q: Who assigns NAICS codes to businesses? A: There is no central government agency with the role
