What is the North America Industry Classification System (NAICS)?
The North American Industry Classification System is the new standard coding system developed to describe business establishments and industries, replacing the Standard Industrial Classification (SIC) codes. NAICS was developed using a production-oriented conceptual framework, grouping establishments into industries based on the activity in which they are primarily engaged. Establishments using similar raw material inputs, similar capital equipment, and similar labor are classified in the same industry. NAICS identifies 1,170 industries compared to the 1,004 found in the SIC system. Designed by the United States, Mexican, and Canadian Governments, NAICS establishes a standard that allows for a high level of comparability in business statistics among the three countries.
