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What is naics code?

The North American Industry Classification System, or NAICS, is a system of classifying businesses based on their economic operations (process of production). In Canada, Mexico, and the United States, it is used by government and business. Except for some government agencies, such as the US Securities and Exchange Commission, it has largely replaced the older Standard Industrial Classification (SIC) scheme.

Naics code history

NAICS was developed under the auspices of the Office of Management and Budget (OMB), and adopted in 1997 to replace the Standard Industrial Classification (SIC) system. It was developed jointly by the U.S. Economic Classification Policy Committee (ECPC), Statistics Canada, and Mexico's Instituto Nacional de Estadistica y Geografia, to allow for a high level of comparability in business statistics among the North American countries.  With the first version, released in 1997, NAICS offered enhanced coverage of the service sector, relative to SIC. The 2002 revision accommodated significant changes in the Information Sector. The 2012 revision slightly reduced the number of industries and modified six sectors.

Naics code structure/aggregation levels

Digit designationAggregation levelexample
2Sector11-agriculture, forestry, fishing and hunting
3Subsector111-crop production
4Industry group1111-oilseed and grain farming
5Industry11111-soybean farming
6National industry111140-wheat farming

NAICS Sectors

SectorTitle
11 agriculture, forestry, fishing and hunting
21 mining, quarrying, and oil and gas extraction
22 utilities
23 construction
31-33 manufacturing
42 wholesale trade
44-45 retail trade
48-49 transportation and warehousing
51 information
52 finance and insurance
53 real estate and rental and leasing
54 professional, scientific, and technical services
55 management of companies and enterprises
56 administrative and support and waste 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)
92 public administration