North American Industry Classification System (NAICS)

The North American Industry Classification System (NAICS) is a system used by the United States, Canada, and Mexico to classify businesses for statistical purposes. It is a hierarchical system, with each industry being assigned a code that reflects its level of detail. The NAICS is used by governments, businesses, and researchers to track economic activity and make comparisons between different industries.

The NAICS was developed in the early 1990s as a replacement for the Standard Industrial Classification (SIC) system, which had been in use since the 1930s. The NAICS is more comprehensive than the SIC, and it includes a wider range of industries. It is also more flexible, and it can be adapted to changes in the economy.

The NAICS is divided into 20 sectors, which are further divided into 67 subsectors. Each subsector is then divided into 337 industries. The industries are assigned a six-digit code, with the first two digits representing the sector and the last four digits representing the subsector and industry.

The NAICS is used by governments to collect data on businesses and industries. This data is used to track economic activity, develop economic policies, and allocate resources. Businesses use the NAICS to classify their products and services for marketing and sales purposes. Researchers use the NAICS to study the economy and make comparisons between different industries.

The NAICS is a valuable tool for understanding the economy. It provides a comprehensive and flexible system for classifying businesses and industries. This data can be used to track economic activity, develop economic policies, and allocate resources.