If you're an economist or statistician, chances are you know what NAICS stands for. The rest of us must walk our fingers over to Google to learn it stands for the North American Industry Classification System. Adopted by the U.S., Canada and Mexico in 1997 to replace the old Standard Industrial Classification (SIC) system, NAICS allows federal agencies to collect, analyze and publish business data.
But it plays a role in your business too. If you apply for loans, sign up for government programs or do business overseas, for example, you may be asked to provide your business NAICS industry classification.
NAICS simplifies the tracking of economic and industrial information by:
- Using a numeric classification of industries for easier categorization.
- Allowing room for new and emerging industries.
- Providing updates every five years.
Action Steps
The best contacts and resources to help you get it done
Why it's important to know your company's NAICS code
Studying economic forecast data for your industry or sector is crucial to sound business planning. Knowing your company's code allows you to search statistics collected on other companies in the same industry. The Small Business Administration (SBA) also established size standards for defining small businesses, which can impact whether or not a company can obtain an SBA loan.
I recommend: The
SBA has a table of small business size standards based on NAICS codes.
Find a complete listing of NAICS codes
The U.S. Census Bureau and the NAICS Association both provide listings of NAICS codes.
I recommend: The U.S. Census Bureau lists
current NAICS codes, searchable by keyword. The
NAICS lists the codes, and also sells both print and electronic manuals.
Find the NAICS code on a specific company
Federal law forbids the Census Bureau from disclosing a specific company's NAICS code. But private research firms gather statistical data on a variety of factors — including financial data, credit ratings and histories — for every industry. For a fee, you can access this information, including the NAICS codes of companies from these firms.
I recommend: Private research firms such as
Standard and Poor's,
Hoover's and
Dun & Bradstreet collect and analyze statistical data and offer it for a subscription fee.
Tips & Tactics
Helpful advice for making the most of this Guide
- The NAICS codes are due for an update in 2007; check the U.S. Census Bureau website for details and revisions.
- Service-oriented businesses have their own classification system, the NACPS, with progress reports available at the U.S. Census Bureau website.
- NAICS codes are based on the primary activity of your business; therefore, no more than one code per company is designated.
- The Bureau of Labor Statistics also uses NAICS codes to track employment and wage information.
The official source of NAICS is
the North American Classification System ( NAICS ) page at Business.com
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