Purchasing Resources for North American Classification System ( NAICS )

NAICS

Find your place among North American industries.
By Toni Klym McLellan, Freelance Writer & Editor Toni Writes 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:

1. Using a numeric classification of industries for easier categorization.
2. Allowing room for new and emerging industries.
3. Providing updates every five years.

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.
Try:  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.
Try:  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.
Try:  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.

• 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.

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