North American Classification System ( NAICS )

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The Standard Industrial Classification was replaced by the North American Industry Classification System (NAICS) in1997. The North American Industry Classification System (NAICS) code classifies business establishments by collecting, analyzing and publishing statistics related to the business economies of the United States, Mexico and Canada. An establishment is assigned a NAICS code based on its primary business activity. The Office of Management and Budget defines an establishment as a business that produces goods or performs services at a single physical location.

Business establishments may locate a NAICS code for their business using the most appropriate NAICS code and title. Free NAICS and SIC code lookups are available at the NAICS website www.naics.com. The NAICS code website offers a powerful search tool to find the NAICS code which matches your primary business activity. The activity that generates the most revenue is your primary business activity. The powerful search tool may also be used to locate your NAICS code if you know your businesses SIC code. Although the United States Census Bureau assigns one NAICS code to a business establishment, the Central Contractors Registration (CCR) allows a business to list up to 10 NAICS codes when the business registers as a federal contractor. Read more about North American Industry Classification System (NAICS) from the links on this Business.com page.

NAICS

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.

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.