What are NAICS and SIC codes?
North America Industry Classification System (NAICS) and Standard Industrial Classification (SIC) are classification systems designed to classify alike businesses for the purpose of data collection and statistical analysis related to the US business economy. The SIC system was created by the US government in the late 1930s and was last updated in 1987. The NAICS system was created in partnership with US, Canada, and Mexico in 2002, allowing for ease of comparability among the North American countries, and is periodically updated to this day. While NAICS has replaced SIC many databases and directories still use one or both of the systems, and SIC is essential for historical research.
Understanding Codes
NAICS Codes
NAICS codes comprise of 5 or 6* digits. The first two digits indicate a major Economic Sector, the third digit indicates an Economic Subsector, the fourth digit the Industry group, and the final digit is the most narrow level of an individual industry.
Example: 71312 Amusement Arcades
71 Economic Sector: Arts, Entertainment, and Recreaton
713 Economic Subsector: Amusement, Gambling, and Recreation Industries
7131 Industry Group: Amusement Parks and Arcades
* the 6th digit allows individual countries to further subdivide an industry. 5 digit codes are standard across all three countries, 6 digit level US codes may differ from Canada or Mexico.
SIC Codes
SIC codes comprises of 4 digits, the first digit indicate the division, the addition of the second digit indicates the major group, the third the industry group, and the final digit is the most narrow level of an individual industry.
Example: 4832 - Radio Broadcasting Stations
4 Division E (4000-4999) Transportation, Communications, Electric, Gas, And Sanitary Services
48 Major Group 48 - Communications
482 Industry Group 482: Telegraph And Other Message Communications
