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TM NAICS Implementation of NAICS: North American Industry Classification System

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  • Implementation of NAICS: North American Industry Classification System

  • What is NAICS?Concept: Group establishments by production processesEstablished in 1997Developed in cooperation with our NAFTA partners, Canada and MexicoNew Industry Classification System

  • Why Develop NAICS?SIC was:Developed in the 1930sEmphasized manufacturing, not growing service and high tech industriesRevisions made little change to the original structureLast revised in 1987

  • How Does NAICS Differ from SIC?Based on the production function conceptEmphasizes new and emerging industries, high-technology industries, and service industriesProvides for comparability with Canada and MexicoWill be regularly maintained, current plans are for revisions every 5 years: 2002, 2007, etc.

  • 20 sectors (21 counting Unclassified) 1.198 Industries (US) 175 more than under SIC system 6-digit numbering systemWhat is the NAICS Structure?

  • 11 Agriculture, Forestry, Fishing and Hunting21 Mining22 Utilities23 Construction31-33 Manufacturing42 Wholesale Trade44-45 Retail Trade48-49 Transportation and Warehousing51 Information52 Finance and Insurance53 Real Estate & Rental & LeasingNAICS Sectors

  • 54 Professional, Scientific & Technical Services 55 Management of Companies and Enterprises56 Administrative & Support & Waste Management & Remediation Services61 Educational Services62 Health Care & Social Assistance71 Arts, Entertainment, & Recreation72 Accommodation & Food Services81 Other Services (except public administration)92 Public Administration99 UnclassifiedNAICS Sectors

  • NAICS Alternate Aggregation Tree

  • NAICS/SIC Structure NAICS

    2-digit Sector3-digit Subsector4-digit Industry Group5-digit NAICS Industry6-digit U.S. Industry


    Division Letter2-digit Major Group3-digit Industry Group4-digit Industry

  • NAICS StructureAs with SIC, more digits = more detail

  • Number of codes:6 digit-1,1985 digit- 7254 digit- 3143 digit - 982 digit- 24 Super Sector 11`NAICS - North American Industry Classification System

  • Questions so far?

  • Employment by SIC 2001

  • Employment by NAICS 2001

  • Agriculture, Forestry,Fishing & Hunting 11Changes to sector: Moved inLogging

    Moved outVeterinarians Agricultural ResearchHorticultural and Landscape Activities

  • Utilities - 22Combination utilities no longer existExamples of new electric power industriesFossil Fuel Electric PowerNuclear Electric PowerRefuse systems Administrative & Support, Waste Management, & Remediation Services

  • Construction - 23Subsectors basically comparable to SIC major groupsIn the Construction of Buildings subsector, industry is based on whether construction is new or remodelingNew Single Family Housing ConstructionNew Housing Operative BuildersResidential Remodelers

  • Manufacturing 31-33Reorganized and restructured = comparability with Canada and Mexico474 industries, 173 revised industries, 79 new industriesNew Computer and Electronic Products Manufacturing Subsector

  • Manufacturing 31-33 Incoming: Retail Bakeries Custom wood cabinets, furniture Dental Laboratories Tire Re-treading

    Outgoing Logging Publishing

  • Redefinition of Wholesale/RetailSIC based on class of customer

    NAICS based on method of selling

    Restaurants no longer included in retail

  • Wholesale Trade 42Three types of wholesalersMerchant WholesalersBusiness-to-Business Electronic MarketsAgents and BrokersMerchant wholesalers sell goods on their own account; the other two do not Classification dependent on whether they take title to goods

  • Retail Trade 44 - 45

    Going ElsewhereEating and Drinking PlacesRetail Bakeries

    New IndustriesDiscount Department StoresWarehouse Clubs and SuperstoresGasoline Stations with Convenience StoresElectronic Shopping

  • Transportation & Warehousing 48 - 49Trucking no longer distinguished by whether or not storage is providedGeneral Freight Trucking, Long Distance, TruckloadGeneral Freight Trucking, Long-Distance, Less Than TruckloadNo distinction between land and air couriersWaste collection and travel agencies Admin/Support & Waste Management & Remediation Services

  • Information Sector 51

    New Industries: - Cellular and other Wireless Telecommunications - Telecommunications Resellers - Internet Publishing and Broadcasting - Internet Service Providers - Web Search Portals

    Rest created from: Manufacturing: Publishing TCPU: Broadcasting & Communications Services: Motion Picture & Sound Recording Information Services & Data Processing Libraries

  • Restructuring of Finance Industries 52Recognizes rapid change and deregulationNew industries include:Credit Card IssuingFinancial transactions Processing, Reserve and Clearinghouse ActivitiesInvestment Banking and Securities Dealing

  • Reorganization of Old Services DivisionNAICSReal Estate and Rental and LeasingProfessional, Scientific, & Technical ServicesAdministrative and Support; Waste Management and Remediation ServicesEducational ServicesHealth Care and Social AssistanceArts, Entertainment and RecreationAccommodation and Food ServicesOther Services (except Public Admin)1987 SIC Services

  • Professional, Scientific, & Technical Services 54

    Grouped by expertise and training of service provider

    28 new industriesOffices of CPAsInterior Design ServicesEnvironmental ConsultingMarketing Research & Opinion PollingConsultants

  • Administrative & Support & Waste Management & Remediation 56

    29 new industriesProfessional Employer OrganizationsConvention & Visitors BureausRepossession ServicesHazardous Waste CollectionIndustries that support businesses

  • Health Care and Social Assistance 6227 new industries not found under the SICHMO Medical CentersDiagnostic Imaging CentersBlood and Organ BanksResidential Mental Health and Substance Abuse FacilitiesContinuing Care Retirement Facilities

  • Accommodation and Food Services 72New eating place industriesFull-Service RestaurantsLimited-Service RestaurantsCafeteriasFood Service ContractorsNew lodging industriesCasino HotelsBed-and-Breakfast Inns

  • Public Administration 92

    Tribal government added

    A governmental and a private unit will have the same NAICS code if they perform the same activity - Air Traffic Control is 488111

  • NAICS U.S. ManualPublished in 19981170 descriptionsContains Bridge NAICS/SIC tablesApproximately 12,000 index items in an alphabetic sequenceALREADY OBSOLETE: NAICS 1997

    Replacement published in 2002

  • NAICS 2002 Revision was effective January 1, 2002

    Final Federal Register notice: January 16, 2001

    Goals of the revision Increase comparability among the three countriesIdentify new and emerging industriesRestructure Wholesale Trade (US only)

    NAICS 2002 is the first five-year revision to NAICS 1997

  • NAICS 2002 Industries impacted by NAICS 2002:Construction International comparability at fifth digit, and (BLS only) residential/nonresidential distinction at sixth digitWholesale TradeDepartment StoresElectronic shopping and auctionsInformation Next revision: 2007 Complete restructuring of distribution network industries: Wholesale, Retail, Transportation and Warehousing

  • Implementation Timing Across AgenciesPhase in by statistical agencies

    Completion of implementation by 2005

  • NAICS Implementation ScheduleInternal Revenue ServiceCensus BureauBureau of Economic Analysis Bureau of Labor StatisticsTax Year 19981999 - 20021999 - 20042002 - 2005U.S. Statistical Agencies

  • Implementation at BLS (employment)



    Publication Date

    Office of Employment and Unemployment Statistics

    Mass Layoff Statistics

    January 2002

    March 2002

    Covered Employment and Wages (ES-202)


    Fall 2002

    Current Population Survey

    January 2003

    February 2003

    Current Employment Statistics


    March, June 2003

    Occupational Employment Statistics

    2002 Fourth Qtr.

    January 2004

    Job Openings and Labor Turnover Survey*



    Office of Employment Projections


    November 2005

    * Job Openings and Labor Turnover Survey (JOLTS) is currently under development. First release of information will be SIC based, and is planned for early 2002.

    Source: http://www.census.gov/epcd/www/naicsbls.htm

  • Implementation at BLS (non-employment)



    Publication Date

    Office of Productivity and Technology

    Productivity Measures for Selected Industries


    2003 Fourth Qtr.

    Foreign Labor Force Statistics


    Late 2004

    Office of Compensation and Working Conditions

    National Compensation Survey

    Employment Cost Index

    March 2005

    April 2005

    Employer Costs for Employee Compensation

    March 2005

    June 2005

    Locality Wage Levels

    Spring 2005

    Spring 2005

    National and Census Division Publications


    Spring 2005

    Integrated Benefit Provision Products


    Spring 2005

    Occupational Safet

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