Presentation on theme: "The North American Industry Classification System (NAICS)"— Presentation transcript:
1 The North American Industry Classification System (NAICS) “Classification in the Economic Census”
2 Outline of Tutorial: NAICS: What is NAICS? Why was NAICS developed? NAICS StructureNAICS SectorsNAICS FutureNAICS and the Economic Census:Collection of dataClassificationDissemination of dataSummaryContact Information
3 What is Classification? the systematic grouping of things into categoriesbased on shared characteristics.
4 What is the North American Industry Classification System (NAICS)? a numerical, hierarchical classification system thatgroups all business establishments into industriesbased on production process.the foundation on which economic census data iscollected, tabulated, analyzed, and disseminated.a common language used among allU.S. federal statistical agencies.
5 Why was NAICS Developed? to recognize fundamental shifts in the U.S. economy(new, advancing technologies and service industries).to achieve comparability among the economiesof U.S., Mexico, and Canada.to ensure industry sector (2-digit) compatibilitywith the International Standard IndustrialClassification System (ISIC).to preserve time-series continuity.
6 What is the Structure of NAICS? numericalhierarchicaldetail level from a 2-digit sectorto a 6-digit national industry
7 NAICS is standardized among the three North American countries The Structure of NAICSSECTOR 2-digit xxSUBSECTOR 3-digit xxxINDUSTRY GROUP 4-digit xxxxNAICS INDUSTRY 5-digit xxxxxU.S. INDUSTRY 6-digit xxxxxx NAICS is standardized among the three North American countriesto the 5-digit level.
8 An example of NAICS Structure SECTOR Accommodation and FoodServicesSUBSECTOR AccommodationINDUSTRY GROUP Traveler AccommodationNAICS INDUSTRY Hotels (except casino hotels)and MotelsU.S. INDUSTRY Hotels (except casino hotels)
9 An example of NAICS Structure SECTOR ManufacturingSUBSECTOR Computer and ElectronicProduct Mfg.INDUSTRY GROUP Computer and PeripheralEquipment Mfg.NAICS INDUSTRY Computer and PeripheralU.S. INDUSTRY Electronic Computer Mfg.Computer Storage Device Mfg.Computer Terminal Mfg.Other Computer Peripheral
10 What are the NAICS Sectors? There are 20 NAICS sectors. The economic census covers 18 of those.11 Agriculture, Forestry, Fishing and 54 Professional, Scientific, and TechnicalHunting Services21 Mining Management of Companies and22 Utilities Enterprises23 Construction Administrative and Support and WasteManufacturing Management and Remediation Services42 Wholesale Trade Educational ServicesRetail Trade Health Care and Social AssistanceTransportation and Warehousing 71 Arts, Entertainment, and Recreation51 Information Accommodation and Food Services52 Finance and Insurance 81 Other Services (except Public53 Real Estate and Rental and Leasing Administration)92 Public Administration
11 What is the Future of NAICS? NAICS is a living system, undergoing revision andupdates in 5-year cycles to reflect the changing economy.- add industries- clarify definitions- potential restructure of rapidly changing industriesFor 2007, ISIC (United Nations) will be in greateragreement with NAICS.
13 NAICS and the Economic Census The economic census collects, tabulates, analyzes, and publishes detailed information about the Nation’s economy, including the number of establishments, measures of output, payroll, and employment on a NAICS basis every five years for the years ending in '2' and '7'.The economic census is “indispensable to understanding America’s economy.”
14 NAICS and the Economic Census Collecting the Datawe mail out approximately 4.7 million economic censusreport forms.- there are over 600 versions of the economic census report form, each tailored to particular NAICS industries.- the content of the forms was developed in consultation with data suppliers, accounting organizations, trades associations, other data users, and the U.S. Office of Management and Budget.- NAICS codes are present on the forms.data is collected for more than 11,000 NAICS industries.
15 NAICS and the Economic Census Sample Report Form
16 NAICS and the Economic Census Proper Classification conduct a mail-out/mail-back, and electronic censuswith telephone follow-up and support.identify establishments that seem miscoded or partiallycoded.use of interactive coding tools.use of specially tailored forms by industry allow foradditional questions that help to decipher NAICSclassification. Please see form.
17 Census Bureau NAICS Website Finding your NAICS code
18 Census Bureau NAICS Website Finding your NAICS code
19 NAICS and the Economic Census Disseminating the Data 2002 Economic Census data is/will be available on theInternet and on DVD-ROM. Only a few summary reportswill be available in print.
20 All of the data from the 2002 Economic Census can be found here at:
21 Summary: 1. NAICS is a hierarchical classification system that starts with the 2-digit sector and ends with the 6-digit nationalindustry.2. There are 20 NAICS sectors.3. NAICS classifications are based on the principle of“production process”.4. NAICS is an international coding system developed byCanada, Mexico, and the United States.5. The entire economic census is conducted on a NAICS basis.
22 Contact Information:For information on NAICS, contact:Scott HandmakerChief, Economic Classifications Operations BranchNAICS website:Economic Census website: