Naics Codes - North American Industry Classification System (NAICS)

What is a NAICS Code ?

The North American Industry Classification System or NAICS is used by business and government to classify business establishments according to type of economic activity (process of production) in Canada, Mexico, and the United States of America. NAICS is currently the standard used by federal statistical agencies in classifying business establishments. It has largely replaced the older Standard Industrial Classification (SIC) system; however, certain government departments and agencies, such as the U.S. Securities and Exchange Commission (SEC), still use the SIC codes.
NAICS Code Title
11 Agriculture, Forestry, Fishing and Hunting
21 Mining, Quarrying, and Oil and Gas Extraction
22 Utilities
23 Construction
31-33 Manufacturing
42 Wholesale Trade
44-45 Retail Trade
48-49 Transportation and Warehousing
51 Information
52 Finance and Insurance
53 Real Estate and Rental and Leasing
54 Professional, Scientific, and Technical Services
55 Management of Companies and Enterprises
56 Administrative and Support and Waste Management and Remediation Services
61 Educational Services
62 Health Care and Social Assistance
71 Arts, Entertainment, and Recreation
72 Accommodation and Food Services
81 Other Services (except Public Administration)
92 Public Administration

What are NAICS Codes used for?

  • NAICS Codes are used in auditing purposes by comparing ratios of companies in a similar industry.
  • Identifying government contracts by their NAICS description.
  • The Department of Revenue uses the NAICS code for legislative issues.
  • To facilitate the collection, presentation, and analysis of data.
  • To promote uniformity and comparability in the presentation of statistical data collected by various agencies of the federal government, state agencies, and private organizations.
  • The Department of Revenue uses the code to inform taxpayers within a certain industry of law changes that may affect them.
  • To facilitate the administration of the Internal Revenue Code for the Internal Revenue Service (IRS)

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Why are NAICS Codes important?

  • Your NAICS Code is often asked for on various applications and forms.
  • If you plan to solicit work from a governmental body, you will be asked for your NAICS Code.
  • NAICS Codes may be necessary requirements for government contracting, teaming, and subcontracting.
  • NAICS Codes should be updated in relation to changes/modification in business revenue.
  • To identify competitors, public and private.

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How to Read a NAICS Code ?

The first two digits designate the largest business sector, the third digit designates the subsector, the fourth digit designates the industry group, and the fifth digit designates particular industries. The last digit designates national industries.

For Example :

Sector 11 Agriculture, Forestry, Fishing, Hunting
Subsector 111 Crop Production
Industry Group 1113 Fruit and Tree Nut Farming
Industry 11133 Non-citrus Fruit and Tree Nut Farming
U.S. Industry 111331 Apple Orchards
The NAICS numbering system employs six-digit code at the most detailed industry level. The first five digits are generally (although not always strictly) the same in all three countries. The first two digits designate the largest business sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industries, and the sixth digit designates the national industries