North American Industry Classification System (NAICS),
Definition of North American Industry Classification System (NAICS):
The NAICS was established to replace and modernize the U.S. Standard Industrial Classification system. The new system enables easier comparison of all countries in North America. To ensure the NAICS continues to be relevant, there is a planned system review every five years.
Replaces the older Standard Industrial Classification (SIC) code. It groups industries into 20 broad sectors (as opposed to 10 sectors under SIC), identified by a 6-digit code (SIC had a 4-digit code) and increases the industry classifications to 1,170 (from the 1,004 under SIC) based on the type of the establishment, not the type of commodity. Coding for most manufactured goods is from 31 through 33. Developed jointly by NAFTA member countries (Canada, Mexico, and the US).
The North American Industry Classification System is a business-classification system developed through a partnership among the United States, Mexico and Canada. This classification system facilitates the comparison of statistics of all business activities across North America. Companies are classified and separated into industries that are defined by the same or similar production processes. This system should not be confused with the National Association of Insurance Commissioners (NAIC) or the National Association of Investors Corp. (NAIC).
Meaning of North American Industry Classification System (NAICS) & North American Industry Classification System (NAICS) Definition