North American Industry Classification System (NAICS) (Continued)
Why is NAICS Better Than SIC?
|Table of Contents|
|What is NAICS?|
|Why is NAICS Better Than SIC?|
|How to Request a NAICS Code Change|
|When Did California Data Change?|
|Where Can I Learn More?|
Relevance: NAICS identifies hundreds of new,
emerging, and advanced technology industries. NAICS also
reorganizes industries into more meaningful sectors--especially in the
service-providing segments of the economy.
Data users will be able to work with new NAICS industrial groupings that better reflect the workings of the U.S. economy. For example, a new industry sector, called the Information sector, brings together units that turn information into a commodity with units that distribute the commodity and units that provide information services. Information's major components are publishing, broadcasting, telecommunications, information services, and data processing. Under the SIC system, these units were spread among the manufacturing, communications, business services, and amusement services groups. Another new sector of interest is the Professional, Scientific, and Technical Services sector. This sector is comprised of establishments engaged in activities where human capital is the major input.
- International Comparability: NAICS was developed in cooperation with Canada and Mexico. NAICS provides for comparable statistics among the three North American Free Trade Agreement (NAFTA) trading partners.
- Consistency: NAICS defines industries according to a consistent principle: businesses that use similar production processes are grouped together.
- Adaptability: NAICS will be reviewed every five years, so classifications and industry information will adjust to changes in our economy.