1. There is an axiom in
business that states:
“You cannot
manage what you
do not measure”.
The NAICS System
The NAICS System
helps us measure
economic activity!
2. What is the NAICS System?
• The North American Industry Classification
System (NAICS) is the standard used by
Federal statistical agencies in classifying
business establishments for the purpose of
collecting, analyzing, and publishing statistical
data related to the U.S. economy.
• All jobs, products produced, and businesses in
North America can be classified by this system.
• The NAICS system disaggregates all
employment into different “industries”. What do we mean by
“industry”? See the
next slide…
3. The business population
“A plant” is a physical establishment like a
factory, farm, store or warehouse
“A firm” is a business organization that
operates one or more plant
“An Industry” is a group of firms that
produce similar products or services
4. Industry example:
An example of an Industry: limited-service
family restaurants
Each of these
businesses
operates within
that industry!
5. All economic activity can be separated
into a NAICS industry
Economic
Activity
Agriculture, forestry, fishing and hunting
Mining, Quarrying & Oil and Gas Extraction
Utilities
Construction
Manufacturing
Wholesale Trade
Retail Trade
Transportation and Warehousing
Information
Finance and Insurance
Real Estate, Rental and Leasing
Professional, Scientific and Technical Services
Management of Companies and Enterprises
Administrative, Waste Management and Remed.
Educational Services
Health Care and Social Assistance
Arts, Entertainment, and Recreation
Accommodation and Food Services
Other Services
Public Administration
Economic activity can
be disaggregated (i.e.
broken into) 20 different
industries.
6. Each of those industries is not the
same size (As measured by employment or other metric)
Total employment is listed as
NAICS Code 1
As we look at more detail,
NAICS codes become two digit.
Some industries that are big
have several two digit codes.
Industries can be broken out
even further in what is called 3
digit detail, 4 digit detail etc.
Let’s look at manufacturing as
an example.
7. Further NAICS detail:
The three to six digit level
This is a pretty specific industry that makes
mowers. Note it has a 6 digit NAICS code!
3 digit
detail
4 digit detail
5 digit detail
6 digit detail
8. • Step one: Go to http://www.census.gov/eos/www/naics/
• Step two: Using the box on the upper left corner, type in key words that you
might think are related.
– Keep trying, broadening the description until you get results
So how do I find a NAICS
code for an Industry?
Pet boarding services 812910 Pet Care (except Veterinary) Services
Let’s say I want to open a pet
sitting service.
I’ve continued to try key
words until I found my
industry!
Now I know my NAICS code!
Pet walkingPet carePet boarding
9. This industry is in “other services”
(The NAICS code starts with an 81)
10. Click on the NAICS code to
learn more about it
812910 Pet Care (except Veterinary) Services
This industry comprises establishments primarily engaged in providing pet care services
(except veterinary), such as boarding, grooming, sitting, and training pets.
Cross-References. Establishments primarily engaged in--
Practicing veterinary medicine--are classified in Industry 541940, Veterinary
Services;
Boarding horses--are classified in Industry 115210, Support Activities for Animal
Production; and
Transporting pets--are classified in U.S. Industry 485991, Special Needs
Transportation.
Go
to:
No change 1997
to 2002
2002 NAICS to
1987 SIC
1997 Economic
Census
Bridge Between 1997
NAICS and SIC
2002
NAICS
1997
NAICS
1987
SIC
Corresponding Index Entries
812910 812910 0752 Animal grooming services
812910 812910 0752 Animal shelters
812910 812910 0752 Boarding services, pet
812910 812910 0752 Dog pounds
812910 812910 0752 Grooming services, animal
812910 812910 0752 Guard dog training services
812910 812910 0752 Guide dog training services
812910 812910 0752 Kennels, pet boarding
812910 812910 0752 Obedience training services, pet
812910 812910 0752 Pet boarding services
812910 812910 0752 Pet grooming services
812910 812910 0752 Pet sitting services
812910 812910 0752 Pet training services
812910 812910 0752 Sitting services, pet
Reading about the
industry will allow you to
be sure the NAICS code
matches your business.
If after reading about
the NAICS code, you
think the industry does
not describe what you
are looking for, try again
at step one!
