The North American Industry Classification System (NAICS) is a system of classifying business establishments by type of activity in which they are primarily engaged. It is used by the U.S. Census Bureau, the U.S. Bureau of Labor Statistics, and other federal agencies to collect, analyze, and publish data on business activity and performance. The NAICS is also used by the private sector, including businesses, trade associations, and research organizations.
The NAICS code set is updated every five years to reflect changes in the economy and business structure. The current NAICS code set is the 2022 NAICS code set.
The NAICS code set is organized into 20 sectors, which are further subdivided into subsectors, industry groups, and industries. The first two digits of the NAICS code represent the sector, the third digit represents the subsector, the fourth digit represents the industry group, and the fifth digit represents the industry. The sixth digit is used to designate national industries.
The following table lists the 20 NAICS sectors:
| Sector | Description |
|---|---|
| 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 |
| 61-62 | 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 |
The NAICS code set is a valuable tool for understanding the U.S. economy and business structure. It can be used to identify industry trends, research markets, and develop business plans.
Using NAICS Codes
NAICS codes are used by businesses, government agencies, and other organizations for a variety of purposes, including:
- Classifying businesses: NAICS codes are used to classify businesses by type of activity in which they are primarily engaged. This information is used by government agencies to collect and publish economic data, and by businesses to research markets and develop business plans.
- Identifying industry trends: NAICS codes can be used to identify industry trends, such as growth rates, employment levels, and wages. This information can be used by businesses to make informed decisions about where to invest and how to allocate resources.
- Researching markets: NAICS codes can be used to research markets and identify potential customers. For example, a business that sells software to manufacturers can use NAICS codes to identify all of the manufacturing businesses in a particular region.
- Developing business plans: NAICS codes can be used to develop business plans by identifying the target market and the competitive landscape. For example, a business that is planning to open a new restaurant can use NAICS codes to identify all of the restaurants in a particular area and to learn more about their menus, prices, and hours of operation.
How to Find a NAICS Code
There are a few different ways to find a NAICS code. One way is to use the NAICS Search tool on the U.S. Census Bureau website. Another way is to use the NAICS Manual, which is available on the Census Bureau website and in libraries.
To find a NAICS code using the NAICS Search tool, simply enter the name of the business or industry that you are interested in. The search tool will return a list of NAICS codes that match your query.
To find a NAICS code using the NAICS Manual, you can browse the manual by sector, subsector, industry group, or industry. You can also search the manual by keyword.
Conclusion
The NAICS code set is a valuable tool for understanding the U.S. economy and business structure. It can be used by businesses, government agencies, and other organizations for a variety of purposes, including classifying businesses, identifying industry trends, researching markets, and developing business plans.