North American Industry Classification System (NAICS)
This classification system allows for federal statistical agencies to easily analyze and compare economic activity. It classifies the industries in the entire North American Continent. Groups of similar merchandise or services are put together and classified from broad to very specific. There are 2 to 6 digits to a NAICS code.
These numbers are imperative when you are setting your business up for success in Government contracting. They represent your business’ service or products and put you in specific groups. Then when data is collected by way of economic census, all the data can be published for each industry in a way that all 3 North American countries can easily see how the economy is performing.
The Origin of NAICS
North American Industry Classification System (NAICS) was developed in 1997. It was meant to replace the Standard Industry Classification system. The SIC used a four-digit code as a method of standardizing industry classifications. It was established back in 1937 and used up until 1997. The new NAICS code was developed in a joint effort by the US Economic Classification Policy committee, Statistics Canada and Mexico’s Instituto Nacional de Estadistica y Geografia. It makes reporting statistical data about the North American economy much easier.
If you do not have NAICS codes, contact our advisors today to find out how to proceed.