What is a NAICS Code?

According to the Small Business Administration as of 2024, there are approximately 33.2 million business recognized in the United States. Keeping track of that many organizations for statistical and economic purposes can be overly complicated, luckily, we have an organization system called NAICS to help with the process.

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. business economy.

NAICS was developed under the auspices of the Office of Management and Budget (OMB), and adopted in 1997 to replace the Standard Industrial Classification (SIC) system. It was a joint project by statistical agencies in the U.S., Canada, and Mexico, to allow for an elevated level of comparability in business statistics among the North American countries.

The purpose of NAICS is to organize establishments into industries based on the similarity of processes used to produce goods or services. It consists of a six-digit code that uniquely identifies specific industries.

NAICS codes are used for statistical reporting, economic analysis, and business research.

The system is periodically updated to reflect changes in the economy and business landscape, as new businesses and industries develop or evolve over time.

For businesses, understanding your industry’s NAICS code can help you make informed decisions and navigate the business landscape effectively. To learn more about NAICS or find your business code visit www.census.gov/naics/