# Presentation: 764376

## The

***North American Industry Classification System***
***(NAICS)***
***“******Classification in the Economic Census”***

## Outline of Tutorial:

-   What is NAICS?
-   Why was NAICS developed?
-   NAICS Structure
-   NAICS Sectors
-   NAICS Future
- NAICS and the Economic Census:
-   Collection of data
-   Classification
-   Dissemination of data
- Summary
- Contact Information

***Outline of Tutorial:***

## What is Classification?

-     based on shared characteristics.

***What is Classification?***

## What is the North American Industry

-     groups all business establishments into industries
-     based on production process.
-   the foundation on which economic census data is
-     collected, tabulated, analyzed, and disseminated.
-   a common language used among all
-     U.S. federal statistical agencies.

***What is the North American Industry***
***Classification System (NAICS)?***

## Why was NAICS Developed?

-   to recognize fundamental shifts in the U.S. economy
-     (new, advancing technologies and service industries).
-   to achieve comparability among the economies
-     of U.S., Mexico, and Canada.
-   to ensure industry sector (2-digit) compatibility
-     with the International Standard Industrial
-     Classification System (ISIC).
-   to preserve time-series continuity.

## What is the Structure of NAICS?

-   numerical
-   hierarchical
-   detail level from a 2-digit ***sector ***
-     to a 6-digit ***national industry***

## The Structure of NAICS

- 	SECTOR			2-digit		xx
- 	SUBSECTOR		3-digit		xxx
- 	INDUSTRY GROUP	4-digit		xxxx
- 	NAICS INDUSTRY	5-digit		xxxxx
- 	U.S. INDUSTRY		6-digit		xxxxxx
-  NAICS is standardized among the three North American countries
- to the 5-digit level.

## An example of NAICS Structure

- SECTOR								72				Accommodation and Food
- 																		Services
- SUBSECTOR					721			Accommodation
- INDUSTRY GROUP		7211			Traveler Accommodation
- NAICS INDUSTRY		72111		Hotels (except casino hotels)
- 																		and Motels
- U.S. INDUSTRY				721110	Hotels (except casino hotels)
- 																		and Motels

## An example of NAICS Structure

- SECTOR								31-33			Manufacturing
- SUBSECTOR					334				Computer and Electronic
- 																			Product Mfg.
- INDUSTRY GROUP		3341				Computer and Peripheral
- 																			Equipment Mfg.
- NAICS INDUSTRY		33411			Computer and Peripheral
- 																			Equipment Mfg.
- U.S. INDUSTRY				334111		Electronic Computer Mfg.
- 													334112		Computer Storage Device Mfg.
- 													334113		Computer Terminal Mfg.
- 													334119		Other Computer Peripheral
- 																			Equipment Mfg.

## What are the NAICS Sectors?

- 	 11  Agriculture, Forestry, Fishing and 	54  Professional, Scientific, and Technical
- 	       Hunting				      Services
- 	 21  Mining				55  Management of Companies and
- 	 22  Utilities				      Enterprises
- 	 23  Construction			56  Administrative and Support and Waste
-   31-33  Manufacturing			      Management and Remediation Services
- 	 42  Wholesale Trade			61  Educational Services
-   44-45  Retail Trade			62  Health Care and Social Assistance
-   48-49  Transportation and Warehousing	71  Arts, Entertainment, and Recreation
-  	 51  Information				72  Accommodation and Food Services
- 	 52  Finance and Insurance		81  Other Services (except Public
- 	 53  Real Estate and Rental and Leasing	      Administration)
- 						92  Public Administration

- There are 20 NAICS sectors.  The economic census covers 18 of those.

## What is the Future of NAICS?

-   NAICS is a living system, undergoing revision and
-     updates in 5-year cycles to reflect the changing economy.
- 	-  add industries
- 	-  clarify definitions
- 	-  potential restructure of rapidly changing industries
-   For 2007, ISIC (United Nations) will be in greater
-     agreement with NAICS.

## http://www.census.gov/naics

***http://www.census.gov/naics***

## NAICS and the Economic Census

- The economic census collects, tabulates, analyzes, and publishes detailed information about the Nation’s economy, including the number of establishments, measures of output, payroll, and employment _*on a NAICS basis*_ every five years for the years ending in '2' and '7'.
*The economic census is “indispensable to understanding America’s economy.”*

## NAICS and the Economic Census

***Collecting the Data***

-   we mail out approximately 4.7 million economic census
-     report forms.
- 	-  there are over 600 versions of the economic 	   	   census report form, each tailored to particular 	   NAICS industries.
- 	-  the content of the forms was developed in 	   	   consultation with data suppliers, accounting 	   	   organizations, trades associations, other data 	   users, and the U.S. Office of Management 		   and Budget.
- 	-  NAICS codes are present on the forms.
-   data is collected for more than 11,000 NAICS industries.

## NAICS and the Economic Census

***Sample Report Form***

## NAICS and the Economic Census

***Proper Classification***

-   conduct a mail-out/mail-back, and electronic census
-     with telephone follow-up and support.
-   identify establishments that seem miscoded or partially
-     coded.
-   use of interactive coding tools.
-   use of specially tailored forms by industry allow for
-     additional questions that help to decipher NAICS
-     classification.  *Please see form.*

## Census Bureau NAICS Website

***Finding your NAICS code***

***http://www.census.gov/naics***

## Census Bureau NAICS Website

***Finding your NAICS code***

## NAICS and the Economic Census

***Disseminating the Data***

-     2002 Economic Census data is/will be available on the
-     Internet and on DVD-ROM.  Only a few summary reports
-     will be available in print.

## All of the data from the 2002 Economic Census can be found here at: http://www.census.gov/econ/census02/

- All of the data from the 2002 Economic Census can be found here at: *http://www.census.gov/econ/census02/*

## Summary:

- 1.  NAICS is a hierarchical classification system that starts
-      with the 2-digit sector and ends with the 6-digit national
-      industry.
- 2.  There are 20 NAICS sectors.
- 3.  NAICS classifications are based on the principle of
-      “production process”.
- 4.  NAICS is an international coding system developed by
-      Canada, Mexico, and the United States.
- 5.  The entire economic census is conducted ***on a NAICS basis***.

## Contact Information:

-   For information on NAICS, contact:
- 	Scott Handmaker
- 	Chief, Economic Classifications Operations Branch
- 	301-763-7107
- 	scott.p.handmaker@census.gov
-   NAICS website:
- 	http://www.census.gov/naics
-   Economic Census website:
**	**http://www.census.gov/econ/census02/