What is the System of Classification of the North American Industry?
The North American Industry Classification system (NAICS) is a system that classifies a certain industry based on specific parameters. The main purpose of the system is to provide the classification system to the US census, Bureau of Labor Statistics and other organizations that can borrow its parameters. The North American industry classification system was a product of cooperation with Canada and Mexico. Sic was designed in the first half of the 20th century and was considered obsolete because the types of businesses have changed over the years. This was obvious when the information economy began to be kept at the end of the 20th century. The number of main categories got out of ten in SIC for 20 in the North American industrial classification system.
In order to understand the classification of the North American industry, it is first necessary to understand the Naics codes. These are divided into a six -digit number. The first two digits provide the industrial sector, while others indicate an industrial subsector. The fourth digit indicates the diametersthe word group. The fifth digit says what a specific industry is. The last digit can indicate different things in each of the different countries and is the only digit that is not uniform across the board.
20 main divisions NAICS include five in the NAICS sector or the section producing goods and 15 in other NAICS trading sections that are specific to the service sector. Industrial classifications include: agriculture, forestry, fishing and hunting; mining; tools; construction; and production. The service sector includes: wholesale trade, retail, transport and storage, information, finance and insurance, real estate, professionals - also including scientific and technical services - management, administrative and support for waste and remedy, education, health and social assistance.
To help get industrial industries usedThe new classification system was created by the NAICS website, which includes searching for NAICS. This is a search database by keywords, like a person can use an Internet search engine. NAICS search can also be performed using manuals specifically dedicated to the new standard, although the electronic version is likely to be more user -friendly.
Although the categories have been set for some time, NAICS is often reviewed to be up to date and reflect the current business situation. Reviews take place every few years, and the public is invited to provide the improvement of what improvement is needed. This helps to prevent the system from becoming outdouted, as happened in the case of SIC.