Hello tck,
And thank you for your question.
SIC codes are the Standard Industrial Classification system used in
the United States and assign numbers to product or service categories.
I am moderately familiar with them as I was required to use these
classifications when I replied to requests for bid by both state and
federal government agencies when I was a supplier of goods and
services, and as a manufacturer when I was required to classify the
products we designed and built. It made it convenient for a buyer or
seller to locate products that are grouped by their type or function.
When I searched SIC code OR number, interestingly, I was surprised to
find that SIC codes have recently been replaced! The US Census Bureau
at http://www.census.gov/epcd/www/naics.html says:
"The North American Industry Classification System (NAICS) has
replaced the U.S. Standard Industrial Classification (SIC) system.
NAICS will reshape the way we view our changing economy.
NAICS was developed jointly by the U.S., Canada, and Mexico to provide
new comparability in statistics about business activity across North
America."
This appears to be a developing project and revisions for 2002 can be
found here in both html and ASCII (plain text) file downloads:
http://www.census.gov/epcd/naics02/
In the NAICS system, industries are identified by a 6-digit code, in
contrast to the 4-digit SIC code. The longer code accommodates the
larger number of sectors and allows more flexibility in designating
subsectors. It also provides for additional detail not necessarily
appropriate for all three NAICS countries. The international NAICS
agreement fixes only the first five digits of the code. The sixth
digit, where used, identifies subdivisions of NAICS industries that
accommodate user needs in individual countries. Thus, 6-digit U.S.
codes may differ from counterparts in Canada or Mexico, but at the
5-digit level they are standardized.
Examples of NAICS Hierarchy (NOTE: Formatting may be less than ideal
here at GA)
NAICS level Example #1 Example #2
NAICS code Description NAICS code Description
Sector 31-33 Manufacturing 51 Information
Subsector 334 Computer and 513 Broadcasting
electronic product &
telecommunications
manufacturing
Industry group 3346 Manufacturing and 5133 Telecommunications
reproduction of
magnetic and optical
media
Industry 33461 Manufacturing and 51332 Wireless telecommunications
reproduction of carriers,
except satellite
magnetic and
optical media
U.S. Industry 334611 Reproduction 513321 Paging
of software
At another page of this site,
http://www.census.gov/epcd/www/naicsdev.htm , there is the following
explanation of the project and why it has begun to replace SIC codes.
"Development of NAICS
The United States has a new industry classification system! On April
9, 1997, the Office of Management and Budget (OMB) announced its
decision to adopt the North American Industry Classification System
(NAICS pronounced Nakes) as the industry classification system used by
the statistical agencies of the United States. NAICS replaces the 1987
Standard Industrial Classification (SIC).
NAICS is a unique, all-new system for classifying business
establishments. It is the first economic classification system to be
constructed based on a single economic concept. Economic units that
use like processes to produce goods or services are grouped together.
This "production-oriented" system means that statistical agencies in
the United States will produce data that can be used for measuring
productivity, unit labor costs, and the capital intensity of
production; constructing input-output relationships; and estimating
employment-output relationships and other such statistics that require
that inputs and outputs be used together.
NAICS is the first-ever North American industry classification system.
The system was developed by the Economic Classification Policy
Committee (ECPC), on behalf of the OMB, in cooperation with Statistics
Canada and Mexico's Instituto Nacional de Estadística, Geografía e
Informática (INEGI) to provide comparable statistics across the three
countries. For the first time, government and business analysts will
be able to compare directly industrial production statistics collected
and published in the three North American Free Trade Agreement
countries. NAICS also provides for increased comparability with the
International Standard Industrial Classification System (ISIC,
Revision 3), developed and maintained by the United Nations.
NAICS responds to increasing and serious criticism about the SIC. It
reflects the structure of today's economy in the United States,
Canada, and Mexico, including the emergence and growth of the service
sector and new and advanced technologies. It is a flexible system that
allows each country to recognize important industries below the level
at which comparable data will be shown for all three countries.
The recognition of NAICS United States as the official classification
system to be used by the U.S. statistical agencies is the culmination
of a multi-year review by the ECPC of economic classifications,
business data users, and future information needs. The publication in
early 1999 of Economic Census data based on NAICS will provide the
first glimpse of data based on the new system. "
You will find a wealth of information on the new system at this site.
************************************************************************
The California State University at Longbeach also has a good
explanation of how these codes are used. Under Business / Industries /
Industrial Classification Codes at
http://www.csulb.edu/library/subj/business/sic.html ,you will find the
link to this information:
What is an SIC CODE and what do we do with it?
DEFINITION
Standard Industrial Classification Codes (SIC Codes) are numerical
codes designed by the U.S. Government in order to create uniform
descriptions of business establishments.
SIC codes can be used to bring together companies that produce similar
products or services. For instance, if you grow oranges on your farm,
your neighbor grows lemon trees, and someone else cultivates limes,
all of these activities are described by SIC Code #0174,
"establishments primarily engaged in the production of citrus fruits."
SIC Codes are arranged in a very structured, hierarchical manner:
The first digit designates a major Economic Division, such as
Agriculture or Manufacturing.
The second digit designates an Economic Major Group, such as Crop
Production.
The third digit designates an Industry Group, such as Grains or
Fruits.
The fourth digit fine tunes the hierarchical structure into a specific
Industry.
Online access to the SIC Code Manual is available, which allows you to
search by keyword, or you can scan the hierarchy for a specific
concept. The online version offers the same definitions and
cross-referenced indexes as those found in the paper version on the
shelves of Hatfield Library's Reference Collection #HF1042 .A55 1987.
In 1999, the United States Government will start to transition away
from collecting business statistics based on SIC Codes, and move
towards a new system, the North American Industry Classification
System (NAICS Codes).
NAICS and SIC are similar in concept, but the newer NAICS codes always
contain 6 digits, and cover a much wider variety of industries,
technologies, products and services, than the older SIC code system.
****************************************************************
Another good resource page is the National Technical Information
Service at http://www.ntis.gov/products/bestsellers/naics.asp?loc=4-2-0
where you will find the ability to order books and publications
relating NAICS.
The NAICS Association site can be found at http://www.naics.com/ .
Some of the unique services available from this site are:
Custom Lists of Companies <Service-CustomLists.html>
As a new service, we can now create custom lists of companies for
nearly every business in the U.S. You can select and filter companies
in the list by just about any criteria from a simple NAICS code to a
locations square footage.
Database Enhancement and Appends <Service-Database.html>
We can also append information to your existing database. From a
simple addition of NAICS and SIC codes, to a full database validation
and cleanup.
Professional Assistance Finding Your NAICS Code <Service-Codes.html>
If you cannot find your NAICS Code, for a nominal fee, our
professional staff can help you determine the right code for your
organization.
You can also sign up for a free monthly newsletter at the bottom of
their page.
**************************************************************
I found another good explanation of NAICS and how it might impact
labor statistics for the State of Illinois at
http://lmi.ides.state.il.us/lmr/naic.htm .
And the National Institute of Health has their introduction to NAICS
at http://epic.od.nih.gov/naics/new_to_naics_help.asp .
I trust this will provide you with the background on SIC codes and
their new replacment NAICS.
Regards,
-=clouseau=- |
,
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