Shifting Ground of NAICS: North American Industry Classification System
St. Louis Federal Reserve
Beyond the Numbers
November 10, 2022
Jennifer C. Boettcher
The slides can be found at
Jennifer C. Boettcher
Using NAICS Codes Effectively to Research Industries
Changes to NAICS Affects Researchers
Online Searcher 46, no. 5 (Sep, 2022): 10-15.
Online Searcher 46, no. 4 (Jul, 2022): 16-21
NAICS functions
What is it?
2022 NAICS
Learn more
01
02
03
04
Table of contents
What is NAICS and where do NAICS codes come from?
Changes with the 2022 revision: MAJOR CHANGES
Who uses NAICS: Statistical and NonStatistical
Links to informative educational material
01
What is it?
What is NAICS and Who creates North American Industry Classification System
History
Why Industry Classification?
Usage
Trends and Comparisons
North American Industry Classification
System: NAICS
pronounced nākes, like snakes 🐍
What is an Establishment?
Food Store Supply Chain
Agriculture - 11
Orange groves- 11131
Fishing- 11411
Manufacturing- 31
Frozen food - 31141
Seafood- 31171
Transportation- 48
Trucking, local - 48411
Warehousing - 493
Retail- 44
Grocery - 44511
Grocery delivery - 49221
Image: USDA
Four principles of NAICS
1. NAICS is erected on a production-oriented conceptual framework. This means that producing units that use the same or similar production processes are grouped together in NAICS.
2. NAICS gives special attention to developing production-oriented classifications for (a) new and emerging industries, (b) service industries in general, and (c) industries engaged in the production of advanced technologies.
3. Time series continuity is maintained to the extent possible.
4. The system strives for compatibility with the two-digit level of the International Standard Industrial Classification of All Economic Activities (ISIC Rev. 4) of the United Nations.
North American Industry Classification System (NAICS) Hierarchical Structure
MENU
Level | Code | Description |
Sector * | 31 | Manufacturing |
Subsector * | 315 | Apparel Manufacturing |
Industry Group * | 3152 | Cut and Sew Apparel Manufacturing |
Industry | 31525 | Cut and Sew Apparel Manufacturing (except contractors) |
U.S. Industry | Cut and Sew Apparel Manufacturing (except contractors) |
* Mexico & Canada Compatible
315250 Cut and Sew Apparel Manufacturing (except Contractors)
Different NAICS in Supply Chain
Agriculture - 11
Orange groves- 11131
Fishing- 11411
Manufacturing- 31
Frozen food - 31141
Seafood- 31171
Transportation- 48
Trucking, local - 48411
Warehousing - 493
Retail- 44
Grocery - 44511
Grocery delivery - 49221
Image: USDA
24 NAICS Sectors
11 Agriculture, Forestry, Fishing and Hunting
21 Mining
22 Utilities
23 Construction
31-33 Manufacturing
42 Wholesale Trade
44-45 Retail Trade
48-49 Transportation and Warehousing
51 Information
52 Finance and Insurance
53 Real Estate and Rental and Leasing
54 Professional, Scientific, and Technical Services
55 Management of Companies and Enterprises
56 Administrative and Support and Waste Management and Remediation Services
61 Education Services
62 Health Care and Social Assistance
71 Arts, Entertainment, and Recreation
72 Accommodation and Food Services
81 Other Services (except Public Administration)
92 Public Administration
Advice
Look at US Industry for details, 6 digits
Small geographies will not have data at 6 digit
Census only data on data.census.gov
Who oversees NAICS?
Office of Management and Budget (OMB)’s Office of Information and Regulatory Affairs (OIRA) gives responsibility to Economic Classification Policy Committee (ECPC)
Do you want a new NAICS Code?
Be of appropriate size - for privacy
Ability of government agencies to classify, collect, and publish data
Applied by agencies within their normal processing operations for cost saving
Take into account the cost of making the changes
Activities of similar producing units cannot be separated (see NAPCS)
Federal Register (FR) notice soliciting proposals
ECPC review of proposals and trilateral negotiation
FR notice containing OMB final decisions
NAICS United States available on NAICS Website
2022 revision started in 2019
Considerations
Process
Talk to someone in the ECPC with your ideas.
Proposals for changes to NAICS
a) Specific detail about the economic activities to be covered by the proposed industry, especially its production processes, specialized labor skills, and any unique materials used.
b) Specific indication of the relationship of the proposed industry to existing NAICS United States six-digit industries.
c) Documentation of the size and importance of the proposed industry in the United States.
d) Information about the proposed industry in Canada and Mexico, if available.
NEWS: Death notice for SIC
February 26, 2020 OMB ask for permission to kill the Standard Industrial Classification (SIC).
With 86 FR No. 242 72277, December 21, 2021 SIC will be eliminated effective immediately.
The ECPC proposes elimination of Statistical Policy Directive No. 9, Standard Industrial Classification of Enterprises.
Long live the North American Industry Classification System (NAICS).
Thank you Economic Classification Policy Committee (ECPC)
NAICS functions
02
Who uses NAICS:
Statistical and Nonstatistical
The slides can be found at
County Business Patterns (ZIP, Congressional District, MA, Islands, State, United States)
Advance Monthly Sales for Retail and Food Services (MARTS)
Longitudinal Employer-Household Dynamics (LEHD)
New Small Business Pulse (SBP)
New Business Formation Statistics (BFS)
New Annual Business Survey (ABS)
Annual Survey of Manufactures (ASM)
Quarterly Financial Report (QFR)
Business Dynamics Statistics (BDS)
Quarterly Services Survey (QSS)
Statistical Indicators
Producer Price Index (PPI)
Employment (BLS)
Industry at a Glance (BLS)
Tax Stats (IRS)
GDP by Industry (BEA)
Job Patterns for Minorities and Woman (EEOC)
Economic Census
New NAICS introduced - Every five years with years ending in 2 and 7
Census, not a survey- All Business
Core data (Geographic) National, state, metro, county, place, and ZIP Code levels
GDP by Industry
From BEA
FRED: 39,850 NAICS
NAICS is the linchpin in Industry Analysis
Directories
Financials
Field Searching
Business Competitors
Market size (how many)
Market share (dominate company)
Ratio Analysis/comps
Pro Forma Statements
NAICS Field in most article indexing services
Business Competitors
Market Share (ranking)
Market Size (how many)
25
Images from Mergent Intellect
Financial Norms
Income Statements
Receipts & Net Income
FROM:
IRS’s Statistics of Income
https://www.irs.gov/statistics/soi-tax-stats-nonfarm-sole-proprietorship-statistics
26
Government/Nonstatistical:
155 mentions in CFR
OPM
OSHA
SBA
Foreign Trade
Federal Wage System
Injury and Illness Regulations
What is a small business? 13 CFR 121
Military Exports
Who assigns NAICS to a company/firm?
self-assigned
NAICS interpretation
30% of IRS returns wrong
29% of CO’s wrong
From person files a 1040 Schedule C (for business)
21% are errors, and 13.6% do not even include sector (2 digit)
Oehlert, C., Schulz, E., & Parker, A. (2022). NAICS Code Prediction Using Supervised Methods. Statistics and Public Policy, 9(1), 58–66.
contracting officers helping to fill procurement form
Miller, M. A., & Ellis, J. M. (2016). The NAICS Code Selection Process And Small Business Participation. NAVAL POSTGRADUATE SCHOOL MONTEREY CA MONTEREY United States.
AI solution and better training
Reflection
What questions do you have?
Advice:
If statistical agencies are different, compare the methodology
Know what NAICS Version is being used
2022 NAICS
03
Will not appear until 2024, as part of the Economic Census
The slides can be found at
Changing NAICS
Note Consolidation in 2022
Changes in 2022
New 2022 NAICS Codes with change indicators
Data ANALYSIS
30 | title change, no content change |
185 | new US code for 2022 NAICS |
7 | re-used code, content change |
3 | re-used code, content change at lower level with insignificant impact |
Mining - 21 Sector
2022
21214 surface coal
212115 underground
212220 gold & silver
212290 other metal ore
21232 Kaolin, clay…
212339 Other Nonmetallic Mineral Quarrying
2017
212111 bituminous & 212113 anthracite
212112 bituminous & 212113 anthracite
212221 gold & 212221 silver
212222 uranium & 212299 all other metals
212324 Kaolin & 212325 Clay, ceramic,...
Potash, Phosphate, other chem, all other nonmetallic mineral mining
Manufacturing - 31 & 32 Sectors
2022
2017
315120 (Apparel Knitting Mills)
315250(Cut & Sew Apparel)
316990 (Other Leather & Allied)
321215 (Engineered Wood)
322120(Paper Mills)
R 325314(Fertilizer)
325315(Compost)
31511 (Hosiery & Socks) & 31519 (Other Apparel Knitting)
31522 (Men’s & Boy’s Cut & Sew Apparel) & 31524(Woman’s, Girl’s, & Infant’s Cut) & 31526 (Other Cut & Sew Apparel)
316992 (Women’s Handbag & Purse) & 316998 (All other Leather Good & Allied Product)
321213 (Engineered Wood Member) & 321214 (Truss)
322121(Paper [except Newsprint]) & 322121 (Newsprint)
325314 (Fertilizer & Compost)
Manufacturing - 33 Sector
2022
2017
333248 All Other Industrial
333310Commercial & Services Industry Mach
333996 All Other Misc
334610 Reproduction Magnetic & Optical Media
333244 Printing Machinery & 333249 Other Industrial
333314 Optical & 333316 Photographic & 333318 Other Commercial & Services Industry Machinery
333997 Scale & Balance & 333999 All Other Misc General
334613 Blank Magnetic Recording Media & 334614 Software & Other PreRecorded CD, Tape, & Record
Manufacturing - 33 Sector
2022
2017
335131 Electric Lighting
335132 Commercial Industrial & Institutional
335139 Electric Lamp Bulbs & Other
33591 Battery
33611 Auto & Light Duty Motor Vehicles
337126 Household Furniture (except Wood & Upholstered)
335121 Residential Electric Lighting Fixtures
335122 Commercial Industrial & Institutional Electric Lighting Fixtures
33511 Electric Lamp Bulbs and Parts & 335129 Other Lighting Equipment
335911 Storage Battery & 335912 Primary Battery
336111 Automobile & 336112 Light Trucks & Utility Vehicles
337125 Metal Household Furniture & 337125 Household furniture (except wood & Metal)
Wholesale - 42 Sector
2022
2017
42435 Clothing & Clothing Accessories
R 425120 Wholesale Trade Agents & Brokers
424320 Men’s and Boy’s Clothing and Furnishing & 424330 Women’s and Children’s, and Infants clothing and Assoc
425111 Business to Business Electronic Markets
2022 NAICS: Retailers not stores or website
2022 NAICS Code | 2022 NAICS Title | 2017 NAICS Code | 2017 NAICS Title |
459210 | Book Retailers and News Dealers | 451211 | Book Stores |
459210 | Book Retailers and News Dealers | Pt 451212 | News Dealers and Newsstands |
459210 | Book Retailers and News Dealers | Pt 454110 | Electronic Shopping and Mail-Order Houses |
513130 | Book Publishers | 511130 | Book Publishers |
513130 | Book Publishers | Pt 519130 | Internet Publishing and Broadcasting and Web Search Portals - Internet book publishers |
Other Retail - 44 & 45 Sectors
2022
2017
445132 Vending Machines
458110 Clothing & Clothing Accessories
459930 Manufactured (Mobile) Home Dealers
459991 Tobacco, Electric Cigarette, & Other Smoking
45421 Vending Machines Operators
Men’s, Women’s, Children’s, Family Clothing Stores & Clothing accessories & Other Clothing Stores & Electronic Shopping & Mail-Order Houses & Other Direct Selling
45393 Manufactured (Mobile) Home Dealers
453991 Tobacco Stores
Publishing - 513 Subsector
2022
2017
513110 Newspaper
513120 Periodical
513130 Book
513140 Directory & Mailing Lists
513191 Greeting Cards
513199 All Other Publishing
513210 Software
51111 Newspaper Publishers & Pt 51913 Internet Newspaper
51112 Periodical & Pt 51913 Internet Periodicals
51113 Books & Pt 51913 Internet Books
51114 Directory & Mailing Lists & Pt 51913 Internet Directory and Mailing Lists
511191 Greeting Cards & Pt 51913 Internet Greeting Cards
513199 All Other Publishing & Pt 51913 Internet All Other Publishing
51121 Software Publishing
Broadcasting & Content Providers - 516 Subsector
2022
2017
516110 Radio
516120 Television
516210 Media Streaming Distribution Services, Social Networks, and Other Media Networks & Content providers
515112 Radio Stations
Pt 515120 Television Broadcasting
515111 Radio Networks & 51521 Cable & Other Subscription Programming & 51911 News Syndicates & Pt 51512 Television Networks & Pt Internet Broadcasting
Telecommunications - 517 Subsector
2022
2017
517111 Wired Carriers
517112 Wireless Carriers
517121 Telecom Resellers
517122 Agents For Wireless
517810 All Other
517311 Wired Telecommunications Carriers
Pt. 517312 Wireless Carriers except Agents
Pt 517911 Telecommunications Resellers except Agents
Pt 517312 Wireless Agents & Pt 517911 Resellers except Agents
517919 All Other Telecommunications
Web Search Portals, Libraries, Archives, Others Information Services - 519 Subsector
2022
2017
519
519210 Libraries & Archives
519290 Web Search Portals and All Other Information Services
Pt 519 News syndicates and Internet publishing & Broadcasting
51912 Libraries & Archives
Pt 519130 Web Search Portals & 51919 All Other Information Services
Banking - 52 Sector
2022
2017
522180 Savings Institutions & Other Depository Credit Intermediation
533399 International, Secondary Market, & All Other Nondepository Credit
523150 Investment Banking & Securities Intermediation
523160 Commodity Contracts
523940 Portfolio Management & Investment Advice
52212 Savings Institutions & 52219 Other Depository Credit Intermediation
522293 International Trade Financing & 522294 Secondary Market Financing & 522298 All Other Nondepository Credit Intermediation
52311 Investment Banking and Securities Dealing & 523120 Securities Brokerage
52313 Commodity Contracts Dealing & 523140 Commodity Contracts Brokerage
52392 Portfolio Management & 52393 Investment Advice
Repair Services - 81 Sector
2022
2017
811114 Specialized Automotive Repair
811210 Electronic & Precision equipment Repair & Maintenance
811112 Auto Exhaust System & 811113 Auto Transmission & 811118 Other Automotive Mechanical & Electrical Maint
811211 Consumer Electronics & 811212 Computer and Office Machine & 811213 Communications Equipment & 811219 Other Electronic and Precision Equipment Repair and Maintenance
North American Product Classification System 2017 (NAPCS)
Hierarchical Structure
Example (library services)
New Product-, Merchandise-,
and Services- Lines
Who is doing the counting and assigning?
There will be new peers and opportunities
Questions will come
Where is my industry? Cannabis, ghost kitchens, etc.
What do you mean there is no difference between Brick and Mortar and Online businesses?
Think of the researchers whose careers are based in one industry, that just changed
You will have to use NAPCS to learn about the car, SUV, van, and light truck market
What we can DO
Be ready when the questions start coming
04
Learn more
About Government Data
The slides can be found at
Data ANALYSIS
MENU
ANALYSIS
CONTACT
Sir Arthur Conan Doyle
Federal Government Information
Executive Branch
Congressional Branch
Judicial Branch
Words about Data
Data ANALYSIS
Data are not:
Information Technology
Digital Analytics
Evidence
Research
Visualizations
Ideas
Data are
collected facts
“raw material”
Adaptations of DIKW pyramid by US Army Knowledge Managers,
from https://en.wikipedia.org/wiki/DIKW_pyramid
How do you present data
Graphs for time series
Bar charts showing the differences
Pie chart for comparison to the whole
Common-size to per capita for story
DIAGNOSTIC
TYPES OF DATA ANALYSIS
DESCRIPTIVE
PREDICTIVE
PRESCRIPTIVE
Relationships
Increase/decrease
Estimates
Policy & Decision Making
Data ANALYSIS
MENU
ANALYSIS
CONTACT
What most people do
Data.Gov
Commercial
Data ANALYSIS
MENU
ANALYSIS
CONTACT
Federal Data Sources:
Social Science
Demographics, Manufacturing, Retail, Wholesale, Construction, most other industries
Labor and price data
Banking & economic conditions
Ideal for tourism and comparisons
Publicly Traded Companies
Complaints, cable, mobile, broadcasting, broadband
Federal Data Sources:
Natural Science
State sources will be better
Regional center better
Business of Government
Procurement
Assistance
Public Finance
We can get there together
Boettcher webinars to watch
2019
2019
2020
2020
2018
2017
Slides only
2022
July 2018, article: Government Data as Intellectual Property: Is Public Domain the Same as Open Access? Online Searcher, with Matthew Dames
2022
2022
Let’s discuss
202 687-7495
Twitter: @jennywombat
These slides are licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
slides and templates by Slidesgo, icons by Flaticon
© Bill Waterhouse, with permission
The slides can be found at
One Statistical Office in US: Why Not?
1. Privacy: The Privacy Act of 1974, Confidential Information Protection and Statistical Efficiency Act of 2002 (CIPSEA), and Statistical Policy Directive No. 1 (2014) require agencies to ensure that the collection and maintenance of citizens' data is accurate, confidential, and within legal restrictions. With different offices having access to those records, there would be less possibility of everything being leaked.
2. Security: Along the lines of fewer offices having access to data records. The more servers that hold the data, the safer it is. The times when an exchange of information is necessary laws and regulations among departments allow to protect access to data.
3. Integrity: The income you report to IRS might be different from what you report to the Census Bureau.
4. Methodology: Sometimes data must have a higher number of people questioned so the accuracy will be better; different methods of collection or sampling may be required.
5. Popularity: Anything being done by the government has a political dimension, especially funding for employees and for modernizing and updating technology, attractiveness of the research, and repetition of statistical programs by agencies.
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