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NAICS and SIC Code Service

NAICS and SIC Code Service

The North American Industrial Classification System and Standard Industrial Classification codes are used to identify any firm’s principal business activity. Every registered firm will have these codes. For example, if the firm has NAICS code 211, then it comes under the Oil and Gas Extraction segment. On the other hand, the firm with SIC code 251 clearly states Household furniture industry.

The federal government developed both the NAICS and SIC systems. The Office of Management and Budget (OMB) in the U.S., as well as other U.S. statistical organizations, use these codes.

What is the NAICS Code?

The North American Industry Classification System or known as NAICS is primarily used to classify, compare as well as assess the businesses in the United States, Mexico, and Canada. Adopted in 1997, NAICS is a 6-digit code system that helps in categorizing business establishments into different industrial categories and also supplies all the necessary information of it.

How to Read the NAICS Code by Yourself?

As mentioned above, NAICS code is 6-digit long which provides all the information that is necessary to define an industry. To clearly understand your target market, you have to break this code into smaller parts. That is, the first two digits in this code tell you about the business sector. NAICS codes groups the economy into 20 main segments.

For example:

NAICS Code Sector
Main Sector 54 Professional, Scientific, and Technical Services
Sub Sector 541 Professional, Scientific, and Technical Services
Industry Group 5415 Computer Systems Design and Related Service
Industry 54151 Computer Systems Design and Related Services
U.S Industry 541511 Custom Computer Programming Services

A Complete NAICS Code for Technology Related Services

NAICS Code Category
 5415  Computer Systems Design and Related Services
 54151  Computer Systems Design and Related Services
 541511  Custom Computer Programming Services
 541512  Computer System Design Services
 541513  Computer Facilities Management Services
 541519  Other Computer Related Services
 5416  Management, Scientific, and Technical Consulting Services
 54161  Management Consulting Services
 541611  Administrative Management and General Management Consulting Services
 541612  Human Resource Consulting Services
 541613  Marketing Consulting Services
 541614  Process, Physical Distribution, and Logistics Consulting Services
 541618  Other Management Consulting Services
 56131  Employment Placement Agencies and Executive Search Services
 561311  Employment Placement Agencies
 561312  Executive Search Service
 56132  Temporary Help Service
 561320  Temporary Help Service
 61143  Professional and Management Development Training
 611430  Professional and Management Development Training

What is SIC Code?

SIC code stands for the Standard Industrial Classification (SIC) system. It is a four-digit code that classifies different industries. NAICS code has replaced SIC codes because of the need to have the additional technology-based classification. Also, the limited scope and difficulty to determine the exact group made people choose NAICS over SIC system. But many companies still find SIC code reliable and straightforward to use.

How to Read the SIC Code by Yourself?

The SIC system groups the economy into 11 divisions. Break this numbers to get 83 two-digit groups that identify the primary industry type. This group undergoes further classification to form 416 three-digit industry clusters. It is then finally segmented to form 1,005 four-digit industries. Whereas, you can use number “9” on the third or fourth digit position if you cannot locate the sector. It indicates NEC or Not Elsewhere Classified industries.

For Example:

SIC Code Sector
Division 70-89 Services
Major Group 73 Business Services
Industry Group 737 Computer Programming, Data Processing, And Other Computer Related Services
Industry 7371 Computer Programming Services

A Complete SIC Code for Technology Related Services

SIC Code Category
 7371  Computer Programming Services
 7379  Computer Related Services, Not Elsewhere Classified
 7372  Pre-packaged Software
 7373  Computer Integrated Systems Design
 8742  Management Consulting Services
 8748  Business Consulting Services, Not Elsewhere Classified