A NAICS code is a six-digit code assigned by the North American Industry Classification System (NAICS), a classification system used by business and government to categorize businesses into industry sectors.
With codes featuring a greater number of digits, the NAICS offers more flexibility compared to the four-digit Standard Industrial Classification (SIC) system.
NAICS codes are designed to facilitate the collection, analysis, and publication of economic statistics, and they are updated every five years to reflect changes in the economy. This system is used primarily in the United States, Canada, and Mexico.
The NAICS categorizes economic activities into 20 industry sectors, of which five are focused on goods production and the other 15 on various services.
Each company gets a primary NAICS code, reflecting its main business activity. This is determined by the activity that yields the highest revenue at a specific location in the previous year.
In a NAICS code, the initial two digits represent the broadest category of a company's business sector. The third digit narrows it down to a more specific subsector, while the fourth digit pinpoints the industry group. Finally, the fifth digit specifies the particular industry within which the company operates.
NAICS codes are self-selected by companies, meaning that businesses choose their own code based on the activity that best represents their primary business function. This selected code is then utilized whenever the company is required to provide a NAICS code.
Originally created for statistical purposes, the NAICS has been adapted for various uses by government agencies, trade associations, and regulatory bodies to meet their specific internal requirements.
To help you easily find any NAICS code, you can use the search tool available on the NAICS website. You can alternatively explore NAICS codes and sector titles directly from the available list.
