NAGASA - Channel Links: Information Requests and Reports

Topic: SIC / NAICS DATA - Exploratory Article and Chart of NAICS / SIC Codes

Date: October 1, 1999

SIC, NAICS, and Industry Data
In 1993 the Office of Management and Budget created an Economic Classification Policy Committee to develop new classification methodology...

Initiated in 1937, the Federal Government’s Interdepartmental Committee on Industrial Classification established the first Standard Industrial Classification (SIC) in 1938. The SIC was developed for use in the classification of establishments by type of activity in which they are primarily engaged. The system has been periodically revised to reflect the economy’s changing industrial composition and organization, with the most recent update occurring in 1987. Rapid changes in both the U.S. and world economy brought the SIC under increasing criticism, and in 1991 an International Conference on the Classification of Economic Activities was convened to explore alternate approaches. In 1993 the Office of Management and Budget created an Economic Classification Policy Committee to develop new classification methodology. This committee ultimately collaborated with Mexican and Canadian peer groups in the development of a new classification, which is called the North American Industry Classification System (NAICS).

NAICS is based on a production-oriented or supply-oriented conceptual framework. This means that producing units that use identical or similar production processes will be grouped together in NAICS. When an industry is defined with a production-oriented concept, producing units within the industry’s boundaries share a basic production process and use closely similar technology.

The NAICS structure is hierarchical, much like that of the 1987 SIC. The first two digits of the structure designate the NAICS sectors that represent general categories of economic activities; NIACS classifies all economic activities into 20 sectors. For example, codes 31, 32, and 33 are used for the economic activity described as “Manufacturing,” of which printing is a part. Code 42 is used for “Wholesale Trade,” of which graphic arts distribution is a part. “Printing and Related Support Activities” is a subcategory of manufacturing described using the code 323. Within this, “Printing” is described using code 32311. “Commercial Lithographic Printing” is described using the code 323110; the former SIC Code used to describe this industrial segment was 2752. Though not specifically broken out by published materials, in response to a query by NAGASA, NAICS indicated that graphic arts dealers engaged primarily in equipment sales would be described using the code 421830, which is for “Industrial Machinery and Equipment Wholesalers.” Dealers engaged primarily in supplies sales would be described using code 421840, which describes “Industrial Supplies Wholesalers”.

More detailed information about NAICS can be found at http://www.ntis.gov/naics. This site can also be used to purchase the document entitled North American Industry Classification System, United States 1997, which includes tables cross-referencing SIC codes and NAICS codes, timelines for the introduction of the NAICS, and other information. NAICS can be reached by phone at 1-888-75-NAICS.

The accompanying table has been abstracted from the complete NAICS document to provide an initial reference about how the codes are changing for printing and distribution. This table should not be used as an official reference to the changes that are being made; contact NAICS and consult the NAICS document for details. “US” means that the NAICS code applies to US industry only. “CAN” indicates that United States and Canadian industries are comparable. When neither US or CAN appears, Canadian, Mexican, and the United States codes are used in all three economies and are comparable.