Page 568 - Encyclopedia of Business and Finance

eobf_N 7/5/06 3:16 PM Page 545

North American Industry Classification System

STRUCTURE OF NAICS of merchandise and provide services related to
NAICS uses a six-digit code to identify particular indus- such sales.
tries, in contrast to the four-digit SIC code. The structure 48–49 Transportation and Warehousing. Provid-
of NAICS is hierarchical. The first two digits of each code ing transportation of passengers and cargo, ware-
indicate the sector. The other digits and what they indi- housing and storing goods, scenic and sightseeing
cate are: transportation, and supporting these activities.

Third digit—Subsector 51 Information. Producing and distributing infor-
mation and cultural products, providing the
Fourth digit—Industry group means to transmit or distribute these products,
Fifth digit—NAICS industry data or communications, and processing data.
Sixth digit—National industry 52 Finance and Insurance. Involves the creation,
liquidation, or change in ownership of financial
In the manual North American Industry Classification Sys- assets and/or the facilitation of financial transac-
tem: United States, 2002 (NAICS: United States, 2002), tions.
there are codes for 1,179 U.S. industries.
53 Real Estate and Rental and Leasing. Renting,
NAICS classifies by sectors first. The NAICS: United leasing, or otherwise allowing the use of tangible
States, 2002 manual presents twenty sectors, their two- or intangible assets (except copyrighted works),
digit codes, and the distinguishing activities of each, as and providing related services.
follows:
54 Professional, Scientific, and Technical Ser-
11 Agricultural, Forestry, Fishing and Hunting. vices. Establishments in this sector provide pro-
This sector includes growing crops, raising ani- fessional, scientific, and technical services for the
operations of other organizations.
mals, harvesting timber, and harvesting fish and
other animals from farms, ranches, or the ani- 55 Management of Companies and Enterprises.
mals’ natural habitat. Includes: (1) holding securities of companies and
enterprises, for the purpose of owning controlling
21 Mining. Extracting naturally occurring mineral
interest or influencing their management deci-
solids, such as coal and ore; liquid minerals, such
sions, or (2) administering, overseeing, and man-
as crude petroleum; and gases, such as natural
aging establishments of the company or
gas; and beneficiating (e.g., crushing, screening,
enterprise, including strategic planning and deci-
washing, and flotation) and other preparation at
sion making.
the mine site, or as part of mining activity.
56 Administrative and Support and Waste Man-
22 Utilities. Providing electric power, natural gas,
agement and Remediation Services. Establish-
steam supply, water supply and sewage removal ments in this sector perform routine support
(through sewage systems and treatment facilities). activities for the day-to-day operations of other
23 Construction. Erecting buildings and engineer- organizations.
ing projects (e.g., highways), including new 61 Educational Services. Providing instruction and
work, additions, alterations, or maintenance. Site training in a wide variety of subjects.
preparation for new construction and land subdi- 62 Health Care and Social Assistance. Providing
vision are also part of this sector.
health care and social assistance for individuals.
31–33 Manufacturing. The mechanical, physical, 71 Arts, Entertainment, and Recreation. Operat-
or chemical transformation of material, sub-
ing facilities or providing services to meet varied
stances, or components into new products.
cultural, entertainment, and recreational interests
42 Wholesale Trade. Wholesale establishments sell of their patrons.
merchandise as an intermediate step in the distri- 72 Accommodation and Food Services. Providing
bution process and provide services incidental to customers with lodging and/or preparing meals,
such sales. Wholesalers can be either merchants snacks, and beverages for immediate consump-
or establishments arranging for the purchase or tion.
sale of goods owned by others.
81 Other Services (except Public Administra-
44–45 Retail Trade. Retail establishments sell to tion). Providing services not elsewhere specified,
the general public in the final step of distribution including repairs of equipment or machinery,

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 545