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NAICS

Definition

The North American Industrial Classification System (NAICS) is an economic classification system. Economic units that use like processes to produce goods or services are grouped together. This "production-oriented" system permits statistical agencies in the United States, Canada and Mexico to produce data that can be used for measuring productivity, unit labor costs, and the capital intensity of production; constructing input-output relationships; and estimating employment-output relationships and other such statistics that require that inputs and outputs be used together.

In 1997, the U.S. Office of Management and Budget (OMB) adopted NAICS as a replacement for the older, less-capable, U.S-only system called the Standard Industrial Classification (SIC) System.

Additional Information Both SIC and NAICS use code numbers to express a particular unit of economic activity. The NAICS system has more categories, is more capable, and has greater flexibiility than the older system. NAICS is a six-digit system that provides for comparability among Canada, Mexico and the U.S. countries at the five-digit level (in most cases). SIC was a four-digit system that was not related to the systems in use by Canada and Mexico. The nomenclature of the groupings within the system is different in NAICS. NAICS calls the highest level of aggregation in the system a sector; the SIC referred to this grouping as a division. Likewise, what NAICS calls a subsector, SIC called a Major Group. MSDS Relevance SIC and NAICS code numbers do not generally appear on MSDS's, but OSHA uses SIC (and is transitioning to NAICS) codes to classify statistics regarding violations of the OSHA Hazard Communication Standard (HCS), 29 CFR 1910.1200. The HCS is the most commonly violated OSHA standard. You can look up violations by industry SIC codes at the URL given below.

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Further Reading

• Index for 4 digit SIC codes at OSHA. Searchable by keyword or SIC code.
• OSHA statistics sorted by SIC code. Includes a listing of the most frequently cited standards.
• Information about NAICS at the U.S. Census Bureau.
• A list of 1997 NAICS codes (plain text file).
• Development of NAICS, including background/comparison on SIC.
• Find your NAICS code by the NAICS Association.
• NAICS and SICS products; includes an on-line SICS:NAICS code converter.

See also: CAS number, NSN, UN/NA number.

Additional definitions from Google and OneLook.

Disclaimer: The information contained herein is believed to be true and accurate, however ILPI makes no guarantees concerning the veracity of any statement. Use of any information on this page is at the reader's own risk. ILPI strongly encourages the reader to consult the appropriate local, state and federal agencies concerning the matters discussed herein.