NAICS is a more recent system used to classify businesses by their primary activity. They were designed to replace SIC and contain more significant information about business activities. NAICS came into being in 1997 and is updated every 5 years, most recently in 2017. The Standard Industrial Classification (SIC) system was developed in the 1930s to classify businesses by their type of activity. However, some government agencies and other organizations require businesses to provide their NAICS code when applying for grants, contracts, or other programs. NAICS is a statistical classification system, not a regulatory system.īusinesses do not have to apply for or request a NAICS code. You can use the NAICS code lookup tool on the NAICS website to find the NAICS code that best describes your business. NAICS codes are designed to classify organizations according to their primary activities. The NAICS code for your business depends on the type of business. The data collected by NAICS helps companies make informed decisions about where to locate their operations and market their products and services. The NAICS code is also used by businesses to identify potential customers and competitors. NAICS codes are used to collect and report statistical data about the North American economy. Regardless of their size or type, all companies are classified using the same NAICS codes if they share the same business interests. There is no differentiation between small or large businesses or charities and for-profit organizations. NAICS codes are used to generate the statistics government agencies use to track the performance of different sectors of the economy and assess the impact of government policies. The NAICS system is used to classify businesses of all sizes, from small businesses to large corporations. Does NAICS discriminate against small businesses? By correctly identifying the NAICS codes relevant to your business, you can ensure that you can find opportunities that match your company’s capabilities. Government agencies use NAICS codes when looking for contractors to provide goods or services. NAICS codes can also be used to find business-to-government (B2G) leads. It helps you avoid wasting time and money on marketing efforts that are unlikely to generate leads. This allows you to keep your marketing budget tightly focused on those businesses that are most likely to be interested in your products. You could use NAICS codes to target your marketing efforts toward businesses in the automotive industry, such as car dealerships or repair shops. By targeting their marketing efforts using NAICS codes, businesses can save time and money by only contacting those companies that are likely to be interested in their products or services.įor example, let’s say you own a business that manufactures car parts. Businesses can use NAICS codes to identify their potential customers and target them with marketing messages relevant to their needs. NAICS can be used to generate business-to-business (B2B) leads. How are NAICS used for finding business-to-business leads? If you’re starting a business or already in business and looking to expand your customer base or enter new markets, it’s essential to understand the NAICS code for your industry. NAICS codes are important for businesses because they provide a common language that can communicate business activities across industries. Investment analysts also use NAICS codes to evaluate companies and industries. Companies can use NAICS code data to benchmark their performance against their competitors and make informed decisions about their marketing and product development strategies. NAICS codes are also used by companies to monitor their industry trends and track their performance. Government agencies use NAICS codes to collect and analyze statistical data and help businesses identify potential customers and competitors. The first two digits of the NAICS code identify the sector, the next two digits identify the subsector, and the last two digits identify the industry group. The NAICS code is a six-digit code used to identify companies’ business activities in the United States and Mexico. Businesses can also find NAICS codes in the NAICS Code List, available for download on the Census website. The NAICS Code Lookup tool provides a list of NAICS codes and their descriptions. The NAICS code is used by government agencies to collect and analyze statistical data and helps companies identify potential customers and competitors.īusinesses can use the NAICS Code Lookup tool on the Census website to obtain NAICS codes. All North American businesses need a NAICS code to classify their industry.
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