What are NAICS Codes?
NAICS stands for “North American Industry Classification System.” It is a system used by the governments of the United States, Canada, and Mexico to classify businesses into industry categories.
The NAICS system is based on a six-digit code, with each digit representing a different level of classification. The first two digits represent the economic sector, the third digit represents the subsector, the fourth digit represents the industry group, the fifth digit represents the NAICS industry, and the sixth digit represents the national industry.
NAICS codes are used for statistical purposes, such as conducting economic research, analyzing industry trends, and compiling economic data. They are also used by government agencies for regulatory purposes, such as determining eligibility for government programs or regulating specific industries.
NAICS codes are updated periodically to reflect changes in the economy and changes in industry classifications. Businesses can use NAICS codes to identify their industry category and to compare their performance with other businesses in the same industry.