What is Standard Industrial Classification (SIC)?
The Standard Industrial Classification (SIC) is a system used to classify businesses and other organizations based on the type of economic activity in which they are primarily engaged.
The SIC system was developed in the United States in the 1930s and has since been adopted by many other countries. It is a four-digit code that classifies businesses into broad industry categories based on their primary activities. The SIC system is maintained by the U.S. government’s Office of Management and Budget (OMB).
The SIC system has been replaced in the United States by the North American Industry Classification System (NAICS), which is a more detailed classification system that was developed in the 1990s. However, the SIC system is still used by some organizations and is sometimes included in historical data or international reports.
The SIC codes are used for a variety of purposes, including economic research, government policy analysis, and business planning. They can be used to compare the performance of businesses in the same industry, to identify trends in specific sectors, and to make decisions about investment and resource allocation.