North American Industry Classification System (NAICS)
Candlefocus EditorNAICS is used to accurately identify the activity of a business — including the business's primary activity — and many of the related services offered. This allows a business to be accurately labeled and tracked by governments and other organizations, providing more accurate and objective data than the organization would have without NAICS. This industry-level information helps to support economic activity policies, analyze economic trends, and provide the basis of economic research.
NAICS distinguishes between goods-producing industries and service-providing industries, making it easier to understand the structure and composition of the economy. All business establishments and businesses in North America are identified, classified and categorized according to these divisions. NAICS helps with the calculation of Standard Industrial Classification (SIC) and North American Industry Classification System (NAICS) codes, which are essential to properly describing the activities of a business.
NAICS is important for a variety of reasons, including the ability to correctly describe or categorize a business for accurate taxation, the calculation of statistics for reporting purposes, and for consumer protection. Additionally, businesses can easily identify their own specific category and find where they are falling within the NAICS classification system to determine if they are on the right track to success.
Overall, NAICS helps to organize the unique industries and businesses throughout North America, and provides meaningful information as it relates to productivity and economic growth, as well as creating better economic policies and development objectives. It is a vital component of economic development in our global community and provides an important resource for the organizations involved.