Business - Industry Information

What are SIC and NAICS Codes?

SIC codes are 4-digit codes used to identify an industry.

The Standard Industrial Classification (SIC) system:

• was originally developed in the 1930s to classify establishments by the type of activity in which they are primarily engaged and to promote the comparability of establishment data describing various facets of the U.S. economy.
• was revised periodically over the years to reflect the economy's changing industry composition and organization.
• was last updated in 1987 by The Office of Management and Budget (OMB).
• is a numerical scheme used to classify businesses according to industry type. 

The NAICS system uses a 6-digit code to identify an industry, in contrast to the 4-digit SIC code. 

The North American Industry Classification System (NAICS):

• was created in 1997 in response to criticism that the SIC system was not keeping up with newer industries that were emerging as part of the U.S. and world economies. 
• was developed in cooperation with the statistical agencies of Canada and Mexico to establish a 3-country standard that allows for a high level of comparability in business statistics among the three countries.
• is gradually replacing the SIC system.
• was updated in 2002 and 2007, and is scheduled to be reviewed every 5 years for potential revisions. 
• was designed and documented in such a way to allow business establishments to self-code.  There is no central government agency with the role of assigning, monitoring, or approving NAICS codes for establishments.

Examples of Companies and their SIC and NAICS Codes