The North American Industry Classification System or NAICS (pronounced “nakes”) is used by business and government to classify business establishments according to type of economic activity (process of production) in Canada, Mexico, and the United States of America. It largely replaced the older Standard Industrial Classification (SIC) system. Each establishment is classified to an industry according to the primary business activity they are engaged. Business establishments can qualify for one or more NAICS Codes.
The NAICS numbering system employs a five or six-digit code at the most detailed industry level. The first five digits are generally (although not always strictly) the same in all three countries. The first two digits designate the largest business sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industries, and the sixth digit designates the national industries.
