North American Industry Classification System (NAICS)

Definition

The North American Industry Classification System (NAICS) is a standardized classification system used to categorize businesses and industries in North America. 

What is the North American Industry Classification System?

NAICS was developed as a collaborative effort between the U.S., Canada, and Mexico to facilitate the collection, analysis, and distribution of economic data across national boundaries. NAICS provides a common framework for classifying industries, allowing for consistent comparisons of economic activities and trends across regions and sectors.

The primary purpose of NAICS is to provide a standardized structure for classifying businesses and industries based on their primary economic activities. By categorizing industries into distinct sectors, subsectors, and codes, NAICS enables governments, businesses, researchers, and policymakers to analyze and understand economic trends, make informed decisions, and develop policies and programs tailored to specific industries.

NAICS is developed and maintained through a collaborative effort between the statistical agencies of the U.S., Canada, and Mexico. The system undergoes periodic updates to reflect changes in the economy, emerging industries, technological advancements, and shifts in business practices.

NAICS classifications and related resources are freely available to the public through official websites maintained by the statistical agencies of the participating countries. Users can access NAICS codes and descriptions online or through specialized publications and databases to support their research and analysis.

Example of the North American Industry Classification System

In the NAICS system, the automotive manufacturing industry is classified under code 3361, which encompasses establishments primarily engaged in manufacturing motor vehicles, including cars, trucks, and buses. This classification allows for consistent analysis of automotive industry trends across North America.