Identifying NAICS (Industry) Codes (2013)

Summary

In this video, Business Librarian Steve Cramer introduces NAICS codes, essential for defining industries in business and economic research. NAICS, or North American Industrial Classification System, is a hierarchical coding system created by the U.S. Census Bureau to classify industries with codes up to six digits long. The video demonstrates how to access NAICS codes through the Census website and use them for various purposes like finding companies and industry research. It also touches on the use of SIC codes and alternative databases like Hoovers and BizMiner for more detailed industry classifications.

Takeaways

• 📚 NAICS stands for North American Industrial Classification System and is used to define industries for business and economic research.
• 🏢 The U.S. Census Bureau developed NAICS to classify industries across various sectors, including farming, retail, and government services.
• 🔍 NAICS codes are hierarchical, with longer numbers indicating more detailed industry classifications, such as 513322 for cell phone service.
• 🔑 These codes are essential for finding companies, conducting industry research, and analyzing financial benchmarks and labor trends.
• 📈 NAICS codes can be accessed through the Census website or via the Business Librarian's NAICS guide, which offers a step-by-step guide to finding the NAICS section.
• 🏪 Examples are provided to illustrate how to navigate the NAICS system, such as finding the code for Snack and Nonalcoholic Beverage Bars (722515).
• 🔎 The script demonstrates how to perform a keyword search within the NAICS system to find relevant industry codes, like searching for 'coffee' to find coffee shops.
• 🆕 NAICS codes are updated periodically, and the script shows how to identify changes between different versions, such as between 2007 and 2022.
• 🛠️ If a specific industry code is not available, alternatives like Hoovers or ReferenceUSA can provide more detailed industry classifications.
• ⏏️ SIC (Standard Industrial Classification) codes are mentioned as a predecessor to NAICS, still used in some databases alongside NAICS codes.

Q & A

What are NAICS codes?

NAICS codes are the North American Industrial Classification System codes used to define industries and are foundational for business and economic research.

Who created the NAICS system?

The U.S. Census Bureau created the NAICS system to classify industries.

What is the purpose of NAICS codes?

NAICS codes are used for finding companies, conducting industry research and reports, benchmarking financials, and analyzing labor trends, among other uses.

How long can NAICS codes be?

NAICS codes can be up to 6 digits long, with longer numbers indicating more detailed industries.

What is the NAICS code for cell phone service?

The NAICS code for cell phone service is 513322.

How can one access the NAICS section on the Census website?

From the census.gov homepage, one can access the NAICS section by hovering over 'Business' and finding the NAICS link.

What is included in the NAICS profile for an industry?

A NAICS profile includes the industry's definition, scope note, examples of what it includes and excludes, and a detailed list of related items.

How can one find the NAICS code for a specific industry, like coffee shops?

One can find the NAICS code for a specific industry by using keyword searches on the Census website, such as entering 'coffee' to find 'Coffee Shops'.

What are some alternatives if a specific NAICS code is not available for a new or specialized industry?

Alternatives include using databases like Hoovers or ReferenceUSA, which classify industries at a more detailed level, or BizMiner for detailed financial industry breakdowns.

What is the relationship between NAICS and SIC codes?

SIC, or Standard Industrial Classification, codes were used before NAICS. Some databases still use SIC codes alongside NAICS codes.

How can one access SIC codes if needed?

One can access SIC codes through the NAICS guide, which has a section with links to a website from OSHA that still uses SIC codes.

How can viewers get further assistance with NAICS or SIC codes?

Viewers can get further assistance by contacting Steve Cramer, the Business Librarian, or iMinerva, and they can also visit the library.

Outlines

00:00

📊 Introduction to NAICS Codes

Steve Cramer, the Business Librarian, introduces NAICS codes, which stand for North American Industrial Classification System. These codes are crucial for defining industries and are foundational in business and economic research. Created by the U.S. Census, NAICS is a hierarchical system with codes up to six digits long, offering detailed industry classifications. The video demonstrates how to navigate the NAICS guide and the Census website to access these codes, which are used for various purposes such as company identification, industry research, financial benchmarking, and labor trend analysis. An example is given with the NAICS code 513322 for cell phone service, illustrating the depth of classification within the 'Information' sector.

Keywords

💡NAICS codes

NAICS codes, which stands for North American Industrial Classification System codes, are a hierarchical coding system used to classify businesses and industries in North America. These codes are crucial for economic analysis and business research as they provide a standardized way to categorize and analyze industry sectors. In the video, NAICS codes are the central theme, with examples given such as '513322' for cell phone service, illustrating how specific industries are classified.

💡Industry Classification

Industry classification refers to the process of categorizing businesses into groups based on similar characteristics, such as the products they produce or the services they offer. This is essential for economic analysis, market research, and policy-making. The video emphasizes the importance of NAICS codes in industry classification, showcasing how they are used to define and differentiate industries at various levels of detail.

💡Hierarchical Codes

Hierarchical codes are a system of classification where each level of the hierarchy represents a more specific or detailed category. In the context of the video, NAICS codes are hierarchical, with longer codes indicating a more detailed industry classification. This allows for a comprehensive understanding of industry structures, from broad sectors to very specific industry segments.

💡U.S. Census

The U.S. Census Bureau is responsible for the collection and production of data about the population, economy, and communities of the United States. In the video, the U.S. Census is mentioned as the creator of the NAICS system, highlighting its role in establishing a standardized classification system for industries.

💡Information Family of Codes

This term refers to a broad category within the NAICS system that includes industries related to information dissemination, communication, and technology services. The video uses 'cell phone service' as an example of an industry within this family, demonstrating how NAICS codes can be used to identify and analyze specific segments of the economy.

💡Benchmarking Financials

Benchmarking financials involves comparing a company's financial performance against industry standards or competitors to evaluate its financial health and performance. The video mentions that NAICS codes can be used for this purpose, allowing businesses to compare their financials with industry averages or similar companies within the same NAICS code.

💡Labor Trends

Labor trends refer to patterns and shifts in the workforce, such as employment rates, wage changes, and skill requirements. The video suggests that NAICS codes can be used to analyze labor trends by examining data specific to industries classified under certain NAICS codes.

💡Campus Links

In the video, 'Campus Links' is mentioned as part of the process to access research guides and resources, including NAICS codes, through a university library's website. This term is used to guide viewers on how to navigate library resources for business and economic research.

💡Keyword Search

Keyword search is a method of searching for information using specific words or phrases. In the context of the video, keyword search is demonstrated as a way to find NAICS codes for specific industries, such as searching for 'coffee' to find the code for coffee shops.

💡SIC Code

SIC codes, or Standard Industrial Classification codes, were used by the U.S. Census before the adoption of NAICS codes in 1992. The video mentions SIC codes as a predecessor to NAICS, noting that some databases still use SIC codes alongside NAICS for classification purposes.

💡Databases

Databases mentioned in the video include Hoovers, ReferenceUSA, and BizMiner, which provide detailed industry classifications and financial information. These databases are alternatives or supplements to the NAICS system, offering more detailed or specialized industry data.

Highlights

NAICS codes are used to define industries and are foundational for business and economic research.

NAICS stands for North American Industrial Classification System, created by the U.S. Census to classify industries.

NAICS codes are hierarchical, with longer numbers indicating more detailed industry classifications.

Codes can be up to 6 digits long, such as 513322 for cell phone service.

NAICS codes are part of the 'Information' family, which includes detailed industries like cell phone service.

NAICS codes are used for finding companies, industry research, reports, and benchmarking financials.

NAICS codes can also be used to analyze labor trends and economic data.

The NAICS guide serves as a homebase for accessing the NAICS section of the Census website.

Accessing NAICS codes involves navigating through 'Campus Links', 'Libraries', and 'Research Guides by Subject'.

The NAICS homepage provides a comprehensive classification of the U.S. economy, from farming to government services.

Industry profiles on the NAICS website include definitions, scope notes, and examples of included and excluded items.

NAICS codes can be searched by keyword, yielding results from various industries related to the search term.

For specialized or new industries not covered by NAICS, alternative databases like Hoovers or ReferenceUSA can be used.

BizMiner is another resource for detailed financial industry breakdowns.

SIC codes, the predecessor to NAICS, are still used in some databases and can be accessed through the NAICS guide.

The NAICS guide provides a link to OSHA's website for searching SIC codes.

Contact information for the Business Librarian, Steve Cramer, is provided for further assistance with NAICS and SIC codes.

Transcripts

Hello, this is Steve Cramer, the Business Librarian.

Today's topic is NAICS codes. These are codes used to define industries...

and are the foundation of many types of business and economics research.

NAICS stands for North American Industrial Classification System.

The U.S. Census created this system in order to classify industries, and it covers all kinds of industries.

The codes are hierarchical -- the longer the number, the more detailed the industry.

They can be up to 6 digits long. For example,

513322 is the NAICS code for cell phone service.

That's part of the "Information" family of codes, the sector that includes more detailed industries like "cell phone service".

What's the point? Well, NAICS codes can be used in many different ways...

including finding companies, industry research and reports, benchmarking financials (I have another video on that topic)....

and also economics, like finding labor trends.

So NAICS is a widely used type of industry classification.

I'm going to use my NAICS guide as our homebase, but I'll also show you how to get to the NAICS section of the Census web site.

From the campus homepage, we will select "Campus Links" and then "Libraries".

And then "Research Guides by Subject"...

And I will pick this time MEHT [Marketing Entrepreneurship Hospitality and Tourism]...

And then "Welcome & Guides"....

And over here on the left side, "NAICS & SIC Industry Codes".

Then we select over here to get to the NAICS homepage.

Now, if you start at the census.gov homepage,

Mouse over "Business" and find the NAICS link right underneath.

I want to begin by browsing the codes using the "2012 NAICS" link on the right.

Note how broad the coverage of industries is:

It goes everywhere from farming to retailing to even government services -- all have their own NAICS codes.

It's a comprehensive classification of the economy of the United States.

For example, let's go into 72, Accommodations and Food Services...

At the bottom we will find 722515, Snack and Nonalcoholic Beverage Bars.

And so here is a full NAICS profile...

You have the definition and scope note here on top,

and examples of what this industry includes...

and also down here what it does not include.

For example, it does not include restaurants whether full-service or limited-service [fast food]...

For example, if you are running a cupcake truck...

That's a different code, one that represents Mobile Food Services.

At the bottom you have a more detailed list of related items that fall under this NAICS industry.

For example, Ice Cream Parlors are part of this industry.

Sometimes the codes get updated, and you can see the differences here between 2007 and 202.

That's unusual but does happen sometimes

Often when you are searching by keyword, you will get hits from this list of indexed entries...

representing the different aspects of this one industry.

Let's do a search now...say you are looking for the code for a coffee shop.

I'm going to keep my search simple and just enter "coffee"...

And notice we have a lot of hits...

There's hits for farming, many types of food manufacturing, also wholesaling...

And at the bottom you will see service industries, including coffee carts and coffee shops.

which is where we just were, and you can see "Coffee Shops" in the list.

That's one simple way of finding a code by keyword searching.

That was a pretty easy example. Sometimes, though, you may not find the right code...

There may not be a code detailed enough to handle a very new or innovative or specialized industry.

When that happens, there are some alternatives...

You can try Hoovers [or ReferenceUSA], which classifies a much more detailed level of industries.

And there's also BizMiner for financial, for very detailed industry breakdowns.

I can help you with those databases if needed -- just let me know.

Finally, sometimes you might see a reference to a SIC code...

Standard Industrial Classification, it's called.

This was what the Census used before beginning to use NAICS codes in 1992.

But some databases like Hoovers [and ReferenceUSA] still use SIC codes plus NAICS codes.

If you need to search for SIC codes,

Go back to my NAICS guide, which has a SIC code section...

with links to a web site from OSHA, which does still use SIC codes.

You can keyword-search, or search by number, and also browse them.

So if you need SIC codes, there is still this tool you can use.

This is the end -- thank you for watching, and don't forget, if you ever need anymore help....

Please let me know. You can visit me in the library...

Or contact me in many other ways.You can also contact iMinerva. And, that's all, bye!