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NAICS TM Implementation of NAICS: North American Industry Classification System What is NAICS? New Industry Classification System Concept: Group establishments by production processes Established in 1997

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slide1

NAICS

TM

Implementation of NAICS: North American Industry Classification System

what is naics
Whatis NAICS?
  • New Industry Classification System
  • Concept: Group establishments by production processes
  • Established in 1997
  • Developed in cooperation with our NAFTA partners, Canada and Mexico
why develop naics
Why Develop NAICS?

SIC was:

  • Developed in the 1930s
  • Emphasized manufacturing, not growing service and high tech industries
  • Revisions made little change to the original structure
  • Last revised in 1987
how does naics differ from sic
How Does NAICS Differ from SIC?
  • Based on the “production function” concept
  • Emphasizes new and emerging industries, high-technology industries, and service industries
  • Provides for comparability with Canada and Mexico
  • Will be regularly maintained, current plans are for revisions every 5 years: 2002, 2007, etc.
slide5

What is the NAICS Structure?

20 sectors (21 counting Unclassified)

1.198 Industries (US) 175 more than under SIC system

6-digit numbering system

slide6

NAICS Sectors

11Agriculture, Forestry, Fishing and Hunting

21Mining

22Utilities

23Construction

31-33Manufacturing

42Wholesale Trade

44-45Retail Trade

48-49Transportation and Warehousing

51Information

52Finance and Insurance

53Real Estate & Rental & Leasing

slide7

NAICS Sectors

54Professional, Scientific & Technical Services

55Management of Companies and Enterprises

56Administrative & Support & WasteManagement & Remediation Services

61Educational Services

62Health Care & Social Assistance

71Arts, Entertainment, & Recreation

72Accommodation & Food Services

81Other Services (except public administration)

92Public Administration

99Unclassified

slide9

NAICS/SIC Structure

NAICS

2-digit Sector

3-digit Subsector

4-digit Industry Group

5-digit NAICS Industry

6-digit U.S. Industry

SIC

Division Letter

2-digit Major Group

3-digit Industry Group

4-digit Industry

slide10

Code

72

721

7211

72119

721191

Title

Accommodation & Food Services

Accommodation

Traveler Accommodation

Other Traveler Accommodation

Bed-and-Breakfast Inns

NAICS Structure

As with SIC, more digits = more detail

slide11

NAICS - North American

Industry Classification System

Number of codes:

6 digit - 1,198

5 digit - 725

4 digit - 314

3 digit - 98

2 digit - 24

Super Sector 11

`

agriculture forestry fishing hunting 11
Agriculture, Forestry,Fishing & Hunting 11

Changes to sector:

Moved in

  • Logging

Moved out

  • Veterinarians
  • Agricultural Research
  • Horticultural and Landscape Activities
utilities 22
Utilities - 22
  • Combination utilities no longer exist
  • Examples of new electric power industries
    • Fossil Fuel Electric Power
    • Nuclear Electric Power
  • Refuse systems

Administrative & Support, Waste Management, & Remediation Services

construction 23
Construction - 23
  • Subsectors basically comparable to SIC major groups
  • In the Construction of Buildings subsector, industry is based on whether construction is new or remodeling
    • New Single Family Housing Construction
    • New Housing Operative Builders
    • Residential Remodelers
manufacturing 31 33
Manufacturing 31-33
  • Reorganized and restructured = comparability with Canada and Mexico
    • 474 industries,
    • 173 revised industries,
    • 79 new industries
  • New Computer and Electronic Products Manufacturing Subsector
slide20

Manufacturing 31-33

  • Incoming:
    • Retail Bakeries
    • Custom wood cabinets, furniture
    • Dental Laboratories
    • Tire Re-treading
  • Outgoing
    • Logging
    • Publishing
redefinition of wholesale retail
Redefinition of Wholesale/Retail
  • SIC based on class of customer
  • NAICS based on method of selling
  • Restaurants no longer included in retail
wholesale trade 42
Wholesale Trade 42
  • Three types of wholesalers
    • Merchant Wholesalers
    • Business-to-Business Electronic Markets
    • Agents and Brokers
  • Merchant wholesalers sell goods on their own account; the other two do not
  • Classification dependent on whether they take title to goods
retail trade 44 45
Retail Trade 44 - 45
  • New Industries
    • Discount Department Stores
    • Warehouse Clubs and Superstores
    • Gasoline Stations with Convenience Stores
    • Electronic Shopping
  • Going Elsewhere
    • Eating and Drinking Places
    • Retail Bakeries
transportation warehousing 48 49
Transportation & Warehousing 48 - 49
  • Trucking no longer distinguished by whether or not storage is provided
    • General Freight Trucking, Long Distance, Truckload
    • General Freight Trucking, Long-Distance, Less Than Truckload
  • No distinction between land and air couriers
  • Waste collection and travel agencies

Admin/Support & Waste Management & Remediation Services

information sector 51
Information Sector 51
  • New Industries: - Cellular and other Wireless Telecommunications- Telecommunications Resellers- Internet Publishing and Broadcasting - Internet Service Providers- Web Search Portals
  • Rest created from:Manufacturing:PublishingTCPU: Broadcasting & CommunicationsServices:Motion Picture & Sound Recording Information Services & Data Processing Libraries
restructuring of finance industries 52
Restructuring of Finance Industries 52
  • Recognizes rapid change and deregulation
  • New industries include:
    • Credit Card Issuing
    • Financial transactions Processing, Reserveand Clearinghouse Activities
    • Investment Banking and Securities Dealing
reorganization of old services division
NAICS

Real Estate and Rental and Leasing

Professional, Scientific, & Technical Services

Administrative and Support; Waste Management and Remediation Services

Educational Services

Health Care and Social Assistance

Arts, Entertainment and Recreation

Accommodation and Food Services

Other Services (except Public Admin)

Reorganization of Old “Services” Division

1987 SICServices

professional scientific technical services 54
Professional, Scientific, & Technical Services 54

Grouped by expertise and training

of service provider

  • 28 new industries
    • Offices of CPAs
    • Interior Design Services
    • Environmental Consulting
    • Marketing Research & Opinion Polling
    • Consultants
administrative support waste management remediation 56
Administrative & Support & Waste Management & Remediation 56

29 new industries

  • Professional Employer Organizations
  • Convention & Visitors Bureaus
  • Repossession Services
  • Hazardous Waste Collection

Industries that support businesses

health care and social assistance 62
Health Care and Social Assistance 62

27 new industries not found under the SIC

  • HMO Medical Centers
  • Diagnostic Imaging Centers
  • Blood and Organ Banks
  • Residential Mental Health and Substance Abuse Facilities
  • Continuing Care Retirement Facilities
accommodation and food services 72
Accommodation and Food Services 72

New eating place industries

  • Full-Service Restaurants
  • Limited-Service Restaurants
  • Cafeterias
  • Food Service Contractors
  • New lodging industries
    • Casino Hotels
    • Bed-and-Breakfast Inns
public administration 92
Public Administration 92
  • Tribal government added
  • A governmental and a private unit will have the same NAICS code if they perform the same activity

- Air Traffic Control is 488111

naics u s manual
NAICS U.S. Manual
  • Published in 1998
  • 1170 descriptions
  • Contains “Bridge” NAICS/SIC tables
  • Approximately 12,000 index items in an alphabetic sequence

ALREADY OBSOLETE: NAICS 1997

Replacement published in 2002

naics 2002
NAICS 2002

NAICS 2002 is the first “five-year” revision to NAICS 1997

Revision was effective January 1, 2002

  • Final Federal Register notice: January 16, 2001

Goals of the revision

  • Increase comparability among the three countries
  • Identify new and emerging industries
  • Restructure Wholesale Trade (US only)
naics 200235
NAICS 2002

Industries impacted by NAICS 2002:

  • Construction International comparability at fifth digit, and (BLS only) residential/nonresidential distinction at sixth digit
  • Wholesale Trade
  • Department Stores
  • Electronic shopping and auctions
  • Information
  • Next revision: 2007
      • Complete restructuring of “distribution network” industries: Wholesale, Retail, Transportation and Warehousing
implementation timing across agencies
Implementation Timing Across Agencies
  • Phase in by statistical agencies
  • Completion of implementation by 2005
naics implementation schedule
Internal Revenue Service

Census Bureau

Bureau of Economic Analysis

Bureau of Labor Statistics

Tax Year 1998

1999 - 2002

1999 - 2004

2002 - 2005

NAICS Implementation Schedule

U.S. Statistical Agencies

covered employment wages es 202
Covered Employment & Wages(ES-202)
  • ES-202 is cornerstone employment program
  • Universe for virtually all BLS programs
  • Very detailed coverage: 8.2 million establishments, data aggregated by ownership/county/NAICS
  • Codes continually verified on a three-year cycle
  • 1998-2000: States polled companies to determineNAICS 1997 code (while still verifying SIC)
covered employment wages es 20241
Covered Employment & Wages(ES-202)
  • 2001: Recoded for NAICS 2002
  • Will continue to dual-code SIC and NAICS New units: Through FY 2002 (September 30, 2002) Existing units: Will maintain but not update SIC
  • Publication by BLSWhen: December 2001 MLR articles, full pub. in 2002 What: Data for 2001 and SIC/NAICS ratio tables
  • Historical reconstruction by BLS? Undecided
more information
More information

http://www.census.gov/epcd/www/naics.html

to find naics codes
To find NAICS Codes

http://www.census.gov/epcd/naics02/naicsod02.htm

order a copy of the 2002 naics manual
Order a copy of the 2002 NAICS Manual:

Call 800-553-6847 or go to:

  • http://www.ntis.gov

Now Available -2002 Hardcover print edition!$45 PB2002-101430

CD-ROM with search and retrieval software

$60 PB2002-502024

occupational employment statistics

OccupationalEmploymentStatistics

The difference betweenOccupations and Industry

occupation
Occupation

Standard Occupational Classification (SOC)

  • System for classifying all occupations in the economy
  • Used by all Federal statistical agencies collecting occupational data
  • Classifies workers (employees) by the job tasks performed
industry
Industry

OES surveys provide occupations by industry

“Snapshot” of the type of work performed within an industry

how naics affects oes
How NAICS affects OES
  • Break in time series –
    • Staffing patterns will not be comparable!
  • Provide occupations for new emerging industries: i.e. Information sector of NAICS
  • More forms! (Because of more industry sectors)
projections
Projections
  • Current Industry Projections based on SIC codes
  • With NAICS, next industryprojections may not be based on a full three years’ worth of data
  • Occupation projections are still possible because the occupation coding will not change
current employment statistics ces56
Current Employment Statistics (CES)
  • CES more commonly used time series
  • Decreased risk of confidentiality disclosurewith higher level of aggregation forpublication
  • Data for all 20 sectors are available for the statewide but not the area series
slide57

Current Employment Statistics (CES)

  • Publication by BLS and statesTwo-year benchmark from January 2001 through December 2002 State & Area: March 2003 National: June 2003
  • Maintain continuity at “Total Nonfarm” level

Retain logging, despite reclassification to agricultureDrop animal production support (part of SIC 075)

current employment statistics ces58
Current Employment Statistics (CES)

Time series reconstruction

State & Area1939 - current for Total Nonfarm

1990 - 2000 for All Employee series 2001 – 2002 All Employee Benchmark

2003 January all estimates done in NAICS

NO Hours & Earnings reconstruction:

Will start January 2003 by estimation

NAICS based historical reconstruction at:http://data.bls.gov/labjava/outside.jsp?survey=sm

supersectors
SUPERSECTORS
  • Collections of sectors similar to SIC divisions.
  • Statewide data is seasonally adjusted at the Supersector level.
  • Written analysis on Supersector data for Statewide and Denver MSA.
  • Statewide Supersector data has been reconstructed by BLS back to 1990.
  • Links to the data reconstruction on CES homepage.
supersector detail goods producing
Supersector Detail:Goods Producing
  • Natural Resources and Mining:
    • Sector 11 (Agriculture, forestry, fishing and hunting)
    • Sector 21 (Mining)
  • Construction:
    • Sector 23 (Construction)
  • Manufacturing:
    • Sectors 31-33 (Manufacturing)
service producing
Service Producing
  • Trade, Transportation, and Utilities:
    • Sector 42 (Wholesale trade)
    • Sector 44-45 (Retail trade)
    • Sector 48-49 (Transportation and warehousing)
    • Sector 22 (Utilities)
service producing62
Service Producing
  • Information:
    • Sector 51 (Information)
  • Financial Activities
    • Sector 52 (Finance and insurance)
    • Sector 53 (Real estate and rental and leasing)
service producing63
Service Producing
  • Professional and Business Services:
    • Sector 54 (Professional, scientific, and technical services)
    • Sector 55 (Management of companies and enterprises)
    • Sector 56 (Administrative and support and waste management and remediation services)
service producing64
Service Producing
  • Education and Health Services:
    • Sector 61 (Educational services)
    • Sector 62 (Health care and social assistance)
  • Leisure and Hospitality:
    • Sector 71 (Arts, entertainment, and recreation)
    • Sector 72 (Accommodation and food services)
changes to statewide ces published data
Changes To Statewide CES Published Data
  • Employment level estimates reported in industry category cells.
  • Published government cells will not change.
  • Non-governmental cells at statewide level will increase from 67 SIC to 80 NAICS.
  • Some loss of detail in
    • Mining
    • Manufacturing
    • Retail trade.
changes to statewide ces published data67
Changes To Statewide CES Published Data
  • Offset by a considerable increase of detail in SIC industries classified now under NAICS Services, TCU and FIRE.
  • New industry classifications regain the loss of detail from Manufacturing and Retail Trade.
supersector by supersector comparison ces published data differences sic to naics

Supersector by Supersector comparison CES published data differences SIC to NAICS.

All graphs are employment in thousands.

natural resources and mining70
Natural Resources and Mining
  • SIC Mining + Mfg. Logging firms Natural Resources & Mining Supersector.
  • Loss of Detail from SIC
    • Metal Mining
    • Coal Mining
    • Oil and Gas Extraction

Natural Resources and Mining NAICS 10-000000

  • NAICS Supersector only.
construction72
Construction

New detail:

  • 3 SIC to 6 NAICS

Detail from SIC:

  • General Building Contractors
  • Heavy Construction, Exc. Building
  • Special Trade Contractors
construction73
Construction

New detail from NAICS 20-000000:

  • Construction of Buildings 20-236000
  • Heavy and Civil Engineering Construction 20-237000
construction74
Construction

New detail:

  • Specialty Trade Contractors 20-238000
    • Foundation, Structure, and Building Exterior Contractors 20-238100
    • Building Equipment Contractors20-238200
    • Building Finishing Contractors20-238300
manufacturing76
Manufacturing

NAICS 30-000000 change of detail

Durable goods detail in from SIC:

  • Lumber & Wood Production Including Furniture
  • Stone, Clay, & Glass Products
  • Primary, Fabricated Metal Products
  • Computer & Office Equipment Instruments & Related Product
manufacturing77
Manufacturing

Durable, new detail from NAICS 31-000000:

  • Nonmetallic Mineral Product Manufacture

31-327000

  • Fabricated Metal Product Manufacture

31-332000

  • Computer and Electronic Product Manufacture 31-334000
  • Transportation Equipment Manufacture 31-336000
manufacturing78
Manufacturing

Non-Durable Goods loss of detail from SIC:

  • Food and Kindred Products
  • Meat Products
  • Dairy Products
  • Beverages
  • Textiles, Apparel & Leather Products
  • Paper & Allied Products
  • Printing and Publishing (splits between Non-durableand new Information)
  • Chemicals, Petroleum & Coal Products
manufacturing79
Manufacturing

Non-Durable new detailfrom NAICS 32-000000 (5 fewer categories)

  • Food manufacturing 32-311000
  • Beverage Manufacturing 32-312000
  • Printing and Related Support Activities 32-323000 (Publishing is now in Information)
trade transportation utilities information81
Trade, Transportation & Utilities / Information

TCU and Trade is a new aggregation.

  • Major changes with higher detail.

Communication

Supersector – Information.

trade transportation utilities information82
Trade, Transportation & Utilities / Information

TCU, SIC detail:

  • Trucking and Warehousing
  • Transportation by Air
  • Communications Information
  • Electric, Gas & Sanitary Services
trade transportation utilities information83
Trade, Transportation & Utilities / Information

Transportation, Warehousing and Utilities

New detail in NAICS 40-000000:

  • Utilities 22
  • Transportation and Warehousing 48-49
  • Air Transportation 481
  • Truck Transportation 484
  • Couriers and Messengers 492
  • Warehousing and Storage 493
trade transportation utilities information84
Trade, Transportation & Utilities / Information

Wholesale Trade

  • same detail level in NAICS and SIC.

Trade

  • change of detail in Retail
  • some split-off from Retail into new NAICS industries.
trade transportation utilities information85
Trade, Transportation & Utilities / Information

Wholesale Trade

SIC detail:

  • Durable goods
  • Non-Durable goods
trade transportation utilities information86
Trade, Transportation & Utilities / Information

Wholesale Trade

NAICS 41-000000 detail:

  • Merchant Wholesalers, Durable Goods41-423000
  • Merchant Wholesalers, Non-Durable Goods 41-424000
trade transportation utilities information87
Trade, Transportation & Utilities / Information

Retail Trade in SIC:

  • Building Materials, Garden Supply Stores
  • General Merchandise Stores
  • Food Stores
  • Automotive Dealers & Service Stations
  • Apparel & Accessory Stores
  • Home Furnishings & Equipment Stores
  • Eating & Drinking Places

NAICS Leisure and Hospitality

trade transportation utilities information88
Trade, Transportation & Utilities / Information

Retail Trade, NAICS 42-000000 detail:

  • Motor Vehicle and Parts Dealers 42-441000
  • Building Material and Garden Equipment and Supplies Dealers 42-444000
  • Food and Beverage Stores 42-445000
  • General Merchandise Stores 42-452000
trade transportation utilities information89
Trade, Transportation & Utilities / Information

Information 50-000000

  • Newindustry
  • Communications from TCU
  • Publishing from the SIC Non-Durable Goods Industryat greater detail.
trade transportation utilities information90
Trade, Transportation & Utilities / Information

NAICS detail:

  • Publishing Industries (except internet) 50-511000
  • Newspaper, Periodical, Book, and Directory Publishers 50-511100
  • Software Publishers 50-511200
  • Telecommunications 50-517000
financial activities92
Financial Activities

FIRE greater detail in NAICS Financial Activities.

SIC detail:

  • Depository Institutions
  • Insurance
  • Real Estate
financial activities93
Financial Activities

Financial Activities, NAICS 55-000000 detail:

  • Finance and Insurance 55-520000
    • Credit Intermediation and Related Activities 55-522000
    • Securities, Commodity Contracts, and Other Financial Investments and Related Activities 55-523000
    • Insurance Carriers and Related Activities 52-524000
  • Real Estate and Rental and Leasing

55–530000

    • Real Estate 55-531000
services95
Services

Greatest changes and additional detail!

Services will split into 4 Supersectors.

under SIC 17 CES detail cells

under NAICS 28 detail cells.

services sic
Services - SIC

Services SIC detail:

  • Hotels & Other Lodging Places
  • Personal Services
  • Business Services
  • Computer & Data Processing Services
  • Motion Pictures
  • Amusements & Recreation Services
services sic97
Services - SIC

Services SIC detail (cont.)

  • Ski Lift Operators Leisure & Hospitality
  • Health Services
  • Hospitals
  • MD’s and Other Health Care Practitioners
  • Nursing Facilities & Home Health Care
  • Legal Services
services sic98
Services - SIC

Services SIC detail, cont:

  • Educational Services
  • Social Services
  • Membership Organizations
  • Engineering & Management Services
  • Agricultural Services
professional and business services 60 000000

Services - NAICS

PROFESSIONAL AND BUSINESS SERVICES 60-000000

professional and business services 60 000000100

Services - NAICS

Professional And Business Services 60-000000
  • Professional, Scientific and Technical Services 60-540000
    • Legal Services 60-541100
    • Architectural, Engineering and Related Services 60-541300
    • Computer Systems Design and Related Services 60-541500
professional and business services 60 000000101

Services - NAICS

Professional And Business Services 60-000000
  • Management of Companies and Enterprises 60-550000
  • Administrative and Support and Waste Management and Remediation Services 60-560000
    • Administrative and Support Services 60-561000
      • Employment Services 60–561300
      • Services to Buildings and Dwellings 60-561700
education and health services 65 000000

Services - NAICS

EDUCATION AND HEALTH SERVICES 65-000000

education and health services 65 000000103

Services - NAICS

EDUCATION AND HEALTH SERVICES 65-000000
  • Educational Services 65-610000
  • Health Care and Social Assistance 65-620000
    • Ambulatory Health Care Services 65-621000
    • Hospitals 65-622000
    • Nursing and Residential Care Facilities 65-623000
    • Social Assistance 65-624000
leisure and hospitality 70 000000

Services - NAICS

LEISURE AND HOSPITALITY

70-000000

leisure and hospitality 70 000000105

Services - NAICS

LEISURE AND HOSPITALITY 70-000000
  • Arts, Entertainment, and Recreation

70-710000

    • Amusement, Gambling, and Recreation Industries 70-713000
      • Other Amusement and Recreation Industries 70-713900 (contains the Ski industry)
accommodation and food services 70 000000

Services - NAICS

ACCOMMODATION

AND FOOD SERVICES 70-000000

accommodation and food services 70 720000

Services - NAICS

ACCOMMODATION AND FOOD SERVICES 70-720000
  • Accommodation 70-721000
  • Food Services and Drinking Places 70-722000 (formerly in Retail Trade)
slide108

Services - NAICS

OTHER SERVICES

80-000000

other services 80 000000

Services - NAICS

OTHER SERVICES80-000000
  • Repair and Maintenance 80-811000
  • Personal and Laundry Services 80-812000
  • Religious, Grantmaking, Civic, Professional, and Similar Organizations 80-813000
    • Religious Organizations 80-813100
denver boulder colorado springs msa s
Denver, Boulder,Colorado Springs MSA’s
  • Denver: 55 SIC non-government cells replaced by 64 NAICS cells .
  • Boulder: 16 SIC non-government cells expanded to 23 NAICS cells.
  • Colorado Springs: 18 SIC non-government cells expanded to 29 NAICS cells.
new broomfield county in denver msa
New Broomfield County In Denver MSA
  • January 2003: Denver MSA has 6 counties.
  • Broomfield adds 20,800 positions to Denver MSA from Boulder MSA.
  • This change breaks series in both MSA’s.
changes to denver and colorado springs msa s in 2005
Changes to Denver and Colorado Springs MSA’s in 2005
  • Denver MSA adds Clear Creek, Elbert, Gilpin, and Park Counties. This is an additional 1,511 businesses and 13,568 employment.
  • Colorado Springs MSA adds Teller County. This adds 674 establishments and 6,598 employees.
slide113

? ? ?

QUESTIONS?