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Joanne Pratt Joanne H. Pratt Associates Dallas, Texas 75219 joanneprattpost.harvard

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Joanne Pratt Joanne H. Pratt Associates Dallas, Texas 75219 joanneprattpost.harvard

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    1. Focus on key points and direction that NAIC will probably go. Focus on key points and direction that NAIC will probably go.

    2. 1987 Standard Industrial Codes (SIC) The 10 Standard Industrial Codes reflected the fact that the U.S. economy depended largely on manufacturing. That began to change in the 80s as service industries began to represent a very significant portion of the U.S. economy and manufacturing decreased in relative importance. It was clear that the SIC classification codes had become outmoded.The 10 Standard Industrial Codes reflected the fact that the U.S. economy depended largely on manufacturing. That began to change in the 80s as service industries began to represent a very significant portion of the U.S. economy and manufacturing decreased in relative importance. It was clear that the SIC classification codes had become outmoded.

    3. NAICS PRINCIPLES Group by production processes Add new and emerging industries Maintain time series continuity Achieve greater comparability with NACE and ISIC North American Industry Classification system, NAICS, was the first industry classification system developed in accord with single principle of aggregation, the principle that producing units that use similar production processes should be grouped together in the classification. For example, a new emerging industry would be Internet auctions such as eBay As well see, maintaining time series continuity has a high priority in the U.S. It is important that achieving greater comparability is one of the key principles North American Industry Classification system, NAICS, was the first industry classification system developed in accord with single principle of aggregation, the principle that producing units that use similar production processes should be grouped together in the classification. For example, a new emerging industry would be Internet auctions such as eBay As well see, maintaining time series continuity has a high priority in the U.S. It is important that achieving greater comparability is one of the key principles

    4. NAICS Structure Changed from 10 SIC sectors to 20 in NAICS. Change was MAJOR for users of the classification systems: For example, SIC 7389, Business services not elsewhere classified (NEC), a group so diverse as to include telemarketing, swimming pool cleaning, and wig styling, is being subdivided into 23 pieces, and five of those pieces are being combined with pieces from other SICs to form new NAICS industries. Sectors: The EU common position paper has total of 11 items in the top structure. E.G. Wholesale and retail trade are combined with Transportation into one sector. Agriculture Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and warehousing Information Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific and Technical Services Management of Companies and enterprises Administrative and support and waste management and remediation services Educational services Health Care and Social Assistance Arts, Entertainment and Recreation Accommodation and Food Services Other Services Public Administration Changed from 10 SIC sectors to 20 in NAICS. Change was MAJOR for users of the classification systems: For example, SIC 7389, Business services not elsewhere classified (NEC), a group so diverse as to include telemarketing, swimming pool cleaning, and wig styling, is being subdivided into 23 pieces, and five of those pieces are being combined with pieces from other SICs to form new NAICS industries. Sectors: The EU common position paper has total of 11 items in the top structure. E.G. Wholesale and retail trade are combined with Transportation into one sector. Agriculture Mining Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and warehousing Information Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific and Technical Services Management of Companies and enterprises Administrative and support and waste management and remediation services Educational services Health Care and Social Assistance Arts, Entertainment and Recreation Accommodation and Food Services Other Services Public Administration

    5. In this concordance tables, each item is hyperlinked to the detailed levels below the top categories.In this concordance tables, each item is hyperlinked to the detailed levels below the top categories.

    6. Options to achieve international comparability New common classification system: Deemed infeasible because of cost, time and loss of continuity Limit changes in NAICS: 45 changes achieves 290 detailed groupings plus 94 related aggregations Concordance: create to show differences and similarities between NACE and NAICS www.census.gov/epcd/naics02/concordances The NACE classification system is a lot like the U.S. SIC system which gave a great deal of detail on manufacturing industries. The NAICS manual points out that it is catching up on changes occurring in industry whereby manufacturing is playing a lesser role in total economic activities. Information is a new sector, which apparently will be a common classification for NACE, ISIC and NAICS. The NACE classification system is a lot like the U.S. SIC system which gave a great deal of detail on manufacturing industries. The NAICS manual points out that it is catching up on changes occurring in industry whereby manufacturing is playing a lesser role in total economic activities. Information is a new sector, which apparently will be a common classification for NACE, ISIC and NAICS.

    7. Information Sectors Assumes definition of Information Sector of NAICS (2002 version) as basis of the converged classification. A stated objective of the project from the outset. assumes that the definition of the Information sector for the 2002 version of NAICS will be the basis of the converged classification. A stated objective of the project from the outset. assumes that the definition of the Information sector for the 2002 version of NAICS will be the basis of the converged classification.

    8. Information Sector, NAICS 51 Publishing industries (7) Motion Picture and Sound Recording Industries (11) Broadcasting, except Internet (4) Internet Publishing and Broadcasting Telecommunications (6) Internet Service Providers, Web Search Portals and Data Processing (2) Other Information Services (5) Information is the biggest change. It brings industries from 4 sectors under Information: Publishing was in manufacturing Telecommunications was in transportation and utilities Motion pictures was in entertainment Information is the biggest change. It brings industries from 4 sectors under Information: Publishing was in manufacturing Telecommunications was in transportation and utilities Motion pictures was in entertainment

    9. 51, Information Sector includes NACE and ISIC codes: 22 publishing 64 telecommunications 72 data base, software 74 other business activities, n.e.c. 92 motion pictures, video, TV, radio Call centers for telemarketing or presumably for customer technical support are in ISIC 7499 Other business activities Call centers for telemarketing or presumably for customer technical support are in ISIC 7499 Other business activities

    10. Due to difficulty of making NACE and NAICS totally comparable, the idea of establishing a concordance seems the best solution. This is just a section of the concordance for NAICS 2002 that shows NAICS 51, the Information Sector. Notice that it includes NACE codes 22, 72 and 92.Due to difficulty of making NACE and NAICS totally comparable, the idea of establishing a concordance seems the best solution. This is just a section of the concordance for NAICS 2002 that shows NAICS 51, the Information Sector. Notice that it includes NACE codes 22, 72 and 92.

    11. E.g. NACE 64.20 Telecommunications equivalent to NAICS 2002: 515111 radio networks 515112 radio stations 515120 television broadcasting 515210 cable & other subscription programming 517110 wired telecommunications carriers 517211 paging 517212 cellular & other wireless telecommunications 517310 telecommunications resellers 517510 cable & other program distribution 517910 other telecommunications 518111 Internet service providers This shows the 4-digit NACE 64.20 with the 6 digit NAICS detail.. In each case, it is operation of paging networks, for example. Sector 51 also includes 92.20 with 64.20 but differentiates between stations and networks: 515111 radio networks includes both 64.20, telecommunications, and 92.20 Radio & TV activities Networks 515112 radio stations includes 64.20 telecommunications and 92.20 Radio & TV activities Radio stations This shows the 4-digit NACE 64.20 with the 6 digit NAICS detail.. In each case, it is operation of paging networks, for example. Sector 51 also includes 92.20 with 64.20 but differentiates between stations and networks: 515111 radio networks includes both 64.20, telecommunications, and 92.20 Radio & TV activities Networks 515112 radio stations includes 64.20 telecommunications and 92.20 Radio & TV activities Radio stations

    12. 2002 NAICS Definitions: 518111 Internet Service Providers The definitions on the Internet are very helpful in understanding what is included in each subcategory. For example, 518111 Internet Service Providers This U.S. industry comprises establishments known as Internet service providers. Establishments in this industry provide clients access to the Internet and generally provide related services such as web hosting, web page designing, and hardware or software consulting related to Internet connectivity. Establishments in this industry may provide local, regional, or national coverage for clients or provide backbone services (except telecommunications carriers) for other Internet service providers. Internet service providers have the equipment and telecommunication network access required for a point-of-presence on the Internet. Cross-References. Establishments primarily engaged in-- Publishing or broadcasting exclusively on the Internet--are classified in Industry 516110, Internet Publishing and Broadcasting Web hosting--are classified in Industry 518210, Data Processing, Hosting, and Related Services; Designing web sites for others on a fee basis--are classified in U.S. Industry 541511, Custom Computer Programming Services; and Providing telecommunications related consulting services--are classified in U.S. Industry 541618, Other Management Consulting Services. The definitions on the Internet are very helpful in understanding what is included in each subcategory. For example, 518111 Internet Service Providers This U.S. industry comprises establishments known as Internet service providers. Establishments in this industry provide clients access to the Internet and generally provide related services such as web hosting, web page designing, and hardware or software consulting related to Internet connectivity. Establishments in this industry may provide local, regional, or national coverage for clients or provide backbone services (except telecommunications carriers) for other Internet service providers. Internet service providers have the equipment and telecommunication network access required for a point-of-presence on the Internet. Cross-References. Establishments primarily engaged in-- Publishing or broadcasting exclusively on the Internet--are classified in Industry 516110, Internet Publishing and Broadcasting Web hosting--are classified in Industry 518210, Data Processing, Hosting, and Related Services; Designing web sites for others on a fee basis--are classified in U.S. Industry 541511, Custom Computer Programming Services; and Providing telecommunications related consulting services--are classified in U.S. Industry 541618, Other Management Consulting Services.

    13. 541511 Custom Computer Programming Services So if youre looking for the web design category we are studying in WP7, you can find it not under 51, but in 541511, Custom Computer Programming Services. This U.S. industry comprises establishments primarily engaged in writing, modifying, testing, and supporting software to meet the needs of a particular customer. Cross-References. Establishments primarily engaged in-- Publishing packaged software--are classified in Industry 511210, Software Publishers; and Planning and designing computer systems that integrate computer hardware, software, and communication technologies, even though such establishments may provide custom software as an integral part of their services,--are classified in U.S. Industry 541512, Computer Systems Design Services. So if youre looking for the web design category we are studying in WP7, you can find it not under 51, but in 541511, Custom Computer Programming Services. This U.S. industry comprises establishments primarily engaged in writing, modifying, testing, and supporting software to meet the needs of a particular customer. Cross-References. Establishments primarily engaged in-- Publishing packaged software--are classified in Industry 511210, Software Publishers; and Planning and designing computer systems that integrate computer hardware, software, and communication technologies, even though such establishments may provide custom software as an integral part of their services,--are classified in U.S. Industry 541512, Computer Systems Design Services.

    14. Problems raised Disruption from major revisions: Data discontinuities Users need time to learn language of new classification system (NAICS vs. SIC) Lack of staff and staff time Suggests no major revisions until 2012 or later What is the future plan for NAICS? Public comments were formally requested. The Bureau of Census is now assessing public comments on priority of principles Changing from SIC to NAICS was a huge change for data users. One respondent noted that the Codes are a language, and many people still have the SIC codes on their tongues. Thus they really dont want another radical change between NAICS 2002 and 2007.What is the future plan for NAICS? Public comments were formally requested. The Bureau of Census is now assessing public comments on priority of principles Changing from SIC to NAICS was a huge change for data users. One respondent noted that the Codes are a language, and many people still have the SIC codes on their tongues. Thus they really dont want another radical change between NAICS 2002 and 2007.

    15. NAICS 2007 User Priorities Avoid major change in near term Maintain time series continuity Account for new and emerging industries Develop a workable concordance State of Nevada staff Research & Analysis Bureau: Time series continuity (75%) State of California Labor Market Information Division: Time series continuity Concordance method as least intrusive Air Courier Conference of America trade association; PA Dept of Labor: Account for new and emerging industries A librarian for they NYS Small Bus. Develop. Center While international compatibility is desirable, a total revision of NAICS to NACE/ISIC would confound the users who are still using SIC in large measure. Dir. Market research for Henkel Loctite Corp. The need for greater comparability of international data: this is a criti al issue for us and the time and energy currently used to compare customer data is enormous. ..By far Concordance is my preferred choice. 2007 will be a minor revision, not a major change. State of Nevada staff Research & Analysis Bureau: Time series continuity (75%) State of California Labor Market Information Division: Time series continuity Concordance method as least intrusive Air Courier Conference of America trade association; PA Dept of Labor: Account for new and emerging industries A librarian for they NYS Small Bus. Develop. Center While international compatibility is desirable, a total revision of NAICS to NACE/ISIC would confound the users who are still using SIC in large measure. Dir. Market research for Henkel Loctite Corp. The need for greater comparability of international data: this is a criti al issue for us and the time and energy currently used to compare customer data is enormous. ..By far Concordance is my preferred choice. 2007 will be a minor revision, not a major change.

    16. Adoption Process Reviewed every 5 years (2007) U.S., Canada, Mexico studying ISIC, NACE and NAICS Current revision must be ready to use in 2007 economic census of businesses, which is done every 5 years.Current revision must be ready to use in 2007 economic census of businesses, which is done every 5 years.

    17. Probable direction of NAICS Compare over time (U.S. 2010 vs. U.S. 2000), not over space (U.S. vs. Europe) Concordance is appropriate tool

    18. Questions?

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