Published Oct 25, 2023 The North American Industry Classification System (NAICS) is an industry classification system that categorizes businesses into various sectors based on their economic activity. It is used by government agencies, businesses, and researchers to analyze and compare economic data across North America. Let’s say you are a researcher studying the manufacturing industry in the United States, Canada, and Mexico. By using the NAICS system, you can easily identify and analyze specific subsectors within the broader manufacturing industry, such as food manufacturing, chemical manufacturing, or machinery manufacturing. This allows you to compare data and trends within these subsectors across different countries and regions. For instance, you may find that the food manufacturing industry is growing rapidly in the United States, while it is experiencing a decline in Canada. By examining the factors contributing to these differences, you can gain valuable insights into the economic dynamics of each country and develop informed strategies for the future. NAICS provides a standardized and comprehensive framework for classifying industries, making it easier to collect, analyze, and compare economic data. It allows policymakers, businesses, and researchers to understand the structure and dynamics of different industries, identify trends and patterns, and make data-driven decisions. NAICS also facilitates economic planning, policy development, and targeting of resources. For example, government agencies can use NAICS codes to identify sectors in need of support or regulation, allocate funding based on industry priorities, and track the performance of specific industries over time. In summary, NAICS is a valuable tool for understanding and analyzing the complex and diverse landscape of industries across North America, enabling informed decision-making and effective resource allocation.Definition of North American Industry Classification System (NAICS)
Example
Why NAICS Matters
Economics