NAICS (North American Industry Classification System Code)

The North American Industry Classification System (NAICS) is an industry-specific hierarchical coding system developed by the United States Office of Management and Budget to organize businesses for statistical tracking purposes. It is a federal government-authorized standard used by government agencies, private industry, and non-profit organizations in order to classify, collect, analyze, and publish economic data related to production activities within a particular sector. The NAICS code assigns each business a specific six-digit numerical code based on its primary business activity, providing greater granularity with respect to the existing Standard Industrial Classification (SIC) codes. This more detailed purchasing and procurement data helps companies ensure that they are compliant with all applicable policies and laws.