Industry Classification Codes: SIC and NAICS
What Is an SIC Code?SIC stands for Standard Industry Classification. It’s a four-digit code created in the United States in 1937 and was designed to quickly group areas of production/industry. The SIC codes can be grouped into progressively broader industry classifications: industry group, major group, and division. The first three digits of the SIC code indicate the industry group, and the first two digits indicate the major group.
What Is a NAICS Code?Introduced in 1997, the NAICS numbering system that is shared collaboratively between Mexico, Canada and the United States, employs a six-digit code at the most detailed industry level. The first five digits are generally the same in all three countries. The first two digits designate the largest business sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industries, and the sixth digit designates the national industries. NAICS versions are released every five years, the last being in 2012.
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