North American Industry Classification System

Definition
The North American Industry Classification System (NAICS) is an industry classification system used by statistical agencies to facilitate the collection, tabulation, presentation, and analysis of data relating to establishments. NAICS is erected on a production-oriented conceptual framework that groups establishments into industries according to similarity in the process used to produce goods or services. Under NAICS, an establishment is classified to one industry based on its primary activity. NAICS was developed jointly by Canada, Mexico, and the United States to provide comparability in economic statistics. It replaced the Standard Industrial Classification (SIC) system in 1997.