Melissa offers products and services to provide NAICS and SIC codes for your business records, to better know your customers, prospects, and businesses. NAICS, or The North American Industry Classification System, is used to classify and measure businesses in the United States, Canada, and Mexico. It is often used in conjunction with or instead of the Standard Industrial Classification (SIC) system. Both are economy-based codes used to determine the type of industry into which a business can be categorized. NAICS replaced SIC codes for the most part, due to additional technology-based classification needs as market trends shifted and the Internet grew, but many companies find SIC codes more than meet their needs.
NAICS and SIC provide marketing and sales insight into individual business locations by organizing companies into industry-specific categories according to their primary line of business. By putting every business into sectors, subsectors, industry groups, and industries, these systems give you better access to know who you’re marketing to, their finances in income, and the target markets you want to reach.
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With NAICS and SIC codes, you can take a deep dive into the industry of every business in the U.S., Mexico, and Canada. NAICS and SIC separate each business into various sectors and subsectors, so you can better identify which industries will benefit from your marketing or sales.
The first two digits of a SIC code identify the major industry group, such as Manufacturing or Transportation. The third digit identifies the industry group, such as Electronic Components under the Electronics category. Finally, the fourth digit identifies the industry. And if an industry cannot be located, the number “9” is used in the third or fourth digit position to show NEC or Not Elsewhere Classified industries.
NAICS codes are 6-digits long and supply all the necessary information you need to define a business’s industry. By breaking down each part of the code, you can better understand your target markets.
The first two digits in NAICS provide the sector for the business, although there are three specific cases where more than one 2-digit code specifies sector: Manufacturing, Retail Trade, and Transportation and Warehousing each comprise a code range.
After identifying a main sector for the industry of a business, NAICS shows more in-depth information, including 99 subsectors, 312 industry groups, 713 industries, and 1,066 U.S. industries. The third digit in a NAICS code is the subsector, the fourth digit is the industry group level, the fifth digit is the international industry level, and the sixth digit is reserved for U.S. designation.
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