NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM

1 NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM United States, 2022 EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET 1 Foreword The Instituto Nacional de Estad stica y Geograf a (INEGI) of Mexico, Statistics Canada, and the United States Office of Management and Budget, through its Economic CLASSIFICATION Policy Committee, have jointly updated the SYSTEM of CLASSIFICATION of economic activities that makes the industrial statistics produced in the three countries comparable. The NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) revision for 2022 is scheduled to go into effect for reference year 2022 in Canada and the United States, and 2023 in Mexico. NAICS was originally developed to provide a consistent framework for the collection, analysis, and dissemination of industrial statistics used by government policy analysts, by academics and researchers, by the business community, and by the public.

2 Revisions for 2022 were made to account for our rapidly changing economies. Classifications serve as a lens through which to view the data they classify. NAICS was developed in accordance with a single principle of aggregation, the principle that producing units that use similar production processes should be grouped together. Though NAICS differs from other INDUSTRY CLASSIFICATION systems, the three countries continue to strive to create industries that do not cross two-digit Division boundaries of the United Nations' International Standard Industrial CLASSIFICATION of All Economic Activities (ISIC). The actual CLASSIFICATION reveals only the tip of the work carried out by dedicated staff from INEGI, Statistics Canada, and statistical agencies. It is through their efforts, painstaking analysis, and spirit of accommodation that NAICS serves as a harmonized international CLASSIFICATION of economic activities in NORTH America. 3 Preface The NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) represents a continuing cooperative effort among Statistics Canada, Mexico's Instituto Nacional de Estad stica y Geograf a (INEGI), and the Economic CLASSIFICATION Policy Committee (ECPC) of the United States, acting on behalf of the Office of Management and Budget, to create and maintain a common INDUSTRY CLASSIFICATION SYSTEM .

3 With its inception in 1997, NAICS replaced the Standard Industrial CLASSIFICATION (1980) of Canada, the Mexican CLASSIFICATION of Activities and Products (1994), and the Standard Industrial CLASSIFICATION (1987) of the United States. Since 1997, the countries have collaborated in producing five-year revisions to NAICS in order to keep the CLASSIFICATION SYSTEM current with changes in economic activities. NAICS is unique among INDUSTRY classifications in that it is constructed within a single conceptual framework. Economic units that have similar production processes are classified in the same INDUSTRY , and the lines drawn between industries demarcate, to the extent practicable, differences in production processes. This supply-based, or production-oriented, economic concept was adopted for NAICS because an INDUSTRY CLASSIFICATION SYSTEM is a framework for collecting and publishing information on both inputs and outputs, for statistical uses that require that inputs and outputs be used together and be classified consistently.

4 Examples of such uses include measuring productivity, unit labor costs, and the capital intensity of production, estimating employment-output relationships, constructing input-output tables, and other uses that imply the analysis of production relationships in the economy. The CLASSIFICATION concept for NAICS leads to production of data that facilitate such analyses. In the design of NAICS, attention was given to developing production-oriented classifications for (a) new and emerging industries, (b) service industries in general, and (c) industries engaged in the production of advanced technologies. These special emphases are embodied in the particular features of NAICS, discussed below. These same areas of special emphasis account for many of the differences between the structure of NAICS and the structures of INDUSTRY CLASSIFICATION systems in use elsewhere. NAICS provides INDUSTRY comparability among the three NORTH AMERICAN countries and maintains compatibility with the two-digit level of the United Nation's International Standard Industrial CLASSIFICATION of all Economic Activities (ISIC, Rev.)

5 4). NAICS divides the economy into 20 sectors. Industries within these sectors are grouped according to the production criterion. The NAICS Information sector brings together activities that transform information into commodities that are produced and distributed, and activities that provide the means for distributing those products, other than through traditional wholesale-retail distribution channels. Industries included in this sector are grouped into six subsectors: motion picture and sound recording industries; publishing industries; broadcasting and content providers; telecommunications; computing infrastructure providers, data processing, web hosting, and related services; and web search portals, libraries, archives, and other information services. A sector for Professional, Scientific, and Technical Services comprises establishments engaged in activities where human capital is the major input. The industries within this sector are each defined by the expertise and training of the service provider.

6 The sector includes such industries as offices of lawyers, engineering services, architectural services, advertising agencies, and interior design services. A sector for Arts, Entertainment, and Recreation includes a wide range of establishments that operate facilities or provide services to meet varied cultural, entertainment, and recreational interests of their patrons. 4 NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM Another key sector, Health Care and Social Assistance, recognizes the merging of the boundaries of health care and social assistance. The industries in this sector are arranged in an order that reflects the range and extent of health care and social assistance provided. In the Manufacturing sector, an important subsector, Computer and Electronic Product Manufacturing, brings together industries producing electronic products and their components. The manufacturers of computers, communications equipment, and semiconductors, for example, are grouped into the same subsector because of the inherent technological similarities of their production processes.

7 NAICS acknowledges the importance of these electronic industries in the economies of the three NORTH AMERICAN countries. This NAICS structure reflects the levels at which data comparability was agreed upon by the three countries' statistical agencies. The boundaries of all the sectors of NAICS are delineated. In most sectors, NAICS provides for trilateral comparability at the INDUSTRY (five-digit) level. However, three-country comparability occurs either at the INDUSTRY group (four-digit) or subsector (three-digit) level for one subsector in Mining, Quarrying, and Oil and Gas Extraction, one INDUSTRY group in Utilities, one INDUSTRY group in Construction, two subsectors in Finance and Insurance, two INDUSTRY groups in the Real Estate subsector, one subsector in Information, and two subsectors in Other Services (except Public Administration). For these sectors or subsectors, differences in the economies of the three countries prevent full comparability at the NAICS INDUSTRY level.

8 For Retail Trade, Wholesale Trade, and Public Administration, the three countries' statistical agencies have agreed only on the boundaries of the sector (two-digit level). Below the agreed upon level of comparability, each country may add additional detailed industries, as necessary to meet national needs, provided that this additional detail aggregates to the NAICS level. The United States has adopted the revised CLASSIFICATION in statistical programs for the reference year beginning in 2022. 5 Acknowledgments This 2022 revision of the NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM (NAICS) was an immense undertaking requiring the time, energy, creativity, and cooperation of numerous people and organizations throughout the three countries. The work that has been accomplished is a testament to the individual and collective willingness of many persons and organizations both inside and outside the government to contribute to the development of NAICS.

9 Within the United States, NAICS was revised under the guidance of the Office of Management and Budget by the Economic CLASSIFICATION Policy Committee (ECPC). Members of the ECPC were Dennis Fixler and Edward T. Morgan, Bureau of Economic Analysis, Department of Commerce; Nick Orsini and Fay Dorsett (Co-Chair), Bureau of the Census, Department of Commerce; David Talan and Vincent Russo (Co-Chair), Bureau of Labor Statistics, Department of Labor; and Kerrie Leslie, Office of Management and Budget. In addition to the parties listed above, OMB would like to acknowledge the dedicated staff of the CLASSIFICATION Development Branch at the Bureau of the Census. This staff was responsible for researching, summarizing, and making preliminary recommendations to the ECPC for comments received from the public on 2022 NAICS revisions; for preparing documents summarizing the ECPC position for use in negotiations with Canada and Mexico; and for preparing all of the manuscript files for the published manual.

10 It was their hard work and dedication that resulted in this complete documentation of 2022 NAICS United States. 7 Contents Foreword .. 1 Preface .. 3 Acknowledgments .. 5 Explanation of Symbols .. 11 Introduction .. 13 NAICS United States Structure .. 23 Frequently Asked Questions About Economic Classifications .. 73 Part I. Titles and Descriptions of Industries .. 75 Sector 11. Agriculture, Forestry, Fishing and Hunting .. 77 Subsector 111. Crop Production .. 77 Subsector 112. Animal Production and Aquaculture .. 88 Subsector 113. Forestry and Logging .. 94 Subsector 114. Fishing, Hunting and Trapping .. 95 Subsector 115. Support Activities for Agriculture and Forestry .. 97 Sector 21. Mining, Quarrying, and Oil and Gas Extraction .. 101 Subsector 211.