1997 North American Industry Classification System1987 Standard Industrial Classification Replacement

SUMMARY: This notice updates the structure and the concordance tables

of the North American Industry Classification System (NAICS) that were

published by the Office of Management and Budget in an April 9, 1997,

Federal Register notice and announces the availability of the official

U.S. reference manual for implementing NAICS United States in both

printed and electronic versions from the National Technical Information

Service. This update is the result of numerous meetings among Canada,

Mexico, and the United States that were held to complete the written

descriptions for NAICS and assign a list of 35,000 activity items to

the correct NAICS industry. The assignment of the activity items

resulted in some changes to the NAICS tables as published in the April

9, 1997, Federal Register notice. These changes are highlighted in the

Supplementary Information section of the notice.

NAICS is a new economic classification system that replaces the

1987 Standard Industrial Classification (SIC) for statistical purposes.

NAICS is a system for classifying establishments by type of economic

activity. Its purposes are: (1) to facilitate the collection,

tabulation, presentation, and analysis of data relating to

establishments, and (2) to promote uniformity and comparability in the

presentation and analysis of statistical data describing the economy.

NAICS will be used by Federal statistical agencies that collect or

publish data by industry. It is also expected to be widely used by

State agencies, trade associations, private businesses, and other

organizations.

The Instituto Nacional de Estadistica, Geografia e Informatica

(INEGI) of Mexico, Statistics Canada, and the United States Office of

Management and Budget (OMB), through its Economic Classification Policy

Committee (ECPC), have collaborated on NAICS to make the industrial

statistics produced in the three countries comparable. NAICS is the

first industry classification system developed in accordance with a

single principle of aggregation, the principle that producing units

that use similar production processes should be grouped together in the

classification. The fresh view of establishment data that this

restructuring will provide should engender insights into the

increasingly interrelated evolution of our economies. NAICS also

reflects in a much more explicit way the enormous changes in technology

and in the growth and diversification of services that have marked

recent decades. Industry statistics presented using NAICS will also be

comparable with statistics compiled according to the latest revision of

the United Nations' International Standard Industrial Classification

(ISIC, Revision 3) for some sixty high-level groupings.

For the three countries, NAICS will provide a consistent framework

for the collection, tabulation, presentation, and analysis of

industrial statistics used by government policy analysts, by academics

and researchers, by the business community, and by the public. However,

because of differing national economic and institutional structures as

well as limited resources and time for constructing NAICS, the NAICS

structure has not been made entirely comparable at the individual

industry level across all three countries. For some sectors and

subsectors, the statistical agencies of the three countries have agreed

to harmonize NAICS based on sectoral boundaries rather than on a

detailed industry structure. The sectors that are not comparable at the

detailed industry level are: utilities; construction; wholesale trade;

retail trade; finance and insurance; and public administration. The

subsectors that are not comparable at the detailed industry level are:

real estate; waste management and remediation services; as well as

other services including personal and laundry services, and religious,

grantmaking, civic, and professional and similar organizations.

Separate agreements providing for detailed industry comparability

between Canada and the United States were reached for the utilities;

retail trade; and finance and insurance sectors. To distinguish the

three countries' versions of NAICS, they are called NAICS Canada, NAICS

Mexico (SCIAN Mexico, in Spanish), and NAICS United States.

In developing NAICS United States, OMB has published a total of

eight previous Federal Register notices advising the public of the work

of the ECPC and seeking comment on that work. The March 31, 1993,

Federal Register notice (58 FR 16990-17004) announced OMB's intention

to revise the SIC for 1997, the establishment of the Economic

Classification Policy Committee, and the process for revising the SIC.

The July 26, 1994, Federal Register notice (59 FR 38092-38096) set

forth the concepts for the new system and the decision to develop NAICS

in cooperation with Statistics Canada and INEGI. That notice also

included a request for the public to submit recommendations for the

industries to be included in the new system. The deadline for

submitting proposals for new or revised industries was November 7,

1994.

After considering all proposals from the public, consulting with a

large number of U.S. data users and industry groups, and undertaking

extensive discussions with INEGI and Statistics Canada, an industrial

structure that would apply to all three North American countries was

developed as NAICS. A series of five Federal Register notices sought

comment on the structure of the system. These notices are described in

more detail in the Supplementary Information section below. The last

Federal Register notice, published on April 9, 1997, announced OMB's

decision to adopt NAICS and presented the final structure. This notice

adjusts that final structure as presented in the Supplementary

Information section below.

EFFECTIVE DATE: Federal statistical data published for reference years

beginning on or after January 1, 1997, will be published using the new

NAICS United States codes as modified by this notice. NAICS is

scheduled to go into effect for Federal statistical purposes for

reference year 1997 in Canada and the United States, and 1998 in

Mexico. Publication of the 1997 NAICS United States Manual is planned

for June 1998. Use of NAICS for nonstatistical purposes (e.g.,

administrative, regulatory, or taxation) will be determined by the

agency or agencies that have chosen to use the SIC for nonstatistical

purposes. Readers interested in the effective dates for the use of

NAICS for nonstatistical purposes should contact the relevant agency to

determine its plans, if any, for a transition from use of the SIC to

NAICS.

ADDRESSES: Please send correspondence about these updates to: Katherine

K. Wallman, Chief Statistician, Office of Management and Budget, 10201

New Executive Office Building, 725 17th Street, NW, Washington, DC

20503, telephone number: (202) 395-3093, FAX number: (202) 395-7245.

Electronic Availability and Correspondence: This document is

available on the Internet from the Census Bureau Internet site via WWW

browser, ftp, and E-mail. To obtain this document via WWW browser,

connect

[[Page 41697]]

to ``http://www.census.gov'' then select ``Subjects A to Z,'' then

select ``N,'' then select ``NAICS (North American Industry

Classification System).'' This WWW page contains previous NAICS United

States Federal Register notices and related documents as well.

To obtain this document via ftp, log into ftp.census.gov as

anonymous, and retrieve the files ``naicsfr9.pdf,''

``naicsfr9tbl1.pdf,'' and ``naicsfr9tbl2.pdf'' from the ``/pub/epcd/

naics'' directory. (That directory also contains previous NAICS United

States Federal Register notices and related documents.) To obtain this

document via Internet E-mail, send a message to [email protected]

with the body text as follows: ``get gatekeeper naics.txt''.

Instructions for obtaining this and other NAICS United States documents

will be delivered as a message attachment.

Correspondence may be sent via Internet E-mail to OMB at

[email protected] (do not include any capital letters in the address).

FOR FURTHER INFORMATION CONTACT: Paul Bugg, 10201 New Executive Office

Bldg., Washington, D.C. 20503, E-mail address: [email protected],

telephone number: (202) 395-3093, FAX number: (202) 395-7245. Inquiries

about the content of industries or requests for electronic copies of

the tables should be made to Carole Ambler, Chair, Economic

Classification Policy Committee, Bureau of the Census, Room 2633-3,

Washington, D.C. 20233, E-mail address: [email protected],

telephone number: (301) 457-2668, FAX number: (301) 457-1343.

SUPPLEMENTARY INFORMATION:

NAICS Update

The structure of NAICS was developed in a series of meetings among

the three countries. Public proposals for individual industries from

all three countries were considered for acceptance if the proposed

industry was based on the production-oriented concept of NAICS.

As groups of subsectors of NAICS were completed and agreed upon by

the three countries, the ECPC published the proposed industries for

those subsectors for public comment in the Federal Register. Five

successive Federal Register notices were published asking for comment.

A first notice published in the Federal Register, July 26, 1995 (60 FR

38436-38452), requested comment on proposed industry structures for

petroleum and coal product manufacturing, chemical manufacturing, and

rubber and plastics manufacturing; for broadcasting and

telecommunications; and for food services and drinking places and

accommodations. A second Federal Register notice published on February

6, 1996 (61 FR 4524-4578), requested comment on proposed industry

structures for crop production, animal production, forestry and

logging; textile mills, textile product mills, apparel manufacturing,

and leather and allied product manufacturing; food manufacturing and

beverage and tobacco product manufacturing; fabricated metal product

manufacturing; machinery manufacturing; electrical equipment, appliance

and component manufacturing; and transportation equipment

manufacturing. A third Federal Register notice published on May 28,

1996 (61 FR 26558-26668), requested comment on proposed industry

structures for health and social assistance; educational services;

computers and electronics product manufacturing; furniture

manufacturing; printing and related support activities; professional,

technical and scientific services; performing arts, spectator sports

and related industries; museums, historical sites and similar

institutions; recreation, amusement and gambling; information; wood

product manufacturing, except furniture; rental and leasing; repair and

maintenance; management and support; transportation; mining; paper

manufacturing; nonmetallic minerals manufacturing; primary metal

manufacturing; miscellaneous manufacturing; and postal service and

couriers. A fourth Federal Register notice published on July 5, 1996

(61 FR 35384-35515), requested comment on proposed industry structures

for finance and insurance; wholesale trade; retail trade; construction;

utilities; waste management and remediation services; real estate;

lessors of other nonfinancial assets; personal and laundry services;

and religious, grant making, civic, and other membership organizations.

That notice also requested comments on the proposed hierarchy and

coding system for NAICS. Finally, a fifth Federal Register notice

published on November 5, 1996 (61 FR 57006-57183), announced the ECPC's

final recommendations to OMB for the complete structure of NAICS United

States, including the hierarchy and coding system, and asked for public

comments. Final comments were due on December 20, 1996. Changes

incorporated into the new system based on comments in response to the

November 5, 1996, notice were presented in a sixth Federal Register

notice containing OMB's final decisions, published on April 9, 1997 (62

FR 17288-17478).

Based on continuing meetings with Canada and Mexico, some changes

have been made to the NAICS structure that was published in the April

9, 1997, Federal Register notice. Most of these changes are the result

of an intensive review of 35,000 activity items compiled by the

statistical agencies of the three countries. As a result of that

review, both the structure of NAICS and some subsector and industry

titles have been changed to better describe the activity or to ensure

that the titles among the three countries are comparable. In a few

cases, activity items have been moved from one NAICS code (as published

in the April 9, 1997, Federal Register notice) to another. The title

changes and structural changes are shown below. Complete links between

the 1997 NAICS and the 1987 SIC incorporating these changes are now

shown in tables that are available on the Census Bureau NAICS web site

at http://www.census.gov/epcd/www/naicstab.htm>.

Title Changes

------------------------------------------------------------------------

NAICS code Original title New title

------------------------------------------------------------------------

2123................ Non-Metallic Mineral Nonmetallic Mineral

Mining and Quarrying. Mining and Quarrying.

21239............... Other Non-Metallic Other Nonmetallic

Mineral Mining and Mineral Mining and

Quarrying. Quarrying.

212399.............. All Other Non-Metallic All Other Nonmetallic

Mineral Mining. Mineral Mining.

213115.............. Support Activities for Support Activities for

Non-Metallic Minerals Nonmetallic Minerals

(except Fuels). (except Fuels).

311813.............. Frozen Bakery Product Frozen Cakes, Pies, and

Manufacturing. Other Pastries

Manufacturing.

311823.............. Pasta Manufacturing..... Dry Pasta Manufacturing.

315212.............. Women's and Girls' Cut Women's, Girls'', and

and Sew Apparel Infants' Cut and Sew

Contractors. Apparel Contractors.

32513............... Dye and Pigment Synthetic Dye and

Manufacturing. Pigment Manufacturing.

[[Page 41698]]

325132.............. Organic Dye and Pigment Synthetic Organic Dye

Manufacturing. and Pigment

Manufacturing.

3255................ Paint, Coating, Adhesive Paint, Coating, and

and Sealant Adhesive Manufacturing.

Manufacturing.

32599............... All Other Chemical All Other Chemical

Product Manufacturing. Product and Preparation

Manufacturing.

325998.............. All Other Miscellaneous All Other Miscellaneous

Chemical Product Chemical Product and

Manufacturing. Preparation

Manufacturing.

327111.............. Vitreous China Plumbing Vitreous China Plumbing

Fixture and China Fixtures and China and

Earthenware Fittings Earthenware Bathroom

and Bathroom Accessories

Accessories Manufacturing.

Manufacturing.

3274................ Lime, Gypsum and Gypsum Lime and Gypsum Product

Product Manufacturing. Manufacturing.

32742............... Gypsum and Gypsum Gypsum Product

Product Manufacturing. Manufacturing.

33149............... Nonferrous Metals Nonferrous Metal (except

(except Copper and Copper and Aluminum)

Aluminum) Rolling, Rolling, Drawing,

Drawing, Extruding, and Extruding, and

Alloying. Alloying.

331521.............. Aluminum Die-Castings... Aluminum Die-Casting

Foundries.

331522.............. Nonferrous (except Nonferrous (except

Aluminum) Die-Casting. Aluminum) Die-Castings

Foundries.

331524.............. Aluminum Foundries...... Aluminum Foundries

(except Die-Casting).

331525.............. Copper Foundries........ Copper Foundries (except

Die-Casting).

331528.............. Other Nonferrous Other Nonferrous

Foundries. Foundries (except Die-

Casting).

33210............... Iron and Steel Pipes and Iron and Steel Pipe and

Tubes Manufacturing Tube Manufacturing from

from Purchased Steel. Purchased Steel.

332611.............. Steel Spring (except Spring (Heavy Gauge)

Wire) Manufacturing. Manufacturing.

332612.............. Wire Spring Spring (Light Gauge)

Manufacturing. Manufacturing.

33322............... Rubber and Plastics Plastics and Rubber

Industry Machinery Industry Machinery

Manufacturing. Manufacturing.

333414.............. Heating Equipment Heating Equipment

(except Electric and (except Warm Air

Warm Air Furnaces) Furnaces)

Manufacturing. Manufacturing.

333999.............. All Other General All Other Miscellaneous

Purpose Machinery General Purpose

Manufacturing. Machinery

Manufacturing.

334412.............. Printed Circuit Board Bare Printed Circuit

Manufacturing. Board Manufacturing.

334418.............. Printed Circuit/ Printed Circuit Assembly

Electronics Assembly (Electronic Assembly)

Manufacturing. Manufacturing.

335912.............. Dry and Wet Primary Primary Battery

Battery Manufacturing. Manufacturing.

33636............... Motor Vehicle Fabric Motor Vehicle Seating

Accessories and Seat and Interior Trim

Manufacturing. Manufacturing.

337214.............. Nonwood Office Furniture Office Furniture (except

Manufacturing. Wood) Manufacturing.

4222................ Drug, Drug Proprietaries Drugs and Druggists'

and Druggists' Sundries Sundries Wholesalers.

Wholesalers.

42221............... Drug, Drug Proprietaries Drugs and Druggists'

and Druggists' Sundries Sundries Wholesalers.

Wholesalers.

42233............... Women's, Children's, and Women's, Children's, and

Infants' and Infants' Clothing and

Accessories Wholesalers. Accessories

Wholesalers.

42272............... Petroleum and Petroleum Petroleum and Petroleum

Products (except Bulk Products Wholesalers

Stations and Terminals) (except Bulk Stations

Wholesalers. and Terminals).

493................. Warehousing and Storage Warehousing and Storage.

Facilities.

4931................ Warehousing and Storage Warehousing and Storage.

Facilities.

49311............... General Warehousing and General Warehousing and

Storage Facilities. Storage.

49312............... Refrigerated Warehousing Refrigerated Warehousing

and Storage Facilities. and Storage.

49313............... Farm Product Warehousing Farm Product Warehousing

and Storage Facilities. and Storage.

49319............... Other Warehousing and Other Warehousing and

Storage Facilities. Storage.

512131.............. Motion Picture Theaters, Motion Picture Theaters

Except Drive-Ins. (except Drive-Ins).

52231............... Mortgage and Other Loan Mortgage and Nonmortgage

Brokers. Loan Brokers.

523................. Securities, Commodity Securities, Commodity

Contracts and Other Contracts, and Other

Intermediation and Financial Investments

Related Activities. and Related Activities.

52314............... Commodity Brokerage..... Commodity Contracts

Brokerage.

524291.............. Claims Adjustors........ Claims Adjusting.

524292.............. Third Party Third Party

Administration for Administration of

Insurance and Pension Insurance and Pension

Funds. Funds.

525................. Funds, Trusts and Other Funds, Trusts, and Other

Financial Vehicles Financial Vehicles.

(U.S. only).

533................. Owners and Lessors of Lessors of Nonfinancial

Other Non-Financial Intangible Assets

Assets. (except Copyrighted

Works).

5331................ Owners and Lessors of Lessors of Nonfinancial

Other Non-Financial Intangible Assets

Assets. (except Copyrighted

Works).

53311............... Owners and Lessors of Lessors of Nonfinancial

Other Non-Financial Intangible Assets

Assets. (except Copyrighted

Works).

541614.............. Process, Physical, Process, Physical

Distribution, and Distribution, and

Logistics Consulting Logistics Consulting

Services. Services.

54171............... Research and Development Research and Development

in the Physical in the Physical,

Sciences and Engineering, and Life

Engineering Sciences. Sciences.

721214.............. Recreational and Recreational and

Vacation Camps. Vacation Camps (except

Campgrounds).

81221............... Funeral Homes........... Funeral Homes and

Funeral Services.

8123................ Laundry Services........ Drycleaning and Laundry

Services.

813................. Religious, Grantmaking, Religious, Grantmaking,

Civic, and Civic, Professional,

Professional, and and Similar

Similar Organizations. Organizations.

8139................ Business, Professional, Business, Professional,

Labor, Political, and Labor, Political, and

Other Organizations. Similar Organizations.

81399............... Other Similar Other Similar

Organizations. Organizations (except

Business, Professional,

Labor, and Political

Organizations).

921................. Executive, Legislative, Executive, Legislative,

Public Finance, and and Other General

General Government. Government Support.

9211................ Executive, Legislative, Executive, Legislative,

Public Finance, and and Other General

General Government. Government Support.

92113............... Public Finance.......... Public Finance

Activities.

[[Page 41699]]

92119............... All Other General Other General Government

Government. Support.

922................. Justice, Public Order, Justice, Public Order,

and Safety. and Safety Activities.

9221................ Justice, Public Order, Justice, Public Order,

and Safety. and Safety Activities.

92219............... All Other Justice, All other Justice,

Public Order, and Public Order, and

Safety. Safety Activities.

92313............... Administration of Administration of Human

Social, Human Resource Resource Programs

and Income Maintenance (except Education,

Programs. Public Health, and

Veteran's Affairs

Programs).

92411............... Air and Water Resource Administration of Air

and Solid Waste and Water Resource and

Management. Solid Waste Management

Programs.

92412............... Land, Mineral, Wildlife, Administration of

and Forest Conservation. Conservation Programs .

------------------------------------------------------------------------

Structure Changes

Manufacturing--NAICS U.S. Industry 315238, Women's and Girls' Cut

and Sew Other Outerwear Manufacturing, has been renumbered to 315239.

NAICS U.S. industry 322292, Surface-Coated Paper Board Manufacturing,

has been moved and renumbered to NAICS U.S. industry 322226, Surface-

Coated Paperboard Manufacturing. NAICS U.S. industry 322298, All Other

Converted Paper Product Manufacturing, has been renumbered 322299; the

title remains the same.

Professional, Scientific, and Technical Services--NAICS industry

54172, Research and Development in the Life Sciences, has been combined

with 54171, Research and Development in the Physical Sciences and

Engineering Sciences, and renamed Research and Development in the

Physical, Engineering, and Life Sciences. NAICS industry 54173,

Research and Development in the Social Sciences and Humanities, has

been renumbered 54172.

Other Services--NAICS industry 81239, Other Laundry Services, has

been combined with NAICS industry 81232, Drycleaning and Laundry

Services (except Coin-Operated). The following NAICS U.S. industries

are now included in NAICS industry 81232 and no longer shown

separately: 812321, Laundries, Family and Commercial; 812322,

Drycleaning Plants; 812391, Garment Pressing, and Agents for Laundries;

and 812399, All Other Laundry Services.

Availability of NAICS United States Manual

The official U.S. reference manual for implementing the new North

American Industry Classification System (NAICS) is now available in

both printed and electronic versions from the National Technical

Information Service (NTIS). The NAICS-United States Manual includes:

Definitions for each industry;

Tables showing correspondence between 1997 NAICS and 1987

SIC codes; and

An alphabetical index of types of business activities and

their NAICS codes.

A CD-ROM version of the Manual includes features not available in

print versions:

An easy-to-use yet powerful search option, including

access to more comprehensive index entries; and

NAICS-SIC and SIC-NAICS code comparison files that can be

imported into databases and spreadsheets.

NTIS is now accepting orders at 1-800-553-6847 or (703) 605-6000.

The NAICS-United States Manual is available in hardcover (PB98-127293,

$32.50), in softcover (PB98-136187, $28.50), and on CD-ROM (PB98-

502024, $45). A $5 handling fee is added to each total order. For more

information or to order online, visit the NTIS NAICS web site at

http://www.ntis.gov/naics>.

More information about the new system can be found at the Census

Bureau's NAICS World Wide Web site, http://www.census.gov/naics>. The

Census Bureau has also established a toll-free telephone line (1-888-

75NAICS) to help businesses and other users with the new system.

NAICS United States Implementation

The NAICS United States replacement of the SIC is effective January

1, 1997, for Federal statistical purposes. The first data to be

available on a NAICS United States basis will be from the 1997 Economic

Census and the 1997 Foreign Direct Investment Benchmark Survey that

will be published in 1999. For most programs, data will be introduced

over several years. Data series may not always be revised for years

before the respective program's implementation of NAICS United States.

INEGI, OMB, and Statistics Canada have put in place a process for

ensuring that the implementation of NAICS is comparable across all

three countries. Regularly scheduled meetings among the three countries

will ensure that there is a smooth transition to NAICS in all three

countries. In addition, the three countries plan to continually review

and update NAICS to ensure that new activities are promptly recognized

and to extend NAICS to the 5-digit industry level in those sectors

where agreement is now at only the sector, subsector, or industry group

level.

Time Series Continuity

The standard approach to preserving time series continuity after

classification revisions is to create linkages where the series break.

This is accomplished by producing the data series using both the old

and new classifications for a given period of transition. With the dual

classifications of data, the full impact of the revision can be

assessed. Data producers then may measure the reallocation of the data

at aggregate industry levels and develop a concordance between the new

and old series for that point in time. The concordance creates a

crosswalk between the old and new classification systems. This link

between the 1987 U.S. SIC and the 1997 NAICS United States will be

developed by the statistical agencies in the U.S.

Nonstatistical Use of NAICS

NAICS was designed, as was the SIC before it, solely for

statistical purposes. Although it is likely that NAICS, like the SIC,

will also be used for various nonstatistical purposes (e.g.,

administrative, regulatory, or taxation), the requirements of

government agencies that choose to use NAICS for nonstatistical

purposes have played no role in its development.

Consequently, as has been the case with the SIC (Statistical Policy

Directive No. 8, Standard Industrial Classification of Establishments),

NAICS shall not be used in any administrative, regulatory, or tax

program unless the head of the agency administering that program has

first determined that the use of such industry definitions is

appropriate to the implementation of the program's objectives. If the

terms, ``North American Industry Classification System,'' ``NAICS,'' or

``NAICS United States'' are to be used in the operative text of any law

or regulation to define industry (or trade or commerce), language

similar to the following should

[[Page 41700]]

be used to assure sufficient flexibility: ``An industry or grouping of

industries shall mean a North American Industry Classification System

industry or grouping of industries as defined by the Office of

Management and Budget subject to such modifications with respect to

individual industries or groupings of industries as the Secretary

(Administrator) may determine to be appropriate for the purpose of this

Act (regulation).''

Donald R. Arbuckle,

Deputy Administrator and Acting Administrator, Office of Information

and Regulatory Affairs.

[FR Doc. 98-20689 Filed 8-3-98; 8:45 am]

BILLING CODE 3110-01-P