Industries are grouped and classified together by activity. Companies with similar activities and purposes make up an industry. Industries with similar activities are grouped together in sectors.
In the United States there are two primary classification systems, the older Standard Industrial Classification (SIC) 4 digit code (1937) and the more recent North American Industry Classification System (NAICS) six digit code (1997).
Additionally, you may come across the Global Industry Classification Standard (GICS) or Industrial Classification Benchmark (ICB) stock classification codes in your research.
All of these classification systems are used to organize companies and industries in common groups to facilitate accurate research and/or comparison. Companies may have one or more of these codes; the following tabs will attempt to provide more information on how each system works.
The North American Industry Classification System (NAICS) is used by United States Federal Statistical agencies to classify business establishments for the purpose of collecting and analyzing data related to the U.S. economy. (United States Census Bureau) Use the link below to search for an NAICS code or code description.
The Standard Industrial Classification System (SIC) is an older classification system managed by the U.S. Department of Labor. This system is gradually being replaced by NAICS. Use the link below to search for an SIC code or code description.
The NAICS Association provides many helpful resources on using NAICS and SIC codes.
The Global Industry Classification Standard (GICS) was developed by Standard & Poors Dow Jones. The GICS offers a 4 tier hierarchical industry classification system for global financial markets. GICS offers the following organization: 11 Sectors, 24 Industry Groups, 69 Industries, 158 Sub-Industries.
The Industry Classification Benchmark (ICB) is a rule based 4 tier classification system used for investment purposes and stock exchanges. Similar to GICS, the ICB is broken into 4 tiers made up of the following: 11 Industries, 20 Supersectors, 45 Sectors, 173 Subsectors.