NAICS Codes: What Are They & Why They Matter for Government Contracting
Interested in Government Contracting?
A North American Industry Classification System (NAICS) code categorizes business establishments and industries in the United States, Canada, and Mexico based on the type of goods and services produced. It assigns a unique six-digit code to each industry to ensure consistency and comparability of industry statistics across North America. The NAICS code is used for various purposes, such as statistical analysis, government procurement, and business analysis.
No one issues you a NAICS Code because it is a self-assigned system. This implies that when an organization is questioned about its code, it chooses the code that appropriately defines its primary line of business. You may wish to utilize more than one NAICS Code if your company’s business functions span several lines.
You can get a NAICS code by searching the NAICS website, which the United States Census Bureau maintains. The website provides a searchable database of industries and the corresponding NAICS codes.
To get a NAICS code, you can
A NAICS code is required for various purposes, including:
In short, a NAICS code provides a common language and standard for organizing and grouping businesses into similar industries, which is helpful for various data collection, analysis, and reporting purposes.
The NAICS code is a 6-digit numerical classification system organized into 20 sectors.
The structure of the NAICS code is as follows:
For example, a NAICS code of “561720” would be interpreted as follows:
Each NAICS code is assigned to a particular industry sector based on the production process, product type, or services the business provides. The code provides a systematic way of organizing and grouping similar industries for statistical purposes.
GSE provides the knowledge and resources needed to expedite your small business’s registrations, certifications, and contracts. Let us help you with what we do best, so you can focus on what you do best! Call now at 866-850-1710.