SIC (Standard Industrial Classification) System
What is an SIC Code?
The term SIC Code is one that you will use frequently if you are going to be doing business research. The SIC code is simply a numbering system that groups together similar products or services that companies produce. It is an efficient way of describing the primary business in which a company operates. Usually a four-digit number is used. Companies often operate in more than one SIC code category, especially when they produce a variety of goods and services.The SIC system was established by the U.S. Government in the 1940's to provide a uniform method for collecting, presenting, and analyzing economic information. SIC codes are used by government agencies; trade associations, private research organizations and business professionals when presenting industry statistical data.
How do I find an SIC Code?
It is important early in the research process to identify your chosen industry's correct SIC code(s).
For example, if you are interested in a career in designing greeting cards and want to know something about the size of the greeting card industry and the career potential, the first step in your information gathering is to find the SIC code for the greeting card industry.Start with the Standard Industrial Classification Manual 1987, either in print or online. (Ask at your library's reference desk or Government Documents section.) Refer to the alphabetic index (part III) if using the print version. In this particular example, the term "greeting cards" would have four different numbers depending on the category desired. There is a number assigned to retail greeting card shops, wholesale card shops, hand painting of greeting cards, and then the code category that you would need for the manufacturing of greeting cards, which is 2771.
The SIC Code Manual may also be searched online. Simply enter the term "greeting cards" and browse through the list that will appear. (Note: Also available at this site is an explanation of the SIC system and its various categories.)
The four-digit code for the greeting card industry is interpreted as follows:
27 Major Group Number (Printing, Publishing and Allied Industries)
277 Industry Group Number
2771 Greeting Cards (production of greeting card for all occasions--excluding hand-painted cards)It is this code number that will assist you in finding the major manufacturers in this field, where they are located, and what the trends are in the industry.
NAICS (North American Industry Classification System)
The SIC system is in the process of being replaced by a new classification system known as the North American Industry Classification System (NAICS). This new system has been developed by the governments of Canada, Mexico, and the United States.Both the SIC and NAICS systems will be used while the NAICS codes are gradually integrated into use. For more information about the important concept of NAICS, visit the NAICS Bibliography.
The NAICS print volume was issued recently and may be available in your library.
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