What is a NAICS Code

North American Industry Classification System (NAICS) is a popular business-classification system created through a partnership among the United States, Canada, and Mexico. This classification system was established to substitute and modernize the U.S. Standard Industrial Classification system. It facilitates the easier comparison of statistics of all business activities across North America. Also, it offers more flexibility than the previous four-digit structure of the SIC. NAICS code uses a hierarchical six-digit coding system to classify all economic activity into 20 industry sectors.

These 20 sector codes are narrowed down into 99 three-digit subsector codes, which is further divided into 312 four-digit systems. These codes are subdivided into 713 five-digit numbers and ultimately split into 1,066 six-digit NAICS codes. In NAICS code, the first two digits represent the largest business sector where a company operates. The third digit indicates the company’s subsector, the fourth digit shows the industry group, and the fifth digit reflects the particular industry of operation. The sixth and last number defines the company’s specific national sector.

How are NAICS Codes used?

• NAICS code helps businesses, both private and government agencies to quickly gather the data for research and assess the risk factors associated.
• Businesses can improve their sales by finding the right opportunities or markets, and thereby target the potential customers.
• Some agencies post contract bids to businesses within a given NAICS code.
• Government entities offer tax incentives to businesses that come under a given NAICS classification.

Real-World Example of NAICS Code Usage

NAICS code 23 email list is the perfect choice for the businesses who wish to reach the professionals from the Construction industry. Marketers can interact seamlessly with the decision-makers who hold a higher position in this segment. Also, this list contains the NAICS code of various subdivisions and sectors that come under the Construction industry. So, you can narrow down the data based on revenue, geographical location, job title, and other factors. This detailed information of prospects lets you execute email, direct mail, telemarketing, and other online campaigns and reach the most qualified leads quickly.