What is a SIC Code?

SIC or Standard Industrial Classification codes are four-digit numerical codes that identify the primary business of any establishment. The U.S. government assigns this code to all the business establishments. The classification of businesses was primarily developed to ease the data collection, presentation, and analysis process. Also, it’s used to endorse consistency as well as comparability in the exhibition of statistical data collated by different agencies of the federal government, private organizations, and state agencies. The four-digit classification encompasses all economic actions.

The SIC Code groups the economy into 11 divisions which are then broken into 83 2-digit main groups. This group is fragmented into 416 3-digit industry groups and finally split into 1,005 4-digit industries. The first two digits define the prime industry group, the third digit signifies the industry group, and the fourth digit denotes the industry.

How are SIC Codes used?

• SIC Code helps both the companies and government agencies to target the top-level executives, key decision-makers, and other professionals working across various industries globally.
• It is also used by the companies to recognize the competition in their industry as well as location.
• The government establishments use SIC codes to organize and normalize data for several private, federal, and state agencies.
• These codes can be used to categorize companies for tax purposes.
• Banks and creditors make use of SIC codes to classify the industry type to which a company fits into when considered extending credit.

Real-World Example of SIC Code Usage

SIC Code 01 lets you reach experts working in Agricultural Production - Crops industry. This list encompasses SIC codes of various subdivisions and segments within this Agricultural Production - Crops industry. So, you can narrow down your target market further with dedicated selects of your choice such as job title, location, revenue, etc. Using this detailed segregation of industry, businesses can successfully execute direct mail, email, and telemarketing campaigns.