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For information call: For Immediate Release Robert Marske (301) 457-2547 NEW CLASSIFICATION SYSTEM DEBUTS IN 1997 ECONOMIC CENSUS Reports from the 1997 Economic Census will have a new look. The 1997 census will be the first major data set to be published according to the new North American Industry Classification System (NAICS). The new system has been jointly developed by the United States, Canada, and Mexico. NAICS (pronounced "nakes") has been formally adopted by the U.S. Government, and replaces the Standard Industrial Classification (SIC) system, which has been in use since the 1930s to classify data about businesses. While the SIC system has been revised every 10 or 15 years, the new system represents a more dramatic change than any prior revision. NAICS identifies dozens of new industries recognized for the first time. Some new industries reflect "high tech" developments, such as fiber optic cable manufacturing and satellite telecommunications. Other new industries simply recognize changes in the way business is done: bed and breakfast inns, environmental consulting, warehouse clubs and superstores, HMO medical center, and diet and weight reduction centers. (For more examples, see Table 1, below.) NAICS groups industries into 20 broad sectors (see Table 2) that better reflect today's economy than do the 10 divisions of the old SIC system. For example, the new Information Sector brings together broadcasting and telecommunications, publishing, and computer-related services that were in unrelated parts of the old SIC. In response to the increased importance of services in the economy, "Service Industries" in the SIC are differentiated into all or parts of 9 new NAICS sectors. Other familiar sector titles like Manufacturing and Retail Trade have been revised in scope as well. NAICS codes are six digits long, which allows more flexibility for future expansion than the four-digit SIC codes. Much as the coming of the year 2000 forces databases to be redesigned to accommodate a 4-digit year, NAICS will require a longer field for identifying industry codes in a wide variety of commercial and government databases. Starting in 1999, nearly all data from the 1997 Economic Census will be reported according to NAICS. In 2000, the Census Bureau will publish comprehensive tables interrelating data on the old SIC and new NAICS bases. Other Federal statistics will convert to NAICS between 1999 and 2004. The change from SIC to NAICS will not be obvious to most businesses filling out the economic census forms they receive in December 1997. Census forms break down sales by product line and ask about certain business practices; it is from those answers that the Census Bureau assigns the appropriate industry codes. Some of the categories on the forms have been adjusted to accommodate the new NAICS codes. Major data users are excited about the improvements NAICS will bring. "More comparable, relevant and useful classifications can increase the bottom line of U.S. businesses", according to Joseph W. Duncan, senior economic advisor to Dun and Bradstreet. NAICS will facilitate the comparison of statistics among partners in the North American Free Trade Agreement (NAFTA)--the U.S., Canada, and Mexico. "This is going to open up a lot of opportunity for trade and regional partnering", says John Nofsinger of the Materials Handling Institute. Below are listed examples of the many new industries NAICS identifies, and the 20 major sectors of the economy recognized in NAICS. Complete lists of the new codes, tables showing the relationships between SIC and NAICS categories, and articles (for example, "How NAICS Will Affect Data Users") are available on the Internet (www.census.gov/naics). -X- Table 1: Selected New U.S. industries Being Identified in NAICS Semiconductor machinery manufacturing Fiber optic cable manufacturing Software reproducing Convenience stores Gasoline stations with convenience food Warehouse clubs and superstores Food (health) supplement stores Pet care services Cable networks Satellite telecommunications Paging transmission services Cellular and other wireless communications Telecommunication resellers Credit card issuing Temporary help services Telemarketing bureaus Hazardous waste collection HMO medical centers Continuing care retirement communities Casino hotels Casinos Other gambling industries Bed and breakfast inns Limited-service restaurants Automotive oil change and lubrication shops Diet and weight reducing centers Table 2. Sectors of the Economy in NAICS NAICS Sector title 11 Agriculture, Forestry, Fishing, and Hunting 21 Mining 22 Utilities 23 Construction 31-33 Manufacturing 42 Wholesale Trade 44-45 Retail Trade 48-49 Transportation 51 Information 52 Finance and Insurance 53 Real Estate and Rental and Leasing 54 Professional, Scientific and Technical Services 55 Management of Companies and Enterprises 56 Administrative and Support, Waste Management and Remediation Services 61 Educational Services 62 Health Care and Social Assistance 71 Arts, Entertainment and Recreation 72 Accommodation and Foodservices 81 Other Services (except Public Administration) 92 Public Administration 99 Unclassified Establishments |