The North American Trade Classification System (NAICS) is a standardized methodology utilized by statistical companies in the USA, Canada, and Mexico to categorise companies for the aim of gathering, analyzing, and publishing statistical information associated to the enterprise financial system. A selected numerical code is assigned to every enterprise institution primarily based on its main enterprise exercise. As an illustrative instance, a selected laptop producer may be categorized underneath a code that displays its manufacturing of computer systems and peripherals.
Assigning this code is vital for financial evaluation and benchmarking. It allows governments and researchers to grasp {industry} traits, measure financial output, and evaluate financial efficiency throughout numerous sectors. Moreover, it offers a framework for companies to grasp their aggressive panorama and determine potential market alternatives. The adoption of this method offers a constant framework that replaces older classification strategies, facilitating higher information comparability over time.