What defines the North American Industry Classification System (NAICS)?

The North American Industry Classification System (NAICS) is defined as a system developed collaboratively by Canada, Mexico, and the United States. This international classification system was established to provide a consistent framework for gathering, analyzing, and comparing economic data across these three nations. It reflects the structure of the economy in North America, facilitating trade and investment decisions by providing relevant information about industries and sectors.

By establishing a unified classification system, NAICS encourages consistent reporting and analysis of industry data across these countries, supporting businesses and governments in making informed decisions. The classification structure helps in identifying and categorizing industries in a way that is coherent and allows for systematic economic analysis and policy development.

Although there are industry coding systems that use specific digit counts, the collaborative aspect of NAICS among the three countries is a distinguishing feature that encapsulates its purpose and functionality. This collaboration helps to standardize economic information and supports a common marketplace, enhancing trade relationships throughout North America.