ECO 6214 Applied Business & Economics Forecasting: Business Classifications

The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. NAICS: The North American Industry Classification System (NAICS) was established in 1997 to replace the SIC system. This system was developed with Canada and Mexico and establishes a North American Standard classification system. However, this classification system hasn’t replaced SIC as anticipated.

Industry Classification Benchmark (ICB) is a comprehensive and rules based, transparent classification methodology based on research and market trends designed to support investment solutions. It was launched in 2005 and enhanced in 2019 with the integration of the Russell Global Sectors (RGS) classification scheme and additional structural enhancements. The ICB is used in Mergent Online.

The Standard Industrial Classification (SIC) system was created in the 1930’s to classify establishments by the type of activity in which they are primarily engaged. The SIC system has not been updated since 1987, however, it is still widely used by marketing companies and is the most popular industry classification system.

Article from the NAICS Association that outline the differences between NAICS Codes and SIC Codes.