The Development of NAICS | Class Codes

Описание: NAICS Code Tutorial Series - The Development of NAICS. This is the third video of a seven-part series designed to help viewers better understand the NAICS classification system.

USER LINKS:

(1/7) The Purpose of NAICS:    • The Purpose of NAICS | Class Codes  

(2/7) Historical Background:    • Historical Background of NAICS | Class Codes  

(3/7) Development of NAICS:    • The Development of NAICS | Class Codes  

(4/7) Conceptual Framework of NAICS:    • The Conceptual Framework of NAICS | Class ...  

(5/7) Structure of NAICS:    • The Structure of NAICS | Class Codes  

(6/7) Defining the "Establishment":    • Defining the Establishment | Class Codes  

(7/7) Determining Industry Classification of the Establishment:    • Determining Industry Classification of the...  

SCRIPT FOR THE DEVELOPMENT OF NAICS:

Hello, and welcome to the NAICS Code Tutorial by Class Codes.

This series is designed to help you become a NAICS code expert.

Showing here is a list of all the videos in this series.

We have provided links to all of these videos in the description below.

Today, we’ll be going over the development of NAICS.

NAICS was developed by the ECPC (Economic Classification Policy Committee) of the United States Office of Management and Budget, along with Statistics Canada, and Mexico's INEGI (Instituto Nacional de Estadística y Geografía).

The three countries agreed upon four pillars in which the conceptual framework and principles of the new system would be developed.

The first pillar of the Economic Classification Policy Committee was that NAICS would be based on a production-oriented or supply-based conceptual framework.

This means that producing units using similar production processes would be grouped together in NAICS.

Second, special attention would be given to developing production-oriented classifications for
(a) new and emerging industries
(b) service industries in general and
(c) industries engaged in the production of advanced technologies.

Third, time-series continuity would be maintained to the extent possible.

However, changes in the economy and proposals from data users would be considered.

In addition, in order to create a common system for all three countries, adjustments would be made where the United States, Canada, and Mexico had incompatible definitions.

And fourth, in the interest of a wider range of international comparisons, the three countries would strive for greater compatibility with the International Standard Industrial Classification of All Economic Activities (ISIC Revision 3).

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Moving on, in effort to assist with the development of NAICS, a user committee meeting was called in November 1994.

The meeting included governmental organizations, economists, and business and trade associations from each country.

A coordinating committee and subcommittees, which covered agriculture, mining, manufacturing, construction, distribution networks, finance, insurance, real estate, business services, personal services, health services, social assistance, and public administration, all worked together to help develop the proposed structure of NAICS.

Proposals from all three countries concerning individual industries were considered for acceptance if the proposed industry was based on the production-oriented concept of the system.

The structure of NAICS was developed and accepted by Statistics Canada, INEGI and the Office of Management and Budget of the United States on December 10, 1996.

Thank you so much for watching! Now that you’ve learned about The Development of NAICS, you can continue your journey to become a NAICS code expert by watching the next video in this series, The Conceptual Framework of NAICS.