Were SIC Codes Replaced By NAICS Codes?
The answer to this question depends on the agency, organization, database, or company. In the mid 1990s, there was a push from the US Government to embrace a new classification system called NAICS and shift away from the SIC Code system. As expected with a large change such as this, the process was slow, fragmented, and has taken a long time to implement. In certain government organizations, NAICS codes have replaced SIC Codes. In other organizations, both systems are still in use. In the private sector, both systems are currently in use and there are benefits to the usage of both systems. In terms of aligning with government work, the NAICS system is favored, but in terms of precise target marketing and more precise classification, the SIC Code system is the recommended system due to the specificity of the extended SIC Code system (10,000 SIC Extended categories to only 1,000 NAICS).
Helpful Links for More Information
- SIC vs NAICS Codes
- What is a SIC Code?
- What is a NAICS Code?
- SIC Code Lookup/Directory
- Structure of SIC Codes
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