What’s the big deal about a
manufacturing NAICS Code?
NAICS (North American Industry Classification System) is a code system that classifies your business by industry. It started in 1997 and replaced the Standard Industrial Classification System (SIC). Canada and Mexico, along with the US, adopted the NAICS to better analyze and facilitate trade through the North American Free Trade Agreement (NAFTA).
Why should you get a manufacturing NAICS Code?
A NAICS code is assigned by the business owner to describe the primary revenue-generating activity of the company. They are used by local, state, and federal entities for statistical purposes as well as for non-statistical reasons that can benefit you. A business that has multiple activities or lines of business can designate multiple NAICS codes. For example, a company may identify a manufacturing, retail sales, and service industry NAICS codes (three separate) if they work and support/provide goods/services in multiple different ways.
Besides tracking economic activity, some other
benefits of having NAICS codes include:
- Tax and other financial incentives that are industry specific
- Helping businesses find potential customers that operate in specific industries
- Identifying whether a business can compete for government contracts
- Comparing financial performance against businesses in the same category
- Often required for commercial loans
- Savings on worker’s compensation premiums
- Taxation codes
- Insurance benefits, including potentially reduced premiums
What do I do if I want to update or register for a
Contact Darcy for assistance registering or updating a manufacturing NAICS code. Call: 701-354-0979, 866-297-8250, or email: email@example.com