How do the SIC and NAICS classification systems differ?
There are four major differences between the two classification systems: • Different groupings of industries. For example, under SIC restaurants were included in the Retail sector, while hotels were in the Services sector. Under NAICS they are together in Leisure and Hospitality services. • More detail. Many industries were divided into smaller groups to provide additional detail in NAICS. For example, casino hotels and all other hotels were combined in SIC, but are separate industries under NAICS. • More information on services related industries. The single SIC Services industrial division was subdivided into five (5) different services sectors under NAICS. • A change in the basis of classification. Under SIC, each establishment was classified based on the principal line of business of the firm. Under NAICS, the classification is based on what the establishment does. For example, a ship building firm with its headquarters in one county and its ship yard in another county would have s
