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Blog posts of '2014' 'June'

What you need to know about SIC Codes

What you need to know about SIC Codes

Another anagram which floats around in a state of ambiguity is the SIC. This stands for the Standard Industrial Classification. It is quite simply another method for the government to classify certain factors relating to the types of industries located within the US. This system utilizes a four digit code to classify each industry. This idea came to be in 1937 and it has been used to classify areas in which certain industries are dominant. This system is utilized widely around the world and it is reasonable successful.

SIC in the US is currently on the way out. It is to be replaced by a six digit mode of classification known as the North American Industry Classification System. This was devised in 1997. Regardless of this new system moving in, a lot of government agencies including the U.S. Securities and Exchange Commission use the SIC codes in their operations.
Using the logic of the SIC codes you can divide industries into various groups which their industry group. This is what they generally produce, like the steel industry. You then move to the Major Group, which would be a company which does something with or based around steel manufacturing. Finally, you split it into division where you have all of the establishments which deal with different aspects of that industry.

The first three digits of the code signify the industry group and the first two of the digits signify the Major Group. SIC codes have a certain range set up for certain industries. So the agriculture industry would have a certain amount of codes set aside for them, and their list contains all of the subcategories.

These codes were initially used to carry out business analysis. Beforehand, each government department would have used their own method of categorization which would have been totally meaningless to any other agency. This was extremely inefficient and a standardized model was required for the sake of practicality. Consider the codes united all of the analysis methods of the US government, they could exchange results and make collaborative decisions which could be translated by every department in their turn. This guaranteed efficiency.  Look for zip+4 lists.