The North American Industry Classification System (NAICS) is a standardized system used by federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. A specific numeric identifier is assigned based on the primary activity of a business. For entities engaged in the acquisition, management, or disposition of properties, this identifier provides a common framework for categorizing their operations within the broader economic landscape.
Utilizing the appropriate classification offers several advantages. It facilitates benchmarking against other entities in similar lines of business, enables more accurate economic analysis by governmental and private sector researchers, and is often a requirement for certain types of government contracts or loan applications. Understanding the applicable classification helps businesses accurately represent their core functions and access relevant resources and opportunities.
