1. NAICS Business Implications
Frantz Price
Managing Director, Industry Practices
Atlanta Seminar
April 29, 2003

2. Why NAICS? Replaces Old SIC System Developed in 1930’s
Emphasis on Manufacturing
Last Revised in 1987
Little Change in Original Structure
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3. Why NAICS? Reflects Economic Reality New and Emerging Industries
New and Advanced Technologies
Importance of Services and Information
Comparability with Canada and Mexico
Detailed Coverage to 6-Digit Level
2-Digit Compatibility with ISIC
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4. SIC-to-NAICS Four Basic Categories of Change New Industries
Redefined Industries
Industries with slightly different compositions
Reclassified Industries
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5. Highlights Manufacturing Sector Reorganized
New Computer/Semiconductor Sub-sector
New Information Sector
Publishing
Broadcasting/Telecom
Motion Picture/Sound Recording
Information/Data Processing
New Restaurants/Accommodations Sector
Expanded Services Detail
Professional, Technical, and Scientific
Waste Management
Healthcare
Educational
Wholesale/Retail Redefined
Finance Industries Restructured
Credit Card Issuing
Investment Banking
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6. Goods-Producing Sectors
Natural Resources and Mining
Sector 11 (Agriculture, forestry, fishing and hunting)
Sector 21 (Mining)
Construction
Sector 23 (Construction)
Manufacturing
Sector (Manufacturing)
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7. Service-Producing Sectors
Trade, Transportation, and Utilities
Sector 42 (Wholesale trade)
Sector (Retail trade)
Sector (Transportation and warehousing)
Sector 22 (Utilities)
Information
Sector 51 (Information)
Financial and Related
Sector 52 (Finance and insurance)
Sector 53 (Real estate & rental and leasing)
Professional and Business
Sector 54 (Professional, scientific, and technical services)
Sector 55 (Management of companies and enterprises)
Sector 56 (Administrative and support and waste management and remediation services)
Education and Healthcare
Sector 61 (Education services)
Sector 62 (Health care and social assistance)
Leisure and Hospitality
Sector 71 (Arts, entertainment, and recreation)
Sector 72 (Accommodation and food services)
Other
Sector 81 (Other services, except public administration)
Public Administration
Sector 92 (Public administration)
Unclassified
Sector 99 (Unclassified)
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8. NAICS Implications: Strategic Planning/Market Sizing
Sales Modeling/Forecasts
Benchmarking
Budgets/Long-Term Plans
Portfolio/Lending Decisions
NAICS Conversion Schedule for Relevant Indicators:
Shipments, Orders, Inventories –2001
Industrial Production Indexes –December 2002
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9. NAICS Implications: Contract Management
Forward Pricing
Escalator Clauses
Litigations
NAICS Conversion Schedule for Relevant Indicators:
Average Hourly Earnings –June 2003
Producer Price Indexes (SIC-based PPIs) –February 2004
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10. NAICS Implications: Purchasing/Supply Management
Negotiation with Suppliers
Cost Monitoring/Benchmarking
Budgets/Long-Term Plans
NAICS Conversion Schedule for Relevant Indicators:
Average Hourly Earnings –June 2003
Producer Price Indexes (SIC-based PPIs) –February 2004
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11. How Can Global Insight Help?
Identify Best NAICS Proxies
Create Data History
Re-Specify Company Models
Staff Training
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