SIC Codes were set up in the year 1937. The system was established on a strong foundation and was later updated countable times until 1987. The concept was shared between the U.S.A, Mexico, and Canada, which led to a new approach for a member countries classification system. With time, to evolve the interest of the member countries, a new system (NAICS) was established later in the year 1997.
The SIC system has been the most popular industry classification system. It’s been majorly used by data and marketing companies at large to expand their network for over 40 years. NAICS was established in the year 1992; however, the classification system took time to uplift itself.
Category Structure of SIC Codes and NAICS Codes:
| SIC Categories | NAICS Categories |
|---|---|
| 11 Divisions | 20 Sectors |
| 83 Major Groups | 99 Subsectors |
| 413 Industry Groups | 312 Industry Groups |
| 1,005 Industries | 713 Industries |
| 10,000+ Industries | 1,066 United Stated Industries |
SIC Code vs. NAICS Codes Comparison
To our surprise, the NAICS code can be further broken down into more particular SIC Code Extended categories. NAICS Code 541310 is the most specific classification in the NAICS system. But this can be further segmented into 40 SIC Code Extended categories - thereby offering a more refined and specific targeting system. A sample table is given below:
| NAICS Code | Description |
|---|---|
| 541310 | Architectural Services |
SIC Code Extended Categories for NAICS Code: 871298
| SIC Code | Description |
|---|---|
| 871201 | Building Designers |
| 871202 | Architects |
| 871203 | Golf Course Architects |
| 871204 | Architectural Illustrators |
| 871205 | Architects & Engineers |
| 871206 | Architectural & Construction Specifications |
| 871207 | Architects & Builders Service |
| 871208 | Construction Estimates |
| 871209 | Designers-Architectural |
| 871210 | Building Construction-Consultants |
| 871211 | Engineers-Architectural |
| 871212 | Engineers-Building Inspection |
| 871213 | Home Design & Planning Service |
| 871214 | Foundation-Exploration & Test Borings |
| 871215 | House Plans |
| 871216 | Government-Architectural Services |
| 871217 | Architectural Designers |
| 871218 | Architectural Models |
| 871222 | House & Building Movers Consultants |
| 871298 | Architectural Services |
The major difference between SIC and NAICS codes:
SIC Codes and NAICS have an entirely different numbering concept.
| NAICS Code | SIC Code |
|---|---|
| It was originated in collaboration with the U.S. Canadians and Mexican Government. | It was developed solely by the United States Government. |
| The categorical grouping is done on the basis of a similar process or the same products and services. | The categorical grouping is done on the basis of demand or production. |
| NAICS Codes are mostly used for public sector statistical purposes. | SIC Codes are mostly used for businesses focused on the private sector. |