Federal Register Feb 25, 1999
Contents:
Summary
Dates
Addresses
For further information
PDF version

Supplementary information
Background
Product Classification System Initiative
Phase I: Classification of Service Product
Guiding Principles
Classification Committees
References
U.S. Industries Arranged by NAICS Sectors, Subsectors, and Industry Groups

OFFICE OF MANAGEMENT AND BUDGET

Economic Classification Policy Committee; Initiative to Create a Product Classification System, Phase I: Exploratory Effort to Classify Service Products

AGENCY:Office of Management and Budget, Executive Office of the President

ACTION:Proposed Development of a Comprehensive and Integrated North American Product Classification System


SUMMARY: Under Title 44 U. S. C. 3504(e), the Office of Management and Budget (OMB), through its Economic Classification Policy Committee (ECPC), is seeking public comment on the proposed development of a comprehensive classification system for products produced by North American Industry Classification System (NAICS) industries. The ECPC proposes, over the long term, to develop a comprehensive and integrated North American Product Classification System for the products produced by industries classified under the North American Industry Classification System (NAICS) and, over the short term, to explore the feasibility of identifying and classifying products produced by selected NAICS service industries. The ECPC is particularly seeking proposals for an initial identification of the service products created by industries in selected service sectors as well as comments on related discussions of needs and uses for product data, guiding principles for the product classification development, and organization and tasks of the product classification committees. In addition, the ECPC is seeking information sources in the academic and business communities that can be used by the classification committees to identify the products created by the service industries includ ed in Phase I (see Industry Appendix).

DATES: To ensure consideration, all comments on the development of a product classification system and proposals for products must be received electronically or in writing no later than June 15, 1999.

ADDRESSES: Please send comments and proposals for products electronically either by e-mail to prodclass@ccmail.census.gov or by using the response form found on www.census.gov/products. Proposals may also be mailed to Michael F. Mohr, Coordinator, ECPC Initiative to Classify Service Products, Bureau of the Census, U.S. Department of Commerce, Room 2633-3, Washington, D.C. 20233, telephone number (301) 457-2589, FAX (301) 457-1536. Proposals will become part of the library of background information to guide the work of the classification committees. All comments and proposals received in response to this notice will be available for public inspection at the Bureau of the Census, U.S. Department of Commerce, 4700 Silver Hill Road, Suitland, MD 20233. Please telephone the Bureau of the Census at (301) 457-2589 to make an appointment. Those making proposals will be notified directly of action taken by the ECPC.

Those wishing to identify information sources for the service industries included in Phase I should do so either through the web site at www.census.gov/products, or by e-mail to prodclass@ccmail.census.gov, or by contacting Michael F. Mohr, Coordinator, ECPC Initiative to Classify Service Products, Bureau of the Census, U.S. Department of Commerce, Room 2633-3, Washington, D.C. 20233, telephone number (301) 457-2589, FAX (301) 457-1536.

WEB PAGE: A Web Page for the product classification initiative can be found at www.census.gov/products. This site provides extensive information on, and will report news about, the initiative; it also provides a structured medium through which interested parties can participate electronically in Phase I by identifying information sources and submitting proposals for the products produced by the covered service industries.

ELECTRONIC AVAILABILITY: This document is available on the World Wide Web from the Census Bureau at the address under the listing Federal Register Notice. This document is also available via File Transfer Protocol (FTP) at the address . A more comprehensive treatment of the subject matter contained in this notice is provided in a Discussion Paper that is also available electronically at the foregoing addresses. Copies of the NAICS manual referenced in this notice can be ordered from the National Technical Information Service at the address or (800) 553-6847.

FOR FURTHER INFORMATION CONTACT: Parties wishing further information on the work described in this notice should contact Michael F. Mohr, Coordinator: ECPC Initiative to Classify Service Products, Bureau of the Census, U.S. Department of Commerce, Room 2633-3, Washington, D.C. 20233, E-mail michael.f.mohr@ccmail.census.gov, telephone number (301) 457-2589, FAX (301)457-1536.

SUPPLEMENTARY INFORMATION:

Background

In a Federal Register notice of July 26, 1994 (59 FR 38092-38096), OMB announced that the ECPC had agreed to work in concert with Mexico's Instituto Nacional de Estadística, Geografía e Informática (INEGI) and Statistics Canada to develop a new and common industry classification system ­ the North American Industry Classification System (NAICS) ­ that would replace the existing system used in the United States, the Standard Industrial Classification System (SIC). Final agreement on NAICS was announced in a Federal Register notice of April 9, 1997 (62 FR 17287-17337). This agreement resulted in the publication in 1998 of the new North American Industry Classification System, United States, 1997 manual.

In addition to announcing the development of NAICS, the 1994 Federal Register notice also indicated that each country would provide product data compiled within the framework of its respective statistical system, to meet the need for such information. Recognizing the increasing international trade in goods and services, each country envisaged working cooperatively to help improve existing commodity classification systems, including the Harmonized System (HS) of the Customs Cooperation Council and the United Nations' Provisional Central Product Classification System (CPC) for services.(1) In particular, the three countries agreed that such cooperation would entail coordinating their product classification efforts and keeping each other informed of proposals for change in this area. Integral to the product classification accord was a common recognition by the statistical agencies of the three countries that "market-oriented, or demand-based, groupings of economic data are required for many purposes, including studies of market share, demand for goods and services, import competition in domestic markets and similar studies."(2)

In recognition of the product classification accord, the ECPC committed to expanding the list of commodities and services that would be available from the 1997 Economic Censuses. The ECPC also established two product code task forces to implement this commitment ­ the Investment Goods Product Code Task Force and the Service Product Code Task Force. Although preliminary work on service products classification began in 1993, that work was subsequently terminated because the total restructuring of the industry classification system consumed all available resources within the statistical agencies.(3)

Having now largely accomplished the industry classification objectives for NAICS, the ECPC is announcing a new initiative to develop a comprehensive classification system for the products produced by NAICS industries. This initiative will be conducted as a joint effort by Canada, Mexico, and the United States. The long-term objective of the joint initiative is to develop a market-oriented/demand-based classification system for products that (a) is not industry-of-origin based but can be linked to the NAICS industry structure, (b) is consistent across the three NAICS countries, and (c) promotes improvements in the identification and classification of service products across international classification systems, such as the Central Product Classification System of the United Nations.

Product Classification System Initiative

The ECPC anticipates that the initiative to classify service products will be a comprehensive effort that addresses both the conceptual issues and the data collection issues necessary to ensure that the system is conceptually sound, feasible to implement, and relevant to analytical and operational objectives. The initiative will be implemented in two phases. An interim, or exploratory, phase to be launched in early 1999 and completed during 2000 (Phase I), will develop preliminary product classifications for a subset of NAICS service industries. These results will be incorporated in the 2002 Economic Census and related programs. A second, or final, phase of this initiative will be launched after the 2002 Economic Census. Exploiting the lessons and insights gained from the deliberations of Phase I and the data collection activities of the 2002 Economic Census, this phase (Phase II) will develop a complete and fully integrated product classification system that extends to all NAICS industries. The results of Phase II will be incorporated in the 2007 Economic Census and related programs.

In undertaking this effort, the ECPC recognizes that the development of even a preliminary classification system for selected service products will be a complex endeavor that will tax the expertise of the statistical agencies which currently lack familiarity with how industry produces these service products. Accordingly, the ECPC is actively seeking information sources in the academic and business communities that can be used by the classification committees to identify the products created by the service industries included in Phase I (see Industry Appendix). Commentors who wish to provide such information should refer to the ADDRESSES section of this notice.

The ECPC is seeking proposals for the initial identification of service products as well as comments on the discussion of needs and uses and guiding principles for the product classification, and the organization and tasks of the classification committees. In accordance with the proposed classification development process outlined below, the ECPC requests that respondents to this notice support their proposals for the identification and definition of service products for service industries included in Phase I of this initiative with documentation that provides information to support the following tasks:

  1. Developing a model/description of the production process for each industry;
  2. Identifying/defining the final products sold by each industry;
  3. Developing formal definitions for the identified products; and
  4. Proposing suggestions for organizing the products identified for each sector into a market-oriented classification system that will allow users to:
  5. identify the quantity and price(s) of each product produced by each industry,
  6. aggregate common products across all industries, and
  7. group and aggregate products in a manner that satisfies the demand-side classification framework adopted by the three NAICS countries.

Phase I: Classification of Service Products

The first or interim phase of the initiative proposes to identify and classify the products produced by the industries in four NAICS service sectors ­ Information (Sector 51); Finance and Insurance (Sector 52) except Insurance (Subsector 524); Professional, Scientific, and Technical Services (Sector 54); and Administrative and Support, Waste Management and Remediation Services (Sector 56).(4)

Needs and Uses

There are two reasons for the focus on services in Phase I. First, the value of final production produced by industries included in NAICS service sectors now accounts for about 45 percent of private sector Gross Domestic Product (GDP) in the U.S., and these sectors include some of the fastest growing segments of the economy, such as computer services, communications, management consulting, temporary help services, and health services. Second, despite its importance in the overall private economy, the U.S. currently has no product classification system for service industries. In contrast, the Census Bureau has been collecting product-level data for manufacturing industries since at least the 1899 Census of Manufactures; by 1939 it was collecting data for approximately 6,400 manufactured products. Moreover, the Census Bureau has had a published list of manufactured products and product codes since 1947 ­ the Numerical List of Manufactured and Mineral Products, which has been revised and updated every five years (in conjunction with the economic censuses). By 1967 the list of manufactured products had grown to 10,500, but more than 12,000 products were included under the NAICS classification system for the 1997 Economic Census.

The collection of product data for these manufactured products by the Census Bureau and the collection of associated producer price data by the Bureau of Labor Statistics (BLS) have long provided national accountants and researchers with the information necessary to estimate, monitor, and analyze the growth in real output, prices, productivity, international trade, and competitiveness in the manufacturing sector. In turn, these manufacturing estimates and analyses have long served to influence and guide the formulation of government policies, including industrial, international trade, fiscal, and monetary policies. And, within the business community, Census Bureau tabulations of the detailed products made and used by manufacturers have been highly valued and much utilized, as a reliable and comprehensive source of information on trends and new developments in the product markets in which businesses operate and compete.

Over the last several decades, however, the share of U.S. national output derived from service sector industries has grown to exceed the share derived from manufacturing and all other goods-producing sectors combined. Moreover, that share seems certain to grow over the long-term and, perhaps, accelerate its pace. In recognition of this profound structural change, the ECPC believes it is critical to provide the business and economics community ­ business analysts, policy makers, researchers, and statistical agencies ­ with the kind of comprehensive, well-organized data on the products produced by service industries that presently exist for the products produced by manufacturing and other goods-producing industries.

Thus, the overriding objective of Phase I of the initiative is to systematically explore the development of a formal classification system for service products that can be used throughout the public and private communities of users to coordinate the collection, tabulation, and analysis of data on the value of the detailed products sold or produced for final consumption by selected service industries and on the prices charged for those products. Although preliminary, the results from Phase I will be available to guide the collection of data for service products in the affected industries during the 2002 Economic Census. In contrast to Phase I, the ultimate objective of Phase II of the initiative will be to develop an agreed-upon, integrated, and comprehensive list of products, product definitions, and product codes that (1) encompasses the products of both goods- and service-producing industries alike and (2) accommodates a demand-side/market-oriented classification framework for grouping and aggregating these products.

Guiding Principles

The ECPC is proposing three general principles to guide the overall process of classifying the products produced by industries:

1.An understanding of the production process of the reporting units included in the respective industries is a required first principle for identifying and defining the product(s) actually produced for final consumption by those industries.(5)

2.The aim of the product classification process should be to identify, define, and classify the final products produced and transacted by the reporting units within each industry. The final products of reporting units in an industry are those that are created and transacted (sold or transferred) by the reporting units to economic entities outside of the individual reporting units.

  1. The classification of products produced by industries should be based on a market-oriented, or demand-based, conceptual framework.(6)

With respect to the first principle, the ECPC believes it is necessary to approach the process of product classification for industries from the perspective of the production process because it provides the necessary conceptual framework for: (a) identifying the activities performed by a given industry, (b) facilitating an ordered consideration of information and competing hypotheses about the role of any products derived from those activities in the production process, (c) developing informed judgements about the final products produced by the industry, and (d) providing insights into the transaction unit that is appropriate and feasible for measuring the respective products and the reporting unit that is appropriate for collecting the data. Put simply, in order to satisfy the second principle, it is necessary to distinguish the final products produced by a given industry's production process from the intermediate outputs produced and consumed by that process. While this approach has significance for industries generally, it is especially important in the case of service industries where, in contrast to goods-producing industries such as manufacturing, there exists much confusion about what many service industries do and how they do it.

Finally, once the products of the industries have been identified and defined, it is necessary to organize those products according to a consistent classification principle that is acceptable and useful to all segments of the data using community. The third principle reflects the ECPC's commitment to satisfy this requirement in a manner that reflects the consensus reached on this issue by the three NAICS countries. The guiding role of the third principle in classifying and grouping products was enunciated by Triplett [1994a, p. 6], who noted that a product grouping system "should incorporate, and facilitate the analysis of, the relationships among products ­ demand relations, substitution relations, marketing relationships, uses by consumers or by other ultimate purchasers."

Guidelines for Product Identification in Service Industries

Identifying the final products of each industry is the first step in developing a product classification system. Recognizing that this step can be difficult for many service industries, the ECPC intends that private sector respondents to this Initiative and the classification committees will formulate proposals for the products of a given service industry in the context of the following definitions and guidelines.

To correctly define the product(s) of a service industry it is essential to specify exactly what the producer agrees to sell and what the customer agrees to buy. That is, a determination must be made of what is implicitly or explicitly "contracted for" when a transaction takes place. Further, it is important to distinguish between the output the industry produces and the activities carried out by the industry to produce the output.(8)

(a) simple service: a standard service whose real output can often be measured in physical units or counts; e.g., a traditional haircut or basic phone service.

(b) composite service: a product that embodies several distinct services that are produced together (by virtue of regulations, production process, safety or hygiene requirements, or industry practice). The customer is not free to pick and choose among the several services in the composite -- the consumer buys all or none; e.g., a conventional hotel room rental includes maid service, salon haircuts include shampooing, or the final product (diagnosis or course of treatment) created by a doctor's office visit may embody a variety of required diagnostic services (see related discussion in section C below).

(c) service bundle: a product containing a collection of services negotiated between the service provider and the customer and whose composition may vary by customer; e.g., traditional phone service plus call waiting and/or caller ID, etc., a bundle of information services that can be transmitted through a common medium (cable, satellite) and that may include voice, data and/or visual services, etc., or different bundles of janitorial services, or legal services, or accounting services, etc.

Classification Committees

Phase I of the initiative will be accomplished through the creation of four classification committees (one per sector) that will operate simultaneously and draw on the combined talent and resources of the Federal statistical agencies. The ECPC also will strive to provide each committee with consultancy support from private sector industry experts. The committees will implement a comprehensive product classification process for each NAICS service industry in the Industry Appendix below. The process will include:

1.Developing a model/description of the production process for each industry;

2.Identifying/defining the final products sold by each industry;

3.Developing formal definitions for the identified products; and

4.Proposing suggestions for organizing the products identified for each sector into a market-oriented classification system that will allow users to:

a.identify the quantity and price(s) of each product produced by each industry,

b.aggregate common products across all industries, and

c.group and aggregate products in a manner that satisfies the demand-side classification framework adopted by the three NAICS countries.

In addition, each classification committee will consider issues related to the unit of measurement and to the feasibility of measuring and reporting data on output and prices for the products identified for the respective service industries, including industry record-keeping practices and reporting units.



Donald R. Arbuckle,

Acting Administrator and Deputy Administrator,

Office of Information and Regulatory Affairs.

References

Chadeau A. [1997], "Prices of Services to Enterprises," paper presented in Twelfth Meeting of Voorburg Group on Service Statistics, Copenhagen: Denmark, September 15-19, 1997.

Economic Classification Policy Committee [1994], "Standard Industrial Classification Replacement," Federal Register, July 26, p. 38092-96.

_______ [1993a], "Issue Paper No. 6, Services Classifications," Bureau of Economic Analysis (BE-42), U.S. Department of Commerce, Washington: D.C., September.

_______ [1993b], "Issue Paper No. 1, Conceptual Issues," Federal Register, March 31, pp.16991-17000.

Hill, T. P. [1977], "On Goods and Services," Review of Income and Wealth,

vol. 123 (4), pp. 315-38.

Office of Management and Budget [1998], North American Industry Classification System, United States, 1997, Bernan Press: Lanham, Maryland.


_______ [1997], "1997 North American Industry Classification System­1987 Standard Industrial Classification Replacement," Federal Register, April 9,

pp. 17287-17337.

_______ [1992], Economic Classification Policy Committee Charter, Washington: D.C., July, letter with two pages.

Sherwood, M. J. [1997], "Output of the Property and Casualty Insurance Industry," paper (revised February 1998), presented at the Centre for the Study of Living Standards Conference on Service Sector Productivity and the Productivity Paradox, Ottawa, April 11-12, 1997.

Triplett, J. E. [1994a], "Economic Concepts for Economic Classifications, Survey of Current Business, November, pp. 45-49.

_______ [1994b], "Economic Classification in the New North American Industry Classification System (NAICS)," paper presented at Seminar on New Directions in Statistical Methodology, Washington, DC, May 25, 1994.

_______ [1990], "The Theory of Industrial and Occupational Classifications and Related Phenomena," in 1990 Annual Research Conference, Proceedings in Arlington, Virginia, March 18-21, 1990, by the Bureau of the Census, Washington, DC: U.S. Government Printing Office), pp. 9-25.

United Nations [1998], Central Product Classification (CPC), Version 1.0, Statistical Papers, Series M, No. 77, Very 1.0, Department of Economics and Social Affairs, Statistics Division, New York.

Industry Appendix

U.S. Industries Arranged by NAICS Sectors, Subsectors, and Industry Groups

51 INFORMATION

511 Publishing Industries

5111Newspaper, Periodical, Book, and Database Publishers

51111 Newspaper Publishers

51112 Periodical Publishers

51113 Book Publishers

51114 Database and Directory Publishers

51119 Other Publishers

511191Greeting Card Publishers

511199 All Other Publishers

5112 Software Publishers

51121 Software Publishers

512 Motion Picture & Sound Recording Industries

5121 Motion Picture & Video Industries

51211 Motion Picture & Video Production

51212 Motion Picture & Video Distribution

51213 Motion Picture & Video Exhibition

512131 Motion Picture & Theaters (except Drive-Ins)

512132Drive-In Motion Picture Theaters

51219Postproduction Services and Other Motion Picture and Video Industries

512191Teleproduction and Other Postproduction Services

512199Other Motion Picture and Video Industries

513 Broadcasting & Telecommunications

5131 Radio & Television Broadcasting

51311 Radio Broadcasting

513111Radio Networks

513112 Radio Stations

51312 Television Broadcasting

5132 Cable Networks & Program Distribution

51321 Cable Networks

51322 Cable & Other Program Distribution

5133 Telecommunications

51331 Wired Telecommunications Carriers

51332 Wireless Telecommunications Carriers (except Satellite)

513321 Paging

513322 Cellular & Other Wireless Telecommunications

51333 Telecommunications Resellers

51334 Satellite Telecommunications

51339 Other Telecommunications

514 Information Services & Data Processing Services

5141 Information Services

51411 News Syndicates

51412 Libraries & Archives

51419 Other Information Services

514191 On-Line Information Services

514199 All Other Information Services

5142 Data Processing Services

51421 Data Processing Services

52 FINANCE & INSURANCE

521 Monetary Authorities - Central Bank

5211 Monetary Authorities - Central Bank

52111 Monetary Authorities - Central Bank

522 Credit Intermediation & Related Activities

5221 Depository Credit Intermediation

52211 Commercial Banking

52212 Savings Institutions

52213 Credit Unions

52219 Other Depository Credit Intermediation

5222 Nondepository Credit Intermediation

52221 Credit Card Issuing

52222 Sales Financing

52229 Other Nondepository Credit Intermediation

522291 Consumer Lending

522292 Real Estate Credit

522293 International Trade Financing

522294 Secondary Market Financing

522298 All Other Nondepository Credit Intermediation

5223 Activities Related to Credit Intermediation

52231 Mortgage & Nonmortgage Brokers

52232 Financial Transactions Processing, Reserve, & Clearinghouse Activities

52239 Other Activities Related to Credit Intermediation

523 Securities, Commodity Contracts & Other Financial Investments & Related Activities

5231 Securities & Commodity Contracts Intermediation & Brokerage

52311 Investment Banking & Securities Dealing

52312 Securities Brokerage

52313 Commodity Contracts Dealing

52314 Commodity Contracts Brokerage

5232 Securities &Commodity Exchanges

52321 Securities & Commodity Exchanges

5239 Other Financial Investment Activities

52391 Miscellaneous Intermediation

52392 Portfolio Management

52393 Investment Advice

52399 All Other Financial Investment Activities

523991 Trust, Fiduciary & Custody Activities

523999 Miscellaneous Financial Investment Activities

525 Funds, Trusts & Other Financial Vehicles

5251 Insurance & Employee Benefit Funds

52511 Pension Funds

52512 Health & Welfare Funds

52519 Other Insurance Funds

5259 Other Investment Pools & Funds

52591 Open-End Investment Funds

52592 Trusts, Estates & Agency Accounts

52593 Real Estate Investment Trusts

52599 Other Financial Vehicles

54 PROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES

541 Professional, Scientific & Technical Services

5411 Legal Services

54111 Offices of Lawyers

54112 Offices of Notaries

54119 Other Legal Services

541191 Title Abstract & Settlement Offices

541199 All Other Legal Services

5412 Accounting, Tax Preparation, Bookkeeping & Payroll Services

54121 Accounting, Tax Preparation, Bookkeeping & Payroll Services

541211 Offices of Certified Public Accountants

541213 Tax Preparation Services

541214 Payroll Services

541219 Other Accounting Services

5413 Architectural, Engineering & Related Services

54131 Architectural Services

54132 Landscape Architectural Services

54133 Engineering Services

54134 Drafting Services

54135 Building Inspection Services

54136 Geophysical Surveying & Mapping Services

54137 Surveying & Mapping (except Geophysical) Services

54138 Testing Laboratories

5414 Specialized Design Services

54141 Interior Design Services

54142 Industrial Design Services

54143 Graphic Design Services

54149 Other Specialized Design Services

5415 Computer Systems Design &Related Services

54151 Computer Systems Design & Related Services

541511 Custom Computer Programming Services

541512 Computer Systems Design Services

541513 Computer Facilities Management Services

541519 Other Computer Related Services

5416 Management, Scientific, & Technical Consulting Services

54161 Management Consulting Services

541611 Administrative Management & General Management Consulting Services

541612 Human Resources & Executive Search Consulting Services

541613 Marketing Consulting Services

541614 Process, Physical Distribution & Logistics Consulting Services

541618 Other Management Consulting Services

54162 Environmental Consulting Services

54169 Other Scientific & Technical Consulting Services

5417 Scientific Research & Development Services

54171 Research & Development in the Physical, Engineering & Life Sciences

54172 Research & Development in the Social Sciences & Humanities

5418 Advertising & Related Services

54181 Advertising Agencies

54182 Public Relations Agencies

54183 Media Buying Agencies

54184 Media Representatives

54185 Display Advertising

54186 Direct Mail Advertising

54187 Advertising Material Distribution Services

54189 Other Services Related to Advertising

5419 Other Professional, Scientific, and Technical Services

54191 Marketing Research & Public Opinion Polling

54192 Photographic Services

541921 Photography Studios, Portrait

541922 Commercial Photography

54193 Translation & Interpretation Services

54194 Veterinary Services

54199 All Other Professional, Scientific & Technical Services

56 ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIATION SERVICES

561 Administrative & Support Services

5611 Office Administrative Services

56111 Office Administrative Services

5612 Facilities Support Services

56121 Facilities Support Services

5613 Employment Services

56131 Employment Placement Agencies

56132 Temporary Help Services

56133 Employee Leasing Services

5614 Business Support Services

56141 Document Preparation Services

56142 Telephone Call Centers

561421 Telephone Answering Services

561422 Telemarketing Bureaus

56143 Business Service Centers

561431 Private Mail Centers

561439 Other Business Service Centers (including Copy Shops)

56144 Collection Agencies

56145 Credit Bureaus

56149 Other Business Support Services

561491 Repossession Services

561492 Court Reporting & Stenotype Services

561499 All Other Business Support Services

5615 Travel Arrangement & Reservation Services

56151 Travel Agencies

56152 Tour Operators

56159 Other Travel Arrangement & Reservation Services

561591 Convention and Visitors Bureaus

561599 All Other Travel Arrange & Reservation Services

5616 Investigation & Security Services

56161 Investigation, Guard & Armored Car Services

561611 Investigation Services

561612 Security Guards & Patrol Services

561613 Armored Car Services

56162 Security Systems Services

561621 Security Systems Services (except Locksmiths)

561622 Locksmiths

5617 Services to Buildings & Dwellings

56171 Exterminating & Pest Control Services

56172 Janitorial Services

56173 Landscaping Services

56174 Carpet & Upholstery Cleaning Services

56179 Other Services to Buildings & Dwellings

5619 Other Support Services

56191 Packaging & Labeling Services

56192 Convention & Trade Show Organizers

56199 All Other Support Services

562 Waste Management & Remediation Services

5621 Waste Collection

56211 Waste Collection

562111 Solid Waste Collection

562112 Hazardous Waste Collection

562119 Other Waste Collection

5622 Waste Treatment & Disposal

56221 Waste Treatment & Disposal

562211 Hazardous Waste Treatment & Disposal

562212 Solid Waste Landfill

562213 Solid Waste Combustors & Incinerators

562219 Other Nonhazardous Waste Treatment & Disposal

5629 Remediation & Other Waste Management Services

56291 Remediation Services

56292 Materials Recovery Facilities

56299 All Other Waste Management Services

562991 Septic Tank & Related Services

562998 All Other Miscellaneous Waste Management Services

1. The provisional CPC has since been replaced by version 1.0; see United Nations [1998].

2. See Economic Classification Policy Committee [1994], 59 FR 38094.

3. Nonetheless, the ECPC's product classification objectives with respect to investment goods were largely achieved.

4. In addition to these four sectors, NAICS service sectors also include: Real Estate and Rental and Leasing (Sector 53); Management of Companies and Enterprises (Sector 55); Educational Services (Sector 61); Health Care and Social Assistance (Sector 62); Arts, Entertainment, and Recreation (Sector 71); Accommodation and Food Services (Sector 72); and Other Services (except Public Administration) (Sector 81).

5. The ECPC recognized the dual importance of this principle for classifying both service industries and the products produced by such industries early on; see Economic Classification Policy Committee [1993a], Section 6.5.

6. This classification principle was first established in several papers by Triplett [1990, 1994a, and 1994b]; see also Economic Classification Policy Committee [1993b].

7. See Hill [1977, p.318].

8. See Sherwood [1997, p.3].

9. These service product types were suggested by Chadeau [1997, p.2].


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