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Industry Classification of Establishments

Component ID: #ti1127858533

The industry classifications for all establishments covered by the economic census and surveys are based on the North American Industry Classification System (NAICS).

The method of assigning industry classifications and the level of detail at which establishments were classified depends on whether a report form is obtained for the establishment. Establishments that returned a report form are classified on the basis of their self-designation; product line sales, products produced, or services rendered; and responses to other industry-specific inquiries.

Establishments that do not return a report form and those that were not sent a report form were classified using the following methods:

  • the most current industry classification available from the applicable Census Bureau current surveys or the previous economic census,
  • the classification from administrative records of other federal agencies,
  • a brief inquiry requesting information necessary to assign a kind-of-business code and/or
  • research done by Census Bureau analysts.

Component ID: #ti1540288628

Industry Classifications

Data from the 2012 Economic Census is published according to the 2012 North American Industry Classification System (NAICS). The 2012 Economic Census of Island Areas will cover the following NAICS sectors:

  • 21 Mining
  • 22 Utilities
  • 23 Construction
  • 31-33 Manufacturing
  • 42 Wholesale Trade
  • 44-45 Retail Trade
  • 48-49 Transportation and Warehousing
  • 51 Information
  • 52 Finance and Insurance
  • 53 Real Estate and Rental and Leasing
  • 54 Professional, Scientific, and Technical Services
  • 55 Management of Companies and Enterprises
  • 56 Administrative and Support and Waste Management and Remediation Services
  • 61 Educational Services
  • 62 Health Care and Social Assistance
  • 71 Arts, Entertainment, and Recreation
  • 72 Accommodation and Food Services
  • 81 Other Services (except Public Administration)

(Not covered in the economic census are the Agriculture, Forestry, Fishing, and Hunting sector (NAICS 11), Elementary and Secondary Schools (NAICS 6111), Junior Colleges (NAICS 6112), Colleges, Universities, and Professional Schools (NAICS 6113), and the Public Administration sector (NAICS 92).

The 18 NAICS sectors are subdivided into 86 subsectors (3-digit codes), 286 industry groups (4-digit codes), and 650 NAICS industries (5-digit codes).

Component ID: #ti1540288627

Economic Census of Island Areas Scope

Data from the 2012 Economic Census of Island Areas are published using the 2012 North American Industry Classification System (NAICS). The structure of the NAICS system becomes progressively narrower with successive additions of numerical digits. An establishment is classified in a particular industry on the basis of its self-designation, as well as answers to other survey questions. The 2012 Island Areas Economic Census covers the following NAICS sectors:

21 Mining

The mining sector comprises establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. The most common type of mining activity in the island areas comprises stone quarrying. The mining sector distinguishes two basic activities: mine operation and mining support activities. Establishments are grouped and classified according to the natural resource mined or to be mined. Industries include establishments that develop the mine site, extract the natural resources, and/or those that beneficiate (i.e., prepare) the mineral mined.

22 Utilities

The utilities sector comprises establishments engaged in the provision of the following utility services: electric power, natural gas, steam supply, water supply, and sewage removal. Activities associated with the utility services provided vary by utility: electric power includes generation, transmission, and distribution; natural gas includes distribution; steam supply includes provision and/or distribution; water supply includes treatment and distribution; and sewage removal includes collection, treatment, and disposal of waste through sewer systems and sewage treatment facilities.

23 Construction

The construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as building sites also are included in this sector.

Construction work done may include new work, additions, alterations, or maintenance and repairs. Activities of these establishments generally are managed at a fixed place of business, but they usually perform construction activities at multiple project sites. Production responsibilities for establishments in this sector are usually specified in (1) contracts with the owners of construction projects or (2) contracts with other construction establishments.

Establishments primarily engaged in contracts that include responsibility for all aspects of individual construction projects are commonly known as general contractors, but also may be known as design-builders, construction managers, turnkey contractors, or (in cases where two or more establishments jointly secure a general contract) joint-venture contractors. Construction managers that provide oversight and scheduling only (i.e., agency) as well as construction managers that are responsible for the entire project (i.e., at risk) are included as general contractor type establishments. Establishments of the "general contractor" type frequently arrange construction of separate parts of their projects through subcontracts with other construction establishments.

Establishments primarily engaged in activities to produce a specific component (e.g., masonry, painting, and electrical work) of a construction project are commonly known as specialty trade contractors. Activities of specialty trade contractors are usually subcontracted from other construction establishments, but especially in remodeling and repair construction, the work may be done directly for the owner of the property.

Establishments primarily engaged in activities to construct buildings to be sold on sites that they own are known as operative builders, but also may be known as speculative builders or merchant builders. Operative builders produce buildings in a manner similar to general contractors, but their production processes also include site acquisition and securing of financial backing. Operative builders are most often associated with the construction of residential buildings. Like general contractors, they may subcontract all or part of the actual construction work on their buildings.

There are substantial differences in the types of equipment, work force skills, and other inputs required by establishments in this sector. To highlight these differences and variations in the underlying production functions, this sector is divided into three subsectors.

Subsector 236, Construction of Buildings, comprises establishments of the general contractor type and operative builders involved in the construction of buildings. Subsector 237, Heavy and Civil Engineering Construction, comprises establishments involved in the construction of engineering projects. Subsector 238, Specialty Trade Contractors, comprises establishments engaged in specialty trade activities generally needed in the construction of all types of buildings.

Information for the construction sector is not included in the Geographic Area Series data files for Puerto Rico.

31-33 Manufacturing

The manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembling of component parts of manufactured products is considered manufacturing, except in cases where the activity is appropriately classified in Sector 23, Construction. Manufacturing establishments from this sector are often described as plants, factories, or mills and characteristically use power-driven machines and materials-handling equipment. The subsectors in the manufacturing sector generally reflect distinct production processes related to material inputs, production equipment, and employee skills. However, establishments that transform materials or substances into new products by hand or in the workers home and those engaged in selling to the general public products made on the same premises from which they are sold, such as bakeries, candy stores, and custom tailors, may also be included in this sector. Manufacturing establishments may process materials or may contract with other establishments to process their materials for them. Both types of establishments are included in manufacturing.

The tabulations for this sector do not include central administrative offices, warehouses, or other establishments that serve retail establishments within the same organization. Data for such establishments are classified according to the nature of the service they provide. For example, separate headquarters establishments are reported in NAICS sector 55, Management of Companies and Enterprises.

The economic census includes, for the first time since 1992, the Petroleum Refineries (NAICS 32411) for the U.S. Virgin Islands.

Information for the manufacturing sector is not included in the Geographic Area Series data files for Puerto Rico.

42 Wholesale Trade

The wholesale trade sector comprises establishments engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The wholesaling process is an intermediate step in the distribution of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of goods for resale (i.e., goods sold to other wholesalers or retailers), capital or durable nonconsumer goods, or raw and intermediate materials and supplies used in production. Wholesalers normally operate from a warehouse or office. This sector comprises two main types of wholesalers: those that sell goods on their own account known as wholesale merchants and those that arrange sales and purchases for others generally for a commission or fee.

44-45 Retail Trade

The retail trade sector comprises establishments engaged in retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The retailing process is the final step in the distribution of merchandise. Retailers sell merchandise in small quantities to the general public. This sector comprises two main types of retailers: store and nonstore retailers. Store retailers operate fixed point-of-sale locations to attract walk-in customers. Nonstore retailers, also serve the general public by reaching customers and marketing merchandise with methods, such as the broadcasting of "infomercials," the broadcasting and publishing of direct-response advertising, the publishing of paper and electronic catalogs, door-to-door solicitation, in-home demonstration, selling from portable stalls (street vendors, except food), and distribution through vending machines.

48-49 Transportation and Warehousing

The transportation and warehousing sector includes industries providing transportation of passengers and cargo, warehousing and storage for goods, scenic and sightseeing transportation, and support activities related to modes of transportation. The modes of transportation are air, rail, water, road, and pipeline. This sector distinguishes three basic types of activities: subsectors for each mode of transportation, a subsector for warehousing and storage, and a subsector for establishments providing support activities for transportation. In addition, there are subsectors for establishments that provide passenger transportation for scenic and sightseeing purposes, postal services, and courier services.

51 Information

The Information sector comprises establishments engaged in producing and distributing information and cultural products, providing the means to transmit or distribute these products as well as data or communications, and processing data. The main components of this sector are the publishing industries, including software publishing, and both traditional publishing and publishing exclusively on the Internet; the motion picture and sound recording industries; the broadcasting industries, including traditional broadcasting and those broadcasting exclusively over the Internet; the telecommunications industries; the industries known as Internet service providers and Web search portals, data processing industries and the information services industries.

52 Finance and Insurance

The finance and insurance sector comprises establishments primarily engaged in financial transactions and/or in facilitating financial transactions. Three principal types of activities are identified: Raising funds by taking deposits and/or issuing securities and, in the process, incurring liabilities; pooling of risk by underwriting insurance and annuities; and providing specialized services facilitating or supporting financial intermediation, insurance, and employee benefit programs. Monetary authorities charged with monetary control are also included in this sector.

53 Real Estate and Rental and Leasing

The real estate and rental and leasing sector comprises establishments primarily engaged in renting, leasing, or otherwise allowing the use of tangible or intangible assets, and establishments providing related services. This sector also includes establishments engaged in managing real estate for others, selling, renting and/or buying real estate for others, and appraising real estate.

54 Professional, Scientific, and Technical Services

The professional, scientific, and technical services sector comprises establishments that specialize in performing professional, scientific, and technical activities for others. The establishments in this sector specialize according to expertise and provide to a variety of industries and households. Activities performed include: legal advice and representation; accounting, bookkeeping, and payroll services; architectural, engineering, and specialized design services; computer services; consulting services; research services; advertising services; photographic services; translation and interpretation services; veterinary services; and other professional, scientific, and technical services.

55 Management of Companies and Enterprises

The management of companies and enterprises sector comprises establishments that hold the securities of companies and enterprises for the purpose of owning a controlling interest or influencing management decisions or establishments (except government establishments) that administer, oversee, and manage establishments of the company or enterprise and that normally undertake the strategic or organizational planning and decision-making role of the company or enterprise. Establishments that administer, oversee, and manage may hold the securities of the company or enterprise.

56 Administrative and Support and Waste Management and Remediation Services

The administrative and support and waste management and remediation services sector comprises establishments performing routine support activities for the day-to-day operations of other organizations. Establishments in many sectors of the economy often undertake these essential activities in-house. The establishments in this sector specialize in one or more of these support activities and provide these services to clients in a variety of industries and, in some cases, to households. Activities performed include: office administration, hiring and placing of personnel, document preparation and similar clerical services, solicitation, collection, security and surveillance services, cleaning, and waste disposal services.

61 Educational Services

The educational services sector comprises establishments that provide instruction and training in a wide variety of subjects. Instruction and training are provided by specialized establishments, such as schools, colleges, universities, and training centers. These establishments may be privately owned and operated for profit or not for profit, or they may be publicly owned and operated. They may also offer food and accommodation services to their students.

The economic census of island areas excludes Elementary and Secondary Schools (NAICS 6111); Junior Colleges (NAICS 6112); and Colleges, Universities, and Professional Schools (NAICS 6113).

62 Health Care and Social Assistance

The health care and social assistance sector comprises establishments providing health care and social assistance for individuals. The sector includes both health care and social assistance because it is sometimes difficult to distinguish between the boundaries of these two activities. The services provided by establishments in this sector are delivered by trained professionals. All industries in the sector share this commonality of process, namely, labor inputs of health practitioners or social workers with the requisite expertise. Many of the industries in the sector are defined based on the educational degree held by the practitioners included in the industry.

71 Arts, Entertainment, and Recreation

The arts, entertainment, and recreation sector includes a wide range of establishments that operate facilities or provide services to meet varied cultural, entertainment, and recreational interests of their patrons. This sector comprises establishments that are involved in producing, promoting, or participating in live performances, events, or exhibits intended for public viewing, establishments that preserve and exhibit objects and sites of historical, cultural, or educational interest, and establishments that operate facilities or provide services that enable patrons to participate in recreational activities or pursue amusement, hobby, and leisure time interests.

72 Accommodation and Food Services

The accommodation and food services sector comprises establishments providing customers with lodging and/or preparing meals, snacks, and beverages for immediate consumption. The sector includes both accommodation and food services establishments because the two activities are often combined at the same establishment.

81 Other Services (except Public Administration)

The other services (except public administration) sector comprises establishments engaged in providing services not specifically provided for elsewhere in the classification system. Establishments in this sector are primarily engaged in activities such as equipment and machinery repairing, promoting or administering religious activities, grant making, advocacy, and providing dry-cleaning and laundry services, personal care services, death care services, pet care services, photofinishing services, temporary parking services, and dating services.

(Not covered are the Agriculture, Forestry, Fishing, and Hunting sector (NAICS 11); Elementary and Secondary Schools (NAICS 6111); Junior Colleges (NAICS 6112); Colleges, Universities, and Professional Schools (NAICS 6113); and the Public Administration sector (NAICS 92).

Component ID: #ti1540288626

Economic Census of Island Areas Relationship to Historical Industry Classifications

Prior to the 2002 Economic Census of Island Areas, data were published according to the Standard Industrial Classification (SIC) system. While many of the individual NAICS industries correspond directly to industries as defined under the SIC system, most of the higher-level groupings do not. Particular care should be taken in comparing data for retail trade, wholesale trade and manufacturing, which are sector titles used in both NAICS and SIC, but cover somewhat different groups of industries. Where changes are significant, it may not be possible to construct time series that include data for points both before and after 2002.

Most industry classifications remained unchanged between 2007 and 2012; but NAICS 2012 includes slight revisions within the Manufacturing (NAICS 31-33), Information (NAICS 51), Finance and Insurance (NAICS 52), Real Estate and Rental and Leasing (NAICS 53), Professional, Scientific, and Technical Services (NAICS 54), and Administrative and Support and Waste Management and Remediation Services (NAICS 56) sectors.

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