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NAICS codes and industry analysis for small business

By Samantha Garner | November 2, 2013

carpentry_small_businessHow well do you know your industry sector? It’s important to analyze the industry in which your business will operate. For example, if you’re starting a hairstyling business, you’re a member of the services industry. If you’re starting a tiling business, you’re a member of the construction industry. Having a good understanding of how an industry works, who the big players are, and who the major suppliers are can help you find strategic partners, venture capital and customers.

Where to start industry analysis

To start your industry analysis, we recommend searching for secondary data sources using your NAICS code. Also known as the North American Industry Classification System, NAICS is used to classify companies, to collect, analyze and publish statistics, and to provide collective industry definitions across Canada, the United States, and Mexico.

Finding your NAICS code

To find which NAICS code matches your company’s industry, visit Statistics Canada’s website to determine which sector, subsector, industry group and industry your business falls under. Here, you can either browse through industries or search for example activities that your business performs.

Here are the two-digit NAICS codes for sectors of the Canadian economy.

Goods-producing Industries:

  • NAICS 11 – Agriculture, Forestry, Fishing and Hunting
  • NAICS 21 – Mining and Oil and Gas Extraction
  • NAICS 22 – Utilities
  • NAICS 23 – Construction
  • NAICS 31-33 – Manufacturing
  • Manufacturing sub-sectors

Services-producing Industries

  • NAICS 41 – Wholesale Trade
  • NAICS 44-45 – Retail Trade
  • NAICS 48-49 – Transportation and Warehousing
  • NAICS 51 – Information and Cultural Industries
  • NAICS 52 – Finance and Insurance
  • NAICS 53 – Real Estate and Rental and Leasing
  • NAICS 54 – Professional, Scientific and Technical Services
  • NAICS 55 – Management of Companies and Enterprises
  • NAICS 56 – Administrative and Support, Waste Management and Remediation Services
  • NAICS 61 – Educational Services
  • NAICS 62 – Health Care and Social Assistance
  • NAICS 71 – Arts, Entertainment and Recreation
  • NAICS 72 – Accommodation and Food Services
  • NAICS 81 – Other Services (except Public Administration)
  • NAICS 91 – Public Administration

Researching your industry using your NAICS code will help you find data about your industry’s past and current growth; expected growth in the next three to five years; key players; trends impacting the health of the industry and other unique aspects. So get to know your code!

Topics: Small Business Tips and Advice | 1 Comment »

One Response to “NAICS codes and industry analysis for small business”

  1. How to learn about your industry | Canadian Entrepreneur Training Says:
    March 5th, 2016 at 12:00 pm

    […] Do primary and secondary research to learn more about your industry. Also, research your industry using your NAICS code. […]

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