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 (prime contracts) or (2) contracts with other construction establishments (subcontracts).
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 for-sale builders, but also may be known as speculative builders or merchant builders. For-sale builders produce buildings in a manner similar to general contractors, but their production processes also include site acquisition and securing of financial backing. For-sale 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 for-sale 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.
Force account construction is construction work performed by an enterprise primarily engaged in some business other than construction for its own account, using employees of the enterprise. This activity is not included in the construction sector unless the construction work performed is the primary activity of a separate establishment of the enterprise. The installation and the ongoing repair and maintenance of telecommunications and utility networks is excluded from construction when the establishments performing the work are not independent contractors. Although a growing proportion of this work is subcontracted to independent contractors in the Construction sector, the operating units of telecommunications and utility companies performing this work are included with the telecommunications or utility activities
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.
Establishments in the Manufacturing sector are often described as plants, factories, or mills and characteristically use power-driven machines and material handling equipment. However, establishments that transform materials or substances into new products by hand or in the worker's 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 materials, substances, or components transformed by manufacturing establishments are raw materials that are products of agriculture, forestry, fishing, mining, or quarrying as well as products of other manufacturing establishments. The materials used may be purchased directly from producers, obtained through customary trade channels, or secured without recourse to the market by transferring the product from one establishment to another, under the same ownership.
The new product of a manufacturing establishment may be finished in the sense that it is ready for utilization or consumption, or it may be semi-finished to become an input for an establishment engaged in further manufacturing. For example, the product of the alumina refinery is the input used in the primary production of aluminum; primary aluminum is the input to an aluminum wire drawing plant; and aluminum wire is the input for a fabricated wire product manufacturing establishment.
The subsectors in the Manufacturing sector generally reflect distinct production processes related to material inputs, production equipment, and employee skills. In the machinery area, where assembling is a key activity, parts and accessories for manufactured products are classified in the industry of the finished manufactured item when they are made for separate sale. For example, a replacement refrigerator door would be classified with refrigerators and an attachment for a piece of metalworking machinery would be classified with metalworking machinery. However, components, input from other manufacturing establishments, are classified based on the production function of the component manufacturer. For example, electronic components are classified in Subsector 334, Computer and Electronic Product Manufacturing, and stampings are classified in Subsector 332, Fabricated Metal Product Manufacturing.
Manufacturing establishments often perform one or more activities that are classified outside the Manufacturing sector of NAICS. For instance, almost all manufacturing has some captive research and development or administrative operations, such as accounting, payroll, or management. These captive services are treated the same as captive manufacturing activities. When the services are provided by separate establishments, they are classified in the NAICS sector where such services are primary, not in manufacturing.
The boundaries of manufacturing and the other sectors of the classification system can be somewhat blurry. The establishments in the Manufacturing sector are engaged in the transformation of materials into new products. Their output is a new product. However, the definition of what constitutes a new product can be somewhat subjective. As clarification, the following activities are considered manufacturing in NAICS:
Conversely, there are activities that are sometimes considered manufacturing, but which for NAICS are classified in another sector (i.e., not classified as manufacturing). They include:
1. Logging, classified in Sector 11, Agriculture, Forestry, Fishing and Hunting, is considered a harvesting operation;
2. Beneficiating ores and other minerals, classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction, is considered part of the activity of mining;
3. Constructing structures and fabricating at the construction site by contractors are classified in Sector 23, Construction;
4. Breaking bulk and redistributing in smaller lots, including packaging, repackaging, or bottling products, such as liquors or chemicals; assembling computers on a custom basis; sorting scrap; mixing paints to customer order; and cutting metals to customer order, classified in Sector 42, Wholesale Trade, or Sector 44-45, Retail Trade, produce a modified version of the same product, not a new product; and
5. Publishing and the combined activity of publishing and printing, classified in Sector 51, Information, transform information into a product for which the value to the consumer lies in the information content, not in the format in which it is distributed (i.e., the book or software compact disc).
The Construction of Buildings subsector comprises establishments primarily responsible for the construction of buildings. The work performed may include new work, additions, alterations, or maintenance and repairs. The on-site assembly of precut, panelized, and prefabricated buildings and construction of temporary buildings are included in this subsector. Part or all of the production work for which the establishments in this subsector have responsibility may be subcontracted to other construction establishments--usually specialty trade contractors.
Establishments in this subsector are classified based on the types of buildings they construct. This classification reflects variations in the requirements of the underlying production processes.
The Heavy and Civil Engineering Construction subsector comprises establishments whose primary activity is the construction of entire engineering projects (e.g., highways and dams), and specialty trade contractors, whose primary activity is the production of a specific component for such projects. Specialty trade contractors in the Heavy and Civil Engineering Construction subsector generally are performing activities that are specific to heavy and civil engineering construction projects and are not normally performed on buildings. The work performed may include new work, additions, alterations, or maintenance and repairs.
Specialty trade activities are classified in this subsector if the skills and equipment present are specific to heavy or civil engineering construction projects. For example, specialized equipment is needed to paint lines on highways. This equipment is not normally used in building applications so the activity is classified in this subsector. Traffic signal installation, while specific to highways, uses much of the same skills and equipment that are needed for electrical work in building projects and is therefore classified in Subsector 238, Specialty Trade Contractors.
Construction projects involving water resources (e.g., dredging and land drainage) and projects involving open space improvement (e.g., parks and trails) are included in this subsector. Establishments whose primary activity is the subdivision of land into individual building lots usually perform various additional site-improvement activities (e.g., road building and utility line installation) and are included in this subsector.
Establishments in this subsector are classified based on the types of structures that they construct. This classification reflects variations in the requirements of the underlying production processes.
The Specialty Trade Contractors subsector comprises establishments whose primary activity is performing specific activities (e.g., pouring concrete, site preparation, plumbing, painting, and electrical work) involved in building construction or other activities that are similar for all types of construction, but that are not responsible for the entire project. The work performed may include new work, additions, alterations, maintenance, and repairs. The production work performed by establishments in this subsector is usually subcontracted from establishments of the general contractor type or for-sale builders, but especially in remodeling and repair construction, work also may be done directly for the owner of the property. Specialty trade contractors usually perform most of their work at the construction site, although they may have shops where they perform prefabrication and other work. Establishments primarily engaged in preparing sites for new construction are also included in this subsector.
There are substantial differences in types of equipment, work force skills, and other inputs required by specialty trade contractors. Establishments in this subsector are classified based on the underlying production function for the specialty trade in which they specialize. Throughout the Specialty Trade Contractors subsector, establishments commonly provide both the parts and labor required to complete work. For example, electrical contractors supply the current-carrying and noncurrent-carrying wiring devices that are required to install a circuit. Plumbing, heating, and air-conditioning contractors also supply the parts required to complete a contract.
Establishments that specialize in activities primarily related to heavy and civil engineering construction that are not normally performed on buildings, such as the painting of lines on highways, are classified in Subsector 237, Heavy and Civil Engineering Construction.
Establishments that are primarily engaged in selling construction materials are classified in Sector 42, Wholesale Trade, or Sector 44-45, Retail Trade, based on the characteristics of the selling unit.
Industries in the Food Manufacturing subsector transform livestock and agricultural products into products for intermediate or final consumption. The industry groups are distinguished by the raw materials (generally of animal or vegetable origin) processed into food products.
The food products manufactured in these establishments are typically sold to wholesalers or retailers for distribution to consumers, but establishments primarily engaged in retailing bakery and candy products made on the premises not for immediate consumption are included.
Establishments primarily engaged in manufacturing beverages are classified in Subsector 312, Beverage and Tobacco Product Manufacturing.
Industries in the Beverage and Tobacco Product Manufacturing subsector manufacture beverages and tobacco products. The Beverage Manufacturing industry group includes three types of establishments: (1) those that manufacture nonalcoholic beverages; (2) those that manufacture alcoholic beverages through the fermentation process; and (3) those that produce distilled alcoholic beverages. Ice manufacturing, while not a beverage, is included with nonalcoholic beverage manufacturing because it uses the same production process as water purification.
In the case of activities related to the manufacture of beverages, the structure follows the defined production processes. Brandy, a distilled beverage, is not placed under distillery product manufacturing, but rather under winery product manufacturing since the production process used in the manufacturing of alcoholic grape-based beverages produces both wines (fermented beverage) and brandies (distilled beverage).
The Tobacco Manufacturing industry group includes two types of establishments: (1) those engaged in redrying and stemming tobacco and (2) those that manufacture tobacco products, such as cigarettes and cigars.
Industries in the Textile Mills subsector group establishments that transform a basic fiber (natural or synthetic) into a product, such as yarn or fabric that is further manufactured into usable items, such as apparel, sheets, towels, and textile bags for individual or industrial consumption. The further manufacturing may be performed in the same establishment and classified in this subsector, or it may be performed at a separate establishment and be classified elsewhere in manufacturing.
The main processes in this subsector include preparation and spinning of fiber, knitting or weaving of fabric, and the finishing of the textile. The NAICS structure follows and captures this process flow. Major industries in this flow, such as preparation of fibers, weaving of fabric, knitting of fabric, and fiber and fabric finishing, are uniquely identified. Texturizing, throwing, twisting, and winding of yarn contain aspects of both fiber preparation and fiber finishing and are classified with preparation of fibers rather than with finishing of fibers.
NAICS separates the manufacturing of primary textiles and the manufacturing of textile products (except apparel) produced from purchased primary textiles, such as fabric. The manufacturing of textile products (except apparel) from purchased fabric is classified in Subsector 314, Textile Product Mills, and apparel from purchased fabric is classified in Subsector 315, Apparel Manufacturing.
Excluded from this subsector are establishments that weave or knit fabric and make garments. These establishments are included in Subsector 315, Apparel Manufacturing.
Industries in the Textile Product Mills subsector group establishments that make textile products (except apparel). With a few exceptions, processes used by these establishments are generally cut and sew (i.e., purchasing fabric and cutting and sewing to make nonapparel textile products, such as sheets and towels).
Industries in the Apparel Manufacturing subsector group establishments with two distinct manufacturing processes: (1) cut and sew (i.e., purchasing fabric and cutting and sewing to make a garment) and (2) the manufacture of garments in establishments that first knit fabric and then cut and sew the fabric into a garment. The Apparel Manufacturing subsector includes a diverse range of establishments manufacturing full lines of ready-to-wear apparel and custom apparel: apparel contractors, performing cutting or sewing operations on materials owned by others; jobbers, performing entrepreneurial functions involved in apparel manufacturing; and tailors, manufacturing custom garments for individual clients. Knitting fabric, when done alone, is classified in the Textile Mills subsector, but when knitting is combined with the production of complete garments, the activity is classified in the Apparel Manufacturing subsector.
Establishments in the Leather and Allied Product Manufacturing subsector transform hides into leather by tanning or curing and fabricating the leather into products for final consumption. This subsector also includes the manufacture of similar products from other materials, including products (except apparel) made from "leather substitutes," such as rubber, plastics, or textiles. Rubber footwear, textile luggage, and plastics purses or wallets are examples of "leather substitute" products included in this subsector. The products made from leather substitutes are included in this subsector because they are made in similar ways leather products are made (e.g., luggage). They are made in the same establishments, so it is not practical to separate them.
The inclusion of leather and hide tanning and finishing in this subsector is partly because it is a relatively small industry that has few close neighbors as a production process, partly because leather is an input to some of the other products classified in this subsector, and partly for historical reasons.
Establishments in the Wood Product Manufacturing subsector manufacture wood products, such as lumber, plywood, veneers, wood containers, wood flooring, wood trusses, manufactured homes (i.e., mobile homes), and prefabricated wood buildings. The production processes of the Wood Product Manufacturing subsector include sawing, planing, shaping, laminating, and assembling wood products starting from logs that are cut into bolts, or lumber that then may be further cut, or shaped by lathes or other shaping tools. The lumber or other transformed wood shapes may also be subsequently planed or smoothed, and assembled into finished products, such as wood containers. The Wood Product Manufacturing subsector includes establishments that make wood products from logs and bolts that are sawed and shaped, and establishments that purchase sawed lumber and make wood products. With the exception of sawmills and wood preservation establishments, the establishments are grouped into industries mainly based on the specific products manufactured.
Industries in the Paper Manufacturing subsector make pulp, paper, or converted paper products. The manufacturing of these products is grouped together because they constitute a series of vertically connected processes. More than one is often carried out in a single establishment. There are essentially three activities. The manufacturing of pulp involves separating the cellulose fibers from other impurities in wood or used paper. The manufacturing of paper involves matting these fibers into a sheet. The manufacturing of converted paper products involves converting paper and other materials by various cutting and shaping techniques and includes coating and laminating activities.
The Paper Manufacturing subsector is subdivided into two industry groups, the first for the manufacturing of pulp and paper and the second for the manufacturing of converted paper products. Paper making is treated as the core activity of the subsector. Therefore, any establishment that makes paper (including paperboard), either alone or in combination with pulp manufacturing or paper converting, is classified as a paper or paperboard mill. Establishments that make pulp without making paper are classified as pulp mills. Pulp mills, paper mills and paperboard mills comprise the first industry group.
Establishments that make products from purchased paper and other materials make up the second industry group, Converted Paper Product Manufacturing. This general activity is then subdivided based, for the most part, on process distinctions. Paperboard container manufacturing uses corrugating, cutting, and shaping machinery to form paperboard into containers. Paper bag and coated and treated paper manufacturing establishments cut and coat paper and foil. Stationery product manufacturing establishments make a variety of paper products used for writing, filing, and similar applications. Other converted paper product manufacturing includes, in particular, the conversion of sanitary paper stock into such things as tissue paper and disposable diapers.
An important process used in the Paper Bag and Coated and Treated Paper Manufacturing industry is lamination, often combined with coating. Lamination and coating make a composite material with improved properties of strength, impermeability, and so on. The laminated materials may be paper, metal foil, or plastics film. While paper is often one of the components, it is not always. Lamination of plastics film to plastics film is classified in Subsector 326, Plastics and Rubber Products Manufacturing, because establishments that do this often first make the film. The same situation holds with respect to bags. The manufacturing of bags from plastics only, whether or not laminated, is classified in Subsector 326, Plastics and Rubber Products Manufacturing, but all other bag manufacturing is classified in this subsector.
Excluded from this subsector are photosensitive papers. These papers are chemically treated and are classified in Industry 32599, All Other Chemical Product and Preparation Manufacturing.
Industries in the Printing and Related Support Activities subsector print products, such as newspapers, books, labels, business cards, stationery, business forms, and other materials, and perform support activities, such as data imaging, platemaking services, and bookbinding. The support activities included here are an integral part of the printing industry, and a product (a printing plate, a bound book, or a computer disk or file) that is an integral part of the printing industry is almost always provided by these operations.
Processes used in printing include a variety of methods used to transfer an image from a plate, screen, film, or computer file to some medium, such as paper, plastics, metal, textile articles, or wood. The printing processes employed include, but are not limited to, lithographic, gravure, screen, flexographic, digital, and letterpress.
In contrast to many other classification systems that locate publishing of printed materials in manufacturing, NAICS classifies the publishing of printed products in Subsector 511, Publishing Industries (except Internet). Though printing and publishing are often carried out by the same enterprise (a newspaper, for example), it is less and less the case that these distinct activities are carried out in the same establishment. When publishing and printing are done in the same establishment, the establishment is classified in Sector 51, Information, in the appropriate NAICS industry even if the receipts for printing exceed those for publishing.
This subsector includes printing on clothing because the production process for that activity is printing, not clothing manufacturing. For instance, the printing of T-shirts is included in this subsector. In contrast, printing on fabric (or grey goods) is not included. This activity is part of the process of finishing the fabric and is included in the Textile Mills subsector in Industry 31331, Textile and Fabric Finishing Mills.
The Petroleum and Coal Products Manufacturing subsector is based on the transformation of crude petroleum and coal into usable products. The dominant process is petroleum refining that involves the separation of crude petroleum into component products through such techniques as cracking and distillation.
In addition, this subsector includes establishments that primarily further process refined petroleum and coal products and produce products, such as asphalt coatings and petroleum lubricating oils. However, establishments that manufacture petrochemicals from refined petroleum are classified in Industry 32511, Petrochemical Manufacturing.
The Chemical Manufacturing subsector is based on the transformation of organic and inorganic raw materials by a chemical process and the formulation of products. This subsector distinguishes the production of basic chemicals that comprise the first industry group from the production of intermediate and end products produced by further processing of basic chemicals that make up the remaining industry groups.
This subsector does not include all industries transforming raw materials by a chemical process. It is common for some chemical processing to occur during mining operations. These beneficiating operations, such as copper concentrating, are classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction. Furthermore, the refining of crude petroleum is included in Subsector 324, Petroleum and Coal Products Manufacturing. In addition, the manufacturing of aluminum oxide is included in Subsector 331, Primary Metal Manufacturing; and beverage distilleries are classified in Subsector 312, Beverage and Tobacco Product Manufacturing. As is the case of these two activities, the grouping of industries into subsectors may take into account the association of the activities performed with other activities in the subsector.
Industries in the Plastics and Rubber Products Manufacturing subsector make goods by processing plastics materials and raw rubber. The core technology employed by establishments in this subsector is that of plastics or rubber product production. Plastics and rubber are combined in the same subsector because plastics are increasingly being used as a substitute for rubber; however the subsector is generally restricted to the production of products made of just one material, either solely plastics or rubber.
Many manufacturing activities use plastics or rubber, for example the manufacture of footwear or furniture. Typically, the production process of these products involves more than one material. In these cases, technologies that allow disparate materials to be formed and combined are of central importance in describing the manufacturing activity. In NAICS, such activities (footwear and furniture manufacturing) are not classified in the Plastics and Rubber Products Manufacturing subsector because the core technologies for these activities are diverse and involve multiple materials.
Within the Plastics and Rubber Products Manufacturing subsector, a distinction is made between plastics and rubber products at the industry group level, although it is not a rigid distinction, as can be seen from the definition of Industry 32622, Rubber and Plastics Hoses and Belting Manufacturing. As materials technology progresses, plastics are increasingly being used as a substitute for rubber; and eventually, the distinction may disappear as a basis for establishment classification.
In keeping with the core technology focus of plastics, lamination of plastics film to plastics film as well as the production of bags from plastics only is classified in this subsector. Lamination and bag production involving plastics and materials other than plastics are classified in Subsector 322, Paper Manufacturing.
The Nonmetallic Mineral Product Manufacturing subsector transforms mined or quarried nonmetallic minerals, such as sand, gravel, stone, clay, and refractory materials, into products for intermediate or final consumption. Processes used include grinding, mixing, cutting, shaping, and honing. Heat often is used in the process and chemicals are frequently mixed to change the composition, purity, and chemical properties for the intended product. For example, glass is produced by heating silica sand to the melting point (sometimes combined with cullet or recycled glass) and then drawn, floated, or blow molded to the desired shape or thickness. Refractory materials are heated and then formed into bricks or other shapes for use in industrial applications.
The Nonmetallic Mineral Product Manufacturing subsector includes establishments that manufacture bricks, refractories, ceramic products, and glass and glass products, such as plate glass and containers. Also included are cement and concrete products, lime, gypsum and other nonmetallic mineral products including abrasive products, ceramic plumbing fixtures, statuary, cut stone products, and mineral wool. The products are used in a wide range of activities from construction and heavy and light manufacturing to articles for personal use.
Mining, beneficiating, and manufacturing activities often occur in a single location. Separate receipts will be collected for these activities whenever possible. When receipts cannot be broken out between mining and manufacturing, establishments that mine or quarry nonmetallic minerals, beneficiate the nonmetallic minerals, and further process the nonmetallic minerals into a more finished manufactured product are classified based on the primary activity of the establishment. A mine that manufactures a small amount of finished products is classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction. An establishment that mines whose primary output is a more finished manufactured product is classified in the Manufacturing sector.
Excluded from the Nonmetallic Mineral Product Manufacturing subsector are establishments that primarily beneficiate mined nonmetallic minerals. Beneficiation is the process whereby the extracted material is reduced to particles that can be separated into mineral and waste, the former suitable for further processing or direct use. Beneficiation establishments are included in Sector 21, Mining, Quarrying, and Oil and Gas Extraction.
Industries in the Primary Metal Manufacturing subsector smelt and/or refine ferrous and nonferrous metals from ore, pig or scrap, using electrometallurgical and other process metallurgical techniques. Establishments in this subsector also manufacture metal alloys and superalloys by introducing other chemical elements to pure metals. The output of smelting and refining, usually in ingot form, is used in rolling, drawing, and extruding operations to make sheet, strip, bar, rod, or wire, and in molten form to make castings and other basic metal products.
Primary manufacturing of ferrous and nonferrous metals begins with ore or concentrate as the primary input. Establishments manufacturing primary metals from ore and/or concentrate remain classified in the primary smelting, primary refining, or iron and steel mill industries regardless of the form of their output. Establishments primarily engaged in secondary smelting and/or secondary refining recover ferrous and nonferrous metals from scrap and/or dross. The output of the secondary smelting and/or secondary refining industries is limited to shapes such as ingot or billet that will be further processed. Recovery of metals from scrap often occurs in establishments that are primarily engaged in activities, such as rolling, drawing, extruding, or similar processes.
Excluded from the Primary Metal Manufacturing subsector are establishments primarily engaged in manufacturing ferrous and nonferrous forgings (except ferrous forgings made in steel mills) and stampings. Although forging, stamping, and casting are all methods used to make metal shapes, forging and stamping do not use molten metals and are included in Subsector 332, Fabricated Metal Product Manufacturing. Establishments primarily engaged in operating coke ovens are classified in Industry 32419, Other Petroleum and Coal Products Manufacturing.
Industries in the Fabricated Metal Product Manufacturing subsector transform metal into intermediate or end products, other than machinery, computers and electronics, and metal furniture, or treat metals and metal formed products fabricated elsewhere. Important fabricated metal processes are forging, stamping, bending, forming, and machining, used to shape individual pieces of metal; and other processes, such as welding and assembling, used to join separate parts together. Establishments in this subsector may use one of these processes or a combination of these processes.
The NAICS structure for this subsector distinguishes the forging and stamping processes in a single industry. The remaining industries in the subsector group establishments based on similar combinations of processes used to make products.
The manufacturing performed in the Fabricated Metal Product Manufacturing subsector begins with manufactured metal shapes. The establishments in this subsector further fabricate the purchased metal shapes into a product. For instance, the Spring and Wire Product Manufacturing industry starts with wire and fabricates such items.
Within manufacturing there are other establishments that make the same products made by this subsector; only these establishments begin production further back in the production process. These establishments have a more integrated operation. For instance, one establishment may manufacture steel, draw it into wire, and make wire products in the same establishment. Such operations are classified in the Primary Metal Manufacturing subsector.
Industries in the Machinery Manufacturing subsector create end products that apply mechanical force, for example, the application of gears and levers, to perform work. Some important processes for the manufacture of machinery are forging, stamping, bending, forming, and machining that are used to shape individual pieces of metal. Processes, such as welding and assembling are used to join separate parts together. Although these processes are similar to those used in metal fabricating establishments, machinery manufacturing is different because it typically employs multiple metal forming processes in manufacturing the various parts of the machine. Moreover, complex assembly operations are an inherent part of the production process.
In general, design considerations are very important in machinery production. Establishments specialize in making machinery designed for particular applications. Thus, design is considered to be part of the production process for the purpose of implementing NAICS. The NAICS structure reflects this by defining industries and industry groups that make machinery for different applications. A broad distinction exists between machinery that is generally used in a variety of industrial applications (i.e., general purpose machinery) and machinery that is designed to be used in a particular industry (i.e., special purpose machinery). Three industry groups consist of special purpose machinery--Agricultural, Construction, and Mining Machinery Manufacturing; Industrial Machinery Manufacturing; and Commercial and Service Industry Machinery Manufacturing. The other industry groups make general purpose machinery: Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing; Metalworking Machinery Manufacturing; Engine, Turbine, and Power Transmission Equipment Manufacturing; and Other General Purpose Machinery Manufacturing.
Industries in the Computer and Electronic Product Manufacturing subsector group establishments that manufacture computers, computer peripherals, communications equipment, and similar electronic products, and establishments that manufacture components for such products. The Computer and Electronic Product Manufacturing industries have been combined in the hierarchy of NAICS because of the economic significance they have attained. Their rapid growth suggests that they will become even more important to the economies of all three North American countries in the future, and in addition their manufacturing processes are fundamentally different from the manufacturing processes of other machinery and equipment. The design and use of integrated circuits and the application of highly specialized miniaturization technologies are common elements in the production technologies of the Computer and Electronic Product Manufacturing subsector. Convergence of technology motivates this NAICS subsector. Digitalization of sound recording, for example, causes both the medium (the compact disc) and the equipment to resemble the technologies for recording, storing, transmitting, and manipulating data. Communications technology and equipment have been converging with computer technology. When technologically-related components are in the same sector, it makes it easier to adjust the classification for future changes, without needing to redefine its basic structure. The creation of the Computer and Electronic Product Manufacturing subsector assists in delineating new and emerging industries because the activities that will serve as the probable sources of new industries, such as computer manufacturing and communications equipment manufacturing, or computers and audio equipment, are brought together. As new activities emerge, they are less likely to cross the subsector boundaries of the classification.
Industries in the Electrical Equipment, Appliance, and Component Manufacturing subsector manufacture products that generate, distribute and use electrical power. Electric Lighting Equipment Manufacturing establishments produce electric lamp bulbs, lighting fixtures, and parts. Household Appliance Manufacturing establishments make both small and major electrical appliances and parts. Electrical Equipment Manufacturing establishments make goods, such as electric motors, generators, transformers, and switchgear apparatus. Other Electrical Equipment and Component Manufacturing establishments make devices for storing electrical power (e.g., batteries), for transmitting electricity (e.g., insulated wire), and wiring devices (e.g., electrical outlets, fuse boxes, and light switches).
Industries in the Transportation Equipment Manufacturing subsector produce equipment for transporting people and goods. Transportation equipment is a type of machinery. An entire subsector is devoted to this activity because of the significance of its economic size in all three North American countries.
Establishments in this subsector utilize production processes similar to those of other machinery manufacturing establishments - bending, forming, welding, machining, and assembling metal or plastic parts into components and finished products. However, the assembly of components and subassemblies and their further assembly into finished vehicles tends to be a more common production process in this subsector than in the Machinery Manufacturing subsector.
NAICS has industry groups for the manufacture of equipment for each mode of transport - road, rail, air and water. Parts for motor vehicles warrant a separate industry group because of their importance and because they require less assembly than complete vehicles.
Land use motor vehicle equipment not designed for highway operation (e.g., agricultural equipment, construction equipment, and material handling equipment) is classified in the appropriate NAICS subsector based on the type and use of the equipment.
Industries in the Furniture and Related Product Manufacturing subsector make furniture and related articles, such as mattresses, window blinds, cabinets, and fixtures. The processes used in the manufacture of furniture include the cutting, bending, molding, laminating, and assembly of such materials as wood, metal, glass, plastics, and rattan. However, the production process for furniture is not solely bending metal, cutting and shaping wood, or extruding and molding plastics. Design and fashion trends play an important part in the production of furniture. The integrated design of the article for both esthetic and functional qualities is also a major part of the process of manufacturing furniture. Design services may be performed by the furniture establishment's work force or may be purchased from industrial designers.
Furniture may be made of any material, but the most common ones used in North America are metal and wood. Furniture manufacturing establishments may specialize in making articles primarily from one material. Some of the equipment required to make a wooden table, for example, is different from that used to make a metal one. However, furniture is usually made from several materials. A wooden table might have metal brackets, and a wooden chair a fabric or plastics seat. Therefore, in NAICS, furniture initially is classified based on the type of furniture (application for which it is designed) rather than the material used. For example, an upholstered sofa is treated as household furniture, although it may also be used in hotels or offices.
When classifying furniture according to the component material from which it is made, furniture made from more than one material is classified based on the material used in the frame, or if there is no frame, the predominant component material. Upholstered household furniture (excluding kitchen and dining room chairs with upholstered seats) is classified without regard to the frame material. Kitchen or dining room chairs with upholstered seats are classified according to the frame material.
Furniture may be made on a stock or custom basis and may be shipped assembled or unassembled (i.e., knockdown). The manufacture of furniture parts and frames is included in this subsector.
Some of the processes used in furniture manufacturing are similar to processes that are used in other segments of manufacturing. For example, cutting and assembly occurs in the production of wood trusses that are classified in Subsector 321, Wood Product Manufacturing. However, the multiple processes that distinguish wood furniture manufacturing from wood product manufacturing warrant inclusion of wooden furniture manufacturing in the Furniture and Related Product Manufacturing subsector. Metal furniture manufacturing uses techniques that are also employed in the manufacturing of roll formed products classified in Subsector 332, Fabricated Metal Product Manufacturing. The molding process for plastics furniture is similar to the molding of other plastics products. However, plastics furniture producing establishments tend to specialize in furniture.
NAICS attempts to keep furniture manufacturing together, but there are two notable exceptions: seating for transportation equipment and specialized hospital furniture (e.g., hospital beds and operating tables). These exceptions are related to the fact that some of the aspects of the production process for these products, primarily the design, are highly integrated with the other manufactured goods, namely motor vehicles and medical equipment.
Industries in the Miscellaneous Manufacturing subsector make a wide range of products that cannot readily be classified in specific NAICS subsectors in manufacturing. Processes used by these establishments vary significantly, both among and within industries. For example, a variety of manufacturing processes are used in manufacturing sporting and athletic goods that include products such as tennis racquets and golf balls. The processes for these products differ from each other, and the processes differ significantly from the fabrication processes used in making dolls or toys, the melting and shaping of precious metals to make jewelry, and the bending, forming, and assembly used in making medical products.
The industries in this subsector are defined by what is made rather than how it is made. Although individual establishments might be appropriately classified elsewhere in the NAICS structure, for historical continuity, these product-based industries were maintained. In most cases, no one process or material predominates for an industry.
Establishments in this subsector manufacture products as diverse as medical equipment and supplies, jewelry, sporting goods, toys, and office supplies.
This industry group comprises establishments primarily responsible for the construction (including new work, additions, alterations, maintenance, and repairs) of nonresidential buildings. This industry group includes nonresidential general contractors, nonresidential for-sale builders, nonresidential design-build firms, and nonresidential project construction management firms.
This industry group comprises establishments primarily engaged in the construction of distribution lines and related buildings and structures for utilities (i.e., water, sewer, petroleum, gas, power, and communication). All structures (including buildings) that are integral parts of utility systems (e.g., storage tanks, pumping stations, power plants, and refineries) are included in this industry group.
This industry group comprises establishments primarily engaged in the specialty trades needed to complete the basic structure (i.e., foundation, frame, and shell) of buildings. The work performed may include new work, additions, alterations, maintenance, and repairs.
This industry group comprises establishments primarily engaged in installing or servicing equipment that forms part of a building mechanical system (e.g., electricity, water, heating, and cooling). The work performed may include new work, additions, alterations, maintenance, and repairs. Contractors installing specialized building equipment, such as elevators, escalators, service station equipment, and central vacuum cleaning systems, are also included.
This industry group comprises establishments primarily engaged in the specialty trades needed to finish buildings. The work performed may include new work, additions, alterations, maintenance, and repairs.
This industry group comprises establishments primarily engaged in site preparation activities and in specialized trades (except foundation, structure, and building exterior contractors; building equipment contractors; and building finishing contractors). The specialty trade work performed includes new work, additions, alterations, maintenance, and repairs.
This industry group comprises establishments primarily engaged in milling flour or meal from grains or vegetables, manufacturing malt, wet milling corn and other vegetables, crushing oilseeds and tree nuts, refining and/or blending vegetable oils, and manufacturing breakfast cereals.
This industry group comprises (1) establishments that process agricultural inputs, such as sugarcane, beet, and cacao, to give rise to a new product (sugar or chocolate) and (2) those that begin with sugar and chocolate and process these further.
This industry group includes (1) establishments that freeze food and (2) those that use preservation processes, such as pickling, canning, and dehydrating. Both types begin their production process with inputs of vegetable or animal origin.
This industry group comprises establishments that manufacture dairy products from raw milk, processed milk, and dairy substitutes.
This industry group comprises establishments primarily engaged in one of the following: (1) manufacturing fresh and frozen bread and other bakery products; (2) retailing bread and other bakery products not for immediate consumption made on the premises from flour, not from prepared dough; (3) manufacturing cookies, crackers, and dry pasta; (4) manufacturing prepared flour mixes or dough from flour ground elsewhere; or (5) manufacturing tortillas.
This industry group comprises establishments primarily engaged in manufacturing food (except animal food; grain and oilseed milling; sugar and confectionery products; preserved fruits, vegetables, and specialty foods; dairy products; meat products; seafood products; and bakery products and tortillas). This industry group includes industries with different production processes, such as snack food manufacturing; coffee and tea manufacturing; concentrate, syrup, condiment, and spice manufacturing; and, in general, an entire range of other miscellaneous food product manufacturing.
This industry group comprises establishments primarily engaged in manufacturing soft drinks and ice; purifying and bottling water; and manufacturing brewery, winery, and distillery products.
This industry group comprises establishments primarily engaged in one of the following: (1) weaving broadwoven fabrics and felts (except tire fabrics and rugs); (2) weaving or braiding narrow fabrics; (3) making fabric-covered elastic yarn and thread; (4) manufacturing Schiffli machine embroideries; (5) manufacturing nonwoven fabrics and felts; (6) knitting weft (i.e., circular) and warp (i.e., flat) fabric; (7) knitting and finishing weft and warp fabric; (8) manufacturing lace; or (9) manufacturing, dyeing, and finishing lace and lace goods.
This industry group comprises establishments primarily engaged in one of the following: (1) finishing textiles, fabrics, and apparel; (2) converting fabrics and textiles by buying fabric goods in the grey, having them finished on contract, and selling them at wholesale; or (3) coating, laminating, varnishing, waxing, and rubberizing textiles and apparel.
This industry group comprises establishments primarily engaged in making textile products (except carpets and rugs, curtains and draperies, and other household textile products) from purchased materials.
This industry group comprises establishments primarily engaged in knitting apparel or knitting fabric and then manufacturing apparel. This industry group includes jobbers performing entrepreneurial functions involved in knitting apparel and accessories. Knitting fabric, without manufacturing apparel, is classified in Subsector 313, Textile Mills.
This industry group comprises establishments primarily engaged in manufacturing cut and sew apparel from woven fabric or purchased knit fabric. Included in this industry group is a diverse range of establishments manufacturing full lines of ready-to-wear apparel and custom apparel: apparel contractors, performing cutting or sewing operations on materials owned by others; jobbers, performing entrepreneurial functions involved in apparel manufacturing; and tailors, manufacturing custom garments for individual clients. Establishments weaving or knitting fabric, without manufacturing apparel, are classified in Subsector 313, Textile Mills.
This industry group comprises establishments primarily engaged in manufacturing wood products (except establishments operating sawmills and wood preservation facilities; and establishments manufacturing veneer, plywood, or engineered wood products).
This industry group comprises establishments primarily engaged in manufacturing pulp, paper, or paperboard.
This industry group comprises establishments primarily engaged in converting paper or paperboard without manufacturing paper or paperboard.
This industry group comprises establishments primarily engaged in manufacturing chemicals using basic processes, such as thermal cracking and distillation. Chemicals manufactured in this industry group are usually separate chemical elements or separate chemically-defined compounds.
This industry group comprises establishments primarily engaged in one of the following: (1) manufacturing synthetic resins, plastics materials, and nonvulcanizable elastomers and mixing and blending resins on a custom basis; (2) manufacturing noncustomized synthetic resins; (3) manufacturing synthetic rubber; (4) manufacturing cellulosic (e.g., rayon, acetate) and noncellulosic (e.g., nylon, polyolefin, polyester) fibers and filaments in the form of monofilament, filament yarn, staple, or tow; or (5) manufacturing and texturizing cellulosic and noncellulosic fibers and filaments.
This industry group comprises establishments primarily engaged in one or more of the following: (1) manufacturing nitrogenous or phosphatic fertilizer materials; (2) manufacturing fertilizers from sewage or animal waste; (3) manufacturing nitrogenous or phosphatic materials and mixing with other ingredients into fertilizers; (4) mixing ingredients made elsewhere into fertilizers; and (5) formulating and preparing pesticides and other agricultural chemicals.
This industry group comprises establishments primarily engaged in one or more of the following: (1) mixing pigments, solvents, and binders into paints and other coatings; (2) manufacturing allied paint products; and (3) manufacturing adhesives, glues, and caulking compounds.
This industry group comprises establishments primarily engaged in (1) manufacturing and packaging soaps, detergents, polishes, surface active agents, textile and leather finishing agents, and other sanitation goods or (2) preparing, blending, compounding, and packaging toilet preparations.
This industry group comprises establishments primarily engaged in manufacturing chemical products (except basic chemicals; resins, synthetic rubber, cellulosic and noncellulosic fibers and filaments; pesticides, fertilizers, and other agricultural chemicals; pharmaceuticals and medicines; paints, coatings, and adhesives; soaps and cleaning compounds; and toilet preparations).
This industry group comprises establishments primarily engaged in processing new or spent (i.e., recycled) plastics resins into intermediate or final products, using such processes as compression molding; extrusion molding; injection molding; blow molding; and casting. Within most of these industries, the production process is such that a wide variety of products can be made.
This industry group comprises establishments primarily engaged in processing natural, synthetic, or reclaimed rubber materials into intermediate or final products using processes, such as vulcanizing, cementing, molding, extruding, and lathe-cutting.
This industry group comprises establishments primarily engaged in (1) shaping, molding, glazing, and firing pottery, ceramics, and plumbing fixtures, and electrical supplies made entirely or partly of clay or other ceramic materials or (2) shaping, molding, baking, burning, or hardening clay refractories, nonclay refractories, ceramic tile, structural clay tile, brick, and other structural clay building materials.
This industry group comprises establishments primarily engaged in one of the following: (1) manufacturing portland, natural, masonry, pozzolanic, and other hydraulic cements; (2) acting as batch or mixing plants, manufacturing concrete delivered to a purchaser in a plastic and unhardened state; (3) manufacturing concrete pipe, brick, and block; or (4) manufacturing other concrete products (except block, brick, and pipe).
This industry group comprises establishments primarily engaged in (1) manufacturing lime from calcitic limestone, dolomitic limestone, or other calcareous materials or (2) manufacturing gypsum products.
This industry group comprises establishments manufacturing nonmetallic mineral products (except clay products, refractory products, glass products, cement and concrete products, lime, and gypsum products).
This industry group comprises establishments primarily engaged in manufacturing iron and steel tube and pipe, drawing steel wire, and rolling or drawing shapes from purchased iron or steel.
This industry group comprises establishments primarily engaged in nonferrous metal (except aluminum) smelting, refining, rolling, drawing, extruding, and alloying.
This industry group comprises establishments primarily engaged in pouring molten metal into molds or dies to form castings. Establishments making castings and further manufacturing, such as machining or assembling, a specific manufactured product are classified in the industry of the finished product. Foundries may perform operations, such as cleaning and deburring, on the castings they manufacture. More involved processes, such as tapping, threading, milling, or machining to tight tolerances, that transform castings into more finished products are classified elsewhere in the Manufacturing sector based on the product made.
Establishments in this industry group make castings from purchased metals or in integrated secondary smelting and casting facilities. When the production of primary metals is combined with making castings, the establishment is classified in Subsector 331, Primary Metal Manufacturing, with the primary metal made.
This industry group comprises establishments primarily engaged in manufacturing one or more of the following: (1) prefabricated metal buildings, panels and sections; (2) structural metal products; (3) metal plate work products; (4) metal framed windows (i.e., typically using purchased glass) and metal doors; (5) sheet metal work; and (6) ornamental and architectural metal products.
This industry group comprises establishments primarily engaged in one of the following: (1) manufacturing power boilers and heat exchangers; (2) cutting, forming, and joining heavy gauge metal to manufacture tanks, vessels, and other containers; or (3) forming light gauge metal containers.
This industry group comprises establishments primarily engaged in one of the following: (1) operating machine shops primarily engaged in machining metal and plastic parts and parts of other composite materials on a job or order basis; (2) machining precision turned products; or (3) manufacturing metal bolts, nuts, screws, rivets, and other industrial fasteners.
This industry group comprises establishments primarily engaged in manufacturing fabricated metal products (except forgings and stampings, cutlery and handtools, architectural and structural metals, boilers, tanks, shipping containers, hardware, spring and wire products, machine shop products, turned products, screws, and nuts and bolts).
This industry group comprises establishments primarily engaged in manufacturing one or more of the following: (1) farm machinery and equipment, power mowing equipment, and other powered home lawn and garden equipment; (2) construction machinery, surface mining machinery, and logging equipment; and (3) oil and gas field and underground mining machinery and equipment.
This industry group comprises establishments primarily engaged in manufacturing pumps and compressors, material handling equipment, and all other general purpose machinery (except ventilation, heating, air-conditioning, and commercial refrigeration equipment; metalworking machinery; and engines, turbines, and power transmission equipment).
This industry group comprises establishments primarily engaged in manufacturing wire telephone and data communications equipment, radio and television broadcast and wireless communications equipment, and all other communications equipment.
This industry group comprises establishments primarily engaged in (1) manufacturing electric light bulbs and tubes, and parts and components (except glass blanks for electric light bulbs) or (2) manufacturing electric lighting fixtures (except vehicular), nonelectric lighting equipment, lamp shades (except glass and plastics), and lighting fixture components (except current-carrying wiring devices).
This industry group comprises establishments primarily engaged in manufacturing small electric appliances, electric housewares, and major household appliances.
This industry group comprises establishments manufacturing electrical equipment and components (except electric lighting equipment, household-type appliances, transformers, switchgear, relays, motors, and generators).
This industry group comprises establishments primarily engaged in (1) manufacturing complete automobiles, light duty motor vehicles, and heavy duty trucks (i.e., body and chassis or unibody) or (2) manufacturing motor vehicle chassis only.
This industry group comprises establishments primarily engaged in manufacturing motor vehicle gasoline engines and engine parts, motor vehicle electrical and electronic equipment, motor vehicle steering and suspension components (except springs), motor vehicle brake systems, motor vehicle transmission and power train parts, motor vehicle seating and interior trim, motor vehicle metal stampings, and other motor vehicle parts and accessories. This industry group includes establishments that rebuild motor vehicle parts.
This industry group comprises establishments manufacturing household-type furniture, such as living room, kitchen and bedroom furniture and institutional (i.e., public building) furniture, such as furniture for schools, theaters, and churches.
This industry group comprises establishments manufacturing furniture related products, such as mattresses, blinds, and shades.
This industry group comprises establishments primarily engaged in miscellaneous manufacturing, such as jewelry and silverware manufacturing, sporting and athletic goods manufacturing, doll, toy, and game manufacturing, office supplies (except paper) manufacturing, sign manufacturing, and all other miscellaneous manufacturing.