Standard Industrial Classification (SIC)

A code system that designates a unique business activity classified by industry.

Standard Industrial Classification

A system of four digit codes used in business to classify the industry to which a company belongs. The SIC was created by the U.S. government in 1937 to facilitate communication within and between businesses and industries. For the most part, the SIC was replaced by the six digit NAICS in 1997, but the SEC still uses the SIC. For example, an oil and gas exploration company might file with the SEC under the code 1382.

Standard Industrial Classification (SIC)

a system which codifies and measures groups of economic activity at various levels of aggregation and disaggregation. In the UK, the Standard Industrial Classification comprises 10 major divisions, 60 classes, 222 groups and 334 activities. Activities, or their equivalent ‘industries’ (see INDUSTRY), are derived on the basis of their supply characteristics, in particular the use of common raw materials and processes of manufacture. Such a classification provides a useful source of information on industry structure and statistical details of employment, output and investment by the industrial sector. However, for purposes of MARKETING strategy, SIC data usually needs to be reinterpreted in order to provide more meaningful specifications of MARKETS, defined in terms of groups of products which are regarded by buyers as close substitute products. To illustrate, glass jars and metal cans are assigned to different industries by the SIC (Division 2, Activity ‘glass containers’, Division 3 ‘packaging products of metal’, respectively), but would be regarded by a user of packaging materials such as a coffee manufacturer as substitute products. See STRUCTURE OF INDUSTRY.

standard industrial classification

see INDUSTRIAL CLASSIFICATION.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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References in periodicals archive

The venerable Standard Industrial Classification system itself is being overtaken by structural changes of a different sort.

The December review. (Labor Month in Review)

Also, the principal business activity codes on the new form are based on the new North American Industry Classification System, which has replaced the Standard Industrial Classification system.

Revised Form 5471 creates uncertainties

For the first time, the new North American Industry Classification System (NAICS) also is given for each market sector along with the old Standard Industrial Classification (SIC).

Casting shipments remain strong

General characteristics of the small business population as covered by the survey are measured by firm size.and age, organizational form, standard industrial classification, location and number of offices, management, export sales, and the race, ethnicity, and sex of the firm's majority owners (table 1).

Financial services used by small businesses: evidence from the 1993 National Survey of Small Business Finances

Clients can be targeted by size, standard industrial classification (SIC) code, location or some other criterion.

Harnessing the power of databases

A proposed revenue procedure based on the two-digit Standard Industrial Classification ("SIC") code system was published as an appendix to the proposed regulations.

Comments on proposed QSLOB regulations under section 414(r)

In 1997, the Office of Management and Budget (OMB) announced the adoption of a new standardized system for classifying industries--the North American Industry Classification System (NAICS).(1) NAICS will replace the Standard Industrial Classification (SIC) system and thus represents one of the most profound changes for government statistical programs since the 1930s.(2) Although the current system has been revised and updated periodically, the basic structure has remained intact since its inception.

Introducing the North American Industry Classification System

Taxpayers had to allocate income into specified product categories that are based on a two-digit Standard Industrial Classification System (SIC), and then match the related research expenses with that income.

IRS issues proposed regulations on allocation and apportionment of research and experimental expenditures

These changes were made to conform with the nomenclature used in the 1987 Standard Industrial Classification. For foreign direct investment in the United States, the substance of these changes had already been reflected in the detailed estimates of the historical-cost position and related capital and income flows, beginning with the 1987 benchmark survey of foreign direct investment in the United States.

Foreign direct investment in the United States: detail for historical-cost position and related capital and income flows, 1994