industrial classification

industrial classification

the grouping of economic activities of a similar nature into INDUSTRIES or MARKETS. Such a classification begins by identifying a wide spectrum of related activities (for example, the ‘manufacturing sector’), each group of activities then being subdivided into progressively narrower groups so that the classification can be used with varying amounts of detail for different purposes. In the UK, a Standard Industrial Classification (SIC) codifies and measures groups of economic activity at various levels of aggregation and disaggregation. The Standard Industrial Classification comprises 10 major divisions (for example, Metal Goods/Engineering), 60 classes (for example, Metal Manufacturing), 222 groups (for example, Non-ferrous Metals) and 334 activities (for example, Copper).

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. For purposes of market analysis, however, SIC data usually needs to be reinterpreted in order to provide more meaningful specifications of markets defined in terms of groups of products that 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.

Industrial classifications are used for macroeconomic planning and COMPETITION POLICY purposes, and to obtain statistical information on output and employment. See STRUCTURE OF INDUSTRY, CROSS ELASTICITY OF DEMAND.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The farmers got backing from the Catholic Bishops' Conference of the Philippines, which lauded the municipal council's earlier move to revoke the industrial classification of the land.
The secretary also informed the meeting that 'Izak Coding' system is being followed all over the world for data collection and Pakistan has made its own Pakistan Industrial Classification to collect statistics from its industrial sector.
He said that FDI of Rs 1.16 crore has been received under 3 National Industrial Classification (NIC) codes of defence sector as informed by DIPP.
The BoD which met with Federal Minister for Energy, Syed Ali Zafar, in chair also approved the launch of National Energy Conservation Awards Scheme and adoption of standard industrial classification codes by gas and electricity utility companies which will help in identification of Designated Consumers.
The BoD approved the plan of development of National Energy Efficiency and Conservation Policy , launch of National Energy Conservation Awards Scheme and adoption of standard industrial classification codes by Gas and Electricity utility companies which will help in identification of Designated Consumers.
Raja Mohammed bin Jumaa, head of Economic Studies at RAK Chamber, said that the total number of establishments registered in all sectors exceeds the overall total number of registered establishments because many establishments are registered for more than one activity and under more than one sector.She said that memberships are spread across 15 different sectors that are defined according to the International Standard Industrial Classification. -
To allow for reporting the data in comparable groupings, note that the Standard Industrial Classification (SIC)
Participants at Goic's recently-held industrial classification training course.
Tribune news network doha The Gulf Organisation for Industrial Consulting (GOIC) concluded the industrial classification course held at its headquarters in Doha recently.
This system came to give the investor the comfort and the ease by relying on the latest application of the International Standard Industrial Classification of All Economic Activities (ISIC), Rev.4 to become the commercial register in the hands of the investor at any time and location of his choice.
An enrolled nursing industrial classification for advanced skills was introduced into a number of jurisdictions across Australia to increase the responsiveness of the workforce to contemporary health care challenges.

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