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.

References in periodicals archive ?
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.
The North American Industrial Classification System (NAICS) code is 541611 and the small business size standard is $15.
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.
Prior to the release of January 2004, industry-based PPIs were published according to the Standard Industrial Classification (SIC) system.
The study draws on a wider range of data gathered by software firm Growth Intelligence rather than the official Standard Industrial Classification (SIC), which was first devised 65 years ago and fails to properly classify a range of digital firms, the report said.
NetProspex said that users of Data Cloud API can access key contact and company information such as title, phone number, address, industry, Standard Industrial Classification (SIC) code, or revenue in real-time as individual contacts or in lists, by submitting information such as e-mail address or company name into a data field.
A whopping 66 percent savings on the suggested retail price of the software licenses can be saved for those NFPs that fall within Standard Industrial Classification (SIC) 83xx or 86xx.
International standard industrial classification of all economic activities (ISIC), rev.
Users can search by specific filing type; company name; Central Index Key (CIK) code; and industry or Standard Industrial Classification (SIC) code.
The release marks the complete conversion of BEA's industry series from the Standard Industrial Classification system to NAICS.
These pronouncements require that all assets to be exchanged must be of the same North American Industry Classification System (NAICS) Product Class, rather than by the Standard Industrial Classification (SIC) code.

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