The Construction Chart Book 4th Edition

Section 1: 2002 NAICS and Previous Industry Classification Systems

After 60 years of use, the U.S. Standard Industrial Classification (SIC) system has been retired and replaced by the North American Industry Classification System (NAICS). NAICS is the product of a collaborative effort by the United States, Canada, and Mexico. For the first time ever, this common classification system allows direct comparisons of economic data across borders in North America.1 All U.S. federal government agencies adopted the 2002 NAICS beginning with 2003.² Chart 1 provides a comparison of the 2002 NAICS, 1997 NAICS, and 1987 SIC codes for the construction industry.

NAICS uses a six-digit classification code that allows greater flexibility in the coding structure. The first two digits of the six-digit code designate the highest-level groupings among major industry sectors (for example, Mining codes as 21, Utilities as 22, and Construction as 23), with each digit making the code more specialized. NAICS allows each country to recognize its own, possibly unique, industries by going into more detail, using a sixth digit. Thus, six-digit U.S. codes may differ from counterparts in Canada or Mexico, while the five-digit codes remain standardized. The following example shows the 2002 NAICS structure.

Code	Digits	Sector	Example
23--	First two	Major sector	Construction
236--	Third	Subsector	Construction of Building
2361-	Fourth	Industry group	Residential Building Construction
23611	Fifth	NAICS international industry	Residential Building Construction
236117	Sixth	National industry (US)	New Housing Operative Builders
236118	Sixth	National industry (US)	Residential Remodelers

NAICS represents a fundamental change in approach to industrial classification. Under the SIC system, some establishments were classified according to their production processes, but others were classified using different criteria, such as class of customer, i.e., public, private, individual. By contrast, NAICS is based solely on production processes; that is, NAICS classifies each establishment into a detailed industry based on the production processes it uses. Thus, reclassification under NAICS substantially changes how many and which businesses are included in certain sectors of construction. For instance, Land Subdivision (SIC 6552), which was not part of construction under the SIC system, is included in Heavy and Civil Engineering Construction (NAICS 23311, 1997 version; NAICS 23721, 2002 version). Other SIC categories added to the construction industry include: Management Services (SIC 8741) for each industry subsector; Radio and Television Repair Shops, i.e., Household Antenna Installation (SIC 7622) to NAICS 23829; Repair Shops and Related Services, i.e., Boiler Cleaning, Chipping, and Scaling (SIC 7699) to NAICS 23822 (2002 version).

Key changes in construction in NAICS also include the new listing of a residential remodeling industry, the reshuffling of many heavy construction industries, and the rearranging (renumbering) of the specialty trades to place them in the appropriate sequence of the construction process.

The construction industry had substantial revisions to classifications within 2002 NAICS, although most NAICS industry classifications remained unchanged between 1997 and 2002. For example, part of Support Activities for Mining under the 1997 (NAICS 21311) has been moved to construction under the 2002 NAICS as Site Preparation Contractors (NAICS 23712), a code which now bundles six different codes from the 1997 NAICS and 10 codes from the 1987 SIC. Some 1997 NAICS categories have been broken into separate 2002 NAICS industries, creating more industry-level detail. One example is Carpentry Work (23551 under NAICS 1997), split into Framing Contractors (NAICS 23813), and Finish Carpentry Contractors (NAICS 23835) under 2002 NAICS. NAICS is to be reviewed and updated every five years to reflect our changing economy. The 2007 NAICS is now available, and the codes are exactly the same as 2002 NAICS for the construction industry, but has a significant revision within part of the Information Sector.³

The NAICS production-oriented system means that government data can be used more easily for measuring and grouping productivity, unit labor costs, the capital intensity of production, and understanding employer-output relationships and other such statistics. However, the transition to the new system poses some difficulties for researchers. To help data users making the transition to the new system, the following pages provide construction statistics showing the historical trends across the three coding systems.

1. 2002 North American Industry Classification System

2002 NAICS	2002 NAICS US Description	1997 SIC	1987 SIC	1987 US SIC Description
236 Construction of Buildings
23611	Residential Building Construction	23321	1521	General Contractors - Single-family Houses
			1531	Operative Builders
			8741	Management Services
		23322	1522	General Contractors - Residential Buildings Other Than Single-Family Houses
			1531	Operative Builders
			8741	Management Services
23621	Industrial Building Construction	23331	1531	Operative Builders
			1541	General Contractors Industrial Buildings and Warehouses
			8741	Management Services
		23493	1629	Heavy Construction, NEC
			8741	Management Services
		23499	1629	Heavy Construction, NEC
23622	Commercial and Institutional Building Construction	23322	1522	General Contractors - Residential Buildings Other Than Single-Family Houses
		23331	1531	Operative Builders
			1541	General Contractors - Industrial Buildings and Warehouses
		23332	1522	General Contractors - Residential Buildings Other Than Single-Family Houses
			1531	Operative Builders
			1541	General Contractors - Industrial Buildings and Warehouses
			1542	General Contractors - Nonresidential Buildings, Other than Industrial Buildings and Warehouses
			8741	Management Services
		23599	1799	Special Trade Contractors, NEC
237 Heavy and Civil Engineering Construction
23711	Water and Sewer Line and Related Structures Construction	23491	1623	Water, Sewer, Pipeline, and Communications and Power Line Construction
			8741	Management Services
		23499	1629	Heavy Construction, NEC
			8741	Management Services
		23581	1781	Water Well Drilling
23712	Oil and Gas Pipeline Related Structures Construction	21311	1389	Oil and Gas Field Services, NEC
		23491	1623	Water, Sewer, Pipeline, and Communications and Power Line Construction
			8741	Management Services
		23493	1629	Heavy Construction, NEC
			8741	Management Services
23713	Power and Communication Line and Related Construction	23492	1623	Water, Sewer, Pipeline, and Communications and Power Line Construction
			8741	Management Services
		23493	1629	Heavy Construction, NEC
23721	Land Subdivision	23311	6552	Land Subdividers and Developers Construction
23731	Highway, Street, and Bridge Construction	23411	1611	Highway and Street Construction
			8741	Management Services
		23521	1721	Painting and Paper Hanging
		23412	1622	Bridge, Tunnel, and Elevated Highway Construction
23799	Other Highway and Civil Engineering Construction	23412	1622	Bridge, Tunnel, and Elevated Highway Construction
			8741	Management Services
		23499	1629	Heavy Construction, NEC
			8741	Management Services
		23599	1799	Special Trade Contractors, NEC
238 Specialty Trade Contractors
23811	Poured Concrete Foundation	23571	1771	Concrete Work
23812	Structural Steel & Precast Concrete contractors	23591	1791	Structural Steel Erection
23813	Framing Contractors	23551	1751	Carpentry Work
23814	Masonry contractors	23542	1771	Concrete Work
		23541	1741	Masonry, Stone Setting, and Other Stone Work
23815	Glass and Glazing Contractors	23592	1793	Glass and Glazing Work
			1799	Special Trade Contractors, NEC
23816	Roofing Contractors	23561	1761	Roofing, Siding, and Sheet Metal Work
23817	Siding Contractors	23561	1761	Roofing, Siding, and Sheet Metal Work
23819	Other foundation, structure, & Building Exterior Contractors	23591	1791	Structural Steel Erection
		23599	1799	Special Trade Contractors, NEC
23821	Electrical Contractors	23511	1711	Plumbing, Heating, and Air-Conditioning
		23531	1731	Electrical Work
23822	Plumbing, Heating, and Air-conditioning Contractors	23511	1711	Plumbing, Heating, and Air-conditioning
			7699	Repair Shops and Related Services, NEC
		23591	1791	Structural Steel Erection
		23595	1796	Installation or Erection of Building Equipment, NEC
23829	Other Building Equipment Contractors	23595	1796	Installation or Erection of Building Equipment, NEC
		23599	1799	Special Trade Contractors, NEC
			7622	Radio and Television Repair Shops
23831	Drywall and Insulation Contractors	23542	1742	Plastering, Drywall, Acoustical, and Insulation Work
			1743	Terrazzo, Tile, Marble, and Mosaic Work (fresco work)
23832	Paint and Wall Covering Contractors	23521	1721	Painting and Paper Hanging
			1799	Special Trade Contractors, NEC
23833	Floor Contractors	23552	1752	Floor Laying and Other Floor Work, NEC
23834	Tile and Terrazzo Contractors	23543	1743	Terrazzo, Tile, Marble, and Mosaic Work (except fresco work)
23835	Finish Carpentry Contractors	23551	1751	Carpentry Work
			1799	Special Trade Contractors, NEC
23839	Other Building Finishing Contractors	23561	1761	Roofing, Siding, and Sheet Metal Work
		23599	1761	Roofing, Siding, and Sheet Metal Work
			1799	Special Trade Contractors, NEC
23891	Site Preparation Contractors	21311	1081	Metal Mining Service
			1241	Coal Mining Services
			1389	Oil and Gas Field Services, NEC
			1481	Nonmetallic Minerals Services, Except Fuel
		23499	1629	Heavy Construction, NEC
			7353	Construction Equipment Rental and Leasing
		23511	1711	Plumbing, Heating, and Air-conditioning
		23593	1794	Excavation Work
		23594	1795	Wrecking and Demolition Work
		23599	1799	Special Trade Contractors, NEC
23899	All Other Specialty Trade Contractors	23499	7353	Construction Equipment Rental and Leasing
		23571	1771	Concrete Work
		23599	1799	Special Trade Contractors, NEC
		56172	1799	Special Trade Contractors, NEC

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1. Office of Management and Budget, Executive Office of the President, North American Industry Classification System (NAICS)-Revisions for 2002, Federal Register, January 16, 2001, www.census.gov/epcd/naics02/naifr02d.htm (Accessed November 2007).

2. U.S. Bureau of Labor Statistics, North American Industry Classification System (NAICS), http://www.bls.gov/bls/naics.htm (Accessed November 2007).

3. The official 2007 U.S. NAICS Manual North American Industry Classification System--United States, 2007 is available at http://www.census.gov/naics/2007/index.html (Accessed November 2007). The printed 2007 NAICS manual is available from the National Technical Information Service (NTIS): 1-800-553-NTIS.

Source: Chart 1 - Office of Management and Budget, Executive Office of the President, North American Industry Classification System (NAICS)-Revisions for 2002, Federal Register, January 16, 2001, excerpt, 4 pp.: Tables 1 and 3. 2002 NAICS-US Matched to 1997 NAICS-US and 2002 NAICS-US Matched to 1987 Standard Industrial Classification, www.census.gov/epcd/naics02/

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