OFFICE OF MANAGEMENT AND BUDGET Economic Classification Policy…

OFFICE OF MANAGEMENT AND BUDGET

Economic Classification Policy Committee: Standard Industrial Classification
Replacement--The North American Industry Classification System Proposed
Industry Classification Structure

AGENCY: Office of Management and Budget, Executive Office of the President.

ACTION: Notice of solicitation of comments on final recommendations for the
North         American Industry Classification System.
SUMMARY: Under Title 44 U.S.C. 3504, the Office of Management and Budget
(OMB) is seeking public comment on the advisability of adopting the proposed North
American Industry Classification System (NAICS), the industry classification system
developed by OMB's Economic Classification Policy Committee to replace the current
Standard Industrial Classification (SIC) system.
    OMB has previously published six Federal Register notices seeking comment on
the development of NAICS and its content. The March 31, 1993, Federal Register
notice, pp. 16990-17004, announced the establishment of the Economic Classification
Policy Committee (ECPC) to produce a new industrial classification system for 1997.
OMB charged the ECPC with a "fresh slate" examination of economic classifications
for statistical purposes, including industrial classifications, product classifications, and
product code groupings. The July 26, 1994, Federal Register notice, pp. 38092-
38096, solicited comments on the concepts for the new system and the decision to
develop NAICS in cooperation with Statistics Canada and Mexico's Instituto Nacional
de Estad stica, Geograf a e Informat ca (INEGI). That notice also included a request
for the public to submit recommendations for industries to be included in the new
system. The deadline for submitting proposals for new or revised industries was
November 7, 1994.
    After considering all proposals from the public, consulting with a large number of
U.S. data users and industry groups, and undertaking extensive discussions with
Statistics Canada and INEGI, a new industrial structure for NAICS was developed that
would apply to all three North American countries. Four Federal Register notices
subsequently were published seeking comment on various parts of the structure and
industries of the NAICS system. The first of these four notices was published in the
Federal Register, July 26, 1995, pp. 38436-38452, requesting comment on proposed
industry structures for petroleum and coal product manufacturing, chemical
manufacturing, and rubber and plastics manufacturing; for broadcasting and
telecommunications; and for food services and drinking places and accommodations.
The second Federal Register notice was published on February 6, 1996, pp. 4524-
4578, requesting comment on proposed industry structures for crop production, animal
production, forestry and logging; textile mills, textile product mills, apparel
manufacturing, and leather and allied product manufacturing; food manufacturing and
beverage and tobacco product manufacturing; fabricated metal product manufacturing;
machinery manufacturing; electrical equipment, appliance and component
manufacturing; and transportation equipment manufacturing. The third Federal
Register notice was published on May 28, 1996, pp. 26558-26668, requesting
comment on proposed industry structures for health and social assistance; educational
services; computers and electronics product manufacturing; furniture manufacturing;
printing and related support activities; professional, technical and scientific services;
performing arts, spectator sports and related industries; museums, historical sites and
similar institutions; recreation, amusement and gambling; information; wood product
manufacturing, except furniture; rental and leasing; repair and maintenance;
management and support; transportation; mining; paper manufacturing; nonmetallic
minerals manufacturing; primary metal manufacturing; miscellaneous manufacturing;
and postal service and couriers.
    Finally, the fourth of the industry-specific Federal Register notices (constituting
the sixth notice concerning the NAICS overall development) was published on July 5,
1996, pp. 35384-35515, requesting comment on proposed industry structures for
finance and insurance; wholesale trade; retail trade; construction; utilities; waste
management and remediation services; real estate; lessors of other non-financial
assets; personal and laundry services; and religious, grant making, civic, and other
membership organizations. That notice also presented the entire classification system
and requested comments on the proposed hierarchy and coding system of NAICS.
    The final deadline for receipt of public comments on the structure and the
industries included in NAICS was September 3, 1996. Statistics Canada and INEGI
also sought comments on the proposed structures. Further discussions were held
among the three countries to consider public comments received from all three
countries. Changes incorporated into the new system based on these comments are
shown and explained in the SUPPLEMENTARY INFORMATION section of this
notice.
    After this extensive process of development and discussions by the ECPC, with
maximum possible public input as called for by its mandate, OMB is seeking comment
on the advisability of accepting NAICS, with the changes published in this notice, as
the industry classification system to be employed in relevant statistical collections by
all U.S. statistical agencies. Statistics Canada and INEGI have accepted the new
NAICS system, which will be used for industrial classification in the statistical
programs of Canada and Mexico.
DATES: To ensure consideration of comments on the adoption and implementation
of NAICS, comments must be in writing and should be submitted as soon as possible,
but no later than December 20, 1996. This proposed industry system would become
effective in the U.S. on January 1, 1997.
ADDRESSES: Correspondence about the adoption and implementation of NAICS as
shown in this Federal Register notice should be sent to: Katherine K. Wallman,
Chief Statistician, Office of Management and Budget, 10201 New Executive Office
Building, Washington, D.C. 20503, telephone number: (202) 395-3093, FAX number:
(202) 395-7245.
    Inquiries about the content of industries or requests for electronic copies of the
tables should be made to Carole Ambler, Coordinator, Economic Classification Policy


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Committee, Bureau of the Census, Room 2633-3, Washington, DC 20233, telephone
number: (301) 457-2668, FAX number: (301) 457-1343.
ELECTRONIC AVAILABILITY AND COMMENTS: This document is available
on the Internet from the Census Bureau via WWW browser, ftp, and E-mail.
    To obtain this document via WWW browser, connect to "http://www.census.gov"
then select "Subjects A to Z", then select "N", then select "NAICS (North American
Industry Classification System)." This WWW page contains previous NAICS Federal
Register notices and related documents as well.
    To obtain this document via ftp, login to ftp.census.gov as anonymous, and retrieve
the files "naicsfr7.pdf," "naicsfr7 TBL1.pdf," and "naicsfr7 TBL2.pdf" from the
"/pub/epcd/naics" directory. (That directory also contains previous NAICS Federal
Register notices and related documents.)
    To obtain this document via Internet E-mail, send a message to
majordomo@census.gov with the body text as follows: "get gatekeeper naics.txt".
Instructions for obtaining this and other NAICS documents will be delivered as a
message attachment.
    Comments may be sent via Internet E-mail to OMB at naics@a1.eop.gov (do not
include any capital letters in the address). Comments received at this address by the
date specified above will be included as part of the official record.
FOR FURTHER INFORMATION CONTACT: Paul Bugg, 10201 New Executive
Office Bldg., Washington, DC 20503, E-mail address: bugg_p@a1.eop.gov,
telephone number: (202) 395-3093, FAX number: (202) 395-7245. Inquiries about
the content of industries or requests for electronic copies of the tables should be made
to Carole Ambler, Coordinator, Economic Classification Policy Committee, Bureau of
the Census, Room 2633-3, Washington, DC 20233, telephone number: (301) 457-
2668, FAX number: (301) 457-1343.

SUPPLEMENTARY INFORMATION:

    The development of NAICS began in 1992 with the establishment of the Economic
Classification Policy Committee by OMB to study the desirability of developing a new
industry classification system for the United States based on a single economic
concept. A March 31, 1993, Federal Register notice, pp. 16990-17004, announced
the establishment of the Economic Classification Policy Committee (ECPC) by OMB
and set out its charter including a "fresh slate" examination of economic classifications
for statistical purposes, including industrial classifications, product classifications, and
product code groupings. In a July 26, 1994, Federal Register notice, pp. 38092-
38096, OMB announced that NAICS was being developed in cooperation with
Statistics Canada and INEGI and requested comments on that decision as well as
requesting public comments on the structure of the system. That notice also included
the concepts of the new system and the principles upon which it would be developed.
Those are as follows:



                                             3
     (1) NAICS will be erected on a production-oriented, or supply-based, conceptual
framework. This means that producing units that use identical or similar production
processes will be grouped together in NAICS.
     (2) The system will give special attention to developing production-oriented
classifications for (a) new and emerging industries, (b) service industries in general,
and (c) industries engaged in the production of advanced technologies.
     (3) Time series continuity will be maintained to the extent possible. However,
changes in the economy and proposals from data users must be considered. In
addition, adjustments will be required for sectors where Canada, Mexico, and the
United States presently have incompatible industry classification definitions in order to
produce a common industry system for all three North American countries.
     (4) The system will strive for compatibility with the 2-digit level of the
International Standard Industrial Classification of All Economic Activities (ISIC, Rev.
3) of the United Nations.
     The structure of NAICS was developed in a series of meetings among the three
countries. NAICS is organized in a hierarchical structure, much like the existing U.S.
SIC. The 1987 SIC employs a 4-digit coding system, in which the first two digits
designate what in NAICS is known as a "subsector," the third digit designates the
industry group, and the fourth digit designates the industry. For example, in the 1987
SIC, the two digits 26 designate the manufacture of "Paper and Allied Products,"
within which the digits 262 designate an industry group titled "Paper Mills," which
contains one 4-digit industry, SIC 2621, also titled "Paper Mills."
     The NAICS coding system must be expanded beyond the four digits used in the
SIC for two reasons. First, the NAICS agreements among the ECPC, INEGI, and
Statistics Canada permit each country to designate detailed industries, below the level
of a NAICS industry, to meet national needs. The United States will have such
national industry detail in many places in the new classification, and this national
detail can only be accommodated by expanding the coding system to at least five
characters. In the U.S. NAICS, the sixth digit designates the U.S. detailed national
industries.
     Second, it is desirable that the first character or characters in a coding system
designate the sector (the NAICS term "industry sector" is replacing the term "division"
used in the 1987 SIC). A modern economy is too complex to be described adequately
if the first character of the coding system restricts the number of sectors to nine or ten.
For example, the ECPC is recommending that NAICS have 20 industry sectors.
Accordingly, the first two digits are used to designate the sector in NAICS.
     The ECPC is recommending a six digit coding system in which the first two digits
designate the NAICS sector, and the third, fourth, fifth, and sixth digits designate,
respectively, the subsector, industry group, NAICS industry, and U.S. national
industry (if any). Though the 1997 U.S. NAICS industries will now have six digits
compared to four digits for 1987 SIC industries, there will not be a corresponding
increase in the level of classification detail that the 1997 NAICS provides compared to



                                            4
the 1987 SIC. As explained above, the two additional digits are simply the result of
allowing for more sectors and for individual country-level detail.
    Public proposals for individual industries from all three countries were considered
for acceptance if the proposed industry was based on the production-oriented concept
of the system.
    In response to the July 26, 1994, notice, the ECPC received 125 public responses
to the call for proposals for new and revised industries, plus 8 responses from 6 State
government agencies, and 9 responses from 6 Federal Government agencies. These
formal responses to the July 26, 1994, Federal Register notice contained several
hundred proposals. Additional proposals and suggestions for change arose from the
extensive ECPC public outreach program, which consisted of meetings and other
communications with industry, data user, and data respondent groups. Other proposals
for modifications such as changing industry definitions and clarifying boundaries,
came from U.S. statistical agency personnel who worked on NAICS, reflecting
accumulated public comments and criticism, over a number of years, of the U.S. SIC
system. A number of proposals to eliminate U.S. industries, or to combine them with
other industries, were also received.
    Comments to the ECPC from all these sources ranged over many aspects of the
1987 SIC system. For example, approximately 20 percent of the formal letters
received concerned ambiguities in the titles and definitions of the 1987 SIC industries,
and incomplete or out of date product lists. Over 40 respondents requested more and
better-defined product detail within existing industries, without necessarily requesting
changes to industry boundaries. These requests and suggestions are being handled
through the redesign of forms where product information is collected in the 1997
Economic Censuses.
    Another group of responses to the notice were proposals for "a separate, market-
oriented product grouping system" (Federal Register, July 26, 1994, p. 38095), to be
put in place following the 1997 Economic Censuses. Some proposals that were
submitted as industry proposals were, after analysis by the ECPC, found more
appropriately to be market groupings, and have been held over for future action.
    After accounting for the public responses in the above categories, a high
proportion of the proposals for new industries made to the ECPC were accepted.
When a proposal was not accepted, it was usually because: a) the resulting industry
would have been too small in the U.S.; b) data indicated that the specialization ratio
was low (the specialization ratio indicates to what extent the establishments in a given
industry concentrate on the activities that define the industry); or c) the proposal did
not meet the production-oriented criterion for forming an industry in NAICS.
    Proposals were also received for changing or modifying the boundaries of existing
industries, without necessarily creating a new industry. In addition, changes to 1987
SIC industry definitions were frequently required to bring about compatibility with the
Canadian and Mexican classifications (as were corresponding changes in those
countries' classification systems). Those changes are listed and described in the four
Federal Register notices that described the proposed NAICS system. Some changes


                                           5
that were required for international compatibility interacted with proposed changes
from the U.S. public, and in some cases the two kinds of changes forced a broader
rethinking of the entire portion of the structure. The results of the ECPC's
examination of the U.S. classification system, and its work with INEGI and Statistics
Canada to form a new North American system, are presented in the series of Federal
Register notices listed above, culminating in the July 5, 1996, Federal Register
notice, pp. 35384-35515, that contains the full NAICS system as originally proposed
by the ECPC.
    In response to the last four Federal Register notices containing various sections of
the proposed classification system, which was summarized in the July 5, 1996,
Federal Register notice, the ECPC received approximately 400 additional comments.
Each comment was considered in preparing the revised structure that the ECPC is now
recommending for adoption. In the discussion below in the Significant Comments or
Changes section, these four Federal Register notices, as summarized in the July 5,
1996, notice, serve as the base proposal against which changes in response to
comments are noted. The ECPC also consulted with INEGI and Statistics Canada
regarding the comments received and discussions were held to incorporate the
necessary changes into the new system.
    A significant number of comments supported the development of NAICS,
expressed the view that NAICS is a significant improvement over the SIC system, or
supported the inclusion in NAICS of specific industries. Other comments included
offers to help write the detailed descriptions of certain industries. There were also a
number of comments remarking on the need to ensure time series comparability, in the
transition from the SIC system to NAICS.
    Approximately 10 percent of the comments received requested clarification of a
concept or industry title -- for example, comments requesting further elaboration or
explanation of some of the industries proposed; interpretation of the boundaries of
some of the proposed industries; or requests for changes to titles of proposed
industries. The ECPC subcommittees are communicating with these respondents via
telephone, e-mail, or personal meetings to answer these kinds of questions. This
process will continue over the next several months.
    There were only a few comments regarding the proposed coding system. As
discussed above, the NAICS codes requires additional digits beyond the four digits
used in the SIC system. The first extra digit permits NAICS to have more than 10
sectors and to build the sector into the coding system; the final digit permits breaking
out U.S. national industries, where it is important to do so, below the NAICS industry
level. Four comments supported a 6-digit numeric system while three supported an
alphanumeric system. Because there was no strong support for one system over the
other, because both Canada and Mexico support the 6-digit system, and because
implementing a 6-digit numeric system is easier and less expensive for the U.S.
statistical system, the ECPC recommends the adoption of a 6-digit numeric system.
    About one half of the comments received in response to the proposed system
related to requests for changes. Many of these comments asked for additional


                                           6
industries to be recognized, even though these requests were originally due on
November 7, 1994. However, the ECPC did consider such requests. About 30 percent
of these requests were accepted. Significant changes made as a result of these
comments are discussed below. Changes were also made to the proposed structure
based on further study and additional information about the proposed industries
received by the ECPC subcommittees. Still other changes are the result of comments
from Canadian and Mexican users of the new system. These too are noted below.
    There also are a number of title changes to better describe the contents of the
industries. Title changes are reflected in Table 1. Some revisions are made to the
numerical codes for industries as published in the July 5, 1996, Federal Register
notice. These changes were made to present a more logical sequencing of the
industries in the coding system; to account for new industries and changes to industries
as a result of the Federal Register comments; and to account for the new sector added
to the structure. In addition, because there is not three country agreement for detailed
industries in some of the sectors (construction, utilities, wholesale trade, retail trade,
and public administration), the three countries have assigned different numbers to
these sectors to signify that the industries are not comparable across the three
countries.
    The ECPC received a number of comments that suggested changes to NAICS that
were not accepted. All of these suggestions were carefully considered. Some of the
suggestions were modified at the request of the ECPC to better meet the objectives of
NAICS. Others were suggestions for products that will be considered in the future
development of a product system. Other suggestions for change could not be justified
on a production basis, or could not be implemented in statistical programs, for a
variety of reasons, and thus were not accepted. The ECPC is currently preparing a
response for each of these suggestions, carefully explaining why they were not
accepted.

Significant Comments or Changes:

    Agriculture, Forestry, Fishing, and Hunting - Major industry associations objected
to moving cotton ginning from agriculture to manufacturing. They argued that cotton
ginning is not a manufacturing process, but rather a service to the agriculture sector.
The ECPC agreed with the arguments and cotton ginning is moved to agriculture and
shown as NAICS code 115111.
    The Root, Tuber, and Peanut Farming industry group is deleted because the
production process of that industry group can not be easily differentiated from that of
the Vegetable and Melon Farming industry group. Potato farming is now included
with Vegetable and Melon Farming as a U.S. national industry and peanut and sugar
beet farming are U.S. national industries under Other Crop Farming.
    At the request of Mexico, poultry hatcheries and other poultry production are
elevated to NAICS five-digit industries. No change is implied for the U.S. national
industry structure. U.S. national industries are added for Oilseed and Grain


                                            7
Combination Farming, and Fruit and Tree Nut Combination Farming to account for
those farms that carry out a range of activities. All other combination farming will be
classified in All Other Crop Farming. These activities were not accounted for in the
original structure as published in the July 5, 1996 Federal Register notice.

    Manufacturing - A number of new U.S. national industries were created at the
request of industry groups. All of these new industries are large, production based
industries that cannot be recognized separately by either Canada or Mexico. These
industries are Bottled Water Manufacturing; Secondary Smelting, Refining and
Alloying of Copper; Nonferrous Metals (except Copper and Aluminum) Rolling,
Drawing, and Extruding; Secondary Smelting, Refining and Alloying of Nonferrous
Metals (except Copper and Aluminum); Printed Circuit/Electronics Assembly
Manufacturing; and Light Truck and Utility Vehicle Manufacturing.
    NAICS industry group 3116, Meat and Seafood Product Manufacturing, is split
into two industry groups at the request of the province of Newfoundland. The
production processes for meat and seafood products are significantly different, and the
size of these industries in all three countries allow for the creation of two industry
groups as follows: 3116, Meat Product Manufacturing, and 3117, Seafood Product
Preparation and Packaging. NAICS 3117, Bakeries and Tortilla Manufacturing, is
renumbered 3118.
    U.S. NAICS 312142, Ethyl Alcohol Manufacturing, is moved to NAICS 32519,
Other Organic Chemical Manufacturing, and a new U.S. NAICS industry, 325193
Ethyl Alcohol Manufacturing, is established. An error was made in placing ethyl
alcohol for nonfood uses in the food industries.
    The sequencing of subsector 315, Apparel Manufacturing, is changed. NAICS
3151 is revised to represent Apparel Knitting Mills; NAICS 3152 is Cut and Sew
Apparel Manufacturing; and NAICS 3159 is Apparel Accessories and Other Apparel
Manufacturing. The NAICS agreement is now at the industry group level and
comparable data will be shown by all three countries for NAICS 3151, 3152, and
3159. The United States and Canada, however, are establishing comparable industries
below the industry group level. These industries are: 31521, Cut and Sew Apparel
Contractors; 31522, Men's and Boys' Cut and Sew Apparel Manufacturing; 31523,
Women's and Girls' Cut and Sew Apparel Manufacturing; and 31529, Other Cut and
Sew Apparel Manufacturing. The country-level six digit detail for Canada and the
U.S. also is comparable where possible. Since the fabric for knit apparel garments is
first knit and then may be cut and sewn, grouping apparel knitting mills before cut and
sew manufacturers is a more logical grouping in the production process. Mexico
requested that the NAICS distinction for contractors be dropped since that distinction
was difficult for them to make, but it is retained as shown above for Canada and the
U.S.
    The Wood Product Manufacturing subsector is restructured. Specifically, NAICS
3212, Laminated Wood Product Manufacturing, is retitled Veneer, Plywood, and
Engineered Wood Product Manufacturing because this title better reflects terminology


                                           8
used within the industry. Truss Manufacturing is moved to industry group 3212 from
industry group 3219, Other Wood Product Manufacturing. Truss Manufacturing is
now represented by U.S. NAICS code 321214. NAICS industry group 32191, Wood
Construction Product Manufacturing, is retitled Millwork. These changes are made to
reflect the new and emerging industry of engineered wood and to more accurately
reflect the production processes used in the manufacture of trusses. The products
included in NAICS 32191, Millwork, are made from wood that is sawn and molded
into wood products such as doors, windows, flooring, etc. Truss manufacturing is
much more than just sawing and/or molding a product. Truss manufacturing involves
fabricating (including laminating) wood into various configurations that meet certain
endurance and structural requirements. Design of the truss to meet these requirements
is extremely important. Many times metal pieces are affixed to the end. Trusses are
made more like other products included in NAICS industry group 32121, Veneer,
Plywood, and Engineered Wood Product Manufacturing, than they are like those
produced in 32191, Millwork.
    The ordering and title of subsector 326, Rubber and Plastics Product
Manufacturing, is changed. The new title is Plastics and Rubber Product
Manufacturing and NAICS industry group 3261 now represents Plastics Product
Manufacturing while 3262 represents Rubber Product Manufacturing. This change
was done to reflect the order in terms of the size of the two industries.
    A number of changes are made to NAICS industry group 331, Primary Metal
Manufacturing. Specifically, the title of U.S. national industry 331312, Primary
Refining of Aluminum is changed to Primary Aluminum Production. The trade
association pointed out that the original title was incorrect and should be changed.
The titles for industry group 3313 and NAICS industry 33131, Smelting, Refining,
Rolling, Drawing and Extruding of Aluminum, are changed to Alumina and
Aluminum Production and Processing. This shortens the title and provides a better
description of the content of the industry group and industry. The term alloying is
added to U.S. national industries 331314, Secondary Smelting and Refining of
Aluminum; and 331413, Secondary Smelting and Refining of Nonferrous Metals
(renumbered and retitled 331492, Secondary Smelting, Refining, and Alloying of
Nonferrous Metals (except Copper and Aluminum). The addition of the term alloying
clearly designates that the alloying activity is included in these industries.
    NAICS industry groups 3326, Spring, Wire, and Turned Product Manufacturing,
and 3327, Machine Shops and Coating, Engraving, Heat Treating and Allied
Activities, are restructured to better reflect the production process of the industries
included in the industry groups. Specifically, the trade association pointed out that the
production processes for machine shops and turned product manufacturing are similar
and often the same, using the same type of machinery. The only difference is that
machine shops usually produce on a small scale special or "job" order basis, while
turned product manufacturing establishments usually produce on a large scale basis or
"mass produce." Thus, turned product manufacturing should be grouped with machine
shops rather than with spring and wire product manufacturing. Turned product


                                           9
manufacturing then is moved from industry group 3326 now titled, Spring and Wire
Product Manufacturing, to industry group 3327, now titled Machine Shops, Turned
Product, and Screw, Nut, and Bolt Manufacturing. NAICS industry, 33272, Coating,
Engraving, Heat Treating and Allied Activities, and the U.S. national industries
332721, Metal Heat Treating; 332722, Metal Coating, Engraving and Allied Services
to Manufacturing (except Jewelry and Silverware); and 332723, Electroplating,
Plating, Polishing, Anodizing and Coloring, are moved to a new NAICS industry
group 3328, Coating, Engraving, Heat Treating, and Allied Activities. The NAICS
industry has the same title and no changes are made to the U.S. detail except for the
following title changes: 332822, Metal Coating, Engraving, and Allied Services to
Manufacturing (except Jewelry and Silverware).
    Water coolers are moved from NAICS 33522, Major Appliance Manufacturing, to
NAICS 33341, Heating, Ventilating, Air-Conditioning, and Commercial Refrigeration.
Water coolers are made by establishments also producing heating, ventilating, air-
conditioning, and commercial refrigeration, not major appliance manufacturers.
    Writing, drawing, artists and stamp pad inks are moved from NAICS industry
32591, Printing Ink Manufacturing, to 32599, Other Miscellaneous Chemical Product
Manufacturing (retitled All Other Chemical Product Manufacturing). Establishments
producing printing ink do not also produce writing, drawing, artists and stamp pad inks
and the production processes are different.
    To clarify the placement of some activities, toners are included in NAICS 32599,
Other Miscellaneous Chemical Product Manufacturing, (retitled All Other Chemical
Product Manufacturing) while ink jet or bubble jet inks and electrostatic inks are
included in NAICS 32591, Printing Ink Manufacturing. The manufacturing of these
products is classified according to the production process based on a study to
determine which manufacturers are making these products.
    Foam products made from materials other than polystyrene and urethane are
included in NAICS 32625, Urethane Foam Product Manufacturing, now titled
Urethane and Other Foam Product (except Polystyrene) Manufacturing. No allowance
was originally made for foam products from materials other than polystyrene and
urethane.
    A new NAICS industry is created for sign manufacturing. Sign manufacturing in
the NAICS structure published on July 5, 1996, was dispersed throughout the
manufacturing subsectors based on component material. However, the trade
association pointed out that sign manufacturing is a special production process and
establishments do not specialize in sign making by type of material. Rather, they
make signs from any material based on customer specifications. Therefore, NAICS is
restructured to establish a separate sign manufacturing industry, 33995, Sign
Manufacturing.
    Gasket manufacturing is moved to NAICS 33999, All Other Miscellaneous
Manufacturing, and a new U.S. national industry is created, 339991, Gasket
Manufacturing. As with sign manufacturing, NAICS originally classified gasket
manufacturing according to component material. However, further study indicates that


                                          10
producers of gaskets do not specialize by type of material, but rather produce gaskets
of many materials in the same establishment. Therefore, a separate U.S. national
industry is established for gasket manufacturing.
    Reconditioning of barrels and drums is moved from NAICS 332499, Other Metal
Container Manufacturing, to NAICS 81121, Heavy and Industrial Machinery
Equipment and Repair. The industry association pointed out that the chief activity in
reconditioning barrel and drum establishments is cleaning and repainting or refinishing
barrels and drums. Used drums are obtained and cleaned using a chemical cleansing
solvent or a burning process is used to burn out impurities. The drums are then
painted or coated according to the customer's specification. Since cleaning and
repainting is the main activity of these establishments, the activity more logically fits
in the repair and maintenance subsector.
    Automotive and truck air conditioning compressors and systems (excluding unitary
systems and mechanical refrigeration equipment) is moved from U.S. NAICS 333415,
Air Conditioning and Warm Air Heating Equipment and Commercial and Industrial
Refrigeration Equipment Manufacturing, to NAICS industry 33639, Other Motor
Vehicle Part Manufacturing. A U.S. national industry, 336391, Motor Vehicle Air
Conditioning Manufacturing is added. The proposed industry is well defined and
highly specialized. The manufacture of this type of air conditioning equipment is
distinct from other kinds (residential or industrial) due to standards required by motor
vehicle manufacturers, such as size, strength of components, environmental
requirements, etc. Classifying these motor vehicle parts in the Transportation
Equipment Manufacturing subsector is consistent with similar decisions made in
NAICS to group all transportation equipment manufacturing together.
    NAICS industries and the U.S. detail under 33713, Wood Furniture
Manufacturing; 33714, Metal Furniture Manufacturing, and 33715, Other Furniture
Manufacturing, are changed. This change is made at the request of trade associations
in both Canada and the U.S. There are now two NAICS industries for furniture. They
are 33713, Wood Household Furniture Manufacturing and 33714, Non-wood
Furniture Manufacturing. Within this structure, the U.S. will recognize the following
industries: 337131, Wood Kitchen Cabinet and Counter Top Manufacturing; 337132,
Upholstered Wood Household Furniture Manufacturing; 337133, Wood Household
Furniture (except Upholstered) Manufacturing; 337134, Wood Office Furniture
Manufacturing; 337135, Custom Architectural Woodwork and Millwork
Manufacturing; and 337139, Other Wood Furniture Manufacturing; 337141, Nonwood
Office Furniture Manufacturing; 337142, Metal Household Furniture Manufacturing;
337143, Household Furniture (except Wood and Metal) Manufacturing; 337145,
Nonwood Showcase, Partition, Shelving, and Locker Manufacturing; and 337148,
Other Nonwood Furniture Manufacturing. In addition, the three countries agreed that
each would work towards adopting the complete structure in the future. Also
convertible sofa manufacturing is moved from NAICS 33711, Mattress
Manufacturing, to 33713, Wood Furniture Manufacturing. Convertible sofa
manufacturing is not like mattress manufacturing, but is furniture manufacturing.


                                           11
    Quick printing is moved from NAICS 571431 (renumbered 561431),
Photocopying and Duplicating Services, to NAICS 32311, Printing. A new U.S.
national industry, 323114, Quick Printing, is established. Industry representatives
pointed out that quick printing uses inputs, labor skills, and capital equipment that are
similar to those used in traditional printing establishments and therefore should be
classified in the printing subsector. These establishments do, however, employ
different production processes than traditional printers and should be classified in a
separate industry within the printing subsector. Quick printing includes any
establishment that has an offset printer with a maximum paper size less than "18" X
"23" and no other "traditional" type printing equipment such as "large offset,
flexographic, screen, etc." Also included are establishments that have photocopy type
equipment and offer prepress services; and establishments that have electrostatic
digital type printers only, that primarily print text type documents. Excluded from this
industry are establishments known as copy shops, which use only photocopy type
equipment and do not offer prepress services. These establishments remain in U.S.
NAICS 561431.
    A new U.S. national industry is created for Digital Printing, U.S. NAICS 323115.
Digital printing includes establishments that use a unique process involving heavy
"front end" or prepress processing. Establishments in this industry use sophisticated
scanning equipment and powerful computing equipment to prepare computerized
input to newly developed digital output devices (printers). The products of this
industry are typically banners, signs, and posters that are generally of high quality and
large size. They are graphic as opposed to textual products. This is a distinct
production process that is a new and emerging industry that should be recognized in
NAICS.
    U.S. NAICS industry 323111, Printing on Apparel, is combined with 323116,
(renumbered 323113) Commercial Screen Printing. Industry representatives
commented that almost all printing on apparel is screen printing and thus a separate
industry for printing on apparel should not be recognized. Printing on apparel
involves the use of the same kind of equipment (screen printing machines) and has the
same highly skilled screen plate labor, and similar raw materials.
    The U.S. national industries within NAICS 32311, Printing, are renumbered to
reflect the addition of the two industries noted above and the deletion of a separate
industry for printing on apparel. The industries are as follows: 323110, Commercial
Lithographic Printing; 323111, Commercial Gravure Printing; 323112, Commercial
Flexographic Printing; 323113, Commercial Screen Printing; 323114, Quick Printing;
323115, Digital Printing; 323116, Manifold Business Form Printing; 323117, Book
Printing; 323118, Blankbook, Loose-leaf Binder, and Device Manufacturing; and
323119, Other Commercial Printing.
    NAICS industries 32721, Glass and Glass Product Manufacturing, and 32722,
Glass Container Manufacturing are combined. The glass container manufacturing
industry is too small to support in Canada. The U.S. will maintain the detail as



                                           12
published in the July 5, 1996, Federal Register notice under the new NAICS industry
32721, Glass and Glass Product Manufacturing.

    Retail Trade - At the request of industry associations, NAICS industry 44823,
Accessories Stores (retitled Clothing Accessories Stores), is moved to NAICS industry
group 4481, Clothing Stores (retitled Clothing and Clothing Accessories Stores). As a
result of that change, NAICS industry group 4482, Jewelry and Accessories Stores, is
retitled Jewelry, Luggage, and Leather Goods Stores. In addition, the sequencing of
industry groups 4482 and 4483 is changed so that 4482 now represents shoe stores and
4483, jewelry, luggage, and leather goods stores. These changes were made to ensure
that all clothing stores are grouped together and to reflect the relative importance of
the industries within the industry group.

    Transportation - In the Federal Register published on July 5, 1996, warehousing
was shown as an industry group within subsector 488, Support Activities for
Transportation. Industry associations pointed out that warehousing is not a support
activity only for transportation; a modern warehouse provides not only storage, but
other services, including inventory control, and provides them to many using
industries. Further, they indicated that warehousing is such an important activity in all
three NAICS countries that NAICS should reflect industries for general warehousing
and storage. All three countries agreed with this description of the warehousing
industry and the following changes are made: sector 48-49 is retitled Transportation
and Warehousing and the former industry group 4886, Storage Facilities, is elevated to
a subsector and retitled Warehousing and Storage Facilities. U.S. national detail
industries 488691, General Storage Facilities, and 488699, All Other Storage
Facilities, are elevated to five-digit NAICS industries and retitled General
Warehousing and Storage Facilities and All Other Warehousing and Storage Facilities,
respectively. The new subsector is 493, Warehousing and Storage Facilities.

   Information - NAICS industry 51213, Teleproduction and Other Post Production
Services, is combined with NAICS 51219, Other Motion Picture and Video Industries,
and 51219 is retitled Post Production and Other Motion Picture and Video Industries.
The U.S. establishes a 6-digit national industry 512191, Teleproduction and Other Post
Production Services, for this industry. The combination is made at the NAICS level
because the industry is not large enough in Canada to recognize as a separate NAICS
industry.

    Finance and Insurance - U.S. industry group 5251, Holding Companies, is moved
to a new sector called Management of Companies and Enterprises, NAICS 55. See the
explanation of this sector below for a description of the industries to be included in the
new sector.
    NAICS 52411 is expanded to include both life and health insurance
establishments. The industry 52411 is retitled Direct Life, Health, and Medical


                                           13
Insurance Carriers and NAICS 52412 is retitled Direct Insurance Carriers (except Life,
Health, and Medical). The U.S. national detail shows the following industries under
each: 524111, Direct Life Insurance Carriers; 524112, Direct Health and Medical
Insurance Carriers; 524121, Direct Property and Casualty Insurance Carriers; 524122,
Direct Title Insurance Carriers; and 524129, Other Direct Insurance Carriers (except
Life, Health, and Medical). This change was requested by Canada because of the
structure of their health insurance industry and their inability to separate life insurance
carriers from health and medical insurance carriers.

    Real Estate; Rental and Leasing - A separate industry group is created for NAICS
55122, Offices of Real Estate Agents and Brokers. It becomes industry group 5512,
Offices of Real Estate Agents and Brokers, with one NAICS industry in that industry
group, 55121, Offices of Real Estate Agents and Brokers. NAICS 5212, Activities
Related to Real Estate, becomes industry group 5213, Activities Related to Real
Estate, with the same national detail as published in the July 5, 1996, Federal
Register notice, except for real estate agents and brokers. This change is made to
recognize the importance of this industry to real estate and to recognize the different
production process of the industry.
    U.S. NAICS 531291, Title Abstract Offices, is moved to U.S. NAICS 541191,
Title Abstract and Settlement Offices, in the Professional, Scientific, and Technical
Services sector under industry 56119 (renumbered 54119), Other Legal Services. Title
abstract offices provide a type of legal services and thus "fit" better in the legal
services industry group.
    Condominium associations are moved to NAICS 81399, All Other Organizations.
Some of these organizations provide property management services, but others do not.
In the U.S., it is not possible to separate the two types of organizations, so it was
decided to place them all in 81399.
    With the changes to offices of real estate agents and brokers, title abstract offices,
and condominium associations, agreement is reached with Canada and Mexico on the
structure of the real estate subsector at the industry group level, though not at the
NAICS industry level. The previously published structure would not have provided
common North American data for this subsector.
    U.S. NAICS industry 532212, Home and Garden Equipment Rental is deleted. A
new industry group 5323, General Rental Centers, is created and any establishments
primarily renting home and garden equipment and/or a wide range of consumer, and
commercial/industrial equipment is included. A new NAICS industry, 53231,
General Rental Centers, is also created. Very few establishments primarily rent home
and garden equipment. Rental of these items is done either by hardware stores or
"rental centers" that rent many different types of equipment, both home and garden
and other consumer and commercial/industrial equipment. Therefore, the U.S.
industry for home and garden equipment rental is deleted.




                                            14
    Professional, Scientific, and Technical Services - The sector has been renumbered
54 from 56. This renumbering was done to provide for a more logical sequencing of
the numbers. Therefore, the first two digit of all numbers within this subsector now
are 54.
    NAICS industry group 5612 (renumbered 5412) Accounting, Tax Preparation,
Bookkeeping and Payroll Services is restructured. NAICS industries 56121, Offices
of Accountants, and 56122, Tax Preparation, Bookkeeping, and Payroll Services are
deleted. U.S. national industries 561212, Offices of Accountants, Except Certified,
and 561222, Bookkeeping and Billing Services, are also deleted. It was determined in
writing descriptions for these industries that many of the activities outlined in the tax
preparation, bookkeeping, and payroll services industries also were performed by
accountants. A clear distinction between the industries could not be made. Therefore,
the industry group is restructured to include only one NAICS industry 54121,
Accounting, Tax Preparation, Bookkeeping and Payroll Services. Four national
industries are included in this NAICS industry as follows: 541211, Offices of
Certified Public Accountants; 541212, Tax Preparation Services; 541213, Payroll
Services; and 541219, Other Accounting Services.
    NAICS industry group 5613 (renumbered 5413), Architectural, Engineering, and
Related Services, is reordered to include NAICS 56135 (renumbered 54132),
Landscape Architectural Services, after 56131 (renumbered 54131), Architectural
Services. Industry groups pointed out that landscape architecture firms perform design
services comparable to architectural and engineering firms and grouping them in
sequence reflects the similarities in process among them. Industry group 5413 is
structured as follows: 54131, Architectural Services; 54132, Landscape Architectural
Services; 54133, Engineering Services; 54134, Drafting Services; 54135, Building
Inspection Services; 54136 Geophysical Surveying and Mapping Services; 54137,
Survey and Mapping (except Geophysical) Services; and 54138, Testing Laboratories.
    U.S. NAICS industries 561491, Land Use Planners Services, and 561499, All
Other Design Services, are deleted. Land use planning services are now included with
54132, Landscape Architectural Services. It was pointed out by an industry
association that there are not specialized establishments providing land use planning
services; rather, this is an activity normally carried out by landscape architects. That
activity is therefore included with NAICS 54132, Landscape Architectural Services.

    Management of Companies and Enterprises - A new sector is created that includes
holding companies and corporate, subsidiary, and regional managing offices. All of
these establishments are engaged in the management of large, multiple establishment
companies and do not fit logically into the structure of any of the other NAICS sectors.
Within the new sector the U.S. will recognize three national industries 551111, Bank
Holding Companies; 551112, Other Holding Companies; and 551113, Corporate,
Subsidiary, and Regional Managing Offices. The three countries recognized that
holding companies are economic entities with employees and receipts that should be
recognized in NAICS and not included in the U.S. only subsector 525, Funds, Trusts,


                                           15
and Other Financial Vehicles. See the section on auxiliaries below for a full
description of the corporate, subsidiary, and regional managing office industry.

    Management, Support, Waste Management, and Remediation Services - The sector
is renumbered 56 from 57. This renumbering was done to provide for a more logical
sequencing of the numbers and to accommodate the new sector described above.
Therefore, the first two digits of all numbers within this subsector now are 56. The
sector is also retitled Administrative and Support, Waste Management and
Remediation Services to distinguish it from the new sector Management of Companies
and Enterprises.
    Farm management and construction management are moved to the agriculture and
construction sectors, respectively. The activities carried out in these establishments
require specialized knowledge of the agriculture and construction industries and are
not in any way like the activities in NAICS 57111, Management Services (now
renumbered and retitled 56111, Office Administrative Services), where they were
originally classified. New NAICS 56111, Office Administrative Services, now
includes only those establishments that are primarily engaged in providing office
administrative services, a much more homogeneous grouping.
    U.S. national industries 571731, Lawn and Garden Services, and 571732,
Ornamental Shrub and Tree Services, are deleted. There is no clear distinction
between the activities of the establishments included in these industries since many
establishments that care for shrubs and trees also provide lawn and garden services. It
is also true that establishments that provide lawn services care for shrubs and trees.
    A question was raised by an industry group on the placement of landscape
installation services. That activity is included in NAICS 57172 (renumbered 56172),
Landscape Care and Maintenance, which is retitled Landscape Services.
    NAICS industry 57112, Facilities Support Management, is elevated to an industry
group. This is a U.S. only activity and is very different from the activities included in
NAICS 57111 (renumbered 56111), Management Services (retitled Office
Administrative Services), with which facilities support management was grouped. The
new industry group and industry are 5612, Facilities Support Services, and 56121,
Facilities Support Services.

    Educational Services - U.S. NAICS industry 611512, Vocational and Technical
Schools, is combined with U.S. NAICS industry 611519, Other Technical and Trade
Schools. No distinction can be made between these two industries so they are
combined.
    The comparability among the three countries for NAICS 6111, Elementary and
Secondary Schools, is at this industry group level. Mexico needs additional industries
that can only be accommodated if NAICS comparability is at the industry group level.
This does not affect the U.S. structure.




                                           16
   Health Care and Social Assistance - U.S. NAICS industry 621611, Home Health
Agencies, is combined with U.S. NAICS industry 621619, Other Home Health Care
Services. No distinction between these two industries can be made so they are
combined.

    Arts, Entertainment, and Recreation - NAICS industry group 7131, Operators of
Sports and Recreation Facilities, is deleted and those NAICS industries formerly
included in this industry group are move to NAICS industry group 7139 retitled Other
Amusement and Recreation Industries. The following NAICS industries are included
under that industry group: 71391, Golf Courses and Country Clubs; 71392, Skiing
Facilities; 71393, Marinas; 71394, Fitness and Recreational Sports Centers; 71395,
Bowling Centers; and 71399, All Other Amusement and Recreation Industries.
NAICS 7132, Amusement Facilities, is renumbered 7131 and retitled Amusement
Parks and Arcades. Establishments providing coin-operated amusement devices are
now in 71399, All Other Amusement and Recreation Industries. An industry group
pointed out that the production processes of amusement parks and arcades is much
different from that of those establishments only providing coin-operated amusement
devices for use by amusement parks and arcades. NAICS industries in 7131 are
71311, Amusement and Theme Parks, and 71312, Amusement Arcades. NAICS
7133, Gambling Industries, is renumbered 7132. The industries in 7132 remain the
same but are renumbered 71321, Casinos (except Hotel Casinos), and 71322, Other
Gambling Industries.

    Accommodation and Food Services - NAICS industry 72222, Refreshment Places,
is deleted. Therefore, this NAICS industry will be shown as U.S. national industry
722213, Snack and Nonalcoholic Beverage Bars. Neither Mexico nor Canada could
support this as a NAICS industry, but U.S. comments indicated that snack and
nonalcoholic beverage bars are an important industry that should be recognized in the
U.S.

    Other Services, Except Public Administration - U.S. NAICS industry 811211,
Transportation Equipment Repair and Maintenance, is combined with U.S. industry
811212, Other Industrial Machinery and Equipment Repair and Maintenance
(renumbered and retitled 81131, Commercial and Industrial (except Automotive and
Electronic) Machinery and Equipment Repair and Maintenance). There are very few
establishments primarily engaged in repairing and maintaining transportation
equipment (except automotive) since most of the repairs are done at the factory or by
the establishment that owns and uses the equipment. Therefore, this industry is too
small to recognize separately and is combined with other industrial machinery and
equipment repair and maintenance. The sequencing of NAICS industry groups 8112,
Heavy and Industrial Machinery and Equipment Repair and Maintenance (retitled
Commercial and Industrial (except Automotive and Electronic) Machinery and
Equipment Repair and Maintenance), and 8113, Electronic and Precision Equipment


                                          17
Repair and Maintenance, is changed. NAICS 8112 now represents Electronic and
Precision Equipment Repair and Maintenance and 8113 is Commercial and Industrial
(except Automotive and Electronic) Machinery and Equipment Repair and
Maintenance.
    U.S. NAICS industries 813411, Civic and Social Organizations with Restaurants
and Bars, and 813412, Civic and Social Organizations without Restaurants and Bars,
are combined. These establishments are small and difficult to classify.

Auxiliaries

    In the 1987 SIC, auxiliary units, defined as those units that primarily produce
support services not intended for use outside the enterprise, are classified to industries
based on the industry classification of the establishments they serve -- not the
auxiliaries' primary activity. However, establishments that produce goods for use by
other units of the same enterprise are classified based on what they do, not whom they
serve. The traditional treatment of auxiliary units implies that captive services
producing establishments should be treated differently from captive goods producing
units. For example, a computer services establishment of an automobile producer that
performs services for its automobile assembly plants is classified in the automobile
industry. However, if the automobile producer has a captive automotive hose and
belting establishment, that establishment is classified into the rubber and plastic hose
and belting industry, and not into the automobile assembly industry.
    As production activities have become more diverse, complex, and integrated, the
classification of auxiliary operations has taken on more and more qualifiers and it has
become increasingly difficult to discern to which using industry the auxiliary
establishment should be coded. In a multi-national conglomerate, a "central office"
may serve a variety of establishments, each classified to a different industry. In
addition, the type of personnel employed and the service performed are generic and
can transfer from servicing a manufacturing operation, to a retailer, to a government
operation with little or no conversion costs. The geographic locations of central
management units tend to be similar, usually appearing in or near large cities, and
unrelated to the location of the activity serviced. As a result, for example, users of the
U.S. economic censuses are typically surprised to find mining industry employment in
Washington, D.C., which has no mining activity.
    Another recent phenomenon that has complicated the treatment of auxiliaries is the
practice of many auxiliaries of selling their services to establishments outside the
enterprise after their intracompany responsibilities are met. For example, in the 1987
Economic Censuses, auxiliaries had $64 billion of receipts from customers outside the
parent company. By 1992, that amount had grown to $141 billion, making these
support establishments one of the fastest growing services providers in the economy.
And yet, these dollars are not being shown in most industry series.
    There are also inconsistencies in industry data published by the Bureau of Labor
Statistics (BLS) and the Census Bureau, much of which is due to the treatment of


                                           18
auxiliaries. The BLS publishes wage and employment information by 1987 SIC for all
industries, excluding agriculture and public administration. These data include
industry statistics for both operating and auxiliary establishments classified to a 4-digit
industry. The Census Bureau, on the other hand, which publishes receipts and
expenditures information by 1987 SIC for industries excluding agricultural services,
railroads, and public administration does not always include auxiliary establishments.
In addition, Census does not classify auxiliaries down to the 4-digit industry level.
    As a result of the difficulties in classifying auxiliaries, substantial differences exist
in BLS and Census data. For example, in manufacturing, Census reports show more
than a half million more workers in auxiliaries than does BLS. For Finance,
Insurance, and Real Estate, and Services, on the other hand, BLS counts of auxiliary
employment exceeds Census'.
    These same differences and more exist in the treatment of auxiliaries among the
three countries. A more complete explanation of the treatment of auxiliaries in the
three countries and the problems created in industrial statistics by the past treatment of
auxiliaries is contained in a paper "The Treatment of Auxiliary Establishments in
Industry Classification Systems," by Paula Young and Jack Triplett of the Bureau of
Economic Analysis. A copy of that paper can be obtained by calling (202) 606-9615
or through the Internet (please see the Electronic Availability section, above).
    Because of the many problems and complexities in the treatment and coding of
auxiliaries, it was necessary to develop a principle about auxiliaries that would provide
for more consistent treatment of these activities, both within the United States and
among the three countries. The following statement, with respect to captive units
(auxiliaries) was agreed upon by the statistical agencies of the three countries: "The
three countries agree that, in accordance with the production-oriented conceptual
framework for NAICS, those units that carry out captive activities for the enterprise to
which they belong shall be classified to the extent feasible according to the NAICS
code related to their own activity, as well as, if possible, to that of the enterprise they
support."
    This means that in the 1997 Economic Censuses auxiliary units will be included in
the industry which describes the primary activity in which they are engaged.
Warehouses that provide storage facilities for their own enterprise will be classified as
a warehouse, and not as an automobile assembly plant (if that is the primary unit they
serve). For 1997, the Bureau of the Census will code these establishments to both
their own activity and to the primary activity they serve so that links can be made to
prior census data.
    This change will result in significant shifts in employment data. In 1992, Census
data showed over 1,000,000 auxiliary employees assigned to manufacturing and over
840,000 auxiliary employees assigned to retail trade. These employees will most
likely move to either the Management of Companies and Enterprises sector; the
Warehousing and Storage subsector; the Computer Systems Design and Related
Services subsector; the Accounting, Tax Preparation, Bookkeeping and Payroll
Services subsector; or some other services related subsector.


                                             19
Time Series Continuity

    The standard approach to preserving time series continuity after classification
revisions is to create linkages where the series break. This is accomplished by
producing the data series using both the old and new classifications for a given period
of transition. With the dual classifications of data, the full impact of the revision can be
assessed. Data producers then may measure the reallocation of the data at aggregate
industry levels and develop a concordance between the new and old series for that
given point in time. The concordance creates a crosswalk between the old and new
classification systems. Links between the 1987 U.S. SIC and NAICS (with U.S.
national detail) are being planned by statistical agencies in the U.S.

ECPC Recommendations for the Hierarchical Structure, Industries, and Coding
System for the 1997 NAICS

    Table 1 below presents the ECPC final recommendations for the entire structure of
the proposed classification system for the United States including both NAICS and
non-NAICS industries. It shows the proposed 1997 hierarchy, including NAICS and
U.S. national detail industries, and the proposed coding system in 1997 NAICS
sequence and relates the 1997 NAICS to the 1987 SIC. All ECPC recommended
changes to the structure based on public comment and discussions with INEGI and
Statistics Canada are included in Tables 1 and 2. Table 2 is in 1987 SIC sequence and
relates the 1987 SIC to the 1997 NAICS.




                                            20