tag:blogger.com,1999:blog-2459332441629702006.post220176711653357427..comments2023-12-15T06:41:06.393-05:00Comments on Data Detectives: A Question of SIC and NAICS CodesRoger Owen Greenhttp://www.blogger.com/profile/05298172138307632062noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2459332441629702006.post-91652985829716801982007-08-09T14:40:00.000-04:002007-08-09T14:40:00.000-04:00According the OMB NAICS (and SIC) Manuals, the ind...According the OMB NAICS (and SIC) Manuals, the industry is assigned on an ESTABLISHMENT not company basis. The basic rule is that the activity producing the greatest revenue/shipments/etc. for the establishment is used to determine the industry. This is because each establishment can be assigned to just one industry. Even so, there have been cases where different agencies have assigned the same establishment to different industries (this accounts for some of the differences between Census and DOL/BLS data).<BR/><BR/>Thus a company could easily have multiple industries. Thus any or all of the codes proposed for IBM could be correct. <BR/><BR/>Under the old SIC rules, auxiliary establishments were assigned to the primary industry of the establishments they served (major source of revenues of these establishments as a group). Thus, under the SIC system, GE Corporate Headquarters and Global R&D facilities would have been classified NOT in manufacturing, but in Finance, since credit activities were the major source of revenue for GE in the late 1990s. (Under the NAICS system, these are assigned to industries based on their own activities.)Lenny Gaineshttps://www.blogger.com/profile/03927682864342031645noreply@blogger.com