The Industries

All employers in the United States are classified into one of nine major industries according to the firm’s primary activity, service or product. The nine industries are as follows:

Each industry is divided into separate Standard Industrial Classification (SIC) codes. The codes are designed to group business establishments having similar characteristics. By using a standard classification code for all establishments in the United States, the data is uniform and comparable. Statistical agencies can analyze establishment data based various levels of detail. Each industry includes one or more subdivisions; an industry division, a two-digit major group, a three-digit industry group or a four-digit industry code. For example, within the Mining industry, the major group of coal mining is 12, the industry group of bituminous coal mining is 122, the industry code for bituminous coal mining on the surface is 1221 and the industry code for underground bituminous coal mining is 1222(1).

Goods - Producing Industries
Employers engaged primarily in agricultural production, commercial fishing, forestry or other related fields are classified under Agriculture. Agricultural production covers establishments such as farms, nurseries, greenhouses and orchards involved in the production of crops, plants, flowers and seeds. Also included under agricultural production are establishments such as ranches, dairies, and specialty animal farms. Commercial fishing establishments are included in the Agriculture industry as well as commercial hunting and trapping. Fish hatcheries, game preserves and establishments involved in forestry or forestry services are all elements of the Agriculture industry.

The Mining industry consists of all establishments involved with mineral extraction. Not only are establishments performing the actual extraction of minerals classified under Mining, but establishments that explore and develop mine sites are included as well. Milling, well operations and other mining support services are part of the Mining industry.

All types of construction can be found within the Construction industry. Building construction by general contractors includes residential and commercial property construction. Heavy construction deals mainly with constructing structures other than buildings. Plumbers, electricians, carpenters and other special trade contractors are all classified under Construction.

Employers whose business involves changing raw materials into new products constitute the Manufacturing industry. The new products can be finished or unfinished. For example, a finished product would be a shirt. An unfinished product would be the bolt of material used to make the shirt.

Services - Producing Industries
TCPU establishments provide transportation and communication services. Transportation is comprised of such businesses as railroads, buses, airports, trucking firms and travel agencies. Communication services engage in telephone services, television and radio broadcasting. Public utilities such as gas, electricity, water and sanitation are included in the TCPU industry classification. The United States Postal Service is also contained in this industry.

Employers in Wholesale Trade sell merchandise to retailers or other wholesalers. The most common types of establishments within the Wholesale Trade industry are merchant wholesalers, sales offices maintained by Manufacturing or Mining establishments to sell their products and agents, brokers or commission merchants. The Wholesale Trade industry deals with durable goods such as machinery or equipment and nondurable goods such as clothing and groceries.

The Retail Trade industry is similar to the Wholesale Trade industry. However, establishments in Retail Trade sell merchandise to the general public for personal or household consumption. Establishments that sell products to businesses are classified under Retail Trade even though the products are not necessarily for personal or household use such as office supply stores or lumber yards.

The FIRE industry is made up of firms involved in all aspects of Finance, Insurance, & Real Estate. Finance includes banks, credit unions and other financial institutions engaged in investments dealings or investment management. Real Estate includes all areas of buying, selling, leasing and developing real estate.

Establishments providing services to businesses or individuals are listed in the Services industry. Some of the firms included are hotels, repair shops, medical offices and schools. Services performed specifically for other industries are classified under the related industry.

1 Office of Management and Budget; Standard Industrial Classification Manual 1987, page 43.


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These pages designed by Gayle C. Edlin.
Last modified on September 27, 2001 by Valerie A. Davis.