[Federal Register Volume 80, Number 149 (Tuesday, August 4, 2015)]
[Notices]
[Pages 46480-46484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19022]
[[Page 46479]]
Vol. 80
Tuesday,
No. 149
August 4, 2015
Part III
Office of Management and Budget
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North American Industry Classification System (NAICS)--Updates for
2017; Notice
Federal Register / Vol. 80 , No. 149 / Tuesday, August 4, 2015 /
Notices
[[Page 46480]]
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OFFICE OF MANAGEMENT AND BUDGET
North American Industry Classification System (NAICS)--Updates
for 2017
AGENCY: Executive Office of the President, Office of Management and
Budget.
ACTION: Notice of Solicitation of Comments on the Economic
Classification Policy Committee's Recommendations for the 2017 Revision
of the North American Industry Classification System.
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SUMMARY: Under the authority of the Budget and Accounting Procedures
Act of 1950 (31 U.S.C. 1104(d)) and the Paperwork Reduction Act of 1995
(44 U.S.C. 3504(e)), the Office of Management and Budget (OMB) seeks
public comment on the advisability of adopting the proposed North
American Industry Classification System (NAICS) updates for 2017
recommended by its Economic Classification Policy Committee (ECPC),
comprised of representatives of the Bureau of Economic Analysis, Bureau
of Labor Statistics, and Census Bureau. The ECPC recommends an update
of the industry classification system to clarify existing industry
definitions and content, recognize new and emerging industries, and
correct errors and omissions.
This notice: (1) Summarizes the background for the proposed
revisions to NAICS 2012 in Part I, (2) contains a summary of public
comments in Part II, (3) includes a list of title changes for NAICS
industries that clarify, but do not change, the existing content of the
industries in Part III, and (4) provides a comprehensive listing of
proposed changes for national industries and their links to NAICS 2012
industries in Part IV.
OMB published a notification of intention to revise portions of
NAICS in a May 22, 2014, Federal Register notice (79 FR 29626-29629).
That notice solicited comments on the advisability of revising the
NAICS 2012 structure for 2017: (1) To identify new and emerging
industries, (2) to solicit comments on the desirability of maintaining
a print manual, (3) to review the structure of the oil and gas
extraction industries, (4) to solicit additional comments on the
treatment of manufacturing units that outsource transformation, and (5)
to make any required changes for errors and omissions in NAICS 2012.
The deadline for submitting comments was July 21, 2014.
After considering all proposals from the public, consulting with
U.S. data users and industry groups, and undertaking extensive
discussions with Statistics Canada and Mexico's Instituto Nacional de
Estad[iacute]stica y Geograf[iacute]a (INEGI), the ECPC--in
collaboration with INEGI and Statistics Canada--developed
recommendations for revisions to NAICS for 2017 that would apply to all
three North American countries. These revisions focus on improving the
description of current industries, identifying new and emerging
industries, and recommending changes to industry content based on
research and implementation experience.
The ECPC recommends that NAICS United States 2017 incorporate
changes as shown in Parts III and IV of this notice.
Following an extensive process of development and discussions by
the ECPC, with maximum possible public input, OMB seeks comment on the
advisability of revising NAICS to incorporate the changes published in
this notice. The revised NAICS would be employed in relevant data
collections by all U.S. statistical agencies beginning with reference
year 2017. Statistics Canada and INEGI are recommending acceptance of
the proposed NAICS revisions for industry classification in the
statistical programs of their national systems and are seeking comments
in their respective countries. Representatives of the three countries
will hold further discussions to consider public comments that they
receive.
DATES: To ensure consideration of comments on the adoption and
implementation of the NAICS revisions detailed in this notice, please
submit all comments in writing as soon as possible, but no later than
October 5, 2015. Please be aware of delays in mail processing at
Federal facilities due to heightened security. Respondents are also
encouraged to send both a hard copy and a second copy via FAX or email
(discussed in Addresses below). This proposed revision to NAICS would
become effective in the U.S. for publication of establishment data that
refer to periods beginning on or after January 1, 2017.
ADDRESSES: Please send correspondence about the adoption and
implementation of proposed NAICS revisions as shown in this Federal
Register notice to: Katherine K. Wallman, Chief Statistician, Office of
Management and Budget, 10201 New Executive Office Building, Washington,
DC 20503, telephone number: (202) 395-3093, fax number: (202) 395-7245.
Please send email comments to [email protected] with subject NAICS17.
Comments may also be sent via http://www.regulations.gov--a Federal E-
Government Web site that allows the public to find, review, and submit
comments on documents that agencies have published in the Federal
Register and that are open for comment. Simply type ``(NAICS)--Updates
for 2017'' (in quotes) in the ``Rules, Comments, Adjudications or
Supporting Documents'' search box, click ``Search, click Comment
Now!'', and follow the instructions for submitting comments.
All comments regarding this notice received via the Web site,
email, fax, hardcopy, or other means, are part of the public record as
submitted. For this reason, do not include in your comments information
of a confidential nature, such as sensitive personal information or
proprietary information. If you send an email comment, your email
address will be automatically saved and included as part of the comment
that is placed in the public docket. Please note that responses to this
public comment request containing any routine notice about the
confidentiality of the communication will be treated as public comments
that may be made available to the public notwithstanding the inclusion
of the routine notice.
Please include contact information and a phone number or email
address with your comments to facilitate follow-up if necessary.
Please address inquiries about the content of industries or
requests for electronic copies of the tables to: John Murphy, Chair,
Economic Classification Policy Committee, Bureau of the Census, Room
8K157, Washington, DC 20233, telephone number: (301) 763-5172, email:
[email protected].
Electronic Availability and Comments: This document is available on
the Internet from the Census Bureau Internet site, http://www.census.gov/naics. This site also contains previous NAICS United
States Federal Register notices and related documents.
FOR FURTHER INFORMATION CONTACT: Paul Bugg, 10201 New Executive Office
Building., Washington, DC 20503, email address: [email protected],
telephone number: (202) 395-3095, fax number: (202) 395-7245.
SUPPLEMENTARY INFORMATION:
Part I: Background of NAICS
NAICS is a system for classifying establishments (individual
business locations) by type of economic activity. Its purposes are: (1)
To facilitate the collection, tabulation, presentation, and analysis of
data relating to
[[Page 46481]]
establishments, and (2) to promote uniformity and comparability in the
presentation and analysis of statistical data describing the North
American economy. NAICS is used by Federal statistical agencies that
collect or publish data by industry. It is also widely used by State
agencies, trade associations, private businesses, and other
organizations.
Mexico's Instituto Nacional de Estad[iacute]stica y
Geograf[iacute]a, Statistics Canada, and the United States Office of
Management and Budget, through its Economic Classification Policy
Committee, collaborated on NAICS to make the industry statistics
produced by the three countries comparable. NAICS is the first industry
classification system developed in accordance with a single principle
of aggregation--the principle that producing units that use similar
production processes should be grouped together in the classification.
NAICS also reflects, in a much more explicit way, the enormous
changes in technology and in the growth and diversification of services
that have marked recent decades. Industry statistics presented using
NAICS are also comparable, to a limited extent, with statistics
compiled according to the latest revision of the United Nations'
International Standard Industrial Classification of All Economic
Activities (ISIC, Revision 4).
For the three countries, NAICS provides a consistent framework for
the collection, tabulation, presentation, and analysis of industry
statistics used by government policy analysts, academics and
researchers, the business community, and the public. However, because
of different national economic and institutional structures as well as
limited resources and time for constructing NAICS, its structure is not
entirely comparable at the individual industry level across all three
countries. For some sectors and subsectors, the statistical agencies of
the three countries agreed to harmonize NAICS based on sectoral
boundaries rather than on a detailed industry structure. NAICS
comparability is limited to the sector level for wholesale trade,
retail trade, and public administration.
The four principles of NAICS are:
(1) NAICS is erected on a production-oriented conceptual framework.
This means that producing units that use the same or similar production
processes are grouped together in NAICS.
(2) NAICS gives 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) The system aims to maintain time series continuity to the
extent possible.
(4) The system strives for compatibility with the two-digit level
of the United Nations' International Standard Industrial Classification
of All Economic Activities (ISIC, Revision 4).
The ECPC is committed to maintaining the principles of NAICS during
revisions. The May 22, 2014, solicitation for public comment on
questions related to a potential revision of NAICS in 2017 was directly
tied to the application of these four NAICS principles.
NAICS uses a hierarchical structure to classify establishments from
the broadest level to the most detailed level using the following
format of up to six digits:
Sector........................ 2-digit.......... Sectors represent the
highest level of
aggregation. There
are 20 sectors in
NAICS representing
broad levels of
aggregation.
Subsector..................... 3-digit.......... Subsectors represent
the next, more
detailed level of
aggregation in
NAICS. There are 99
subsectors in NAICS
United States 2012.
Industry Group................ 4-digit.......... Industry groups are
more detailed than
subsectors. There
are 312 industry
groups in NAICS
United States 2012.
NAICS Industry................ 5-digit.......... NAICS industries are
the level that, in
most cases,
represents the
lowest level of
three country
comparability. There
are 713 five-digit
industries in NAICS
United States 2012.
National Industry............. 6-digit.......... National industries
are the most
detailed level of
NAICS. These
industries represent
the national level
detail for NAICS
United States.
There are 1,065 six-
digit U.S.
industries in NAICS
United States 2012.
Part II: Summary of Public Comments Regarding Priorities for Changes to
NAICS in 2017
In response to the May 22, 2014, Federal Register notice, the ECPC
received approximately 22,000 individual comments addressing Part V of
the notice--``Update on the Treatment of Manufacturing Units that
Outsource Transformation.'' The disposition of these comments is
addressed in OMB's August 8, 2014, Federal Register notice (79 FR
46558-46559), Implementation of the Factoryless Goods Producer
Classification in NAICS 2017. In short, the notice announced that the
Factoryless Goods Producer classification would not be implemented in
2017. OMB took this action to provide the relevant statistical agencies
with the opportunity to complete the additional research, testing, and
evaluation needed to determine the feasibility of developing methods
for the consistent identification and classification of Factoryless
Goods Producers that are accurate and reliable.
For the remaining 113 comments, each submission was assigned a
unique docket number. These 113 comments addressed the questions
included in Parts II-V of the May 22, 2014, notice and/or included
comments proposing other changes to the structure of NAICS 2012.
The ECPC applied the following general guidance when considering
changes to NAICS in 2017:
(1) Because of the cost of change and the disruption of statistical
data series that have already resulted from the ongoing implementation
of NAICS, the ECPC will limit the scope of NAICS changes for 2017 to
those that significantly improve the relevance and efficiency of the
classification system;
(2) The ECPC will recommend new and emerging industries identified
through the comment process that are supported by the guiding
principles of NAICS;
(3) The ECPC will undertake additional research and evaluation
before making its recommendation on the classification of manufacturing
units that outsource transformation, as announced by OMB in a Federal
Register notice on August 8, 2014 (79 FR 46558-46559); and
(4) The ECPC will make changes to account for errors and omissions
as well as recommend narrative improvements to clarify the content of
existing industries.
The ECPC also considered the views of its member agencies (Bureau
of Economic Analysis, Bureau of Labor Statistics, and Census Bureau)
when evaluating specific proposals for changes to NAICS in 2017. The
ECPC reviewed each individual proposal within the existing framework of
the principles of NAICS. Additional
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considerations that resulted in recommendations for or against change
included issues of relevance, size, and time series continuity.
Comments received often addressed more than one issue. Of the 113
uniquely numbered comments received in response to the Federal Register
notice, 53 supported comprehensive changes to create new industries and
regroup a variety of existing industries that make up the ``outdoor
trade industry,'' five requested new nanotechnology-related industries,
five supported creating a NAICS industry for biogas production, four
requested new industries and changes to existing industries for
modeling and simulation, four addressed updating the structure of the
oil and gas industries, three requested a new industry for acupuncture
practices, two requested a new industry for building envelope
consulting services, and single comments requested other new industries
such as welding services, fire extinguisher installation and
maintenance, pipeline inspection by type of utility (sanitary,
electric, gas, etc.), freestanding urgent care centers and clinics,
telehealth services, and offices of nurse practitioners. The balance of
the comments requested revisions or clarifications of content of
existing NAICS industries, such as industrial sand mining, sign
manufacturing, and all other outpatient care centers. Finally, three
comments supported continuing printed publication of NAICS 2017.
Each suggestion was carefully considered. Some suggestions were
recommended for adoption but modified by the ECPC to better meet the
objectives of NAICS. Based on public comments, the ECPC is recommending
industry definition changes to explicitly classify certain activities
and more clearly match accepted industry terminology.
Some suggestions were recommended to be incorporated as products
rather than industries. Other suggestions for change were not best
suited on the production-oriented basis of NAICS, or could not be
implemented in statistical programs, for various reasons, and thus were
not accepted. When a proposal was not accepted, it was usually because:
(a) The resulting industry would have been too small in the U.S. or (b)
the proposal did not meet the production-oriented criterion for forming
an industry in NAICS. Detailed supporting documentation discussing the
issues and rationale for reaching these recommendations is available at
www.census.gov/naics.
Part III: ECPC Recommendations for Title Changes
The ECPC is recommending NAICS industry title changes to more
clearly describe the existing content of industries. These title
changes do not change the content of these industries, but rather
refine how they are described.
NAICS Industry Group 7213, Rooming and Boarding Houses, would be
changed to ``Rooming and Boarding Houses, Dormitories, and Workers'
Camps.''
NAICS 72131, Rooming and Boarding Houses, would be changed to
``Rooming and Boarding Houses, Dormitories, and Workers' Camps.''
NAICS 721310, Rooming and Boarding Houses, would be changed to
``Rooming and Boarding Houses, Dormitories, and Workers' Camps.''
Part IV: ECPC Recommendations for 2017 Changes to 2012 NAICS United
States
Part IV presents the ECPC recommendations for content revisions to
NAICS United States for 2017. Table 1 lists, in NAICS United States
2012 order, the disposition of all industries that the ECPC recommends
for change and their resulting relationship to NAICS United States 2017
proposed industries. Table 2 presents the ECPC recommended NAICS 2017
industries in proposed NAICS United States 2017 order, cross-walked to
their NAICS United States 2012 content.
Table 1--2012 NAICS United States Matched to ECPC Recommendations for 2017 NAICS United States
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Status 2017 NAICS
2012 NAICS code 2012 NAICS description code code 2017 NAICS description
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211111........................ Crude Petroleum and
Natural Gas Extraction
crude petroleum ........ 211120 Crude Petroleum
extraction. Extraction.
natural gas extraction. pt. 211130 Natural Gas Extraction.
211112........................ Natural Gas Liquid pt. 211130 Natural Gas Extraction.
Extraction.
212231........................ Lead Ore and Zinc Ore pt. 212230 Copper, Nickel, Lead, and
Mining. Zinc Mining.
212234........................ Copper Ore and Nickel Ore pt. 212230 Copper, Nickel, Lead, and
Mining. Zinc Mining.
333911........................ Pump and Pumping Equipment pt. 333914 Measuring, Dispensing, and
Manufacturing. Other Pumping Equipment
Manufacturing.
333913........................ Measuring and Dispensing pt. 333914 Measuring, Dispensing, and
Pump Manufacturing. Other Pumping Equipment
Manufacturing.
335221........................ Household Cooking pt. 335220 Major Household Appliance
Appliance Manufacturing. Manufacturing.
335222........................ Household Refrigerator and pt. 335220 Major Household Appliance
Home Freezer Manufacturing.
Manufacturing.
335224........................ Household Laundry pt. 335220 Major Household Appliance
Equipment Manufacturing. Manufacturing.
335228........................ Other Major Household pt. 335220 Major Household Appliance
Appliance Manufacturing. Manufacturing.
452111........................ Department Stores (except pt. 452210 Department Stores.
Discount Department
Stores).
452112........................ Discount Department Stores
insignificant pt. 452210 Department Stores.
perishable grocery
sales.
significant perishable pt. 452311 Warehouse Clubs and
grocery sales. Supercenters.
452910........................ Warehouse Clubs and pt. 452311 Warehouse Clubs and
Supercenters. Supercenters.
452990........................ All Other General ........ 452319 All Other General
Merchandise Stores. Merchandise Stores.
454111........................ Electronic Shopping....... pt. 454110 Electronic Shopping and
Mail-Order Houses.
454112........................ Electronic Auctions....... pt. 454110 Electronic Shopping and
Mail-Order Houses.
454113........................ Mail-Order Houses......... pt. 454110 Electronic Shopping and
Mail-Order Houses.
512210........................ Record Production......... pt. 512250 Record Production and
Distribution.
512220........................ Integrated Record pt. 512250 Record Production and
Production/Distribution. Distribution.
517110........................ Wired Telecommunications ........ 517311 Wired Telecommunications
Carriers. Carriers.
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517210........................ Wireless ........ 517312 Wireless
Telecommunications Telecommunications
Carriers (except Carriers (except
Satellite). Satellite).
532220........................ Formal Wear and Costume ........ 532281 Formal Wear and Costume
Rental. Rental.
532230........................ Video Tape and Disc Rental ........ 532282 Video Tape and Disc
Rental.
532291........................ Home Health Equipment ........ 532283 Home Health Equipment
Rental. Rental.
532292........................ Recreational Goods Rental. ........ 532284 Recreational Goods Rental.
532299........................ All Other Consumer Goods ........ 532289 All Other Consumer Goods
Rental. Rental.
541711........................ Research and Development
in Biotechnology
nanobiotechnologies pt. 541713 Research and Development
research and in Nanotechnology.
experimental
development
laboratories.
except ........ 541714 Research and Development
nanobiotechnologies in Biotechnology (except
research and Nanobiotechnology).
experimental
development
laboratories.
541712........................ Research and Development
in the Physical,
Engineering, and Life
Sciences (except
Biotechnology)
nanotechnology research pt. 541713 Research and Development
and experimental in Nanotechnology.
development
laboratories.
except nanotechnology ........ 541715 Research and Development
research and in the Physical,
experimental Engineering, and Life
development Sciences (except
laboratories. Nanotechnology and
Biotechnology).
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pt.--Part of 2017 NAICS United States industry.
Table 2--ECPC Recommendations for 2017 NAICS United States Matched to 2012 NAICS United States
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Status 2012 NAICS
2017 NAICS code 2017 NAICS description code code 2012 NAICS description
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21112......................... Crude Petroleum Extraction
211120........................ Crude Petroleum Extraction N * 211111 Crude Petroleum and
Natural Gas Extraction--
crude petroleum
extraction.
21113......................... Natural Gas Extraction
211130........................ Natural Gas Extraction.... N * 211111 Crude Petroleum and
Natural Gas Extraction--
natural gas extraction.
211112 Natural Gas Liquid
Extraction.
212230........................ Copper, Nickel, Lead, and N 212231 Lead Ore and Zinc Ore
Zinc Mining. Mining.
212234 Copper Ore and Nickel Ore
Mining.
333914........................ Measuring, Dispensing, and N 333911 Pump and Pumping Equipment
Other Pumping. Manufacturing.
Equipment Manufacturing... ........ 333913 Measuring and Dispensing
Pump Manufacturing.
335220........................ Major Household Appliance N 335221 Household Cooking
Manufacturing. Appliance Manufacturing.
335222 Household Refrigerator and
Home Freezer
Manufacturing.
335224 Household Laundry
Equipment Manufacturing.
335228 Other Major Household
Appliance Manufacturing.
4522.......................... Department Stores
45221......................... Department Stores
452210........................ Department Stores......... N 452111 Department Stores (except
Discount Department
Stores).
* 452112 Discount Department
Stores--insignificant
perishable grocery sales.
4523.......................... General Merchandise
Stores, Including
Warehouse Clubs and
Supercenters
45231......................... General Merchandise
Stores, Including
Warehouse
Clubs and Supercenters
452311........................ Warehouse Clubs and N 452910 Warehouse Clubs and
Supercenters. Supercenters.
* 452112 Discount Department
Stores--significant
perishable grocery sales.
452319........................ All Other General N 452990 All Other General
Merchandise Stores. Merchandise Stores.
454110........................ Electronic Shopping and N 454111 Electronic Shopping.
Mail-Order Houses.
454112 Electronic Auctions.
454113 Mail-Order Houses.
51225......................... Record Production and
Distribution
512250........................ Record Production and N 512210 Record Production.
Distribution.
512220 Integrated Record
Production/Distribution.
51731......................... Wired and Wireless
Telecommunications
Carriers
[[Page 46484]]
517311........................ Wired Telecommunications N 517110 Wired Telecommunications
Carriers. Carriers.
517312........................ Wireless N 517210 Wireless
Telecommunications Telecommunications
Carriers (except Carriers (except
Satellite). Satellite).
53228......................... Other Consumer Goods
Rental
532281........................ Formal Wear and Costume N 532220 Formal Wear and Costume
Rental. Rental.
532282........................ Video Tape and Disc Rental N 532230 Video Tape and Disc
Rental.
532283........................ Home Health Equipment N 532291 Home Health Equipment
Rental. Rental.
532284........................ Recreational Goods Rental. N 532292 Recreational Goods Rental.
532289........................ All Other Consumer Goods N 532299 All Other Consumer Goods
Rental. Rental.
541713........................ Research and Development N * 541711 Research and Development
in Nanotechnology. in Biotechnology--
nanobiotechnologies
research and experimental
development laboratories.
* 541712 Research and Development
in the Physical,
Engineering, and Life
Sciences (except
Biotechnology)--nanotechn
ology research and
experimental development
laboratories.
541714........................ Research and Development N *541711 Research and Development
in Biotechnology (except in Biotechnology--except
Nanobiotechnology). nanobiotechnologies
research and experimental
development laboratories.
541715........................ Research and Development N * 541712 Research and Development
in the Physical, in the Physical,
Engineering, and Life Engineering, and Life
Sciences (except Sciences (except
Nanotechnology and Biotechnology)--except
Biotechnology). nanotechnology research
and experimental
development laboratories.
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N--new NAICS industry/code for 2017; *--Part of 2012 NAICS United States industry.
Howard A. Shelanski,
Administrator, Office of Information and Regulatory Affairs.
[FR Doc. 2015-19022 Filed 8-3-15; 8:45 am]
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