what is a standard industrial classification sic code 
standard industrial classification sic codes are four digit numerical codes assigned by the u s government that categorize the industries to which companies belong while also organizing industries by their business activities the sic codes were created by the u s government in 1937 to classify and analyze economic activity across various industries and government agencies and to promote uniformity in the presentation of statistical data collected by various government agencies1 sic codes have also been adopted in places outside the u s including in the u k 2however standard industrial classification codes were mostly replaced in 1997 by a system of six digit codes called the north american industry classification system naics 3 the naics codes were adopted in part to standardize industry data collection and analysis between canada the united states and mexico which had entered into the north american free trade agreement despite having been replaced government agencies and companies still use the sic standardized codes today for classifying the industry that companies belong to by matching their business activity with like companies understanding standard industrial classification sic codesthe sic system classifies the economy into 11 major divisions these are then divided into 83 two digit major groups and further subdivided into 416 three digit industry groups and then into more than 1 000 four digit industries every company has a primary sic code that indicates its main line of business the first two digits of the sic code identify the major industry group the third digit identifies the industry group and the fourth digit identifies the specific industry the securities and exchange commission sec is a major government agency that regulates the markets the sec still uses sic codes the sic codes are listed in a company s electronic data gathering analysis and retrieval system filings called edgar to indicate the company s industry 4sic codes vs naics codesthe sic code system continues to remain the most popular industry classification system the naics code system has been unable to fully replace it due to the sic system s long history and the reluctance of businesses and other organizations that have been long term users of sic codes to switch over to a new classification system although the u s government stopped updating sic codes as far back as 1987 private data organizations stepped in and continued to update the sic system including adding very specific additional classifications as a result at the most defined levels there are currently over 10 000 six digit sic codes compared with 1 066 naics codes with the increased degree of integration within the north american economy following the establishment of nafta u s companies now have both a sic code and a naics code 