Standard Industry Code

The standard industrial classification (SIC) system is a system of 4-digit codes used to categorize businesses based on their primary economic activities. It was developed in 1937 by the United States government to standardize the reporting on economic activities by different government agencies.

Each industry sector and subsector receives a unique code, simplifying classification and helping other parties understand what business activities a company may be engaged in. It was designed to help improve economic-based communication between companies and the state and local governments that adopted the system.

While certain public and private institutions still use SIC codes to classify businesses, the system has largely been replaced by the more expansive  NAICS (North American Industry Classification System). NAICS’ 6-digit codes allow for more granular detail concerning a company’s activity, and are used across the US, Canada, and Mexico.