The proposed framework for the structure of the North American Industry Classification System (NAICS) was developed after a series of meetings and consultations between the U.S. Sub-Committee of the Economic Classification Programming Committee and representatives of INEGI, Mexico, and Statistics Canada. Consideration was given to accepting proposals from all three countries for individual industries as long as their proposed industries met the concepts of the entire industrial system as defined from a production perspective. Once the chapters had considered and agreed on the broad groupings of NAICS categories, the U.S. Economic Classification Program Development Committee published recommendations for the industries to be included in these broad categories. Between May and December 1995, ***with participating statistical offices*** 31 separate protocols were developed and adopted. Each protocol describes the categories and the industries included in the categories: briefly describes the limitations and constraints of the classifications; describes the NMCS industries and the United Nations' International Standard Industrial Classification (ISIC, version 3); and summarizes changes in the classification systems of the respective countries in separate IJs.
[ ② "High technology" includes electronic components, communications equipment, computers and auxiliary equipment, computer software, medical equipment, and new materials. High-technology industries include the above, but are not limited to the above].
For example, Agreement 18, which covers NAICS Class 51, "Information Industry". The "Information Industry" category is derived from the SIC's Sector D "Manufacturing", Sector E "Transportation, Communications, Electricity, Gas and Sanitation Services" and Sector I "Services". The "Services" sector is an industry extracted from the SIC D "Manufacturing", E "Transportation, Communications, Electricity, Gas and Health Services" and I "Services" sectors. Twenty new industries in the NMCS Information Sectors are newly generated, including:
- Database and Directory Publishing in the Publishing Sector Major Category (511) is a new industry with a 5-digit code hierarchy.
. The Software Publishers industry in NAICS was created from the "Packaged Software" section of the SIC7372 industry.
- Eleven 5-bit and 6-bit coding layers were created in the broad category (512) "Animation and Sound Recording Industry".
- 11 industries in the 5-bit and 6-bit coding strata have been created in the broad category (513) "Broadcasting and Telecommunications".
Individual agreements are approved by the national authorities of each of the five groups, with the first agreement (one of three) (on a single category - finance and insurance) starting on May 19, 1995, and finalized on December 13, 1995. If the agreement is approved, the Office of Budget and Management (OMB) publishes in the Federal Register recommending the industries to be included in these sectors and broad categories and solicits public comment. Five circulars were published between May 1995 and November 1996***, together with a final request for comments issued on December 20, 1996 (The Office of Management and Budget received approximately 400 comments on the proposed new classification system, the majority of which were suggestions to add industry classifications to the NMCS or to change industry names.
The Economic Classification Program Committee (ECPC) submits to the Office of Management and Budget (OMB) the final NAICS draft proposal, which is modeled on the draft proposal last published in the Journal of the Federal Register (November 5, 1996).
The ECPC also submits to the Office of Management and Budget (OMB) the final draft proposal for the NAICS. In general, OMB accepts ECPC's recommended proposals with many smaller exceptions. These minor areas of non-acceptance are primarily renaming or recoding of special industries. However, the revisions to the NMCS Manufacturing Classification's broad category 337, Furniture and Related Product Manufacturing, were made to emphasize the types of furniture by furniture, rather than furniture manufacturing products by material.