Understanding SIC Codes for Manufacturing

SIC Codes for Manufacturing
The Fieldtex Factory hard at work on a Contract Project.

The Standard Industrial Classification (SIC) system, established in the United States in 1937, remains a crucial tool for classifying industries. Governed by a four-digit code, this system aids government agencies in sorting, comparing, and analyzing economic data. For businesses like Fieldtex Products, SIC codes offer valuable insights into industry categorization.

The Three-Classification System: Division, Major Group, and Industry Group

There are three classifications that an industry must be sorted through to identify a specific SIC code: division, major group, and industry group. Through the process of defining the industry with these classifications, a number is created that can be used to identify explicitly what your business does.

The broadest classification is division, which is a general characteristic of the business. Each of these classifications comes with a range of SIC numbers assigned to that division.

Range of SIC codes Division
A: 0100-0999 Agriculture, Forestry, and Fishing
B: 1000-1499 Mining
C: 1500-1799 Construction
1800-1999 (not used)
D: 2000-3999 Manufacturing
E: 4000-4999 Transportation, Communications, Electric, Gas and Sanitary Service
F: 5000-5199 Wholesale Trade
G: 5200-5999 Retail Trade
H: 6000-6799 Finance, Insurance, and Real Estate
I: 7000-8999 Services
J: 9100-9729 Public Administration
9900-9999 Non-classifiable

Using Fieldtex Products as an example, we are a business under the Manufacturing division. So our SIC number is going to be between the numbers 2000-3999.

Division D: Is For Manufacturing

Manufacturing SIC numbers are defined in more detail here, but can be summed up by the initial statement: “The manufacturing division includes establishments engaged in the mechanical or chemical transformation of materials or substances into new products.”

The next filter to sort your business through is the major group. The number and specificity of the major group categories vary depending on what division you are looking at – For example, Fieldtex falls into major group 23, which is “Apparel And Other Finished Products Made From Fabrics And Similar Materials”.

This major group, which is clearly more specific than the division, is still fairly broad, and only accounts for the first two numbers in our four-digit code. Therefore, our number is 23 _ _, the extra spaces being for the final number, which is the industry group.

The industry group is the most specific number, which is often indicative of the product being produced. Choosing the industry number is most easily done by reading through the different numbers or researching different industries, and finding the title that most relates to you.

Fieldtex is: SIC Code 2393

At Fieldtex, we produce an assortment of textile products. The SIC code that primarily fits us is 2393, which is Textile Bags. The description is “Establishments primarily engaged in manufacturing shipping and other industrial bags from purchased fabrics”, a perfect description of what we do. We also fall into additional SIC code categories, such as 2399, which is “Fabricated Textile Products, Not Otherwise Classified”. As a Contract Manufacturer, we manufacture products for our clients, and those products can range from carrying cases (categorized under the 2393) to original prototyped wearable medical garments (categorized under 2399).

The use of SIC codes for government classifications is an efficient way to keep track of economic industry activity, and for businesses to connect with other businesses in their industry.