INTRODUCTION

In IMPLAN, each Industry is classified with an IMPLAN code and description. Because the U.S. Bureau of Economic Analysis (BEA) is the primary source of industry production functions (published every 5 years as part of the Benchmark I-O Tables), all versions of the IMPLAN U.S.-based Industry Schemes are based largely on BEA sectoring. However, the IMPLAN list of industries does not exactly match the list of industries in the associated BEA Benchmark I-O Tables for three reasons1:

  1. IMPLAN uses previous Benchmark I-O tables to split more-aggregate values from the latest Benchmark into previously-available industry and commodity detail
  2. IMPLAN builds production functions for industries for which the BEA has never provided production functions
  3. Some industries due to loss of NAICS codes (and thus employment data from the BLS) for them

Most BEA industries represent one or more NAICS2 codes. The BEA groups these NAICS-based establishments into industries based upon the similarity of their input purchasing patterns, with some industries comprising a single 6-digit NAICS code and others comprising multiple NAICS codes.

Each Industry in IMPLAN has a unique production function that reflects the mix of inputs required for each Industry. Production functions detail the relationship between an Industry’s inputs and its Output. In effect, they trace the backward linkages, or the interconnectedness of an Industry to other Industries from which it purchases inputs to produce its Output and to Institutions to which it pays Labor Income, Taxes, and more.

As Industry activity forms the basis for constructing the Social Accounting Matrix (SAM) and conducting Economic Impact Analysis, choosing the correct IMPLAN Industry is vital to an accurate analysis.

CURRENT INDUSTRY SCHEME

The current Industry Set for the U.S. contains the 528 Industries and their respective Commodities. This U.S. scheme will be used at IMPLAN for data years 2023 - 2027. The Industries can be grouped into the following categories:

  • 1-19 are Agriculture
  • 20-33 are Mining, Minerals, and Oil
  • 34-44 are Utilities
  • 45-57 are Construction
  • 58-374 are Manufacturing
  • 375-395 are Wholesale and Retail
  • 396-404 Transport Related
  • 405-507 Services
  • 508-516 Government Enterprises
  • 517-520 are Commodity-Only Sectors
  • 521-528 captures payroll and employment for different types of government

Industries 1-516 are all private industries and government enterprises that have been aggregated by similarity in input purchasing patterns. While they are all comparable, each IMPLAN Industry has its own production function and spending patterns. Picking the right Industry is important. Running $1M through Industry 187 - Rubber and plastics hoses and belting manufacturing will yield different results than running that same $1M through Industry 188 - Other rubber product manufacturing.

IMPLAN 528 Industries and Commodities

This file contains the full list of IMPLAN's 528 Industries and Commodities.

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SELECTING AN IMPLAN INDUSTRY FOR ANALYSIS

Nearly every IMPLAN Industry can be mapped directly to one or more 6-digit North American Industry Classification System (NAICS) code. Generally speaking, manufacturing Industries are at the 4-5 digit NAICS detail; whereas, agriculture and services are at the 3-4 digit NAICS detail. The construction Industries represent the principal exception, since the construction-related NAICS codes are based on specific components of construction (e.g., plumbing) rather than on the type of structure. It is far more likely that a user would know exactly to which NAICS code the firm/organization they want to model belongs to than knowing the actual IMPLAN Industry. More information about these Industries can be found in the Special Industry Definitions article.

NAICS CODE SPLITS ACROSS IMPLAN INDUSTRIES

In the IMPLAN 528 U.S. Industry set there are 13 6-Digit NAICS codes which do not map directly to a single Industry. Therefore, these NAICS codes are split across more than one IMPLAN Industry, shown as CEW ratios in the 2022 NAICS to IMPLAN Bridge. There are 3 ratios in the Bridge from which a user can select based on the type of data: employment, wages, or an average of the two.

IMPLAN determined the ratios for each NAICS code based on available data for those Industries. The CEW data used by IMPLAN is provided in the 6-digit NAICS code. If there was CEW data from a previous NAICS scheme (2012 or earlier) that had more NAICS detail, we use that CEW data to calculate ratios. If the NAICS code has never been split out into more detail, then we split it evenly among the applicable IMPLAN Industries.

Some NAICS codes represent combination activities that are in addition to their separate (non-combination) versions. For example, The first 2 NAICS codes, 111191 (Oilseed and Grain Combination Farming) and 111336 (Fruit and Tree Nut Combination Farming), represent types of combination farming. Since there are also distinct NAICS codes that represent each of those crop types individually (NAICS code 111120 (Oilseed Farming) and NAICS code 111199 (Grain Farming)), these combination farming NAICS codes are meant to be combined that way.. Which is to say there is not any CEW data that would tell us the appropriate ratios for each, to split into the distinct IMPLAN industries representing each of the crops separately. Thus, we make the assumption that such combination farming is 50/50 farming; that is, if a farmer is performing Oilseed and Grain Combination Farming, then half of their employment and wages are for oilseed farming and half for grain farming.

A similar rationale goes for NAICS code 332117 (Powder Metallurgy Part Manufacturing). IMPLAN has two metal distinct forging sectors - one for Iron and steel forging and another for Nonferrous (i.e., non-iron) forging. Without CEW data from any previous NAICS year that has these split out, we use 50/50.

COMPARING INDUSTRIES ACROSS TIME

The 2023 data release was especially exciting because it was the first data release in the new Industry scheme with 528 Industries based on the updated U.S. Bureau of Economic Analysis (BEA) Benchmark and Census of Agriculture.

When there are significant changes to the underlying data, there is no longer an apples-to-apples comparison. Therefore, you will not be able to compare data sets, Projects or Event Templates in the 546 Industry scheme (or another non-528 Industry scheme) with the new 528 Industry scheme. For comparing across different Industry Schemes, we have a bridge that should help in most instances.

The 2023 data and the 528 Industry Scheme is the system default in IMPLAN, unless a user has changed their User Preferences. All previous Data Years (2001-2022) will require the use of the 546 Industries Set until the release of the updated IMPLAN 528 Industry Set time series data (coming in 2025).

The following table shows the Industry groupings between the two latest U.S. Industry sets.

Industry Grouping 546 codes 528 codes Industry Change
Agricultural, Forestry, Fishing, and Hunting 1-19 1-19 0
Mining, Minerals, and Oil 20-38 20-33 -5 
Utilities 39-49 34-44 0
Construction 50-62 45-57 0
Manufacturing  63-391 58-374 -12
Wholesale and Retail 392-413 375-395 -1
Transportation and Storage 414-422 396-404  0
Services 423-525 405-507 0
Government Enterprises 526-534 508-516 0
Commodity-Only (ex. Scrap) 535-538 517-520 0
Employment and Payroll of Government 539-546 521-528  0

FINDING OLDER DATA

To find the older data years, navigate from your home screen to the Projects screen. On the Projects screen, click the New Project button in the upper right. Or click the new project Add New Project button from your dashboard.

Dashboard Home Start a New Project.png

In the pop-up box, give your new Project a title and then in Industry Set, select 546 Industries.

Click Create Project and you will be taken to your Regions screen to set up as always!

RELATED TOPICS

Industry Scheme

Sectoring Schemes

 

1 Please watch the recording of our BEA Benchmark webinar for more details.

2 The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.

 

Written August 30, 2023

Updated December 23, 2024