INTRODUCTION
Sectoring schemes provide a means of classifying and aggregating Industry and Commodity data. Each database source can have its own unique format or scheme for presenting Industry data (e.g. IMPLAN scheme or the REA scheme). An Industrial classification scheme allows categorization according to the type of products or services produced by the Industry or Industries.
In IMPLAN, each Industry is classified with an IMPLAN code and description. The IMPLAN Industries are largely based on definitions put forth by the U.S. Bureau of Economic Analysis (BEA), which uses the North American Industry Classification System (NAICS).
DETAILS
The unit of collection for a majority of federal data sets used by IMPLAN, including the employment and wages, is at the establishment level. The establishment may be a small business with a single location, or it may be a branch location of a large firm. Each establishment in the defined region is counted separately. When the establishment submits a report or responds to a census or a survey, its data are collected and assigned an establishment code depending on the primary product produced by that establishment.
The Industry classification scheme used for most federal government industry-based data sets is the North American Industrial Classification Scheme (NAICS), as described in the most current NAICS manual, published by the Office of Management and Budget.
This scheme was adopted in 1997 and replaced the previously used Standard Industrial Classification (SIC) codes. Unlike the SIC, NAICS was developed jointly by the United States, Mexico, and Canada to allow for comparability between all North American Industrial data.
NAICS structure is set up into hierarchies which correlate with the different aggregation schemes within IMPLAN. The "hierarchy" of the NAICS shows the relationship of one item to a particular category. The 2 and 3-digit codes are the same ones used for IMPLAN’s 2 and 3-digit aggregation schemes. Below is an example of the hierarchy:
- Sector: 2-digit code
- Subsector: 3-digit code
- Industry Group: 4-digit code
- NAICS Industry: 5-digit code
- National Industry: 6-digit code
| Level | NAICS Code | Title |
|---|---|---|
| Sector | 72 | Accommodation and Food Services |
| Subsector | 721 | Accommodation |
| Industry Group | 7211 | Traveler Accommodation |
| NAICS Industry | 72119 | Other Traveler Accommodation |
| National Industry | 721191 | Bed-and-Breakfast Inns |
The current NAICS scheme is 2022. NAICS reports five levels of Industry detail, ranging from the 2-digit detail (the most aggregate) to the 6-digit (the most detailed). To learn more about the history of NAICS click here.
IMPLAN DATA SOURCES
Although most federal government agencies collect industry-based data at the 6-digit NAICS code level, it is not all presented at that level. Each database created can have its own unique format or scheme for presenting Industry-level data.
REGIONAL ECONOMIC ACCOUNTS (REA) SECTORING
A major data source used to derive IMPLAN databases is the Bureau of Economic Analysis' Regional Economic Accounts (REA - formerly known as REIS). At the state level, REA reports in 3-digit NAICS detail for employment and income. At the county level, income is reported at 3-digit NAICS but employment is provided at the 2-digit NAICS detail.
BUREAU OF LABOR STATISTICS
Data from the Bureau of Labor Statistics (BLS) is used for future year deflators and some output estimates. The BLS uses a different sectoring scheme, again based on the NAICS code system.
BEA BENCHMARK
IMPLAN's U.S. sector scheme is largely based on the Bureau of Economic Analysis' latest Benchmark Input-Output Study. Since the BEA updates their input-output accounts every five years, IMPLAN data sets also undergo important updates as well. In early 2024, the BEA released its 2017 Industry statistics and benchmark make-use tables (also known as I-O tables) which include methodological improvements to more accurately reflect the ever-changing national economy. For more information, visit Industry Scheme.
The following table shows the U.S. Industry Sets for the past 25 years.
| IMPLAN Database Years | Number of IMPLAN Sectors | BEA Benchmarks |
|---|---|---|
| 1996-2000 | 528 | 1987 and 1992 |
| 2001-2004, 2006 | 509 | 1997 |
| 2007-2012 | 440 | 2002 |
| 2013-2017 | 536 | 2007 with parts of 2002 and 1997 |
| 2018-2022 | 546 | 2012 with parts of 2007, 2002, and 1997 |
| 2023-2027 | 528 | 2017 with parts of 2012, 2007, 2002, and 1997 |
NOTE ON OLDER CLASSIFICATION SCHEMES
Prior to NAICS, the Standard Industrial Classification (SIC) system was the most common scheme used by the federal government to classify establishment-level data. As described in the 1987 SIC Manual, this scheme had four levels of detail ranging from 1-digit detail as the most aggregate to 4-digit as the most detailed. IMPLAN datasets prior to 2001 are SIC-based.
RELATED ARTICLES
U.S. 528 Industries, Conversions, & Bridges
U.S. 546 Industries, Conversions, & Bridges
Written August 30, 2023
Updated December 24, 2024