4) NAICS Code Changes in 2007

For those working through the GSA proposal process, or for those who have recently been awarded a GSA Schedule, familiarity with NAICS codes is probably second nature to you by now. NAICS, or the North American Industry Classification System, was created by the U.S. Economic Classification Policy Committee (ECPC), along with Mexico’s Instituto Nacional de Estadistica Geografia e Informatica and Statistics Canada. It’s purpose was to make industry statistics produced by the three countries comparable to each other. In the GSA Schedule proposal process, NAICS codes are used not only for classification of a business type but also to decipher company size standards in terms of revenue and number of employees. These codes were refreshed in 2002. ECPC has stated that changes to the codes will be proposed and implemented for 2007.

Through a December 27, 2002, Federal Register notice, ECPC received 60 comments that requested specific changes to NAICS industries for 2007. Twenty-two of those comments requested industries for biotechnology, three requested changes to the definition of optometrists, and three requested a new industry for construction design/build classifications. The balance of comments addressed single issues, such as requests for new industries or clarifications for activities including wedding videography, rope and cordage manufacturing, simulation, e-learning, denturists, rental and leasing of recreational vehicles, physical therapy, travel goods wholesaling, etc.

ECPC also reviewed the structure of the 2002 NAICS telecommunications industry classifications in light of that business area’s continuing changes. Subsequently, ECPC has recommended changes in the sub-sectors for Telecommunications (517); Internet Service Providers, Web Search Portals, and Data Processing Services (518); and Other Information Services (519).

Along with the proposed changes, ECPC has requested industry title changes to more clearly describe some existing content. Proposed title changes of interest to EZGSA clients include:

• NAICS 23821, Electrical Contractors, changing to Electrical Contractors and Other Wiring Installation Contractors.
• NAICS 238210, Electrical Contractors, changing to Electrical Contractors and Other Wiring Installation Contractors.
• NAICS 316999, All Other Leather Good Manufacturing, changing to All Other Leather Good and Allied Product Manufacturing.
• NAICS 322221, Coated and Laminated Packaging Paper and Plastics Film Manufacturing, changing to Coated and Laminated Packaging Paper Manufacturing.
• NAICS 32223, Plastics, Foil, and Coated Paper Bag Manufacturing, changing to Coated Paper Bag and Pouch Manufacturing.
• NAICS 541612, Human Resources and Executive Search Consulting Services, changing to Human Resources Consulting Services.
• NAICS Industry Group 5418, Advertising and Related Services, changing to Advertising, Public Relations, and Related Services.
• NAICS 56131, Employment Placement Agencies, changing to Employment Placement Agencies and Executive Search Services.

If you would like more information on the proposed NAICS Code changes and how they may affect your business, please call one of the EZGSA account managers at 301/913-5000.