Standard Industrial Classification (SIC)
Definition - What does Standard Industrial Classification (SIC) mean?
Standard Industrial Classification (SIC) is a coding system in which each sector organization and industry is represented by a set of four digit codes. Each digit in a code has specific indications and progressively suggests broader industry classifications such as industry group, major group and division. For example, the first two digits of the SIC code represent the “major group” and the first three digits of SIC code represent the “industry group”.
Petropedia explains Standard Industrial Classification (SIC)
Standard Industrial Classification (SIC) coding system was established in the year 1937 in the United States to specify various industries under their respective categories. It is the international reference classification of productive activities. Its main purpose is to provide a set of activity categories that can be utilized for the collection and reporting of statistics according to such activities. SIC codes are assigned based on common characteristics shared in the products, services, production and delivery system of a business. Some of the ranges of SIC codes and lists of divisions falling under them are listed below:
|Range of SIC Codes||Division|
|0100-0999||Agriculture, Forestry and Fishing|
|4000-4999||Transportation, Communications, Electric, Gas and Sanitary service|
|6000-6799||Finance, Insurance and Real Estate|