How Much Does SIC Code Information Cost?
Learn about SIC codes and the financial considerations for acquiring business classification data. Understand what's free and what costs.
Standard Industrial Classification (SIC) codes categorize businesses by their primary economic activities. Established by the U.S. government, this system ensures consistency in data collection and analysis across industries. It is essential for understanding economic trends, facilitating statistical reporting, and enabling clear communication about different sectors. The codes organize business information into manageable and comparable categories.
Understanding Standard Industrial Classification Codes
Standard Industrial Classification (SIC) codes are a four-digit numerical system designed to classify business establishments by their main activity. The structure of these codes is hierarchical, moving from broad industry groups to more specific sectors. The first two digits of a SIC code indicate the major industry group, such as “20” for Food and Kindred Products or “52” for Building Materials, Hardware, Garden Supply, and Mobile Home Dealers.
The third digit further refines the industry group, while the fourth digit provides the most detailed classification of a specific industry. For example, within manufacturing (major group 20-39), code 2011 specifies “Meat Packing Plants,” narrowing down from the broader “Food and Kindred Products.”
Finding and Applying SIC Data
The general public can access SIC codes and related information through various official sources. The Occupational Safety and Health Administration (OSHA) provides a search tool for the 1987 version of the SIC manual, allowing users to look up codes by keyword or specific digits. Additionally, the U.S. Securities and Exchange Commission (SEC) maintains a list of SIC codes on its website, as companies are required to use them in certain government filings.
Businesses and individuals utilize SIC codes for a range of practical applications. Companies use them for market research, identifying their customer base by industry, and segmenting markets for targeted marketing campaigns. They also assist in competitor analysis, allowing businesses to identify others within their specific sector for strategic planning. Government agencies, including the IRS and the Census Bureau, use SIC codes for statistical analysis, tax classification, and organizing company filings.
Cost Implications of SIC-Coded Information
The SIC classification system and the basic four-digit codes are publicly available and free to access from government sources like OSHA or the SEC. This means looking up the definition of a specific SIC code or finding the code for a broad industry does not incur a direct cost.
While the classification system is free, obtaining detailed data categorized or compiled using SIC codes from commercial databases or market research firms involves a cost. These costs arise because commercial providers invest in gathering, cleaning, and organizing extensive company data, then enriching it with SIC code classifications. For instance, purchasing a list of companies within a specific SIC code, detailed industry reports segmented by SIC, or appended SIC codes to an existing customer database will have associated fees. Pricing models for such data can vary, ranging from a few cents per record for large volumes to hundreds or thousands of dollars for highly customized or comprehensive datasets, depending on the provider and the specific information requested.