The North American Industry Classification System was developed by representatives from the United States, Canada, and Mexico, and replaces each country's separate classification system with one uniform system for classifying industries. In the United States, NAICS replaces the Standard Industrial Classification, a system that Federal, State, and local governments, the business community, and the general public have used since the 1930s.

This industry classification system enables North American Free Trade Agreement (NAFTA) partners--the United States, Canada, and Mexico--to better compare economic and financial statistics and ensure that such statistics keep pace with the changing economy.