Economic Analysis and Statistics  Canadian Industry Statistics Canadian Economy

Definition
Goods-Producing Industries
(NAICS 11 to NAICS 31-33)

The industries on this site are classified according to the North American Industry Classification System (NAICS) Canada 2002. Statistics Canada maintains this standard classification which has superseded the 1980 Standard Industrial Classification (SIC).

This section outlines NAICS Canada 2002 with respect to the goods-producing industries.

In 2002, a revision of the classification system was implemented. This revision will not affect the organization of the industries on this website until data is released on this new basis. The NAICS revision was made to increase comparability in specific areas and to recognize important changes which have occurred since the introduction of NAICS in 1997. At that time, NAICS Canada 2002 will affect the data reported within the Construction and Information and Cultural Industries sectors.

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NAICS was jointly adopted in 1997 by Canada, Mexico and the United States against the backdrop of NAFTA. The classification was designed to provide common definitions of the industrial structure of the three countries and a common statistical framework to facilitate the analysis of the three economies.

NAICS is a comprehensive system encompassing all economic activities. It has a hierarchical structure.At the highest level, it divides the economy into 20 sectors. At lower levels, it further distinguishes the different economic activities in which businesses are engaged.

NAICS is constructed within a supply-based, or production-oriented, conceptual framework where establishments using similar production processes to produce goods and services are grouped to form industries. The boundaries between industries demarcate, in principal, differences in production processes and production technologies.

NAICS is based on supply side principles to ensure that industrial data, classified to NAICS, is suitable for the analysis of production related issues such as industrial performance, inputs and outputs, productivity, unit labour costs and employment.

Its hierarchical structure is composed of sectors (two-digit code), subsectors (three-digit code), industry groups (four-digit code), and industries (five-digit code). These are broadly comparable for all three countries, although there are a number of important exceptions. More information regarding country comparability is available on the Statistics Canada site : see the three-country comparability of the North American Industry Classification System (NAICS) 2002.

A country may choose to breakdown industries (five-digit code) into national industries (six-digit code) in order to capture additional detail. As the name indicates, national industries are unique to each country and cross-comparisons generally do not apply.

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Goods-Producing Sectors of the Canadian Economy

The sectors of the economy can be regrouped to form five largely goods-producing industries (NAICS 11 to 31-33) and fifteen service-producing industries (NAICS 41 to 91).

Goods-producing industries are primarily associated with the production of goods (e.g., growing of crops, generation of electricity, the manufacturing of computers), however, these sectors may also produce some services (e.g., pest control services, plumbing services, land subdivision, house-painting, support services for mining operations)

The 5 economic sectors specified by the North American Industry Classification System (NAICS) 2002 as goods-producing industries are listed below. Links are to the official NAICS Canada 2002 definition of each sector.

• Goods-producing industries
  • Agriculture, Forestry, Fishing and Hunting (NAICS 11)
  • Mining and Oil and Gas Extraction (NAICS 21)
  • Utilities (NAICS 22)
  • Construction (NAICS 23)
  • Manufacturing (NAICS 31-33)