The Construction Chart Book 4th Edition

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CPWR - The Center for Construction Research and Training

Summary Statement

A broad collection of tables and charts covering health and safety in the U.S. construction industry, as well as considerable economic and training data.
2007

Section 1: 2002 NAICS and Previous Industry Classification Systems

After 60 years of use, the U.S. Standard Industrial Classification (SIC) system has been retired and replaced by the North American Industry Classification System (NAICS). NAICS is the product of a collaborative effort by the United States, Canada, and Mexico. For the first time ever, this common classification system allows direct comparisons of economic data across borders in North America.1 All U.S. federal government agencies adopted the 2002 NAICS beginning with 2003.2 Chart 1 provides a comparison of the 2002 NAICS, 1997 NAICS, and 1987 SIC codes for the construction industry.

NAICS uses a six-digit classification code that allows greater flexibility in the coding structure. The first two digits of the six-digit code designate the highest-level groupings among major industry sectors (for example, Mining codes as 21, Utilities as 22, and Construction as 23), with each digit making the code more specialized. NAICS allows each country to recognize its own, possibly unique, industries by going into more detail, using a sixth digit. Thus, six-digit U.S. codes may differ from counterparts in Canada or Mexico, while the five-digit codes remain standardized. The following example shows the 2002 NAICS structure.

Code
Digits
Sector
Example
23-- First two Major sector Construction
236-- Third Subsector Construction of Building
2361- Fourth Industry group Residential Building Construction
23611 Fifth NAICS international industry Residential Building Construction
236117 Sixth National industry (US) New Housing Operative Builders
236118 Sixth National industry (US) Residential Remodelers
(The comparison included in chart 1 is at 2002 NAICS five-digit level.)

NAICS represents a fundamental change in approach to industrial classification. Under the SIC system, some establishments were classified according to their production processes, but others were classified using different criteria, such as class of customer, i.e., public, private, individual. By contrast, NAICS is based solely on production processes; that is, NAICS classifies each establishment into a detailed industry based on the production processes it uses. Thus, reclassification under NAICS substantially changes how many and which businesses are included in certain sectors of construction. For instance, Land Subdivision (SIC 6552), which was not part of construction under the SIC system, is included in Heavy and Civil Engineering Construction (NAICS 23311, 1997 version; NAICS 23721, 2002 version). Other SIC categories added to the construction industry include: Management Services (SIC 8741) for each industry subsector; Radio and Television Repair Shops, i.e., Household Antenna Installation (SIC 7622) to NAICS 23829; Repair Shops and Related Services, i.e., Boiler Cleaning, Chipping, and Scaling (SIC 7699) to NAICS 23822 (2002 version).

Key changes in construction in NAICS also include the new listing of a residential remodeling industry, the reshuffling of many heavy construction industries, and the rearranging (renumbering) of the specialty trades to place them in the appropriate sequence of the construction process.

The construction industry had substantial revisions to classifications within 2002 NAICS, although most NAICS industry classifications remained unchanged between 1997 and 2002. For example, part of Support Activities for Mining under the 1997 (NAICS 21311) has been moved to construction under the 2002 NAICS as Site Preparation Contractors (NAICS 23712), a code which now bundles six different codes from the 1997 NAICS and 10 codes from the 1987 SIC. Some 1997 NAICS categories have been broken into separate 2002 NAICS industries, creating more industry-level detail. One example is Carpentry Work (23551 under NAICS 1997), split into Framing Contractors (NAICS 23813), and Finish Carpentry Contractors (NAICS 23835) under 2002 NAICS. NAICS is to be reviewed and updated every five years to reflect our changing economy. The 2007 NAICS is now available, and the codes are exactly the same as 2002 NAICS for the construction industry, but has a significant revision within part of the Information Sector.3

The NAICS production-oriented system means that government data can be used more easily for measuring and grouping productivity, unit labor costs, the capital intensity of production, and understanding employer-output relationships and other such statistics. However, the transition to the new system poses some difficulties for researchers. To help data users making the transition to the new system, the following pages provide construction statistics showing the historical trends across the three coding systems.

1. 2002 North American Industry Classification System

2002 NAICS 2002 NAICS US Description 1997 SIC 1987 SIC 1987 US SIC Description
236 Construction of Buildings
23611 Residential Building Construction 23321 1521 General Contractors - Single-family Houses
1531 Operative Builders
8741 Management Services
23322 1522 General Contractors - Residential Buildings Other Than Single-Family Houses
1531 Operative Builders
8741 Management Services
23621 Industrial Building Construction 23331 1531 Operative Builders
1541 General Contractors Industrial Buildings and Warehouses
8741 Management Services
23493 1629 Heavy Construction, NEC
8741 Management Services
23499 1629 Heavy Construction, NEC
23622
Commercial and Institutional Building Construction
23322 1522 General Contractors - Residential Buildings Other Than Single-Family Houses
23331 1531 Operative Builders
1541 General Contractors - Industrial Buildings and Warehouses
23332 1522 General Contractors - Residential Buildings Other Than Single-Family Houses
1531 Operative Builders
1541 General Contractors - Industrial Buildings and Warehouses
1542 General Contractors - Nonresidential Buildings, Other than Industrial Buildings and Warehouses
8741 Management Services
23599 1799 Special Trade Contractors, NEC
237 Heavy and Civil Engineering Construction
23711 Water and Sewer Line and Related Structures Construction 23491 1623 Water, Sewer, Pipeline, and Communications and Power Line Construction
8741 Management Services
23499 1629 Heavy Construction, NEC
8741 Management Services
23581 1781 Water Well Drilling
23712 Oil and Gas Pipeline Related Structures Construction 21311 1389 Oil and Gas Field Services, NEC
23491 1623 Water, Sewer, Pipeline, and Communications and Power Line Construction
8741 Management Services
23493 1629 Heavy Construction, NEC
8741 Management Services
23713 Power and Communication Line and Related Construction 23492 1623 Water, Sewer, Pipeline, and Communications and Power Line Construction
8741 Management Services
23493 1629 Heavy Construction, NEC
23721 Land Subdivision 23311 6552 Land Subdividers and Developers Construction
23731 Highway, Street, and Bridge Construction 23411 1611 Highway and Street Construction
8741 Management Services
23521 1721 Painting and Paper Hanging
23412 1622 Bridge, Tunnel, and Elevated Highway Construction
23799
Other Highway and Civil Engineering Construction
23412 1622 Bridge, Tunnel, and Elevated Highway Construction
8741 Management Services
23499 1629 Heavy Construction, NEC
8741 Management Services
23599 1799 Special Trade Contractors, NEC
238 Specialty Trade Contractors
23811 Poured Concrete Foundation 23571 1771 Concrete Work
23812 Structural Steel & Precast Concrete contractors 23591 1791 Structural Steel Erection
23813 Framing Contractors 23551 1751 Carpentry Work
23814 Masonry contractors 23542 1771 Concrete Work
23541 1741 Masonry, Stone Setting, and Other Stone Work
23815 Glass and Glazing Contractors 23592 1793 Glass and Glazing Work
1799 Special Trade Contractors, NEC
23816 Roofing Contractors 23561 1761 Roofing, Siding, and Sheet Metal Work
23817 Siding Contractors 23561 1761 Roofing, Siding, and Sheet Metal Work
23819 Other foundation, structure, & Building Exterior Contractors 23591 1791 Structural Steel Erection
23599 1799 Special Trade Contractors, NEC
23821 Electrical Contractors 23511 1711 Plumbing, Heating, and Air-Conditioning
23531 1731 Electrical Work
23822 Plumbing, Heating, and Air-conditioning Contractors 23511 1711 Plumbing, Heating, and Air-conditioning
7699 Repair Shops and Related Services, NEC
23591 1791 Structural Steel Erection
23595 1796 Installation or Erection of Building Equipment, NEC
23829 Other Building Equipment Contractors 23595 1796 Installation or Erection of Building Equipment, NEC
23599 1799 Special Trade Contractors, NEC
7622 Radio and Television Repair Shops
23831 Drywall and Insulation Contractors 23542 1742 Plastering, Drywall, Acoustical, and Insulation Work
1743 Terrazzo, Tile, Marble, and Mosaic Work (fresco work)
23832 Paint and Wall Covering Contractors 23521 1721 Painting and Paper Hanging
1799 Special Trade Contractors, NEC
23833 Floor Contractors 23552 1752 Floor Laying and Other Floor Work, NEC
23834 Tile and Terrazzo Contractors 23543 1743 Terrazzo, Tile, Marble, and Mosaic Work (except fresco work)
23835 Finish Carpentry Contractors 23551 1751 Carpentry Work
1799 Special Trade Contractors, NEC
23839 Other Building Finishing Contractors 23561 1761 Roofing, Siding, and Sheet Metal Work
23599 1761 Roofing, Siding, and Sheet Metal Work
1799 Special Trade Contractors, NEC
23891 Site Preparation Contractors 21311 1081 Metal Mining Service
1241 Coal Mining Services
1389 Oil and Gas Field Services, NEC
1481 Nonmetallic Minerals Services, Except Fuel
23499 1629 Heavy Construction, NEC
7353 Construction Equipment Rental and Leasing
23511 1711 Plumbing, Heating, and Air-conditioning
23593 1794 Excavation Work
23594 1795 Wrecking and Demolition Work
23599 1799 Special Trade Contractors, NEC
23899 All Other Specialty Trade Contractors 23499 7353 Construction Equipment Rental and Leasing
23571 1771 Concrete Work
23599 1799 Special Trade Contractors, NEC
56172 1799 Special Trade Contractors, NEC

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1. Office of Management and Budget, Executive Office of the President, North American Industry Classification System (NAICS)-Revisions for 2002, Federal Register, January 16, 2001, www.census.gov/epcd/naics02/naifr02d.htm (Accessed November 2007).

2. U.S. Bureau of Labor Statistics, North American Industry Classification System (NAICS), http://www.bls.gov/bls/naics.htm (Accessed November 2007).

3. The official 2007 U.S. NAICS Manual North American Industry Classification System--United States, 2007 is available at http://www.census.gov/naics/2007/index.html (Accessed November 2007). The printed 2007 NAICS manual is available from the National Technical Information Service (NTIS): 1-800-553-NTIS.

Source:
Chart 1 - Office of Management and Budget, Executive Office of the President, North American Industry Classification System (NAICS)-Revisions for 2002, Federal Register, January 16, 2001, excerpt, 4 pp.: Tables 1 and 3. 2002 NAICS-US Matched to 1997 NAICS-US and 2002 NAICS-US Matched to 1987 Standard Industrial Classification, www.census.gov/epcd/naics02/


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