Bidding Strategy & RFPs
Finding the Right NAICS Code for Your Work
If you run a small or mid-sized manufacturing business in the U.S., you've probably heard of NAICS codes — but what are they, and why do they matter? Knowing your correct NAICS (North American Industry Classification System) code is important for a lot of reasons: it helps with government contracting, qualifying for certain grants or programs, and even understanding your market better. But for many hands-on business owners, figuring out the “right” code can feel confusing or overwhelming.
What is a NAICS Code?
The NAICS code is a system used by the federal government to classify business types based on their main economic activity. It’s similar to a database that tags your business into categories like manufacturing, construction, healthcare, and more. These codes are updated every few years to reflect changes in industries and technology.
Each NAICS code is a five- or six-digit number. For example:
311611 — Animal (except Poultry) Slaughtering
332710 — Machine Shops
334618 — Other Millwork (including Ramps, Rails, and Miscellaneous Woodwork)
Why Do You Need the Right NAICS Code?
Using the correct NAICS code helps ensure your business is accurately categorized, which can:
Help you qualify for government contracts and bidding opportunities.
Ensure compliance with government reporting requirements.
Assist in obtaining loans or grants specific to certain industries.
Provide valuable data about your industry and competitors.
How to Find Your Correct NAICS Code
Finding the right code involves a few simple steps:
1. Review Your Core Business Activity
Think about the main product or service you produce or provide. For example, if your business makes metal parts, your NAICS code should reflect that activity, not your secondary services.
2. Use the Official NAICS Search Tools
Visit the U.S. Census Bureau NAICS Search or the NAICS.com website. These tools allow you to search by keywords related to your business.
3. Search by Keywords
Enter words like “metal fabrication,” “machining,” or “plastic molding” to find relevant codes. Read the detailed descriptions carefully. Some codes might look similar but have different nuances.
4. Use the Description to Confirm
Once you find a potential code, compare the detailed description with what you do daily. Make sure it accurately reflects your primary activity to avoid issues later.
5. Consult Industry Peers or Professional Advisors
If you’re unsure, ask a business association, accountant, or industry group. Some industries also have industry-specific NAICS codes; they might be more precise.
Common NAICS Codes for Manufacturing Businesses
Here are some frequently used NAICS codes for manufacturers:
332710 — Machine Shops
333618 — Other Engine Equipment Manufacturing
336411 — Aircraft Manufacturing
339999 — All Other Miscellaneous Manufacturing
339930 — Doll, Toy, and Game Manufacturing
Final Tips
Keep it accurate: Your NAICS code should truly reflect your main business activity, not just a secondary service.
Update if needed: If your business shifts focus, revisit and update your NAICS code.
Don't overthink it: It doesn’t have to be perfect, but accuracy helps in business dealings and compliance.
Choosing the right NAICS code might seem like just a formality, but it’s an important step in running a compliant and recognized business. Take a little time, use official tools, and don’t hesitate to ask for advice if you’re unsure. Your efforts will pay off when it’s time to bid on government contracts or apply for industry support.
Need More Help?
If you want guidance tailored to your specific business, consider consulting with a business advisor or looking into resources from the Small Business Administration (SBA). They offer straightforward advice and assistance for small manufacturers navigating federal requirements.