In the years since the worst economic recession of the 21st century, several industries have shown resilience. Foremost of these is automotive. Not only have global sales reached a record high in 2016, but the operating margins are growing quickly as well. According to research presented by Capital IQ, average operating margins for the top 100 automotive market suppliers were able to jump above pre-recession levels by 2010, just a year from their record low.
Adopted in the late 1990s, the North American Industry Classification System (NAICS) consists of codes set up by the U.S. Census Bureau to separate manufacturers by sectors, subsectors, and industries. Most companies are familiar with this system at a high level, as it’s used by the government to collect, assess, and distribute data about manufacturing in 5-6 year cycles.
However, if analyzed properly, NAICS codes can be far more important than simple identifiers used for federal purposes – in fact, they can play an active role in your company’s long-term strategy.