Dec 21 -- The Office of Management and Budget (OMB) announces its final decisions to accept the recommendations of the Economic Classification Policy Committee (ECPC), as outlined in the July 2, 2021, Federal Register notice. OMB accepts the ECPC recommendations for the 2022 revisions to the North American Industry Classification System (NAICS), as well as the recommendations to update OMB Statistical Policy Directive No. 8, North American Industry Classification System: Classification of Establishments and to eliminate OMB Statistical Policy Directive No. 9, Standard Industrial Classification of Enterprises.
In large part, the series of revisions for NAICS are designed to address decreasing usefulness of employing the mode of delivery (online versus in store/print) as an industry delineation criterion in the Wholesale Trade, Retail Trade, and Information sectors. In short, the internet has developed from a specialized activity to a generic method of delivery for goods and services. Therefore, the 2022 revisions to NAICS reflect a deemphasis on the delivery method as an industry function used in NAICS classification. In addition, OMB has accepted the ECPC recommendations with respect to biobased products manufacturing and renewable chemicals manufacturing topic areas, including the decision to continue research and outreach in this important emerging area.
Federal statistical establishment data published for reference years beginning on or after January 1, 2022, should be published using the 2022 NAICS United States codes. Publication of NAICS United States, 2022 Manual is planned for January 2022 on the NAICS website at www.census.gov/naics. The updated Statistical Policy Directive No. 8, North American Industry Classification System: Classification of Establishments, will be effective immediately and will be posted on the OMB Statistical Programs and Standards website at www.whitehouse.gov/omb/information-regulatory-affairs/statistical-programs-standards/. Statistical Policy Directive No. 9, Standard Industrial Classification of Enterprises, will be eliminated effective immediately.
For the 2022 revision, Canada, Mexico, and the United States focused on new and emerging industries, as well as the continued usefulness of employing the mode of delivery (online versus in store/print) as an industry delineation criterion in the Wholesale Trade, Retail Trade, and Information sectors.
The July 2, 2021, Federal Register notice: (1) Summarized the background for the proposed revisions to NAICS 2017 in Part I; (2) contained a summary of public comments to the February 26, 2020, Federal Register notice (85 FR 11120) regarding priorities for changes to NAICS in 2022, the ECPC recommendation to update OMB Statistical Policy Directive No. 8, Standard Industrial Classification of Establishments, and the ECPC recommendation to withdraw OMB Statistical Policy Directive No. 9, Standard Industrial Classification of Enterprises in Part II; (3) included a list of title changes for NAICS industries that clarify, but do not change, the existing content of the industries in Part III; and (4) provided a comprehensive listing of changes for national industries and their links to NAICS 2017 industries in Part IV.
Twenty-nine public comments were received in response to the ECPC proposals presented in the July 2, 2021, Federal Register notice (86 FR 35350). The public comments received are available for public view on www.regulations.gov. Comments received were supportive of proposed changes, suggested changes that the ECPC believed would be incompatible with the principles of NAICS or with other proposals that were recommended, or were outside the scope of the NAICS revision.
The ECPC reviewed the comments received in response to the July 2, 2021, Federal Register notice. ECPC review was guided by the NAICS classification principles and with consideration of impacts on trilateral NAICS agreements with Canada and Mexico, as these measures provide an important way in which to coordinate the measurement of business activity across the three countries. Detailed ECPC responses to each comment are available on the NAICS website at www.census.gov/naics.
Ultimately, the ECPC made no changes to its recommendations to OMB for 2022 NAICS codes or titles. However, the ECPC did make some minor revisions to its recommendations for Corresponding Index Entries.
July 2, 2021 FR notice: https://www.census.gov/naics/federal_register_notices/notices/fr02jy21.pdf
Census NAICS webpage: https://www.census.gov/naics/
OMB Statistical Directives: https://www.whitehouse.gov/omb/information-regulatory-affairs/statistical-programs-standards/
FR notice announcing acceptance of NAICS 2022: https://www.federalregister.gov/documents/2021/12/21/2021-27536/north-american-industry-classification-system-revision-for-2022-update-of-statistical-policy