Standard Industrial Classification (SIC) code

A standard industrial classification code is a four-digit code that is used to categorise industry areas and are assigned via common features in the product. SIC codes were first used in America in the 1930s when the government decided it needed an easy way to measure, analyse and share data across different industries.

Many countries now have their own SIC codes, with varying names and abbreviations. The UK has the United Kingdom Standard Industrial Classification (UKSIC), whereas America uses North America Industry Classification System (NAICS) alongside Canada and Mexico.

Over time, many different standard industrial classification codes have been used in the UK since 1948; changing in 1958, 1968, 1980, 1992, 1997, 2003 and 2007 – the changes are made to better adapt the system for any change in the economy. For example, the 1980 system catered more for the manufacturing industry, whereas the 2007 system changed to cooperate better with the IT sector. Although these changes supposedly make the system easier, many companies still use the 2003 system, which is a slightly updated version brought about in 1992.

The current standard industrial classification code system used in the UK, mainly uses codes of four numbers as to correlate with the European Union (NACE) and the United Nations (UNSPSC). However, for certain classifications, the UKSIC allows for certain sectors to be refined clearer with the use of a five-digit code.

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