What does every business need but not every industry has?

NAICS codes serve as the fundamental framework for categorizing industries to monitor economic activity, influence government contract distribution, and dictate commercial insurance premiums. These classification standards, updated every five years, provide essential data for federal agencies like the Bureau of Labor Statistics and the Census Bureau. However, the rigid nature of these codes creates significant hurdles for emerging or niche industries. Without a specific designation, businesses—such as emergency restoration services or the cannabis sector—face misclassification, leading to inflated liability costs and reduced visibility for government procurement. Georgetown business librarian Jennifer C. Boettcher highlights how these codes enable precise market analysis, while industry professionals like Darren Hodima illustrate the tangible financial consequences of being excluded from the system. The arduous, multi-year application process for new codes underscores the high stakes involved in defining and measuring the modern economy.