Before doing any research, you need to have a good sense of your target market. This may sound elementary, but it can be tough to do. It is actually quite common for people to focus on the wrong industry segment, which could certainly stunt your career path.
If you look at the Merriam-Webster dictionary, you'll see that the definition of "industry" is a bit fuzzy:
A group of productive organizations that produce or supply goods, services, or sources of income.
Not very helpful, huh?
So, to help things along, the U.S. Government has done a lot of work to create a standard classification of industries called the North American Industry Classification System (NAICS, pronounced "nakes"), which is used at the core of Federal statistics. This was created to create uniformity in the measurement of economic statistics, making it easier to calculate things such as the growth rates of certain industries. In the messiness of macroeconomics, NAICS make it a little easier to see exactly what is going on.
NAICS is the result of extensive study and analysis by the Office of Management and Budget (OMB), the Economic Classification Policy Committee (ECPC), Statistics Canada, and Mexico's Instituto Nacional de Estadistica y Geografia. Its origins go back to 1997, but NAICS actually replaced an older system called Standard Industrial Classification (SIC).
A NAICS code may sound intimidating, but it is actually a really efficient way to define an industry. It will also be extremely helpful when conducting your research because many databases use NAICS codes.
Keep in mind that all of these codes have six digits, which go from general to specific (you can find a comprehensive list of every NAICS code online at http://www.census.gov/eos/www/naics/). The first two digits are the broadest industry sectors, which include:
Note
Make a note
11: Agriculture, Forestry, Fishing, and Hunting
21: Mining, Quarrying, and Oil and Gas Extraction
22: Utilities
23: Construction
31-33: Manufacturing
42: Wholesale Trade
44-45: Retail Trade
48-49: Transportation and Warehousing
51: Information
52: Finance and Insurance
53: Real Estate and Rental and Leasing
54: Professional, Scientific, and Technical Services
55: Management of Companies and Enterprises
56: Administrative and Support and Waste Management and Remediation Services
61: Educational Services
62: Health Care and Social Assistance
71: Arts, Entertainment, and Recreation
72: Accommodation and Food Services
81: Other Services (except Public Administration)
92: Public Administration
To give a sense of some of the NAICS codes, here are examples from some well-known companies:
Note
Make a note
Nike:
316211, Rubber and Plastics Footwear Manufacturing
Lulu lemon:
448190, Other Clothing Stores
Coca-Cola:
312111, Soft Drink Manufacturing
To look up the NAICS codes (of which there are 1,065, by the way), you will need to use a private data provider. One good resource is Manta.com. Think of this site as a search engine for information on companies. In fact, the database has over 87 profiles. While some of the information requires a subscription, the free portion still has a large amount of helpful information. Some of the items include: employee count, years in business, list of products and services, similar businesses, and revenues.
However, some companies engage in different types of businesses. So, to deal with this, the NAICS code is based on the primary business activity of a company.
In other words, if you plan to work for a company that has many types of business, you should not look at its designated NAICS code. Instead, you should find the NAICS code for the industry of the division you plan to work for.
To do this, you can go to http://www.census.gov/eos/www/naics/ and then input several phrases that describe the industry. You'll get a list of suggested NAICS and you can then select the most relevant one.