Session 4: Industrial Classification Systems: Treatments for the upcoming NACE or ISIC revision and other industry classification issues

Session Leader: Bastiaan Rooijakkers, Statistics Netherlands

Industrial classifications systems provide a framework for the collection and presentation of economic activity, and it is critical that they reflect the current industrial picture of an economy so the public and decision makers can make informed decisions on key policy issues. There are various industrial classification systems around the world and each one provides a unique perspective on the industrial composition of an economy.

These systems include the North American Industry Classification System (NAICS), the Nomenclature of Economic Activities (NACE), the International Standard Industrial Classification of All Economic Activities (ISIC), and others as well. Each industrial classification system is updated on a periodic basis and business registers implement these changes and reclassify statistical units. Some updates to these systems can be minor while others can have major impacts and present implementation challenges for business registers.

This session seeks contributions on issues related to industrial classification systems and how these systems are implemented in the Business Register. The session seeks to understand the issues, challenges, strategies, and innovative methods for updating industrial classifications in the Business Register. This session also seeks contributions to better understand the sources and methods that statistical agencies use to update their industrial classification systems in the Business Register.

Contributions are invited and encouraged on a range of topics and issues related to industrial classification systems, including (but not limited to):

• The upcoming NACE or ISIC revision is of great importance to statistical agencies. For many countries it is a challenge to find the right sources, techniques, and methods to classify new activities like “factory-less goods producers,” the “sharing economy” (e.g., digital platforms) or “special purpose entities.” What plans and/or strategies are being developed for the implementation of the revised economic classification systems (ISIC and NACE)? What are some lessons learned from the recent NAICS 2022 revision?
• What are the current methods and procedures for updating statistical units to a new industrial classification system? What new techniques or methods (such as “auto-coding” statistical units, the use of text analysis, AI, machine learning, etc.) are used classify statistical units?
• What are some best practices for updating statistical units to a new industrial classification system that can be shared with the Business Register community?
• What are some challenging industrial classification issues? How are they handled?

An abstract of your paper should be submitted to the session leader (talan.david@bls.gov) and to the organizers (WiesbadenGroup2023@cbs.nl) by June 1, 2023.