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Federal Register / Vol. 86, No. 125 / Friday, July 2, 2021 / Notices
the production of advanced technologies.
3 Time series continuity is maintained to the extent possible.
4 The system strives for compatibility with the two-digit level of the International Standard Industrial Sector
Subsector

2-digit
3-digit

Industry Group
NAICS Industry

4-digit
5-digit

National Industry

6-digit

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of NAICS in 2022 was directly tied to the application of these four NAICS
principles.
NAICS uses a hierarchical structure to classify establishments from the broadest level to the most detailed level using the following format:

Sectors represent the highest level of aggregation. There are 20 sectors in NAICS.
Subsectors represent the next, more detailed level of aggregation. There are 99 subsectors in NAICS 2017.
Industry groups are more detailed than subsectors. There are 311 industry groups in NAICS 2017.
NAICS industries, in most cases, represent the lowest level of three-country comparability. There are 709 five-digit industries in NAICS 2017.
National industries are the most detailed level and represent the national level detail. There are 1,057 national industries in NAICS United States 2017.

To ensure the accuracy, timeliness, and relevance of the classification, NAICS is reviewed every five years to determine what, if any, changes are required. The 2022 revision will be the fifth since OMB adopted NAICS in 1997. The ECPC recognizes the costs involved when implementing industry classification revisions in statistical programs and the costs for data users when there are disruptions in the availability of data. The ECPC also recognizes the economic, statistical, and policy implications that arise when the industry classification system does not identify and account for important economic developments. Balancing the costs of change against the potential for more accurate and relevant economic statistics requires significant input from data producers, data providers, and data users.
In large part, this proposed revision addresses the 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. Section II.B Summary of ECPC
Recommendations for Online Industries in the Wholesale Trade, Retail Trade, and Information Sectors below describes the ECPC recommendations in more detail.

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Classification of All Economic Activities ISIC, Rev. 4 of the United Nations.
The ECPC is committed to maintaining the principles of NAICS
during revisions. The February 26, 2020, solicitation for public comment on questions related to a potential revision
II: Summary of Public Comments Regarding Priorities for Changes to NAICS in 2022; Summary of ECPC
Recommendations for Online Industries in the Wholesale Trade, Retail Trade, and Information Sectors; Update of Statistical Policy Directive No. 8, Standard Industrial Classification of Establishments; and Elimination of Statistical Policy Directive No. 9, Standard Industrial Classification of Enterprises A. Summary of Public Comments Regarding Priorities for Changes to NAICS in 2022
The February 26, 2020, Federal Register notice sought comments from the public specifically on the continued usefulness of the mode of delivery online versus in store/print as an industry delineation criterion in addition to comments on new and emerging industries and the proposed update of Statistical Policy Directive No.
8 and proposed elimination of Statistical Policy Directive No. 9. These focus areas were highlighted in Parts II
VII of that notice.
In response to the February 26, 2020, notice, the ECPC received 63 individual submissions. Each submission was assigned a unique docket number. These 63 submissions addressed the focus areas included in Parts IIVII of the February 26, 2020, notice and/or included comments proposing other changes to NAICS 2017.
The ECPC applied the following general guidance when considering changes to NAICS in 2022:
1 Because of the cost of change and the disruption of statistical data series that have already resulted from the ongoing implementation of NAICS, the ECPC will limit the scope of NAICS
changes for 2022 to those that significantly improve the relevance and efficiency of the classification system;
2 The ECPC will recommend new and emerging industries identified through the comment process that are
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supported by the guiding principles of NAICS; and 3 The ECPC will make changes to account for errors and omissions as well as recommend narrative improvements to clarify the content of existing industries.
The ECPC also considered the views of its member agencies when evaluating specific proposals for changes to NAICS
in 2022. The ECPC reviewed each individual proposal within the existing framework of the principles of NAICS.
Additional considerations that resulted in recommendations for or against change included issues of relevance, size, and time series continuity.
The ECPC received a wide ranging and eclectic set of suggestions in response to this solicitation. Single submissions often addressed more than one issue, and many submissions addressed common issues. Of the 63
uniquely numbered submissions received in response to the Federal Register notice, most submissions responded with ideas for new or emerging industries or changes to existing industries to reflect new or emerging issues within the industries:
14 supported a new sector for remanufacturing industries, or, alternatively, new industries for remanufacturing; three requested changes for early child care and education; two requested revisions to better reflect the bioeconomy and biobased products; two requested a new industry for compost manufacturing;
two supported new vegan industries;
two requested a new industry for construction specifications consulting;
and two requested a new industry group for farm supply retailers. Single comments requested various new industries or clarifications within existing industries, including aerial wildland firefighting, interior demolition, audio visual services, refrigerant handling and management, agents for wireless telecommunications
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