ENGL312 - Written Communications in Business

Understanding your industry is the first step in writing strong business communication. Whether you’re writing a report, proposal, or marketing plan, you’ll need to explain the environment your business operates in, including size, trends, competitors, and risks.

When you begin industry research, it helps to identify the official classification codes for your industry. The two most common systems are:

• NAICS (North American Industry Classification System) - The standard used in the U.S., Canada, and Mexico
• SIC (Standard Industrial Classification) - An older system that is still used in some resources

You can look up a code directly through the NAICS website, or find it indirectly by searching for a company in a library database. Most databases list the codes connected to each company and industry. Once you know the code, you can use it to search across multiple databases and government sources.

Industry codes are used to group companies by the type of products or services they provide. They are especially useful when searching databases for industry reports, benchmarking data, or competitor lists.

How NAICS codes are structured

• First 2 digits = Sector
• 3rd digit = Subsector
• 4th digit = Industry Group
• 5th digit = Industry
• 6th digit = National Industry

Example:

    722513 = Limited-Service Restaurants (fast food chains like McDonalds or Starbucks)

"NAICS Code Format" by TadgStirkland401 is licensed under CC BY-SA 4.0 .

Sources for Industry Classification:

Many industry databases use NAICS codes (North American Industry Classification System) to organize information. These six-digit codes are used by government agencies to classify businesses and collect data about the U.S. economy. Using the right NAICS code helps you find accurate, targeted industry data in databases.

Examples:

• 722511 - Restaurants
• 423450  - Medical Equipment & Devices
• 541921 - Photography Studios
• 812113 - Nail Salons 

You can look up your NAICS code at NAICS.com or find it in company profiles in Library databases like IBISWorld, Business Source Premier, or Mergent Intellect. IBISWorld also uses its own industry report codes for more specialized or emerging sectors (for example, OD4260 - Candle Manufacturing).

Recommended Databases:

For all other library databases, see the Library Databases page. To view business and economics databases only, filter by subject or go here.

Industry analysis goes beyond background information to explain why the industry is changing and how it affects businesses. This section helps you analyze the external factors that influence business decisions - economic, political, social, and technological trends.

When analyzing an industry, you can look for:

• What the economy is doing - is it growing, shrinking, or changing?
• Any laws or regulations that affect how the industry operates
• New technology or ways companies are becoming more sustainable
• The main challenges, opportunities, and future outlook for the industry

Recommended Databases:

For all other library databases, see the Library Databases page. To view business and economics databases only, filter by subject or go here.