The term industrial classification refers to the system by which businesses and industries are organized or classified in the United States. It uses a labeling system called Standard Industrial Classification (SIC) consisting of four digits. This system began in 1937 with a four-digit code where it was changed to a six-digit code and renamed the North America Industry Classification System (NAICS). This system is used by government agencies to classify different industrial areas, for example: Agriculture, Forestry, Fisheries, Mining, Transportation, Construction, etc. The industry classification was created by the U.S. government so it could analyze, measure, and share this data with other agencies. (Pearce, 1957) Before industrial classification was established, different branches of the U.S. government had their own method of analyzing a business where other agencies did not use it. It was difficult to share any kind of data with other agencies as they had their own methods. In the 1930s the need to develop a standard method that everyone agreed they could use increased. The United States created the Standard Industrial Classification (SIC) numeric code system in which it uses a top down format starting with the general characteristics down to the specific. The first two digits are specific to the type of industry such as agriculture, fishing and mining. The following figures refer to the subclassification of this company group. For example, if we are classifying a company that operates in the dairy industry, it will be assigned a code whose first two digits indicate that it operates specifically in the dairy industry. So the third digit would specify that they are located in t...... half of the document ......ISIC), 2013). In conclusion, the development of the Standard Industrial Classification created a method of recording data that categorized each company into an industry and therefore the industry is measurable by economy. Government agencies are able to use this data to measure even developing industries to ensure that they all meet their standard policies and objectives. It is also used to determine the economy of cities, states and nations as any change or trend will then change the supply and demand; change the economy. Government agencies use this data for strategic planning in their respective branches, just as companies use this data for strategic planning for corporate purposes. The result of this system created a manageable system that helps create what we have today as a well-organized industrial and economic system throughout the world.