The North American Industry Classification System (NAICS) is the federal standard for classifying businesses based on economic activity. NAICS codes are essential for businesses pursuing federal opportunities and are used by government agencies for statistical analysis and contracting. If you want to register in SAM, apply for set-aside contracts, or conduct market research, your NAICS code determines your eligibility and competition.

Why Are NAICS Codes Important in 2025?

As federal procurement evolves, NAICS codes continue to impact small businesses. Here’s why they matter now more than ever:

• Contracting Opportunities – Agencies use NAICS codes to categorize solicitations and set-aside contracts for small businesses.

• Certifications & Set-Asides – Programs like 8(a), SDVOSB, HUBZone, and WOSB rely on NAICS code eligibility.

• GSA Schedules & BPA Agreements – Many federal purchasing programs filter vendors by NAICS codes.

• Market Research & Competitor Analysis – Knowing your NAICS code helps identify competitors and opportunities.

• Changes & Updates – The NAICS system is updated every five years, with the next update due in 2027. These updates may involve code splitting, merging, or redefinition, which could impact business size standards, contract eligibility, and market analysis.

How to Find and Use Your NAICS Code

1. Identify Your Business Activity – Visit the official site at www.census.gov/naics/ to look up your industry.

2. Choose the Closest Match – Select the code that best describes your primary business function.

3. Use Multiple Codes If Needed – If your business offers multiple services, you can have multiple NAICS codes.

4. Update Your SAM Registration – Ensure your NAICS codes are accurate in SAM.gov and any federal certifications.

5. Monitor Code Updates – Changes in NAICS codes can impact business eligibility and federal contracts, so businesses must proactively monitor updates.

5 FAQs About NAICS Codes

1. Can my business have multiple NAICS codes?

Yes! Many businesses operate in multiple industries and can have more than one NAICS code. However, your primary NAICS code should reflect the service or product that generates the most revenue.

2. How do NAICS codes impact federal contracts?

Government agencies use NAICS codes to classify contracts and determine small business size standards. If your business fits within the SBA’s small business criteria for your NAICS code, you may qualify for set-aside contracts.

3. Can I change my NAICS code?

Yes, businesses can update their NAICS codes at any time in SAM or when renewing their registration. However, changing your NAICS code should be done thoughtfully, as it can impact certifications, small business status, and contract eligibility.

4. What happens if my NAICS code changes?

NAICS codes are updated every five years, with the next revision set for 2027. Businesses should monitor these changes proactively, as they may lead to reclassification, eligibility shifts, or new contracting opportunities.

5. Where do I find my competitors’ NAICS codes?

You can use tools like SAM.gov, USAspending.gov, or the SBA’s DSBS (Dynamic Small Business Search) to find businesses with similar NAICS codes. However, not all company details may be public due to privacy restrictions.

Future of NAICS Codes in 2025

Federal procurement trends may lead to increased specialization of NAICS codes, potential legislative changes, and greater alignment with emerging industries. Keeping up with these trends will be crucial for businesses looking to stay competitive.

The Role of USFCR

US Federal Contractor Registration (USFCR) helps businesses navigate the complexities of federal contracting, from NAICS code selection to SAM registration and set-aside certifications. Whether you need market research, bid training, or full-service compliance support, USFCR provides expert guidance to streamline the process.

Your NAICS code is more than just a classification—it’s a key to unlocking federal contracting opportunities. Whether you’re bidding on contracts, seeking certifications, or analyzing the competition, keeping your NAICS codes up to date is critical for success in 2025. Need help navigating federal contracting? USFCR can guide you through the process.