The Federal statistical agencies use the standard referred to as the North American Industry System (NAICS) to classify business establishments with the aim of collecting, analyzing as well as publishing statistical data that is related to the business economy of the United States.
According to Krishnan & Press (2003), the NAICS was adopted in 1997 after its development under the auspices of the office of budget and management. It was adopted in order to replace the so-called standard industrial classification system (Kile & Phillips, 2009). This system was developed to ensure high level of comparability in terms of business statistics amongst the countries in North America.
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The following were the three member states that were responsible for its formation: Mexico, Canada and United States. Moreover, the latest information concerning the NAICS, for instance reference tools and files, can be found on the official website of the U.S government. ? This paper concentrates on an arrangement to give services to construct houses that will prevent misfortunes experienced from hurricanes in Houston, Texas The size of any industry can properly be defined by various factors: The number of firms contained in that industry can define its size, the size of the population served in terms of the number of customers as well as the number of workers can also be a clear indicator of the size (Krishnan & Press, 2003).
Finally, the size of the premises occupied by the industry also determines its size. Therefore, for this research, we will major on the number of firms or businesses and the number of employees contained in the industry. For this case, the NAICS consist of a grant total of more than 1000 employees working in the industry and a grant total of 15,692,526 businesses that are operated by the different businessmen. It is evident to suggest that this is a big industry based on the two perspectives. When it comes to the sales forecast, there is a clear indicator on sales increment in the subsequent trading periods. For instance, the predicted sales forecast for the following months are as described below: for the year ended July 2016, the sales hit $1,295,854.
This revealed an increase in the volume of sales after sales for the year ended July 2017 hit $1,858,796 (Dalziel, 2007). It is therefore evident that the sales forecast for this industry record a progressive trend” ” this is a good and a commendable trend. This is also shown by the graph drawn for the sales against the period in years which confirms the trend. Information on this industry can be summarized by considering the various characteristics which help to clearly get its clear picture. Therefore, the main characteristics include the following: the boundaries, geographic scope and the dominant economic characteristic of the industry.
The economic characteristics of the industry are the main focus of the industry as well as the economic information. Industry boundaries are obtained from the NAICS or SIC codes that are associated with the industry. Further information can be obtained from the analysis in the industry reports (Kelton et al, 2008). Finally, the geographic scope of the industry is discussed in the report of the industry. For example, sections on market segmentation and that often discuss the geographic segmentation of the industry were obtained from the data monitor reports that could only be accessed through business source complete. Organizations tend to ensure the highest confidentiality and security for their information and that may be very crucial and beneficial to their competitors.
This remains one of the reasons as to why this industry has employed the only access to its information through the use of NAICS codes, which are different, whereby one has to follow a critical and a procedural process in order to succeed in having access to their databases. The characteristics are fragmented such that every characteristic has to be obtained by use of different NAICS codes (Kelton et al, 2008). The website is the same and online access to the information is the common one applicable. The participants are therefore literate people with knowledge on matters of technology so that they can be in a position to access the website and follow the steps in accessing the information they require. Due to advancement in technology, the traditional means of information are being abolished due to modern means. The industry has a great market share in other companies.
The customers served are many due to its big size. Some of the ratios under this industry and that acts as a summary for its financial position include the following: Return on assets. Net income/total assets” 5845621/ 19971373*100= 29.27%
Current ratio: current assets /current liabilities ” 585737/390491= 1.5
The following are the key success factors that are adopted to give the industry a competitive edge: Environmental scanning: the analysis of the factors within and outside the industry that positively or negatively influence its profitability is conducted by the responsible people. For factors likely to cause adverse effects, necessary precaution and prevention is adopted with immediate effect. Investment in research and development: the industry allocates funds to investment activities so that new ways of doing things can be adopted.
Employee motivation: employees are motivated in terms of provision of recreation facilities, good working conditions and leave sessions to enable them have a peace of mind. Customer based: they ensure fair treatment of customers and prompt response to their complaints so as to retain them. Fair pricing: they ensure that their products are affordable in terms of prices charged. Advertising: They create awareness on their products and any new features. Some of the external environmental factors likely to continue shaping the trend of this industry include the political, economical, social and technological factors.
These can positively or adversely affect the operations of the industry. Measures should be taken to ensure that there is no adverse impact brought by certain environmental factors (Grineski et al, 2017). The input cost which encompasses the cost of raw materials and the cost of labor may go up with respect to the gains obtained. This is because, the as the size of customers increase, more output will be required thus calling for more input. In return, the gains will be more reaping more profits.
Any possibility of new entrants may be difficult due to the high input cost” ” this promises the industry a competitive hedge.
From the above discussion, it is evident thus sound to highlight the following facts concerning the NAICS: the industry has a large customer base, businesses as well as qualified and competent workforce” ” this acts as a guarantee for competitive hedge. It also has a unique way of saving and securing its confidential information. It cannot be hacked because the NAICS codes used to access it are different for different kinds of information.
Furthermore, there is a strict procedure to go. The safety of information is at a very high level. In addition, its forecasted sales from previous periods can guarantee a future welfare in terms of sales. If the trend progresses, I can see the industry emerging the best in the region.
Dalziel, M. (2007). A systems-based approach to industry classification. Research Policy, 36(10), 1559-1574.
Grineski, S. E., Collins, T. W., Chakraborty, J., & Montgomery, M. (2017). Hazard Characteristics and Patterns of Environmental Injustice: Household Level Determinants of Environmental Risk in Miami, Florida.? Risk analysis,? 37(7), 1419-1434.
Kelton, C. M., Pasquale, M. K., & Rebelein, R. P. (2008). Using the North American Industry Classification System (NAICS) to identify national industry cluster templates for applied regional analysis. Regional Studies, 42(3), 305-321.
Kile, C. O., & Phillips, M. E. (2009). Using industry classification codes to sample high- technology firms: Analysis and recommendations. Journal of Accounting, Auditing & Finance, 24(1), 35-58.
Krishnan, J., & Press, E. (2003). The north american industry classification system and its implications for accounting research. Contemporary Accounting Research, 20(4), 685- 717.
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