Standard Industrial Classification (SIC) Codes were developed by the federal government to classify US businesses by their type of activity. Similar companies are grouped together and assigned a code. It is important to be able to compare companies against similar companies in their industry. The Standard Industrial Classification (SIC) system allows researchers to make these comparisons. SIC codes are 4-digit codes, designed by the Federal government, to classify business by industry type. For example, SIC 3571, Electronic Computers, is the classification for companies that manufacture computers. Many business research sources are arranged by SIC. When beginning your research on an industry, it is important to determine your SIC code. In 1997 the North American Industry Classification System (NAICS, pronounced "nakes") was adopted jointly by the U.S., Canada, and Mexico to replace the SIC. These codes were designed to be more descriptive than the SIC system and include emerging industries. However, many sources have yet to migrate to the NAICS system.