Why Your Business Needs a Manufacturing NAICS Code
If you’re in the manufacturing industry, it’s important to ensure that you have the correct North American Industry Classification System (NAICS) code. A NAICS code is a classification system used by local, state, and federal entities to collect, analyze, and publish statistical data related to industries. It also determines whether your business is eligible for programs, grants, and certifications. Below are some reasons why your business should get a manufacturing NAICS code.
Benefits of Having a Manufacturing NAICS Code
1. Tax Incentives: Manufacturing businesses may be eligible for industry-specific tax incentives, which can help to reduce the amount of tax you pay.
2. Commercial Loans: Many lenders require businesses to have a NAICS code that corresponds to their industry, including manufacturing. Having the correct code can help to streamline the loan application process and improve your chances of approval.
3. Savings on Workers’ Compensation Premiums: Businesses in the manufacturing industry may be able to save on workers’ compensation premiums by having the correct NAICS code. This is because the premiums are often based on the risk associated with a particular industry.
4. Taxation Codes: The Internal Revenue Service (IRS) uses NAICS codes to classify businesses for tax purposes. Having the correct code can help to ensure that your business is paying the right amount of taxes.
5. Procurement: Government agencies and contractors often use NAICS codes to identify potential suppliers. Having the right code can help your business to be considered for government contracts and other procurement opportunities.
6. Insurance Benefits: Some insurance companies use NAICS codes to determine premiums and coverage options. Having the right code can help to ensure that you’re getting the best insurance coverage for your business.
Work With Your Local MEP to Update Your Manufacturing NAICS Code
It’s challenging to know which NAICS code is the most accurate for your business. Fortunately, there is a resource available to manufacturers that can help them update their NAICS code – the Manufacturing Extension Partnership (MEP) program. MEP centers are part of a nationwide network that provide technical assistance and consulting services to small and medium-sized manufacturers.
MEP centers can help manufacturers navigate the process of updating their NAICS code by providing guidance. The center’s staff can work with you to review your current operations and make recommendations on the best NAICS code that aligns with your business. They can also help you understand the implications of changing your NAICS code and how it may affect your eligibility for programs and certifications.
MEP centers have a wealth of knowledge about industry trends and standards, including updates to the NAICS codes. They can provide up-to-date information on changes to the code system and help you determine if your business is impacted. This is especially important for manufacturers expanding their operations, adding new products or services, or entering new markets.
As the southwest affiliate of the Ohio MEP, TechSolve is here to assist you through this process. Don’t hesitate to connect and let us know how we can be of service.