Data classification: LAND USE SECTION & SIC codes

[mdsimpson42]

(Notes from a meeting with Polly - 09/02/2024)

@MKIM1008 is currently comparing ISIC codes with Britain's SIC codes (international standard industrial classification). This has around 14,000 options for land use activities that are relevant to all countries. Look at how easy it is to integrate the classification database into Colouring Core.

@MKIM1008 can you share the file with @mdsimpson42 once you have confirmed?

Investigate how to improve the search function.

[MKIM1008]

@mdsimpson42, @polly64

The analysis will be completed this week.

SIC - 21 categories, 731 sub-categories ISIC - 21 categories, 673 sub-categories

[polly64]

Co-working needed on international land use activity and links to NAIC database plus code for generic local land use classification systems

[polly64]

Priority is high re this issues because of the scale of interest in land use data and that harmonisation across countries is complex. Work is now being done at Loughborough @MKIM1008 on this with Turing. @ogavalda and @popcorndoublefeature can we have a chat about this?

The proposal is to

a) Use the North America Industrial Classification System (NAICS) (used in US , Canada and Mexico) as a foundation to facilitate cross country analysis. This is linked to the UN ISIC codes which are used by many countries, NACE used in Europe and ANZSIC used in Australia and New Zealand.

Differences between systems https://newspaceeconomy.ca/2023/04/09/naics-and-comparable-classification-systems-similarities-and-differences/

NAICS, ISIC, NACE, and ANZSIC are essential classification systems for understanding and analyzing the global economy. While these systems have several similarities, such as hierarchical structure and compatibility for international data analysis, they also have unique characteristics tailored to the regions and countries they serve.

1. Geographical Scope NAICS is specific to North America, ISIC is a global standard, NACE is for the European Union, and ANZSIC is exclusive to Australia and New Zealand.

2. Coding System While NAICS, ISIC, and ANZSIC use numeric codes, NACE uses alphanumeric codes for classification.

3. Specificity and Adaptations Each system has unique adaptations and specificities to cater to the needs of the regions or countries they represent. For instance, NACE includes certain classifications unique to the European Union, while ANZSIC incorporates economic activities specific to Australia and New Zealand.

4. Frequency of Updates The frequency of updates for each system varies. NAICS is updated every five years, while ISIC, NACE, and ANZSIC revisions depend on the need for updates and changes in the respective economies.

5. Number of Levels and Codes The number of hierarchical levels and codes within each classification system differs. NAICS has six-digit codes, ISIC has five-digit codes, and both NACE and ANZSIC have four levels with varying code lengths. Other Classification Systems

6. Other countries also have their own version of industrial activity classifications. The United Nations maintains a list that identifies which classification systems are used by which countries. Space Economy Size Estimates

New industries are recognized in NAICS including services producing industries/computer technology that are not recognised in UN ISIC. NAICS includes 1,170 industries. It is updated every 5 years. https://www.census.gov/naics/reference_files_tools/2022_NAICS_Manual.pdf (ISIC is the conceptual foundation of NAICS.

_'NAICS codes provide a greater level of detail about a firm's activity than ISIC codes. NAICS includes 1,170 industries and SIC includes 1,004 industries. There are 358 new industries recognized in NAICS, 250 of which are services producing industries.

Additionally, NAICS codes are based on a consistent, economic concept, while SIC codes are not. For NAICS codes, establishments that use the same or similar processes to produce goods or services are grouped together. Industries under the SIC codes were grouped together based on either demand or production.

Unlike SIC codes, the NAICS codes were developed by the U.S. federal government in cooperation with Canadian and Mexican statistical agencies. Because both Canada and Mexico use NAICS for their industry classifications, government and business analysts are now able to compare directly industrial production statistics collected and published in the three North American Free Trade Agreement countries. Additionally, NAICS provides for increased comparability with the International Standard Classification System (ISIC, Revision 3), developed and maintained by the United Nations (This information was taken from the U.S. Census Bureau web site)._

b) Replace NLUD dropdown with link to NAIC classification database (how easy?) but rename some main sectors on the UI for simplification of map visualisations. Add existing classes for unverified residential, verified residential and presumed non-residential - this allows CCRP land use maps to be set up with 'unverified residential' as the default colour, as over 90% of most towns and cities will likely be pure residential. Focus is instead placed on verifying pure residential and adding non-residential info. @MKIM1008 could you put a table here with NAIC versus those proposed for CCRP platforms, and a link to the NAIC database, thanks

c) Configure code so CCRP partners can add additional SIC subcategories used within individual countries, to the NAIC foundation, provided that these are tagged with a number, which country they are used in and source they are taken from.

d) Configure code so CCRP Partners can also link NAIC codes to local/national land activity classification codes in the UK we will probably need to do this for tax office and planning classifications which are different. (Testing to carried out by Loughborough University working with Turing in the UK

e) Assist users in adding land use information by creating a nested dropdown showing the 2 digit level only. Allow data to be entered at 2 digit code level as a minimum, but with options for providing greater detail at 3 digit, 4 digit an 5 digit code levels.

f) These are examples of links for countries

• Australia: ANZSIC: https://www.dcceew.gov.au/environment/protection/npi/reporting/industry-reporting-materials/anzsic-code-list
• Canada: NAICS: https://www.census.gov/naics/
• Philippines: PSIC: https://unstats.un.org/unsd/classifications/Meetings/UNCEISC2022/UNCEISC_2022_meeting_Session_3c4_Philippines_PSIC_Highlights.pdf @jtdimasaka can you confirm this is right link for Philippines?
• Sweden and Germany: NACE:
  '_NACE Rev. 2 (Statistical Classification of Economic Activities in the European Community, in French "Nomenclature générale des Activités économiques dans les Communautés Européennes") is the European standard classification of productive economic activities corresponding to ISIC Rev. 4 at European level. It is the subject of legislation at the European Union level[1], which imposes the use of this classification uniformly within all the Member States_'.https://joinup.ec.europa.eu/collection/eu-semantic-interoperability-catalogue/solution/statistical-classification-economic-activities-european-community. (NB NACE unlike others uses alphanumeric codes not numeric as NAICS, ISIC and ANZSIC)
• UK SIC https://resources.companieshouse.gov.uk/sic/

[brianhurley]

Some recent reports that may be of interest/relevant:

https://newspaceeconomy.ca/2024/01/15/report-developing-a-space-economy-thematic-account-for-europe-eu-esa-2023/

https://newspaceeconomy.ca/2024/01/15/report-international-north-american-and-european-statistical-classifications-for-space-economy-measurement-oecd-bea-esa-eu-2023/

@brianhurley Many thanks !

[polly64]

I will write to RS about this for the US. @popcorndoublefeature does IOER possibly have contacts in the European Space Agency so we can see if we can test the harmonised classification system? Fantastic that there is rigorous up-to-date work across international agencies on this!

I have sent out any email to international partners in case anyone knows any of the authors of the report

[MKIM1008]

This is a comparison between the NAICS codes and Colouring Cites codes. I have highlighted certain aspects within the NAICS codes in blue.

• NAICS distinguishes between Utilities and Construction.
• NAICS categorises Wholesale and Retail as separate entities.
• NAICS differentiates between Financial Services and Retail Services.

Additionally:

• NAICS has a distinct code for Management of Companies and Enterprises.
• NAICS has a distinct code for Administrative and Support and Waste Management and Remediation Services - We only need to consider Waste Management and Remediation, as we have this in Other services provided in bespoke premises (business support services, call centers, etc,)

https://www.census.gov/naics/?58967?yearbck=2022 <html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:x="urn:schemas-microsoft-com:office:excel" xmlns="http://www.w3.org/TR/REC-html40"> <html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:x="urn:schemas-microsoft-com:office:excel" xmlns="http://www.w3.org/TR/REC-html40">

NAICS code | North American Industry Classification System | NAICS code | Proposed Colouring Cities main categories | NAICS code | Test -- | -- | -- | -- | -- | -- 11 | Agriculture, Forestry, Fishing and Hunting | 11 | Agriculture, forestry and fishing | 11 | Agriculture, forestry and fishing 21 | Mining, Quarrying, and Oil and Gas Extraction | 21 | Mining and quarrying | 21 | Mining and quarrying 22 | Utilities | 22-23 | Utilities & Infrastructure | 22-23 | Utilities & Infrastructure 23 | Construction |   |   |   |   31-33 | Manufacturing | 31-33 | Manufacturing | 31-33 | Manufacturing 42 | Wholesale Trade | 42, 44-45 | Retail and Wholesale | 42, 44-45 | Retail and Wholesale 44-45 | Retail Trade |   |   |   |   48-49 | Transportation and Warehousing | 48-49 | Transportation and storage | 48-49 | Transportation and storage 51 | Information |   |   | 51 | Information & Communication 52 | Finance and Insurance | 52, 53 | Financial, Insurance & Real estate services | 52, 53 | Financial, Insurance & Real estate services 53 | Real Estate and Rental and Leasing |   |   |   |   54 | Professional, Scientific, and Technical Services | 54 | Professional and other services | 54 | Professional, Scientific, and Technical Activities 55 | Management of Companies and Enterprises |   |   |   |   56 | Administrative and Support and Waste Management and Remediation Services |   |   |   |   61 | Educational Services | 61 | Education | 61 | Education 62 | Health Care and Social Assistance | 62 | Health & Wellbeing | 62 | Health & Wellbeing 71 | Arts, Entertainment, and Recreation | 71 | Arts, entertainment and recreation | 71 | Arts, entertainment and recreation 72 | Accommodation and Food Services | 72 | Eating, drinking and leisure accommodation | 72 | Eating, drinking and leisure accommodation 81 | Other Services (except Public Administration) |   |   |   |   92 | Public Administration | 92 | Other Community Services  / Defence | 92 | Other Public Services  / Defence   |   | ? | Online and hybrid business services | ? | Online and hybrid business services   |   |   |   | ? | Other services provided in bespoke premises (e.g. hair dressers, motor repairs, funeral parlour, renting equipments, selling travel services, etc.)   |   |   |   | ? | Company offices not-categorised   |   | ? | Mixed use | ? | Mixed use   |   | ? | Other (household based activities) | ? | Other