Top 10 Industry NAICS Codes for Contracts in 2020
The government spends millions, every year, on products and services, from office supplies and airplanes to machinery and even fitness equipment.
Each business opportunity is assigned to at least one North American Industry Classification System (NAICS) code which allows these contracts to be tracked for research and reportable data in the future.
Being well versed with the NAICS Codes for Contracts in 2021 can help you in building a good working relationship with the government as it gives your business more visibility. Would you want to be seen?
It’s always good to know how you measure against your competitors. Given the numerous industries, you can narrow down the list by knowing which industries have been prospering in the federal marketplace.
With this in mind, here’s the top 10 industries that have won contracts in 2020.
Number one on our list is the aircraft manufacturing industry. They are responsible for manufacturing, modification and restoration of engines of different aircraft, space vehicles, guided missiles, and propulsion units.
Although the manufacturers of this industry depend heavily on the international market for their sales, they have a combined annual revenue of about $68 billion in 2020 for federal contracts.
Establishments that offer engineering services, design, develop and utilize machines and systems through applying physical laws and principles of engineering.
The U.S. engineering services industry includes about 65,000 establishments. They had a combined annual revenue of $39 billion from contract awards with the federal government alone.
The ship building and repairing establishments are engaged in operating a shipyard. They construct, repair, convert and alter, and produce prefabricated ship and barge sections. The cumulative amount obligated by the U.S. government in this industry is about $31 billion.
Facilities support services provide operating staff to perform a combination of support services within the client’s facilities. The support services being referred to are wide-ranging, from janitorial to guard and security, and then laundry.
Often forgotten and little recognized, they have always worked behind the scenes to keep facilities going and running at an optimal level. Contracts awards in 2020 under this code are worth around $30 billion.
Establishments that offer computer system design services are those who plan and design computer systems. Services that they offer include software support, computer systems design, and data processing facilities management. The combined annual revenue for government contract awards in this industry is $26 billion.
People in this industry are primarily responsible for the construction of commercial and institutional buildings and related structures, such as stadiums, grain elevators, and indoor swimming facilities.
The United States is one of the largest construction markets worldwide. Their spending on private and public construction continued to grow in 2020. More specifically, federal contract awards in businesses under this code in that year reached $24 billion.
This code is for the world of Research and Development. This pertains to businesses who conduct research and experimental development (except nanotechnology and biotechnology) in the fields of physical, engineering, and life sciences.
The federal government also invested about $24 billion in this industry. Although their research outputs have no guarantee for extension to product commercialization or final application, they are considered essential, as they increase the ‘knowledge base’ available to companies.
Guided missile and space vehicle manufacturing applies to establishments that manufacture complete guided missiles and space vehicles. They develop and make prototypes of guided missiles or space vehicles.
The demand for guided missiles is dependent on the government spending on defense. The government spending for contracts under this code last year was worth $22 billion.
Other computer related services, from the name itself, provide other computer related services that are not offered by establishments under 541512 (Computer Systems Designs Services).
More specifically, the services include computer disaster recovery and software installation services. This industry won $20 billion worth of federal contracts in 2020.
Last but not the least, as it is worth $19 billion in the federal marketplace, we have the industry that is all about research and development in the physical, engineering and life sciences engineering, and life sciences (except Biotechnology).
Businesses under this code conduct research and experimental developments in the field of science and mathematics.
Note: The NAICS Code 541712, however, is no longer valid. The NAICS Code that should be used instead is 541715. Unless the requirement is dealing with nanotechnology, in that case, the code 541713 should be used.
The list of the top 10 Industry NAICS Codes for Contracts from this article was taken from usaspending.gov, wherein federal awards in 2020 were listed from highest to lowest, according to their NAICS code and their respective cumulative amount obligated by the federal government.
To also learn more about all things NAICS, you can check out the website here.