The Standard Industrial Classification (SIC) code for water supply is 4941. This specific code is designated for establishments primarily engaged in the distribution of water for domestic, commercial, and industrial use.
Understanding SIC Codes
Standard Industrial Classification (SIC) codes are four-digit numerical codes used by government agencies and various industries to classify businesses based on their primary activities. Although largely superseded by the North American Industry Classification System (NAICS) for many official statistical purposes, SIC codes remain relevant for historical data analysis, financial reporting, and specific regulatory contexts. They provide a structured way to categorize and compare businesses across different sectors.
SIC Code 4941: Water Supply
The 4941 SIC code precisely identifies the "Water Supply" industry. This classification encompasses companies involved in the entire process of water provision, from sourcing and treatment to distribution. Businesses under this code are responsible for managing water resources, implementing purification processes, and maintaining the extensive infrastructure, such as pipelines and pumping stations, necessary to deliver potable water to consumers.
Here is a quick reference for the SIC code for Water Supply:
| SIC Code | Sub-Industry |
|---|---|
| 4941 | Water Supply |
Publicly traded water supply companies often fall under the broader SIC Code 494 for Water Supply and Sanitary Services, with 4941 being the specific sub-industry. For example, financial platforms that track industry classifications, such as Fintel, categorize businesses accordingly. As per such categorizations, there are 16 publicly traded companies specifically listed under SIC Code 4941, underscoring its precise application in identifying water utility service providers.
Importance and Applications of SIC Codes
SIC codes, including 4941, serve several critical functions across various sectors:
- Industry Identification: They provide a standardized method for identifying and classifying businesses by their primary economic activity.
- Market Research: Businesses and analysts use these codes to define markets, analyze competition, and identify potential partners or acquisition targets.
- Regulatory Compliance: Many government regulations, permits, and licensing requirements are tied to specific SIC codes, ensuring businesses adhere to industry-specific standards.
- Financial Analysis: Investors and financial professionals utilize SIC codes to compare company performance within the same industry sector and for portfolio diversification.
By offering a clear and consistent classification system, SIC codes facilitate communication and understanding across diverse economic landscapes.
