2017 North American Industry Classification System (NAICS) Revision
Under the authority of the Budget and Accounting Procedures Act of 1950 (31 U.S.C. 1104(d)) and the Paperwork Reduction Act of 1995 (44 U.S.C. 3504(e)), the Office of Management and Budget (OMB) is announcing that the Factoryless Goods Producer (FGP) recommendation will not be implemented in the 2017 NAICS revision. The August 17, 2011, Federal Register notice (76 FR 51240-51243) announcing OMB's final decisions for NAICS 2012 required Federal statistical agencies to implement the FGP classification beginning no later than 2017. However, the Economic Classification Policy Committee (ECPC), which advises OMB on periodic revisions to NAICS, recently reported to OMB that results of preliminary research on the effectiveness of survey questions designed to identify Factoryless Goods Producers (FGP) shows inconsistent results. These results indicate that questions tested in the 2012 Economic Census fail to yield responses that provide accurate and reliable identification and classification of FGPs. The ECPC has advised that additional research, testing, and evaluation are required to find a method for accurate identification and classification of FGPs, and that this process could take several years. Given these initial research results and the large number of public comments submitted on the topic of FGPs, OMB here announces that the FGP recommendation will not be implemented in 2017. OMB is taking this action now in order to give the affected agencies notice that the directive of the August 17, 2011, Federal Register notice (76 FR 51240- 51243) is no longer in force. Without the deadline imposed by the 2017 NAICS revisions, the relevant statistical agencies will now have the opportunity to complete the additional research, testing, and evaluation needed to determine the feasibility of developing methods for the consistent identification and classification of FGPs that are accurate and reliable. This process will also be informed by questions raised in public comments. Results of this research, testing, and evaluation could lead to a different FGP proposal for consideration or implementation. More information about this announcement may be found in the SUPPLEMENTARY INFORMATION section below.