Integrated Business Statistics Program (IBSP)

Reporting Guide

This guide is designed to assist you as you complete the 2025 Annual Survey of Research and Development in Canadian Industry. If you need more information, please call the Statistics Canada Help Line at the number below.

Help Line: 1-877-949-9492

Your answers are confidential.

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act.

Statistics Canada will use information from this survey for statistical purposes.

NOTE:

1. If this business performs in-house research and development (R&D) and outsources R&D, complete all questions.
2. If this business performs in-house R&D and does not outsource R&D, complete questions 1-5 & 8-21.
3. If this business outsources R&D and does not perform in-house R&D, complete questions 1-3, 5-7, 12 & 16-21.
4. If this business does not perform in-house R&D and does not outsource R&D, complete questions 1-3, 5, 12, 16, 17 & 19-21.

Difference between Scientific Research and Experimental Development (SR&ED) tax incentive program and this survey

Include the following expenditures in this survey:

• capital R&D expenditures
• R&D expenditures in the social sciences and humanities
• payments for R&D performed by other organizations outside Canada.

For this survey

'In-house R&D' refers to

Expenditures within Canada for R&D performed within this business by:

• employees (permanent, temporary or casual)
• self-employed individuals or contractors who are working on-site on this business's R&D projects.

'Outsourced R&D' refers to

Payments made within or outside Canada to other businesses, organizations or individuals to fund R&D performance:

• grants
• fellowships
• contracts.

Reporting period information

Here are some examples of fiscal periods that fall within the targeted dates:

• May 1, 2024 to April 30, 2025
• July 1, 2024 to June 30, 2025
• October 1, 2024 to September 30, 2025
• January 1, 2025 to December 31, 2025
• February 1, 2025 to January 31, 2026
• April 1, 2025 to March 31, 2026

Here are other examples of fiscal periods that fall within the targeted dates:

• September 18, 2024 to September 15, 2025 (e.g., floating year-end)
• June 1, 2025 to December 31, 2025 (e.g., a newly opened business)

Definitions and Concepts

Research and experimental development (R&D) comprise creative and systematic work undertaken in order to increase the stock of knowledge – including knowledge of humankind, culture and society – and to devise new applications of available knowledge.

R&D is performed in the natural sciences, engineering, social sciences and humanities. There are three types of R&D activities: basic research, applied research and experimental development.

Activities included and excluded from R&D

Inclusions

Prototypes

Include design, construction and operation of prototypes, provided that the primary objective is to make further improvements or to undertake technical testing. Exclude if the prototype is for commercial purposes.

Clinical Trials

Include clinical trial phases 1, 2, and 3. Include clinical trial phase 4 only if it brings about a further scientific or technological advance.

Pilot plants

Include construction and operation of pilot plants, provided that the primary objective is to make further improvements or to undertake technical testing. Exclude if the pilot plant is intended to be operated for commercial purposes.

New computer software or significant improvements/modifications to existing computer software

Includes technological or scientific advances in theoretical computer sciences; operating systems e.g., improvement in interface management, developing new operating system or converting an existing operating system to a significantly different hardware environment, programming languages, and applications if a significant technological change occurs.

Contracts

Include all contracts which require R&D. For contracts which include other work, report only the R&D costs.

Research work in the social sciences

Include if projects are employing new or significantly different modelling techniques or developing new formulae, analyzing data not previously available or applying new research techniques, development of community strategies for disease prevention, or health education.

Exclude:

• routine analytical projects using standard techniques and existing data
• routine market research
• routine statistical analysis intended for on-going monitoring of an activity.

Exclusions

Routine analysis in the social sciences including policy-related studies, management studies and efficiency studies

Exclude analytical projects of a routine nature, with established methodologies, principles and models of the related social sciences to bear on a particular problem (e.g., commentary on the probable economic effects of a change in the tax structure, using existing economic data; use of standard techniques in applied psychology to select and classify industrial and military personnel, students, etc., and to test children with reading or other disabilities).

Consumer surveys, advertising, market research

Exclude projects of a routine nature, with established methodologies intended for commercialization of the results of R&D.

Routine quality control and testing

Exclude projects of a routine nature, with established methodologies not intended to create new knowledge, even if carried out by personnel normally engaged in R&D.

Pre-production activities such as demonstration of commercial viability, tooling up, trial production, and trouble shooting

Although R&D may be required as a result of these steps, these activities are excluded.

Prospecting, exploratory drilling, development of mines, oil or gas wells

Include only if for R&D projects concerned with new equipment or techniques in these activities, such as in-situ and tertiary recovery research.

Engineering

Exclude engineering unless it is in direct support of R&D.

Design and drawing

Exclude design and drawing unless it is in direct support of R&D.

Patent and license work

Exclude all administrative and legal work connected with patents and licenses.

Cosmetic modifications or style changes to existing products

Exclude if no significant technical improvement or modification to the existing products has occurred.

General purpose or routine data collection

Exclude projects of a routine nature, with established methodologies intended for on-going monitoring of an activity.

Routine computer programming, systems maintenance or software application

Exclude projects of a routine nature, with established methodologies intended to support on-going operations.

Routine mathematical or statistical analysis or operations analysis

Exclude projects of a routine nature, with established methodologies intended for on-going monitoring of an activity.

Activities associated with standards compliance

Exclude projects of a routine nature, with established methodologies intended to support standards compliance.

Specialized routine medical care such as routine pathology services

Exclude projects of a routine nature, with established methodologies intended for on-going monitoring of an activity, where results do not further scientific, technological advance, or understanding of the effectiveness of a technology.

In-house R&D expenditures within Canada (Q4 - Q7)

In-house R&D expenditures are composed of current in-house R&D expenditures and capital in-house R&D expenditures.

Current in-house R&D expenditures

Include:

• wages, salaries, benefits and fringe benefits, materials and supplies
• services to support R&D, including on-site R&D consultants and contactors
• necessary background literature
• minor scientific equipment
• associated administrative overhead costs.

a. Wages, salaries of permanent, temporary and casual R&D employees

Include benefits and fringe benefits of employees engaged in R&D activities. Benefits and fringe benefits include bonus payments, holiday or vacation pay, pension fund contributions, other social security payments, payroll taxes, etc.

b. Services to support R&D

Include:

• payments to on-site R&D consultants and contractors working under the direct control of your business
• other services including indirect services purchased to support in-house R&D such as security, storage, repair, maintenance and use of buildings and equipment
• computer services, software licensing fees and dissemination of R&D findings.

c. R&D materials

Include:

• water, fuel, gas and electricity
• materials for creation of prototypes
• reference materials (books, journals, etc.)
• subscriptions to libraries and databases, memberships to scientific societies, etc.
• cost of outsourced (contracted out or granted) small R&D prototypes or R&D models
• materials for laboratories (chemicals, animals, etc.)
• all other R&D-related materials.

d. All other current R&D costs including overhead

Include administrative and overhead costs (e.g., office, lease/rent, post and telecommunications, internet, legal expenditures, insurance), prorated if necessary to allow for non-R&D activities within the business.

Exclude:

• interest charges
• value-added taxes (goods and services tax (GST) or harmonized sales tax (HST)).

Capital in-house R&D expenditures

Capital in-house R&D expenditures are the annual gross amount paid for the acquisition of fixed assets that are used repeatedly, or continuously in the performance of R&D for more than one year. Report capital in-house R&D expenditures in full for the period when they occurred.

Include costs for software, land, buildings and structures, equipment, machinery and other capital costs.

Exclude capital depreciation.

e. Software

Include applications and systems software (original, customized and off-the-shelf software), supporting documentation and other software-related acquisitions.

f. Land acquired for R&D including testing grounds, sites for laboratories and pilot plants.

g. Buildings and structures that are constructed or purchased for R&D activities or that have undergone major improvements, modifications, renovations and repairs for R&D activities.

h. Equipment, machinery and all other capital

Include major equipment, machinery and instruments, including embedded software, acquired for R&D activities.

Outsourced (contracted out or granted) R&D expenditures (Q8 - Q11)

Include payments made through contracts, grants donations and fellowships to another company, organization or individual to purchase or fund R&D activities.

Exclude expenditures for on-site R&D contractors.

1. Parent and subsidiary companies are companies connected to each other through majority ownership of the subsidiary company by the parent company. Affiliated companies are companies connected to a parent through minority ownership of the affiliated companies by the parent.
2. Companies include all incorporated for-profit businesses and government business enterprises providing products in the market at market rates.
3. Private non-profit organizations include voluntary health organizations, private philanthropic foundations, associations and societies and research institutes. They are not-for-profit organizations that serve the public interest by supporting activities related to public welfare (such as health, education, the environment).
4. Industrial research institutes or associations include all non-profit organizations that serve the business sector, with industrial associations frequently consisting of their membership.
5. Universities include hospitals and clinics when they are affiliated with a university and provide education services or when R&D activity is under the direct control of a university.
6. Federal government includes all federal government departments and agencies. It excludes federal government business enterprises providing products in the market.
7. Provincial or territorial governments include all provincial or territorial government ministries, departments and agencies. It excludes provincial or territorial government business enterprises providing products in the market.
8. Provincial or territorial research organizations are organizations created under provincial or territorial law which conduct or facilitate research on behalf of the province or territory.
9. Other organizations – individuals, non-university educational institutions, foreign governments including ministries, departments and agencies of foreign governments.

Sources of funds for in-house R&D expenditures in 2025 (Q16)

Include Canadian and foreign sources.

Exclude:

• payments for outsourced (contracted out or granted) R&D, which should be reported in question 9
• capital depreciation.

1. Funds from this business

   Amount contributed by this business to R&D performed within Canada (include amounts eligible for income tax purposes, e.g., Scientific Research and Experimental Development (SR&ED) program, other amounts spent for projects not claimed through SR&ED, and funds for land, buildings, machinery and equipment (capital expenditures) purchased for R&D).

2. Funds from parent, affiliated and subsidiary companies

   Amount received from parent, affiliated and subsidiary companies used to perform R&D within Canada (include amounts eligible for income tax purposes, e.g., Scientific Research and Experimental Development (SR&ED) program, other amounts spent for projects not claimed through SR&ED, and funds for land, buildings, machinery and equipment (capital expenditures) purchased for R&D).

3. Federal government grants or funding

   Funds received from the federal government in support of R&D activities not connected to a specific contractual deliverable.

4. Federal government contracts

   Funds received from the federal government in support of R&D activities connected to a specific contractual deliverable.

5. R&D contract work for other companies

   Funds received from other companies to perform R&D on their behalf.

6. Provincial or territorial government grants or funding

   Funds received from the provincial or territorial government in support of R&D activities not connected to a specific contractual deliverable.

7. Provincial or territorial government contracts

   Funds received from the provincial or territorial government in support of R&D activities connected to a specific contractual deliverable.

8. R&D contract work for private non-profit organizations

   Funds received from non-profit organizations to perform R&D on their behalf.

9. Other sources

   Funds received from all other sources not previously classified.

Fields of R&D for in-house R&D expenditures within Canada in 2025 (Q18)

Exclude:

• payments for outsourced (contracted out or granted) R&D, which should be reported in question 9
• capital depreciation.

Natural and formal sciences

Mathematics, physical sciences, chemical sciences, earth and related environmental sciences, biological sciences, other natural sciences.

Exclude computer sciences, information sciences and bioinformatics (to be reported at lines s. and t.)

1. Mathematics: pure mathematics, applied mathematics, statistics and probability.
2. Physical sciences: atomic, molecular and chemical physics, interaction with radiation, magnetic resonances, condensed matter physics, solid state physics and superconductivity, particles and fields physics, nuclear physics, fluids and plasma physics (including surface physics), optics (including laser optics and quantum optics), acoustics, astronomy (including astrophysics, space science).
3. Chemical sciences: organic chemistry, inorganic and nuclear chemistry, physical chemistry, polymer science and plastics, electrochemistry (dry cells, batteries, fuel cells, metal corrosion, electrolysis), colloid chemistry, analytical chemistry.
4. Earth and related environmental sciences: geosciences, geophysics, mineralogy and palaeontology, geochemistry and geophysics, physical geography, geology and volcanology, environmental sciences, meteorology, atmospheric sciences and climatic research, oceanography, hydrology and water resources.
5. Biological sciences: cell biology, microbiology and virology, biochemistry, molecular biology and biochemical research, mycology, biophysics, genetics and heredity (medical genetics under medical biotechnology), reproductive biology (medical aspects under medical biotechnology), developmental biology, plant sciences and botany, zoology, ornithology, entomology and behavioural sciences biology, marine biology, freshwater biology and limnology,  ecology and biodiversity conservation, biology (theoretical, thermal, cryobiology, biological rhythm), evolutionary biology.
6. Other natural sciences: other natural sciences.

Engineering and Technology

Civil engineering, electrical engineering, electronic engineering and communications technology, mechanical engineering, chemical engineering, materials engineering, medical engineering, environmental engineering, environmental biotechnology, industrial biotechnology, nanotechnology, other engineering and technologies.

Exclude software engineering and technology (to be reported at line r).

7. Civil engineering: civil engineering, architecture engineering, municipal and structural engineering, transport engineering.
8. Electrical engineering, electronic engineering and communications technology: electrical and electronic engineering, robotics and automatic control, micro-electronics, semiconductors, automation and control systems, communication engineering and systems, telecommunications, computer hardware and architecture.
9. Mechanical engineering: mechanical engineering, applied mechanics, thermodynamics, aerospace engineering, nuclear-related engineering (nuclear physics under Physical sciences), acoustical engineering, reliability analysis and non-destructive testing, automotive and transportation engineering and manufacturing, tooling, machinery and equipment engineering and manufacturing, heating, ventilation and air conditioning engineering and manufacturing.
10. Chemical engineering: chemical engineering (plants, products), chemical process engineering.
11. Materials engineering: materials engineering and metallurgy, ceramics, coating and films (including packaging and printing), plastics, rubber and composites (including laminates and reinforced plastics), paper and wood and textiles, construction materials (organic and inorganic).
12. Medical engineering: medical and biomedical engineering, medical laboratory technology (excluding biomaterials, which should be reported under Industrial biotechnology).
13. Environmental engineering: environmental and geological engineering, petroleum engineering (fuel, oils), energy and fuels, remote sensing, mining and mineral processing, marine engineering, sea vessels and ocean engineering.
14. Environmental biotechnology: environmental biotechnology, bioremediation, diagnostic biotechnologies in environmental management (DNA chips and bio-sensing devices).
15. Industrial biotechnology: industrial biotechnology, bioprocessing technologies, biocatalysis and fermentation bioproducts (products that are manufactured using biological material as feedstock), biomaterials (bioplastics, biofuels, bioderived bulk and fine chemicals, bio-derived materials).
16. Nanotechnology: nano-materials (production and properties), nano-processes (applications on nano-scale).
17. Other engineering and technologies: food and beverages, oenology, other engineering and technologies.

Software-related sciences and technology

Software engineering and technology, computer sciences, information technology and bioinformatics.

18. Software engineering and technology: computer software engineering, computer software technology, and other related computer software engineering and technologies.
19. Computer sciences: computer science, artificial intelligence, cryptography, and other related computer sciences.
20. Information technology and bioinformatics: information technology, informatics, bioinformatics, biomathematics, and other related information technologies.

Medical and health sciences

Basic medicine, clinical medicine, health sciences, medical biotechnology, other medical sciences.

21. Basic medicine: anatomy and morphology (plant science under biological science), human genetics, immunology, neurosciences, pharmacology and pharmacy and medicinal chemistry, toxicology, physiology and cytology, pathology.
22. Clinical medicine: andrology, obstetrics and gynaecology, paediatrics, cardiac and cardiovascular systems, haematology, anaesthesiology, orthopaedics, radiology and nuclear medicine, dentistry, oral surgery and medicine, dermatology, venereal diseases and allergy, rheumatology, endocrinology and metabolism and gastroenterology, urology and nephrology, and oncology.
23. Health sciences: health care sciences and nursing, nutrition and dietetics, parasitology, infectious diseases and epidemiology, occupational health.
24. Medical biotechnology: health-related biotechnology, technologies involving the manipulation of cells, tissues, organs or the whole organism, technologies involving identifying the functioning of DNA, proteins and enzymes, pharmacogenomics, gene-based therapeutics, biomaterials (related to medical implants, devices, sensors).
25. Other medical sciences: forensic science, other medical sciences.

Agricultural Sciences

Agriculture, forestry and fisheries sciences, animal and dairy sciences, veterinary sciences, agricultural biotechnology, other agricultural sciences.

26. Agriculture, forestry and fisheries sciences: agriculture, forestry, fisheries and aquaculture, soil science, horticulture, viticulture, agronomy, plant breeding and plant protection.
27. Animal and dairy sciences: animal and dairy science, animal husbandry.
28. Veterinary sciences: veterinary science (all).
29. Agricultural biotechnology: agricultural biotechnology and food biotechnology, genetically modified (GM) organism technology and livestock cloning, diagnostics (DNA chips and biosensing devices), biomass feedstock production technologies and biopharming.
30. Other agricultural sciences: other agricultural sciences.

Social sciences and humanities

Psychology, educational sciences, economics and business, other social sciences, humanities.

31. Psychology: cognitive psychology and psycholinguistics, experimental psychology, psychometrics and quantitative psychology, and other fields of psychology.
32. Educational sciences: education, training and other related educational sciences.
33. Economics and business: micro-economics, macro-economics, econometrics, labour economics, financial economics, business economics, entrepreneurial and business administration, management and operations, management sciences, finance and all other related fields of economics and business.
34. Other social sciences: anthropology (social and cultural) and ethnology, demography, geography (human, economic and social), planning (town, city and country), management, organization and methods (excluding market research unless new methods/techniques are developed), law, linguistics, political sciences, sociology, miscellaneous social sciences and interdisciplinary, and methodological and historical science and technology activities relating to subjects in this group.
35. Humanities: history (history, prehistory and history, together with auxiliary historical disciplines such as archaeology, numismatics, palaeography, genealogy, etc.), languages and literature (ancient and modern), other humanities (philosophy (including the history of science and technology)), arts (history of art, art criticism, painting, sculpture, musicology, dramatic art excluding artistic "research" of any kind), religion, theology, other fields and subjects pertaining to the humanities, and methodological, historical and other science and technology activities relating to the subjects in this group.

In-house R&D personnel in 2025 (Q70 - Q72)

Include:

• permanent, temporary and casual R&D employees
• independent on-site R&D consultants and contractors working in your business's offices, laboratories, or other facilities
• employees engaged in R&D-related support activities.

Researchers and research managers are composed of:

1. Scientists, social scientists, engineers and researchers are professionals engaged in the conception or creation of new knowledge. They conduct research and improve or develop concepts, theories, models, techniques instrumentation, software or operational methods. They may be certified by provincial or territorial educational authorities, provincial, territorial or national scientific or engineering associations.
2. Senior research managers plan or manage R&D projects and programs. They may be certified by provincial or territorial educational authorities, provincial, territorial or national scientific or engineering associations.

R&D technical, administrative and support staff are composed of:

3. Technicians and technologists and research assistants are persons whose main tasks require technical knowledge and experience in one or more fields of engineering, the physical and life sciences, or the social sciences, humanities and the arts. They participate in R&D by performing scientific and technical tasks involving the application of concepts, operational methods and the use of research equipment, normally under the supervision of researchers. They may be certified by provincial or territorial educational authorities, provincial, territorial or national scientific or engineering associations.
4. Other R&D technical, administrative support staff include skilled and unskilled craftsmen, and administrative, secretarial and clerical staff participating in R&D projects or directly associated with such projects.

On-site R&D consultants and contractors are individuals hired 1) to perform project-based work or to provide goods at a fixed or ascertained price or within a certain time or 2) to provide advice or services in a specialized field for a fee and, in both cases, work at the location specified and controlled by the contracting company or organization.

Full-time equivalent (FTE)

R&D may be carried out by persons who work solely on R&D projects or by persons who devote only part of their time to R&D, and the balance to other activities such as testing, quality control and production engineering. To arrive at the total effort devoted to R&D in terms of personnel, it is necessary to estimate the full-time equivalent of these persons working only part-time in R&D.

Full-time equivalent (FTE) = Number of persons who work solely on R&D projects + the time of persons working only part of their time on R&D.

Example calculation: If out of four scientists engaged in R&D work, one works solely on R&D projects and the remaining three devote only one quarter of their working time to R&D, then: FTE = 1 + 1/4 + 1/4 + 1/4 = 1.75 scientists.

Technology and technical assistant payments in 2025 (Q73 - Q75)

Definitions (equivalent to the Canadian Intellectual Property Office: Canadian Intellectual Property Office)

1. Patent

   Government grant giving the right to exclude others from making, using or selling an invention.

2. Copyright

   Legal protection for literary, artistic, dramatic or musical works, computer programs, performer's performances, sound recordings, and communication signals.

3. Trademark

   A word, symbol or design, or combination of these, used to distinguish goods or services of one person or organization from those of others in the marketplace.

4. Industrial design

   Legal protection against imitation of the shape, pattern, or ornamentation of an object.

5. Integrated circuit topography

   Three-dimensional configurations of the elements and interconnections embodied in an integrated circuit product.

6. Original software

   Computer programs and descriptive materials for both systems and applications. Original software can be created in-house or outsourced and includes packaged software with customization.

7. Packaged or off-the-shelf software

   Packaged software purchased for organizational use, excluding software with customization.

8. Databases

   Data files organized to permit effective access and use of the data including access clinical trial registries and administrative health data for research purposes. Includes partnerships supporting the development of databases, such as patient or clinical trial registries or biobanks, to be used for research purposes (e.g., developing a national bladder cancer patient registry with Bladder Cancer Canada for future research).

9. Other technology and technical assistance

   Technical assistance, industrial processes and know-how including technology transfer and know how such as batch pilot production, method develop, and validation related to technology or manufacturing transfer.

Energy-related R&D by area of technology (Q22 - Q69)

Fossil Fuels

Crude oils and natural gas exploration, crude oils and natural gas production, oil sands and heavy crude oils surface and sub-surface production and separation of the bitumen, tailings management, refining, processing and upgrading, coal production, separation and processing, transportation of fossil fuels.

1. Crude oils and natural gas exploration

   Include development of advanced exploration methods (geophysical, geochemical, seismic, magnetic) for on-shore and offshore prospecting.

2. Crude oil and natural gas production and storage, include enhanced recovery natural gas production

   Include on-shore and offshore deep drilling equipment and techniques for conventional oil and gas, secondary and tertiary recovery of oil and gas, hydro fracturing techniques, processing and cleaning of raw product, storage on remote platforms (e.g., Arctic, offshore), safety aspects of offshore platforms.

3. Oil sands and heavy crude oils surface and sub-surface production and separation of the bitumen, tailings management

   Include surface and in-situ production (e.g., SAGD), tailings management.

4. Refining, processing and upgrading of fossil fuels

   Include processing of natural gas to pipeline specifications, and refining of conventional crude oils to refined petroleum products (RPPs), and the upgrading of bitumen and heavy oils either to synthetic crude oil or to RPPs. Upgrading may be done at an oil sands plant, regional merchant upgraders or integrated into a refinery producing RPPs.

5. Coal production, separation and processing

   Include coal, lignite and peat exploration, deposit evaluation techniques, mining techniques, separation techniques, coking and blending, other processing such as coal to liquids, underground (in-situ) gasification.

6. Transportation of fossil fuels

   Include transport of gaseous, liquid and solid hydrocarbons via pipelines (land and submarine) and their network evaluation, safety aspects of LNG transport and storage.

Renewable energy resources

Solar photovoltaics (PV), solar thermal-power and high-temperature applications, solar heating and cooling, wind energy, bio-energy – biomass production and transport, bio-energy – biomass conversion to transportation fuel, bio-energy – biomass conversion to heat and electricity, other bio-energy, small hydro (less than 10 MW), large hydro (greater than or equal to 10 MW), other renewable energy.

1. Solar photovoltaics (PV)

   Include solar cell development, PV-module development, PV-inverter development, building-integrated PV-modules, PV-system development, other.

2. Solar thermal-power and high-temperature applications

   Include solar chemistry, concentrating collector development, solar thermal power plants, high-temperature applications for heat and power.

3. Solar heating and cooling

   Include daylighting, passive and active solar heating and cooling, collector development, hot water preparation, combined-space heating, solar architecture, solar drying, solar-assisted ventilation, swimming pool heating, low-temperature process heating, other.

4. Wind energy

   Include technology development, such as blades, turbines, converters structures, system integration, other.

5. Bio-energy – Biomass production and transport

   Include improvement of energy crops, research on bio-energy production potential and associated land-use effects, supply and transport of bio-solids, bio-liquids, biogas and bio-derived energy products (e.g., ethanol, biodiesel), compacting and baling, other.

6. Bio-energy – Biomass conversion to transportation fuel

   Include conventional biofuels, cellulosic-derived alcohols, biomass gas-to-liquids, other energy-related products and by-products.

7. Bio-energy – Biomass conversion to heat and electricity

   Include bio-based heat, electricity and combined heat and power (CHP), exclude multi-firing with fossil fuels.

8. Other bio-energy

   Include recycling and the use of municipal, industrial and agricultural waste as energy not covered elsewhere.

9. Small hydro (less than 10 MW)

   Include plants with capacity below 10 MW.

10. Large hydro (greater than or equal to 10 MW)

    Include plants with capacity of 10 MW and above.

11. Other renewable energy

    Include hot dry rock, hydro-thermal, geothermal heat applications (including agriculture), tidal power, wave energy, ocean current power, ocean thermal power, other.

Nuclear fission and fusion

Materials exploration, mining and preparation, tailings management, nuclear reactors, other fission, fusion.

1. Nuclear materials exploration, mining and preparation, tailings management

   Include development of advanced exploration methods (geophysical, geochemical) for prospecting, ore surface and in-situ production, uranium and thorium extraction and conversion, enrichment, handling of tailings and remediation.

2. Nuclear reactors

   Include nuclear reactors of all types and related system components.

3. Other fission

   Include nuclear safety, environmental protection (emission reduction or avoidance), radiation protection and decommissioning of power plants and related nuclear fuel cycle installations, nuclear waste treatment, disposal and storage, fissile material recycling, fissile materials control, transport of radioactive materials.

4. Fusion

   Include all types (e.g., magnetic confinement, laser applications).

Electric Power

Generation in utility sector, combined heat and power in industry and in buildings, electricity transmission, distribution and storage of electricity.

1. Electric power generation in utility sector

   Include conventional and non-conventional technology (e.g., pulverised coal, fluidised bed, gasification-combined cycle, supercritical), re-powering, retrofitting, life extensions and upgrading of power plants, generators and components, super-conductivity, magneto hydrodynamic, dry cooling towers, co-firing (e.g., with biomass), air and thermal pollution reduction or avoidance, flue gas cleanup (excluding CO2 removal), CHP (combined heat and power) not covered elsewhere.

2. Electric power - combined heat and power in industry, buildings

   Include industrial applications, small scale applications for buildings.

3. Electricity transmission, distribution and storage

   Include solid state power electronics, load management and control systems, network problems, super-conducting cables, AC and DC high voltage cables, HVDC transmission, other transmission and distribution related to integrating distributed and intermittent generating sources into networks, all storage (e.g., batteries, hydro reservoirs, fly wheels), other.

Hydrogen and fuel cells

Hydrogen production for process applications, hydrogen production for transportation applications, hydrogen transport and storage, other hydrogen, fuel cells, both stationary and mobile.

1. Hydrogen production for process applications
2. Hydrogen production for transportation applications
3. Hydrogen transport and storage

4. Other hydrogen

   Include end uses (e.g., combustion), other infrastructure and systems R&D (refuelling stations).

5. Stationary fuel cells

   Include electricity generation, other stationary end-use.

6. Mobile fuel cells

   Include portable applications.

Energy efficiency

Industry, residential and commercial, transportation, other energy efficiency.

1. Energy efficiency applications for industry

   Include reduction of energy consumption through improved use of energy and/or reduction or avoidance of air and other emissions related to the use of energy in industrial systems and processes (excluding bio-energy-related) through the development of new techniques, new processes and new equipment, other.

2. Energy efficiency for residential, institutional and commercial sectors

   Include space heating and cooling, ventilation and lighting control systems other than solar technologies, low energy housing design and performance other than solar technologies, new insulation and building materials, thermal performance of buildings, domestic appliances, other.

3. Energy efficiency for transportation

   Includes analysis and optimisation of energy consumption in the transport sector, efficiency improvements in light-duty vehicles, heavy-duty vehicles, non-road vehicles, public transport systems, engine-fuel optimisation, use of alternative fuels (liquid and gaseous, other than hydrogen), fuel additives, diesel engines, Stirling motors, electric cars, hybrid cars, air emission reduction, other.

4. Other energy efficiency

   Include waste heat utilisation (heat maps, process integration, total energy systems, low temperature thermodynamic cycles), district heating, heat pump development, reduction of energy consumption in the agricultural sector.

Other energy-related technologies

Carbon capture, transportation and storage for fossil fuel production and processing, electric power generation, industry in end-use sector, energy systems analysis, all other energy-related technologies.

1. Carbon capture, transport and storage related to fossil fuel production and processing
2. Carbon capture, transport and storage related to electric power production

3. Carbon capture, transport and storage related to industry in end-use sector

   Include industry in the end-use sector, such as steel production, manufacturing, etc. (exclude fossil fuel production and processing and electric power production).

4. Energy system analysis

   Include system analysis related to energy R&D not covered elsewhere, sociological, economical and environmental impact of energy which are not specifically related to one technology area listed in the sections above.

5. All other energy technologies

   Include energy technology information dissemination, studies not related to a specific technology area listed above.

Environmental and clean technology R&D expenditures in 2025

Air pollution management

Activities aimed at reducing the emissions of pollutants (including greenhouse gases) to the atmosphere. Include pollution abatement and control (i.e., end-of-pipe processes) and pollution prevention (i.e., integrated processes), as well as related measurement, control, laboratories and the like.

Solid waste management

Activities related to the collection, treatment, storage, disposal, and recycling of all domestic, industrial, non-hazardous and hazardous waste (including low-level radioactive waste). Include monitoring activities. Exclude radioactive waste and mine tailings handling and treatment (to be reported under Protection against radiation and Wastewater management, respectively).

Wastewater management

Activities aimed at pollution reduction or prevention through the abatement of pollutants or the reduction of the release of wastewater. Include measures aimed at reducing pollutants before discharge, reducing the release of wastewater, septic tanks, treatment of cooling water, handling and treatment of mine tailings, etc.

Protection and remediation of soil, groundwater and surface water

Activities aimed at the prevention of pollution infiltration: remediation or cleaning up of soils and water bodies; protection of soil from erosion, salinization and physical degradation; monitoring, control, laboratories and the like. Exclude management of wastewater released to surface waters, municipal sewer systems or soil, or injected underground (to be reported under Wastewater management) and protection of biodiversity and habitat (to be reported under Protection of biodiversity and habitat).

Protection of biodiversity and habitat

Activities related to protecting wildlife and habitat from the effects of economic activity, and to restoring wildlife or habitat that has been adversely affected by such activity. Include related environmental measurements, monitoring, control, laboratories and the like.

Noise and vibration abatement

Activities aimed at controlling or reducing industrial and transport noise and vibration for the sole purpose of protecting the environment. Include preventive in-process modifications at the source, construction of anti-noise/vibration facilities, measurement, control, laboratories and the like.

Protection against radiation

Activities aimed at preventing, reducing, or eliminating the negative consequences of radiation on the environment. This includes all handling, transportation, and treatment of radioactive waste (i.e. waste that requires shielding during normal handling and transportation due to high radionuclide content), the protection of ambient media, measurement, control, laboratories and the like, as well as any other activities related to the containment of radioactive waste. Exclude activities and measures related to low-level radioactive waste (to be reported under Solid waste management), the prevention of technological hazards (e.g., external safety of nuclear power plants), and measures taken to protect workers.

Heat or energy savings and management

Activities aimed at reducing the intake of energy through in-process modifications (such as adjustment of production processes or heat and electricity co-generation), as well as reducing heat and energy losses. This includes insulation activities, energy recovery, measurement, control, laboratories and the like.

Renewable energy

Energy obtained from resources that naturally replenish or renew within a human lifespan (i.e. the resource is a sustainable source of energy). This includes wind, solar, aero-thermal, geothermal, hydrothermal and ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases.

Notification of intent to extract web data

Statistics Canada engages in web-data extraction, also known as web scraping, which is a process by which information is gathered and copied from the Web using automated scripts or robots, for retrieval and analysis. As a result, we may visit the website for this business to search for and compile additional information. The use of web scraping is part of a broader effort to reduce the response burden on businesses, as well as produce additional statistical indicators to ensure that our data remain accurate and relevant.

We will strive to ensure that the data collection does not interfere with the functionality of the website. Any data collected will be used by Statistics Canada for statistical and research purposes only, in accordance with the agency's privacy and confidentiality mandate. All information collected by Statistics Canada is strictly protected.

More information regarding Statistics Canada's web scraping initiative.

Learn more about Statistics Canada's transparency and accountability.

If you have any questions or concerns, please contact Statistics Canada Client Services, toll-free at 1-877-949-9492 (TTY: 1-800-363-7629) or by email at infostats@statcan.gc.ca. Additional information about this survey can be found at the following link:

Information for survey participants (ISP)

• Access Our Statistical Data

  Access Our Statistical Data

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Publish 242 business days per year at 8:30 AM Eastern.	95%	99.59%

• Access to Information and Privacy

  Access to Information and Privacy

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Reply to clients within 30 calendar days or in accordance with legislated timelines under the ATIA.	80%	31.67%

• Client Services – Custom Products

  Client Services – Custom Products

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Acknowledge receipt for request of product and/or service within 2 business days.	95%	98.89%
  Deliver products or services on a contractual basis within the mutually agreed-upon time.	95%	99.32%

• Consumer Price Index (CPI)

  Consumer Price Index (CPI)

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  The Consumer Price Index is released monthly, within 31 days of the price observation period.	95%	100%
  Send acknowledgment receipt to all clients (except media) within 24 hours.	95%	100%

• Contact Us – General Information to data users and technical support to survey respondents

  Contact Us – General Information to data users and technical support to survey respondents

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Acknowledge receipt or answer an e-mail within 2 business days.	85%	100%
  Communicate via email in the official language of the client’s choice.	100%	100%
  Provide telephone service during regular business hours, from 8:30 a.m. to 4:30 p.m. in all Canadian time zones.	85%	85.53%

• Information about Surveys and for Survey Participants

  Information about Surveys and for Survey Participants

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Post survey information within 24 HRS of start of collection.	95%	98.83%

• Labour Force Survey

  Labour Force Survey

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Data is released on a monthly basis, ten days after the end of the collection period. On the day of release, several products become available, including a Daily article, a publication, a public use microdata file, and 65 tables in the Common Output Data Repository (CODR).	95%	100%
  Emails should be acknowledged or answered within two business days.	95%	100%
  Basic information requests and orders for readily available products should be fulfilled within two business days of receipt.	95%	100%

• My StatCan

  My StatCan

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Reply to clients within 2 business days.	90%	100%

• Release of Statistical Data on Balance of Payment

  Release of Statistical Data on Balance of Payment

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  The data for the Balance of Payments are published within 60 days after the quarter.	95%	100%

• Release of Statistical Data on Census of Population

  Release of Statistical Data on Census of Population

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Data is published 18 months after Census Day.	100%	N/A

• Release of Statistical Data on Employment, Payroll and Hours

  Release of Statistical Data on Employment, Payroll and Hours

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Data is released every month, 60 days after the collection period.	95%	100%
  Acknowledge receipt or answer an e-mail within 2 business days.	95%	100%
  Fill basic information requests and orders for readily available products within 2 business days of receipt.	95%	100%

• Release of Statistical Data on Enterprise Finances

  Release of Statistical Data on Enterprise Finances

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  The data for the Quarterly Financial Survey are published 60 days after the reference period.	90%	100%
  The data for the Annual Financial and Taxation Survey are published 18 months after the reference period.	90%	100%

• Release of Statistical Data on Industrial Product Price Index (IPPI)

  Release of Statistical Data on Industrial Product Price Index (IPPI)

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Respond to client enquiries within 2 business days.	90%	100%
  Data released within 1 month of reference period.	100%	100%
  Mean Annual Revision less than 0.5 percentage points.	100%	100%

• Release of Statistical Data on International Trade

  Release of Statistical Data on International Trade

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Monthly Merchandise Trade data are published within 35-40 days after the reference month.	95%	75%

• Release of Statistical Data in Manufacturing Sector

  Release of Statistical Data in Manufacturing Sector

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  The data are published within 45 days after the reference month.	100%	100%
  Survey coefficients and response rates are respected, as are revisions to previous months' data.	100%	100%

• Release of Statistical Data on the Monthly Gross Domestic Product (GDP) by Industry

  Release of Statistical Data on the Monthly Gross Domestic Product (GDP) by Industry

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  The data for the Monthly GDP are published 60 days after the reference month.	100%	100%

• Release of Statistical Data on the Quarterly Gross Domestic Product (GDP)

  Release of Statistical Data on the Quarterly Gross Domestic Product (GDP)

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  The data for the Quarterly GDP are published within 60 days after the quarter.	100%	100%

• Release of Statistical Data on Retail Trade

  Release of Statistical Data on Retail Trade

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  The data are published within 2 months after the reference month.	95%	100%
  Survey coefficients and response rates are respected, as are revisions to previous months' data.	95%	100%

• Release of Statistical Data on Wholesale Trade

  Release of Statistical Data on Wholesale Trade

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  The data are published within 47 days after the reference month.	100%	100%
  Survey coefficients and response rates are respected, as are revisions to previous months' data.	100%	100%

• Read our Analysis

  Read our Analysis

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Publish 242 business days per year at 8:30 AM Eastern.	95%	99.59%

• Research Data Centres (RDC)

  Research Data Centres (RDC)

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Have project proposals reviewed and approved in 8 weeks from receipt of a complete file.	80%	86.67%

• Statistical Capacity Building – Workshops, Training and Conferences

  Statistical Capacity Building – Workshops, Training and Conferences

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  National webinars will be offered in both official languages within 3 months.	95%	100%

• View our Reference Resources

  View our Reference Resources

  Service Standard	Target (%)	Results (April 2025 to March 2026)
  Publish 242 business days per year at 8:30 AM Eastern.	95%	99.59%

June 2, 2026 | Ottawa, ON

As part of ongoing efforts for the 2026 Census of Population, Statistics Canada is beginning in-person follow-ups with households that have not yet completed their questionnaire. Millions of households have already responded online, on paper or by phone, and Statistics Canada thanks them for their participation.

Census enumerators will begin contacting households from which a completed questionnaire has not yet been received. In addition to phone follow-ups, they will also start going door to door in communities across Canada.

These visits are intended to remind residents to complete the census and to offer assistance. Enumerators can help respondents complete the questionnaire in person if they have not yet done so or are unable to complete it on their own.

Thousands of census enumerators have been hired across the country to help ensure every resident is counted. The majority have been recruited to work in or near the communities where they live.

Census employees carry official Statistics Canada identification. Respondents can also verify an employee's identity by contacting the Census Help Line at 1-833-852-2026. Additional information on identifying official census communications is available on the Recognizing census communications page of the Census website.

Respondents who have a hearing or speech impairment and need help completing their questionnaire can call the Census Help Line TTY number (1-833-830-3109) to request assistance. 

Follow-up activities will also begin for the 2026 Census of Agriculture. Statistics Canada employees will communicate with respondents by phone and through email. If respondents have questions or require assistance, they can call the Census of Agriculture Help Line at 1-855-859-6273. Respondents with a hearing or speech impairment can call the TTY number 1-833-652-0195.

The Census of Population collects demographic, social and economic information from households across the country, while the Census of Agriculture gathers information from agricultural operations. Together, these censuses provide important data that help guide decisions about programs, services and infrastructure in communities across Canada.

For more information about the 2026 Census, visit census.gc.ca.

Contact for media inquiries

Statistics Canada Media Relations
statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca

Getting Started

Purpose

The information from this survey will serve the following purposes: evaluate the coverage of the Census of Agriculture, maintain and update the Canadian Business Register, the principal frame for the economic statistics program of Statistics Canada and improve the efficiency of the Agriculture Statistical Program by collecting information on the main products and activities of this business.

Why we conduct this survey?

Statistics Canada is conducting the Agricultural Frame Update Survey (AFUS) to ensure the accuracy of the agriculture universe on the Business Register (BR).

The information from the Agricultural Frame Update Survey will serve the following purposes:

• Coverage evaluation of the 2026 Census of Agriculture sample.
• Maintain and update the Canadian Business Register, the principal frame for the economic statistics program of Statistics Canada. The Business Register lists all active businesses in Canada.
• Improve the efficiency of the Agriculture Statistical Program by collecting information on the main products and activities of this business.

Your information may also be used by Statistics Canada for other statistical and research purposes.

Your participation in this survey is required under the authority of the Statistics Act.

Other important information

How are we authorized to collect this information?

Data are collected under the authority of the Statistics Act, Revised Statutes of Canada, 1985, Chapter S-19.

Your answers are confidential

By law, Statistics Canada is prohibited from releasing any information it collects that could identify any person, business or organization, unless consent has been given by the respondent, or as permitted by the Statistics Act. Statistics Canada will use the information from this survey for statistical purposes only.

Record linkages

To enhance the data from this survey and to minimize the reporting burden, Statistics Canada may combine it with information from other surveys or from administrative sources.

Data-sharing agreements

To reduce respondent burden, Statistics Canada has entered into data sharing agreements with provincial and territorial statistical agencies and other government organizations, which have agreed to keep the data confidential and use them only for statistical purposes. Statistics Canada will only share data from this survey with those organizations that have demonstrated a requirement to use the data.

Section 11 of the Statistics Act provides for the sharing of information with provincial and territorial statistical agencies that meet certain conditions. These agencies must have the legislative authority to collect the same information, on a mandatory basis, and the legislation must provide substantially the same provisions for confidentiality and penalties for disclosure of confidential information as the Statistics Act. Because these agencies have the legal authority to compel businesses to provide the same information, consent is not requested and businesses may not object to the sharing of the data.

For this survey, there are Section 11 agreements with the provincial and territorial statistical agencies of Newfoundland and Labrador, Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, and the Yukon.

The shared data will be limited to information pertaining to business establishments located within the jurisdiction of the respective province or territory.

Section 12 of the Statistics Act provides for the sharing of information with federal, provincial or territorial government organizations. 

Under Section 12, you may refuse to share your information with any of these organizations by writing a letter of objection to the Chief Statistician, specifying the organizations with which you do not want Statistics Canada to share your data and mailing it to the following address: 

Chief Statistician of Canada
Statistics Canada
Care of Director, Agriculture Division
150 Tunney's Pasture Driveway
Ottawa, ON
K1A 0T6

You may also contact us by email at infostats@statcan.gc.ca or by fax at 1-514-496-4879. 

For this survey, there are Section 12 agreements with the statistical agencies of Prince Edward Island, Northwest Territories and Nunavut. 

For agreements with provincial and territorial government organizations, the shared data will be limited to information pertaining to business establishments located within the jurisdiction of the respective province or territory.

Business or organization and contact information

BR-Q1. Verify or provide the business or organization's legal and operating name and correct where needed.

Note: Legal name should only be modified to correct a spelling error or typo.

Legal Name

Name of a corporation as determined by its instrument of incorporation. The legal name of the entity is that which is recognized by law and is, therefore, the name liable for pursuit or for debts incurred by the business or organization. In the case of a corporation, it is the legal name set by its charter or the statute by which the corporation was created.

Modifications to the legal name should only be done to correct a spelling error or typo.

To indicate a legal name of another legal entity you should instead indicate it in question 3 by selecting 'Not currently operational' and then choosing the applicable reason and providing the legal name of this other entity along with any other requested information.

Operating Name

The operating name, which is different from the legal name, is a name the business or organization is commonly known as for day-to-day activities, and is used to advertise and promote itself. The operating name is synonymous with trade name.

• Legal name:
• Operating name (if applicable):

BR-Q2. Verify or provide the contact information for the designated contact person for the business or organization, and correct if needed.

• First name
• Last name
• Title
• Preferred language of communication:
  • English
  • French
• Mailing address (number and street):
• City:
• Province, territory or state:
• Postal code or ZIP code:
• Country:
  • Canada
  • United States
• Email address:
• Telephone number (including area code):
• Extension number (if applicable):
• Fax number (including area code):

BR-Q3. Verify or provide the current operational status of the business or organization identified by the legal and operating name above.

• Operational
• Not currently operational > e.g., temporarily or permanently closed, change of ownership
  Why is this business or organization not currently operational?
  • Seasonal operations
    • When did this business or organization close for the season?
      • Date
    • When does this business or organization expect to resume operations?
      • Date
  • Ceased operations
    • When did this business or organization cease operations?
      • Date
    • Why did this business or organization cease operations?
      • Bankruptcy
      • Liquidation
      • Dissolution
      • Other - Specify the other reasons why operations ceased  
  • Sold operations
    • When was this business or organization sold?
      • Date
    • What is the legal name of the buyer?
  • Amalgamated with other businesses or organizations
    • When did this business or organization amalgamate?
      • Date
    • What is the legal name of the resulting or continuing business or organization?
    • What are the legal names of the other amalgamated businesses or organizations?
  • Temporarily inactive but will re-open
    • When did this business or organization become temporarily inactive?
      • Date
    • When does this business or organization expect to resume operations?
      • Date
    • Why is this business or organization temporarily inactive?
  • No longer operating due to other reasons
    • When did this business or organization cease operations?
      • Date
    • Why did this business or organization cease operations?

Agricultural activity

BR-Q4. Will this operation produce agricultural products in 2026?

Examples of agricultural products include: hay, field crops, field vegetables, fruit, berries, nuts, sod, nursery products, ornamental plants, flowers, Christmas trees, mushrooms, greehouse products, maple products, honey, bees or other pollinating bees, poultry, eggs, livestock, meat, milk, wool, horses. 

Definition: Throughout this questionnaire, this operation or this agricultural operation refers to the business or organization identified by the legal and operating name in question 1. 

• Yes, this operation will produce agricultural products. (If yes, answer the question below.)
  • Will this operation be reporting sales or expenses for these agricultural products to the Canada Revenue Agency (CRA)?
    Include sales and expenses from:
  • agricultural products grown or raised by this operation in 2026
  • other commodities produced using agricultural products grown or raised by this operation in 2026 (e.g., wine, meat products).
    • Yes
    • No
  • No, but other agricultural operations will use the land and/or farm buildings to produce agricultural products
  • No, this operation will not produce agricultural products

BR-Q5. Verify or provide the current main activity of the business or organization identified by the legal and operating name above.

Note: The described activity was assigned using the North American Industry Classification System (NAICS).

This question verifies the business or organization’s current main activity as classified by the North American Industry Classification System (NAICS). The NAICS is an industry classification system developed by the statistical agencies of Canada, Mexico and the United States. Created against the background of the North American Free Trade Agreement, it is designed to provide common definitions of the industrial structure of the three countries and a common statistical framework to facilitate the analysis of the three economies. NAICS is based on supply-side or production-oriented principles, to ensure that industrial data, classified to NAICS, are suitable for the analysis of production-related issues such as industrial performance.

The target entity for which NAICS is designed are businesses and other organizations engaged in the production of goods and services. They include farms, incorporated and unincorporated businesses and government business enterprises. They also include government institutions and agencies engaged in the production of marketed and non-marketed services, as well as organizations such as professional associations and unions and charitable or non-profit organizations and the employees of households.

The associated NAICS should reflect those activities conducted by the business or organizational units targeted by this questionnaire only, as identified in the “Answering this questionnaire” section and which can be identified by the specified legal and operating name. The main activity is the activity which most defines the targeted business or organization’s main purpose or reason for existence. For a business or organization that is for-profit, it is normally the activity that generates the majority of the revenue for the entity. 

The NAICS classification contains a limited number of activity classes; the associated classification might be applicable for this business or organization even if it is not exactly how you would describe this business or organization’s main activity. 

Please note that any modifications to the main activity through your response to this question might not necessarily be reflected prior to the transmitting of subsequent questionnaires and as a result they may not contain this updated information.

The following is the detailed description including any applicable examples or exclusions for the classification currently associated with this business or organization:

#{NAICS_Title_E.Prefill}

#{NAICS_Desc_E.Prefill}.

Main activity

BR-Q6. You indicated that [NAICS code] is not the current main activity. Was this business or organization's main activity ever classified as [NAICS description]?

• Yes
  When did the main activity change?
  Date:
• No

BR-Q7. Search and select the industry activity classification that best corresponds to this business or organization's main activity.

Select this business or organization's activity sector (optional)

• Farming or logging operation
• Construction company or general contractor
• Manufacturer
• Wholesaler
• Retailer
• Provider of passenger or freight transportation
• Provider of investment, savings or insurance products
• Real estate agency, real estate brokerage or leasing company
• Provider of professional, scientific or technical services
• Provider of health care or social services
• Restaurant, bar, hotel, motel or other lodging establishment
• Other sector

Canada Revenue Agency Business Numbers

Canada Revenue Agency Business Numbers – Question identifier: 1

Q1. Does this operation have a Business Number issued by the Canada Revenue Agency (CRA)? 

A Business Number is a unique 9-digit number assigned to a business by the Canada Revenue Agency (CRA). It is used to register a business for tax programs such as GST/HST, payroll deduction, corporation income tax, etc.

• Yes
  • Enter the Business Number issued by the Canada Revenue Agency (CRA).
    • Include only the first 9 digits.
    • Business Number Example: 123456789
    • Business number:
• No

Canada Revenue Agency Business Numbers – Question identifier: 2

Q2. Do you operate or own other agricultural or non-agricultural businesses?

• Yes 
  Enter the other legal or operating name of the businesses and their associated Business Number.
  • Legal or operating name 1
  • Associated Business Number 1 
  • Legal or operating name 2 (if applicable)
  • Associated Business Number 2 Example: 123456789 RT 0001  (if applicable)
  • Legal or operating name 3 (if applicable)
  • Associated Business Number 3 Example: 123456789 RT 0001 (if applicable)
• No

If there are more than three other businesses, enter them in the edit field below. 

Main farm location of this operation – Question identifier: 3

Q3. Please provide the main farm location of this operation.

This is where the main agricultural activities take place. It can be the farm headquarters, main farm buildings or main gate of the farm operation.

• Province of the main farm location  
  • Province or territory code: 
• Civic address of the main farm location (if no civic address, skip to the land description field below in the page)
  • Address Number:
  • Road or street:
  • Name of village, town or city or municipality:
  • Postal code:
• Land description of the main farm location (for the Prairies and parts of British Columbia only)
  • Quarter:
  • Section:
  • Township:
  • Range:
  • Meridian:

Land area - Unit of measure

Unit of measure – Question identifier: 4

Q4. What unit of measure will be used to report land areas for this operation?

1. Acres
2. Hectares
3. Arpents (Quebec only) 

Total farm area

Total farm area – Question identifier: 5

Q5. What is the total farm area of this operation?

Include all land area owned, leased, rented, crop-shared or used by this operation.

Type of UOM:

Total farm area – Question identifier: 6

Q6. What is the total area of land used by others?

Include land rented, leased or crop-shared to others, land trading, rent-free, etc.

Type of UOM:

Agriculture production

Agriculture production – Question identifier: 7

Q7. Select the agricultural products currently being produced on this operation.

Select all that apply

• Field crops
• Hay
• Summerfallow
• Potatoes
• Fruit, berries and nuts
• Vegetables
• Sod
• Nursery products
• Greenhouse products
• Cattle and calves (include beef or dairy)
• Pigs
• Sheep and lambs
• Mink
• Fox
• Hens and chickens
• Turkeys
• Maples taps
• Honeybees
• Mushrooms
• Other agricultural products – specify: 

Area in crops

Area in crops – Question identifier: 8.

Q8. Report the area for: (see list below), on this operation.

Exclude land used by others.

Report the areas only once, even if used for more than one crop type.

1. Field crops: (Report area) 
2. Hay: (Report area) 
3. Summerfallow: (Report area) 
4. Potatoes: (Report area) 
5. Fruit, berries and nuts: (Report area) 
6. Vegetables: (Report area) 
7. Sod: (Report area) 
8. Nursery products: (Report area) 
9. Other crops - specify: (Add description/name and count)

Greenhouse area – Unit of measure

Greenhouse area – Unit of measure - Question identifier: 9.

Q9. What unit of measure will be used to report greenhouse area for this operation?

• Square feet
• Square metres

Greenhouse area 

Greenhouse area – Question identifier: 10.

Q10. What is the total area under glass, plastic or other protection used for growing plants?

Type of UOM:

Livestock (excluding birds)

Livestock (excluding birds) – Question identifier: 11.

Q11. Report the total number of animals for: (See the list below) on this operation.

Exclude animals owned but kept on a farm, ranch or feedlot operated by someone else.

Number of by type of livestock

1. Cattle and calves (Add count)
2. Pigs (Add count)
3. Sheep and lambs (Add count)
4. Mink (Add count)
5. Fox (Add count)
6. Other livestock - specify: (Add description/name and count)

Birds

Birds – Question identifier: 12.

Q12. Report the total number of birds for: (see list below), on this operation.

Exclude poultry owned but kept on an operation operated by someone else.

Number of by type of livestock

1. Hens and chickens (Add count)
2. Turkeys (Add count)
3. Other poultry - specify: (Add description/name and count)

Maple taps

Maple taps – Question identifier: 13.

Q13. Report the total number of taps made on maple trees this year.

Number: (Add count)

Mushroom growing area – Unit of measure

Mushroom growing area – Unit of measure - Question identifier: 14.

Q14. What unit of measure will be used to report the mushroom growing area (standing footage) for this operation?

• Square feet
• Square metres

Mushrooms

Mushrooms – Question identifier: 15.

Q15. Report the total growing area (standing footage) for mushrooms.

By Type of UOM: (Report area)

Honeybees

Honeybees – Question identifier: 16.

Q16. How many live colonies of honeybees (used for production or pollination) are owned by this operation?

Number: (Add count)

Gross farm receipts and operating expenses

Gross farm receipts and operating expenses – Question identifier: 17.

Q17. In 2025, what were the total gross farm receipts before deducting expenses, excluding resale of commodities purchased and any receipts from non-farming activities?

Include:

• receipts from all agricultural products sold
• program payments and insurance payments
• receipts from custom work.

Exclude:

• sales of forest products
• sales of capital assets (e.g., quota, land, machinery)
• the sale of any goods purchased only for resale.

Report for the 2025 calendar year or for the last complete accounting (fiscal) year. 

Total gross farm receipts: (report dollar value $.00)

Gross farm receipts and operating expenses

Gross farm receipts and operating expenses – Question identifier: 18.

Q18. In 2025, what were the total farm operating expenses, excluding purchases of commodities resold and any expenses from non-farming activities?

Include only the farm business share of amounts paid.

Exclude:

• costs of any goods purchased only for resale
• amortization or capital cost allowance
• inventory adjustment.

Report for the 2025 calendar year or for the last complete accounting (fiscal) year. 

Total farm operating expenses: (report dollar value $.00)

Business partnership information

Business partnership information – Question identifier: 19.

Q19. Are there any partners associated with the operation: #{FARM name} who may also report farm receipts or operating expenses for it?

1. Yes
2. No

Business partnership information – Question identifier: 20.

Q20. For the associated partners, please provide the following information.

If there is more than one business or business partner associated with this operation, please provide the additional information in the section below.

• Business legal or corporation name:
• Business number (GST/HST):
• Family name:
• First name:
• Mailing address:
• Name of village, town or city:
• Province/territory:
• Postal code:
• Telephone number:

If there are other businesses or business partners, enter their information in the field below.

Legal name, phone number, business Number (if available).

Enter other information here:

Contact person

Statistics Canada may need to contact the person who completed this questionnaire for further information.

Q21 Is #{Contact First and Last Name} the best person to contact?

• Yes
• No – If now add the contact information details for the best person to contact.
  • First name:
  • Last name:
  • Title:
  • Email address:
  • Telephone number (including area code):
  • Extension number (if applicable):
  • Fax number (including area code) 

Feedback

Feedback – Question identifier: 22.

Q22. How long did it take to complete this questionnaire?

Include time spent gathering the necessary information.

• Hours:
• Minutes:

Feedback – Question identifier: 23.

Q23. Do you have any comments about this questionnaire?

Date modified: June 2, 2026
Engagement period: November 18 to December 12, 2025
Respondents: 287 municipalities across Canada

Overview

Canada continues to face significant housing pressures resulting from limited supply, increasing demand, and gaps in the availability of timely and consistent housing information. As part of the Modernizing Housing Data (MHD) initiative, Statistics Canada is working with federal, provincial/territorial, and municipal partners to improve the availability and consistency of housing data.

The Residential Building Occupancy (RBO) Project is exploring new ways to collect and integrate information on residential building occupancy while minimizing reporting burden for municipalities. To inform this work, Statistics Canada invited municipalities to complete an online e-form about their current data collection practices, challenges, and capacity to share residential building permit information.

This report summarizes what we heard from participants.

Consultation objectives

Through the e-form, Statistics Canada sought to:

• Understand the type, format, and availability of housing construction and occupancy data currently collected by municipalities.
• Assess the alignment between municipal practices and proposed RBO approaches, including the use of administrative data sources and potential Application Programming Interface (API) based solutions.
• Identify gaps, barriers, and challenges that may limit the ability to provide timely, record level data.
• Gather suggestions on how to make data submission efficient for municipalities.

Who participated

A total of 287 municipalities responded to the e form, representing a wide range of community sizes and administrative capacities across Canada. Respondents included municipalities that issue building permits, manage occupancy inspections, maintain assessment rolls, or oversee construction oversight processes.

Participation was broadly distributed across provinces, with some regions more heavily represented than others. At the time of reporting, responses from Quebec and New Brunswick had not yet been collected and are not reflected in the findings presented here.

Key findings

Across the country, municipalities demonstrated strong interest in improving housing data, while also identifying common operational and resource-related challenges.

Municipal collection of residential occupancy data

• Most municipalities collect some data at various stages of residential construction.
• Many collect record-level data through their building permit systems, rather than in standalone datasets.
• Collection practices vary widely, and some municipalities do not currently track residential occupancy in a structured way.

Inspections and occupancy as key data triggers

• Inspections and occupancy permits are central triggers for tracking construction activity.
• The most commonly reported indicators include:
  • First inspection marking the start of construction
  • Final inspection confirming completion
  • Issuance of an occupancy permit

Municipal reporting capacity and timeliness

• While reporting capacity exists, many municipalities indicated they could provide data:
  • On a monthly basis, and
  • Within 30 days of month-end

Historical data availability

• Availability of historical data varies considerably.
• Some municipalities reported having data dating back to 2019 or earlier
• Others could only provide:
  • The most recent year, or
  • No historical data at all

Availability of key data elements

• Core data elements are widely available across municipalities.
• Most respondents indicated they could provide data on:
  • Residential structure type
  • Permit type or category
  • Location data (address and/or coordinates)
  • Permit identifiers
  • Additional project characteristics, where available
• These elements align well with the RBO project's proposed reporting structure.

Common challenges and barriers

• Respondents identified similar challenges across regions, including:
  • Limited staffing and resources
  • Timeliness and processing delays
  • Data quality or completeness issues
  • Technical or system limitations
  • Lack of centralized data

Data sharing and open data

• Most municipalities do not have an open data portal:
  • Approximately 86% reported having no public open data portal, although some share data through requests or secure transfers.
• Over half of respondents already share housing-related data with another government organization, suggesting opportunities to leverage existing data-sharing agreements and minimize duplicate reporting.

Next steps

Based on the feedback summarized above, Statistics Canada will:

• Use this feedback to refine the RBO data collection strategy, including prioritizing fields that municipalities can readily provide.
• Continue collaborating with provinces, territories, and municipalities to align workflows and definitions.
• Explore administrative data integration and technological solutions (e.g., Application Programming Interfaces (APIs), automated extracts) to minimize reporting burden.
• Prepare recommendations for phased implementation reflecting municipal capacity.
• Share progress updates through future engagement activities.

Thank you

Statistics Canada thanks all participating municipalities for their time and contributions. Their insights are essential to improving the availability, quality, and relevance of housing data in Canada.

For questions about this engagement, please contact: consultativeengagement mobilisationconsultative@statcan.gc.ca
 

Spring 2026

Introduction

This report follows the release in March 2026 of the What We Heard report which documents the results from the consultation process initiated in August 2023 concerning proposals for changes to the North American Industry Classification System (NAICS) Canada. It summarily describes the changes to the upcoming NAICS Canada 2027 version 1.0 set for release in January 2027. All of the proposals received through the consultation process were treated according to generally accepted statistical classification principles and the criteria outlined in the consultation poster.

Background

NAICS represents a continuing co-operative effort among Statistics Canada, Mexico's Instituto Nacional de Estadística y Geografía (INEGI), and the Economic Classification Policy Committee (ECPC) of the United States, acting on behalf of the Office of Management and Budget, to create and maintain a common industry classification system. The countries collaborate to produce revisions to NAICS on a five-year cycle in order to keep the classification up-to-date with current economic activities.

The purpose of NAICS is primarily to provide a standardized framework for the classification, data production and analysis of the economy. It has been designed to provide common definitions of the industrial structure of the three countries and a common statistical framework to facilitate the analysis of the three economies. It is a comprehensive system encompassing all economic activities.

The structure of NAICS is hierarchical. The numbering system that has been adopted is a six-digit code, of which the first five digits are used to describe the NAICS levels that will be used by the three countries to produce comparable data. The first two digits designate the sector, the third digit designates the subsector, the fourth digit designates the industry group and the fifth digit designates the industry. The sixth digit is used to designate national industries. A zero as the sixth digit indicates that there is no further national detail.

NAICS agreements define the boundaries of the twenty sectors into which the classification divides the economies of the three countries. Although, typically, agreement has been reached that comparable data will be made available for Canada, Mexico and the United States up to the five-digit industry level of NAICS, differences in the organization of production in the economies of the three countries necessitated certain exceptions. For some sectors, subsectors and industry groups, three-country agreement was reached only on their boundaries rather than on detailed industry structures.

Revising NAICS Canada to 2027 Version 1.0

In line with good statistical classification practice, NAICS Canada is revised on a five-year cycle to reflect changes in the Canadian economy, ensuring continued relevance and accuracy. NAICS updates include two types of revisions – "real changes" and "virtual changes". While "real changes" affect the scope of classification items and/or categories, and therefore impact the data collected and disseminated, "virtual changes" are meant only to capture codes and title changes or to clarify the description of existing categories, with no impact on the scope of those categories.

Statistics Canada's Economic Standards Steering Committee (ESSC) approved a permanent consultation process for NAICS Canada on April 28, 2023. Proposals for changes can now be submitted and reviewed on an ongoing basis. A cut-off date of June 30, 2025 was set for considering proposed changes for inclusion in NAICS Canada 2027 and included in the invitation on proposals poster.

Summary of proposed changes by economic sector

As outlined in the What We Heard report, feedback from the consultation process included both virtual (text) and real (structural) changes from both internal and external stakeholders. These proposed revisions reflect the evolution of existing industries and the emergence of new ones. NAICS at the two-digit level represents the sector level, which is the highest level of the economy. There are 20 sectors in NAICS Canada and they are numbered from 11 to 91.

What we did

Following good classification practice, all changes that are implemented in Statistics Canada classifications are guided by sound principles and concepts^Footnote1 and aligned with the General Statistical Information Model (GSIM)^Footnote2. These principles form the foundation for developing, implementing, and revising statistical classifications.

Stakeholder and public recommendations were assessed using the same rigorous standards. To support a thorough evaluation, where necessary, the NAICS Canada team and trilateral steering committee requested detailed information demonstrating alignment with the key classification principles. While changes were typically drafted to minimize disruption to existing classification structures, disruptive changes were implemented when justified to maintain the integrity and relevance of the classification.

This approach applies to:

• revising existing industries
• creation of new industries
• movement or placement of activities within the classification structure
• general content updates

The NAICS Canada team reviewed stakeholder submissions and conducted follow-up meetings when additional information was required or requested. Revisions to NAICS Canada for 2027 reflect the collaborative efforts and insights of stakeholders, the trilateral steering committee, and Statistics Canada subject matter experts to ensure the classification remains relevant and responsive to user needs and accurately represents the evolving Canadian economy.

What is expected to change in NAICS Canada 2027

Certain aspects of the classification were revised to reflect new and emerging activities in the economy. Practical changes were made to wording, for instance to help  users with self-coding  so they can easily locate their business activities in the classification for reporting purposes. As well, certain activities that have increased in importance and gained a larger revenue share of their industry have been included as separate industries or activities.

In particular:

• modifications were made to improve coherence with observed data trends, though some potential refinements were not feasible due to limitations in data availability at more detailed levels.
• the classification was adjusted where possible, balancing analytical needs with the constraints of data reporting.
• updates reflect a compromise between ideal classification structure and practical reporting limitations, particularly where finer breakdowns would compromise data reliability or confidentiality.

Although most changes occur at the 6-digit level (national industry) of NAICS Canada – the most detailed level of the classification – updates at this level also affect higher levels of the classification. A full overview of changes across all levels will be available in the NAICS Canada 2022 V1.0 to NAICS Canada 2027 V1.0 correspondence table, to be released in early 2027.

Real (structural) changes

Industries added:

• electric power generation (solar, wind, biomass and other)
• electrical vehicle battery manufacturing
• electric power storage systems
• residential property associations
• short term rentals
• workforce accommodation

Industries taken over by or merged with existing industries:

• asbestos mining
• one-hour photofinishing
• motels and motor hotels
• business and secretarial schools
• office furniture manufacturing
• communications equipment manufacturing

Virtual (content-only) changes

Virtual changes aimed at improving clarity and maintaining relevancy. These updates included:

• revised titles and/or definitions
• new or revised examples
• updates to definitions, inclusions and exclusions

Virtual changes affecting most Sectors

• Improved industry descriptions and titles
  • Example: the industry title and description of childcare services has been updated to reflect more modern terminology used in this area as it had previously been outdated.
• Addition of example activities
  • Example: new example activities related to advanced and new technologies for power generation such as nuclear, solar, wind and geothermal technologies have been added, as well as to the bioeconomy.
• Revised sector definitions
  • Example: definitions of the Manufacturing and Retail trade sectors and the Repair and maintenance sub-sector have been revised to add more detail and precision. The Advertising industry definition has also been updated to reflect the increasing technological nature of the industry.
• Clarification and update of exclusions
  • Example: the delivery of different types of food has been added as exclusions to add clarity and distinguish similar activities, as depending on the degree of preparation and how and where food is sold, the activities associated with food delivery are classified to different industries. For instance, food sold at farmer's markets, farm direct bundles, prepared food subscriptions, meal kits and grocery delivery are all distinguished in the classification through the use of exclusions as they belong to different industries.

Other considerations

During the revision process of a statistical classification such as NAICS, it is possible that some proposals do not end up as changes in the classification; this doesn't mean they were not important, as all proposals are considered during the review process. However, some submissions do not meet the criteria for changes (empirical significance, analytical interest, change in scope of the existing classification item, among other considerations) or adhere to the classification principles (such as mutual exclusivity, exhaustiveness, and homogeneity within categories) established in the consultation notice.

Examples of such cases are:

• proposals were received, including one introduced very close to the deadline, for an extensive review and restructuring of NAICS Canada Sector 52 - Finance and insurance. After a careful review, it was decided to move the treatment of the issues to the research agenda for the next revision of the classification.
• a proposal to update transportation industries based on specific policy reporting requirements. This did not adhere to NAICS principles and revision criteria for NAICS Canada 2027.
• need to review NAICS Canada subsector 518—Computing infrastructure providers, data processing, web hosting, and related services—was raised due to rapidly evolving economic activities in data centres, particularly their growing role in AI, cloud computing, and edge computing. This topic was not discussed during the trilateral meetings, and research for the Canadian context is only beginning. Additional consultations will be required before proposing any specific NAICS changes. Given the limited time remaining for the 2027 cycle, the review of subsector 518 has been deferred and added to the research agenda for the next revision of the classification.

Appendix: Governing principles and underlying concepts and criteria

Statistical classification principles

Principle 1: Follow internationally accepted definitions and guidelines on how to classify activities and industries as statistical units (also see North American Industry Classification - Introduction). Because the purpose of NAICS is primarily to provide a framework to support consistent statistical information on Canadian economic activities, it is important to specify the scope of each category in the classification. By following standard definitions and coding practices, Principle 1 supports the production and dissemination of consistent and sound statistics. The NAICS team uses this information to evaluate whether proposed changes are properly placed in the classification structure.

Principle 2: Respect of the internationally recognized statistical classification principles, being:

• well defined universe: categories at each level of the classification structure must reflect a well-defined universe or scope;
• classification is exhaustive: it covers all possible elements in the universe even if all examples of such universe are not provided in the publication;
• categories are mutually exclusive: no overlapping in the scope of each classification item or category (to avoid double counting);
• classification structure is hierarchical: lower categories are dependent of their higher categories;
• classification structure is rectangular: the classification has a code represented at every level across its whole structure, regardless of the scope of each category;
• classification is comparable to other classifications of the same domain (e.g. industry);
• classification categories are empirically significant;
• classification is organized around one or few concepts (e.g., activities; industries);
• classification contains groupings meaningful to users;
• classification is widely adopted.

Principle 3: The classification is related to data that is collectible and publishable (collectability and reportability).

For NAICS, this means whether data can be collected and reported on an industry basis.

For a detailed industry to be included in NAICS and expecting statistics to come out of it, Statistics Canada must be able to collect and report data, otherwise, categories will not provide opportunities to produce relevant statistics. Statistics Canada is responsible for producing data across the entire range of industries in Canada and conducts comprehensive surveys that collect industry level data.

Collectability and reportability are partly a function of the size of the industry and other measures of empirical significance (meaning the industries must be large enough to be detected in sample of surveys). In evaluating collectability and reportability, however, the NAICS team will not use a specific industry size cut-off. This is because industries that are concentrated in certain sectors or geographic areas may be collectable and reportable, while industries of a similar or larger size that are spread throughout the economy may not be collectable and reportable. Therefore, size is not the only consideration in collectability and reportability. Collectability and reportability are also related to the type of data collection used by surveys or statistical programs.

Principle 4: The classification supports the maintenance of time series continuity to the extent possible; that is, the ability to maintain data series over time without interruption due to classification changes. To the extent possible, new industry categories proposed for the current version of NAICS and beyond should be easily linked by appropriate correspondence to previous version NAICS (e.g., NAICS 2022 to NAICS 2017 v3 and NAICS 2017 v2 to NAICS 2017 v1).

Guidelines developed by Statistics Canada provided for the launch of the permanent consultation process for NAICS will assist users and the NAICS team in consistently making changes to the classification.

Principle 5: The classification continues to be relevant, that is, it must be of analytical interest, result in data that is useful to users, and be based on appropriate statistical research, subject-matter expertise and administrative relevance aligned with statistical classification principles and needs.

Principle 6: The prevalence of classification principles and statistical needs.

For NAICS, this means that it is designed primarily for statistical purposes. Although there can be various uses of NAICS for non-statistical purposes (e.g., for administrative, regulatory, or policy functions), the requirements of government agencies or private users that choose to use NAICS for non-statistical purposes are responsible for such use of the classification. As a result, the NAICS team reviews comments and develops its recommendations based on established statistical classification principles and guidelines. Information provided unrelated to the accurate gathering of information for statistical purposes, such as perceived importance or visibility of an industry, does not determine the NAICS team recommendations. Similarly, the volume of comments does not determine what the recommendations will be, and just submitting a request for a change does not automatically result into a change in NAICS.

Underlying concepts and classification criteria of NAICS

Establishment-based classification

NAICS is designed for the compilation of production statistics and, therefore, for the classification of data relating to establishments. It takes into account the specialization of activities generally found at the level of the producing units of businesses. The criteria used to group establishments into industries in NAICS are similarity of input structures, labour skills and production processes.

NAICS can also be used for classifying companies and enterprises. However, when NAICS is used in this way, the following caveat applies: NAICS has not been specially designed to take account of the wide range of vertically- or horizontally-integrated activities of large and complex, multi-establishment companies and enterprises. Hence, there will be a few large and complex companies and enterprises whose activities may be spread over the different sectors of NAICS, in such a way that classifying them to one sector will misrepresent the range of their activities. However, in general, a larger proportion of the activities of each complex company and enterprise is more likely to fall within the sector, subsector and industry group levels of the classification than within the industry levels. Hence, the higher levels of the classification are more suitable for the classification of companies and enterprises than are the lower levels. It should also be kept in mind that when businesses are composed of establishments belonging to different NAICS industries, their company- and enterprise-level data will show a different industrial distribution, when classified to NAICS, than will their establishment-level data, and the data will not be directly comparable.

While NAICS is designed for the classification of units engaged in market and non-market production, as defined by the System of National Accounts, it can also be used to classify own-account production, such as the unpaid work of households.

Unit of observation

The unit of observation of the industrial classification is the producing unit or establishment, and the industrial classification groups producing units, not products. Groupings of producing units permit the collection of data on inputs and outputs on a comparable basis. Because establishments each produce a number of products in different combinations and using different technologies, it is hardly possible to group all the establishments producing a particular product. It is more useful to use a production-oriented approach to bring together, into industries, establishments with common input structures, and to compile data on their outputs. This permits the compilation of comprehensive data on the total output of each product by industry and across all industries.

Statistical purposes

NAICS has been designed for statistical purposes. Government departments and agencies and other users that use it for administrative, legislative and other non-statistical purposes take responsibility for applying the classification in this manner.

NAICS is based on a production-oriented, or supply-based conceptual framework in that establishments are grouped into industries according to similarity in the production processes used to produce goods and services. The production process refers to the combination of inputs used in producing a certain quantity of outputs. A production-oriented industry classification system ensures that statistical agencies in the three countries can produce information on inputs and outputs, industrial performance, productivity, unit labour costs, employment, and other statistics that reflect structural changes occurring in the three economies.

Producing units are grouped into industries according to similarities in their production processes as defined earlier. The boundaries between industries demarcate, in principle, differences in input structures and production technologies. This means that, in the language of economics, producing units within an industry have similar production functions that differ from those of producing units in other industries.