Who Are You? A DNA Test for Municipalities

Question MarkWe hear a lot today about ancestry testing and finding out about our heritage. Many of us want to know “who we really are.” While these tests can be fun, they can also tell us a lot about ourselves that we thought we knew but had all wrong. For instance, we may know that our ancestors emigrated from a specific country, and claim that as our heritage, but with the help of these tests, we may learn that said ancestor only briefly lived in the “country of origin” and our actual roots lie elsewhere. The test may not change some of the facts we already know; it just gave us a different way to look at them.

Today I want to talk about a DNA test for municipal units – NAICS. The North American Industry Classification System is a great way to take a new look at your community. Just like the DNA tests described above, it can tell you so much on many different levels. At the broadest level, the two digit code, you can learn what industries in general are represented in your community. You may ask, “Why is this important? I know my companies and what industries they are in” – but do you? You may have a broad thought in your head such as automotive or even supplier; but did you know that there is no category “automotive” in NAICS? Did you know that what you considered an automotive supplier could be classified as a wholesaler? This is a new way of understanding your business community and the types of companies who may find your community attractive. Now you have opened a potential pathway to new markets and opportunities to improve your tax base.

Digging deeper into the code at the three digit level allows you to get a little more specific and go from retail trade to motor parts supplier. At the four digit level, you can find that “automotive” label, but it won’t be stand alone. It will come with something like automotive parts dealer. You can get a list of NAICS classifications for your community through a database such as Hoovers. Your local librarian should be able to help you with that effort if you do not already subscribe to one.

I encourage you to take the leap and find out “who you are” with your NAICS test.

Authored by Khalfani Stephens, Director of Economic Development, City of Farmington Hills, and 2018 MEDA Board Vice President.

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