2371 - Utility System Construction

When it comes to infrastructure development, NAICS code 2371 plays a pivotal role in shaping the foundation of modern utility systems. Known as Utility System Construction, this classification includes businesses and activities essential for building and maintaining critical utility networks—everything from water pipelines to power transmission lines. Whether you’re a contractor, supplier, or government agency, understanding NAICS 2371 is key to navigating the construction sector effectively.

What is NAICS Code 2371?

NAICS code 2371 falls under the broader Construction sector and specifically covers utility system construction. This industry involves the construction of vital utility infrastructure including:

• Water and sewer systems
• Pipeline construction
• Power and communication line installation

In essence, this code encompasses all activities related to constructing the systems that deliver water, sewage disposal, energy, and communication services.

Sector Details & Typical Business Activities

NAICS 2371 belongs to the Construction Sector (Sector 23), one of the largest and most active sectors responsible for building and improving infrastructure.

Typical business activities under NAICS 2371 include:

• Laying water supply pipelines and sewer lines
• Constructing power transmission and distribution lines
• Installing communication cables such as fiber optics
• Building natural gas and oil pipelines
• Repair and maintenance of utility infrastructure

Examples of Businesses Under NAICS 2371

• Water main and sewer contractors
• Pipeline installation companies
• Electrical power line construction firms
• Communication line and cable installers

These companies provide essential services that support municipal utilities, energy providers, and telecommunication firms.

Size Standards for NAICS Code 2371

For small business eligibility, size standards are defined by the U.S. Small Business Administration (SBA).

• NAICS 2371 Size Standard: Typically, a business qualifies as small if it has 1,500 employees or fewer based on average annual employment over the past 12 months.

This threshold helps determine eligibility for federal contracts and assistance programs designated for small businesses in utility system construction.

NAICS Code 2371 – Utility System Construction Code Details

NAICS Code	Title	Sector	Description	Size Standard	Examples of Activities
2371	Utility System Construction	Construction	Construction of water, sewer, pipeline, and power transmission lines	1,500 employees or fewer	Water/sewer line construction, power line installation, pipeline construction

Frequently Asked Questions (FAQs)

What does NAICS Code 2371 cover?

NAICS 2371 covers construction activities related to utility systems such as water, sewer, pipelines, and power transmission lines.

Which sector does NAICS 2371 belong to?

NAICS 2371 is part of the Construction sector (Sector 23).

What kinds of businesses fall under NAICS 2371?

Businesses include water and sewer line contractors, pipeline installers, and power/communication line construction companies.

What is the SBA size standard for NAICS 2371?

The SBA size standard is generally 1,500 employees or fewer for small business classification under this code.

Why is NAICS Code 2371 important?

This code covers critical infrastructure construction necessary for municipalities, utilities, and energy providers, impacting public health and economic growth.

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Understanding NAICS Code 2371 is essential for businesses engaged in utility system construction and for government agencies managing contracts in infrastructure development. Whether you’re planning to bid on federal projects or seeking to classify your company’s activities, knowing the scope and size standards of NAICS 2371 helps position your business for success in the competitive construction industry.