238 - Specialty Trade Contractors

Understanding NAICS codes is crucial for businesses navigating government contracting and market research. One vital classification within the Construction Sector is NAICS Code 238: Specialty Trade Contractors. This blog post delves deep into what NAICS Code 238 entails, the typical business activities it covers, size standards, and examples—all optimized to help contractors and stakeholders grasp its significance.

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What is NAICS Code 238?

NAICS Code 238 is designated for Specialty Trade Contractors—businesses primarily engaged in specialized construction activities that require specific skills, training, and equipment. Unlike general contractors, specialty trade contractors focus on specific aspects of a construction project, providing expert execution in particular trades.

Key Description:

Specialty Trade Contractors typically perform work such as:

• Electrical systems installation and maintenance
• Plumbing, heating, and air conditioning services
• Painting and wall covering
• Flooring installation
• Masonry, drywall, and insulation services

They play an essential role in any construction project by delivering the technical expertise needed for these specialized tasks.

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Sector: Construction

NAICS Code 238 falls under the Construction Sector (NAICS 23), which encompasses establishments involved in building structures, heavy and civil engineering, and specialty trades. The Specialty Trade Contractors subsector is critical because it addresses the detailed and often complex tasks that larger contractors subcontract out.

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Typical Business Activities Under NAICS 238

Some common activities and business types classified under NAICS Code 238 include:

• Electrical Contractors and Other Wiring Installation Contractors
• Plumbing, Heating, and Air-Conditioning Contractors
• Painting and Wall Covering Contractors
• Flooring Contractors
• Masonry Contractors
• Drywall and Insulation Contractors
• Roofing Contractors
• Glass and Glazing Contractors
• Concrete Contractors

These contractors focus on delivering specialized services that require unique trade skills and tools for successful project completion.

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Size Standards for NAICS Code 238

To qualify as a "small business" for government contracting related to NAICS 238, size standards set by the U.S. Small Business Administration (SBA) are applied. The size standards are typically based on the number of employees.

• Size Standard: Generally, a business under NAICS 238 is considered small if it has 1,500 employees or fewer (varies by sub-industry but mostly around this threshold).
• These standards are crucial for businesses seeking federal contracts requiring small business participation.

For the most accurate and updated size standards, it is recommended to check the SBA’s official table: SBA Size Standards.

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NAICS Code 238 Detailed Table

Code	Title	Description	Sector	Size Standard (Employees)
238	Specialty Trade Contractors	Businesses engaged in specialized construction activities requiring specific skills and tools.	Construction	1,500 employees or fewer (varies)
2381	Foundation, Structure, and Building Exterior Contractors	Contractors specializing in foundations, structural elements, and exterior building work.	Construction	1,500 employees or fewer
2382	Building Equipment Contractors	Includes electrical, plumbing, HVAC, and other building systems contractors.	Construction	1,500 employees or fewer
2383	Building Finishing Contractors	Specialize in finishing activities such as painting, drywall, flooring, and wall covering.	Construction	1,500 employees or fewer
2389	Other Specialty Trade Contractors	Other specialized trades like site preparation, landscaping, and equipment installation.	Construction	1,500 employees or fewer

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Examples of Businesses Under NAICS 238

Here are some typical examples of businesses classified under NAICS Code 238:

• Electrical Contractors – Companies installing and servicing wiring and electrical systems.
• Plumbing Contractors – Businesses installing plumbing fixtures, piping, and sewage systems.
• Painting and Wall Covering Contractors – Specialists handling residential and commercial painting, wallpaper installation.
• HVAC Contractors – Providers installing heating and air conditioning systems.
• Flooring Contractors – Experts in carpet, tile, hardwood flooring installations.
• Roofing Contractors – Installers and repairers of roof structures and materials.

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Frequently Asked Questions (FAQ)

1. What kind of work do Specialty Trade Contractors perform?

They perform specialized construction tasks requiring specific skill sets such as electrical wiring, plumbing, painting, and HVAC installations.

2. How does NAICS Code 238 differ from general construction codes?

NAICS 238 focuses solely on specialty trades, whereas other codes cover general contracting and heavy construction.

3. What is the size limit for small businesses under NAICS 238?

Most specialty trade contractors are considered small if they have 1,500 employees or fewer, though this may vary by specific trade.

4. Why is knowing your NAICS code important?

It helps in identifying your industry classification for government contracts, permits, compliance, and market research.

5. Are specialty trade contractors required to have special licenses?

Many specialty trades require state or local licensing depending on trade and jurisdiction.

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Conclusion

NAICS Code 238: Specialty Trade Contractors represents a vital segment of the construction industry focused on expert trades requiring specialized skills and equipment. From electrical to painting and plumbing, these contractors contribute significantly to the successful completion of construction projects.

Understanding this NAICS code, its classification, and size standards helps businesses navigate contracting opportunities and align their services with government and commercial clients effectively.

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By optimizing your business description around NAICS Code 238, you can improve your visibility in government databases and increase your chances at securing contracts in this essential and diverse construction subsector.