324 - Petroleum and Coal Products Manufacturing
The manufacturing sector forms the backbone of many economies, and within it, NAICS Code 324 plays a crucial role. Known as Petroleum and Coal Products Manufacturing, this industry encompasses essential facilities involved in refining and producing a broad spectrum of petroleum-based and coal products. Whether it's the gasoline powering vehicles or the asphalt paving roads, establishments under NAICS 324 are integral to daily life and commerce.
What is NAICS Code 324?
NAICS Code 324 represents the industry classification for establishments focused on:
- Refining crude petroleum into usable products.
- Manufacturing coal products from raw coal.
- Producing petroleum-based goods such as gasoline, lubricants, and asphalt.
This code is critical for business classification, government contracting, and economic analysis within the manufacturing sector.
Sector & Business Activities Under NAICS 324
Sector:
Manufacturing
Key Business Activities Include:
- Petroleum Refining: Transforming crude oil into finished products like gasoline, diesel, jet fuel, and heating oil.
- Asphalt Manufacturing: Producing asphalt and tar for road paving and roofing applications.
- Lubricating Oil Production: Creating motor oils, greases, and industrial lubricants.
- Coal Product Manufacturing: Processing coal into coke, coal tar, and other chemical precursors.
Size Standards for NAICS 324 Eligibility
Understanding size standards is essential for businesses seeking government contracts or certifications. The U.S. Small Business Administration (SBA) defines size standards primarily based on average annual receipts within this industry.
- Size Standard: Typically, establishments under NAICS Code 324 must have average annual receipts not exceeding $39.5 million to qualify as a small business.
- Note: Size standards can vary by specific sub-industries or contract requirements; always check the latest SBA guidelines.
Examples of Businesses Under NAICS 324
Common examples of establishments classified under this code include:
- Large-scale petroleum refineries converting crude oil into petroleum products.
- Asphalt manufacturing plants producing paving materials and coatings.
- Facilities specializing in lubricating oil production for automotive and industrial purposes.
- Coal product manufacturers producing coke and chemical feedstocks.
NAICS Code 324 - Petroleum and Coal Products Manufacturing: Code Details
| NAICS Code | Title | Sector | Description | Examples of Business Types | Size Standard (SBA) |
|---|---|---|---|---|---|
| 324 | Petroleum and Coal Products Manufacturing | Manufacturing | Establishments primarily engaged in refining petroleum and manufacturing coal products including gasoline, lubricants, asphalt, and other petroleum products. | Petroleum refineries, asphalt manufacturers, lubricating oil producers, coal product manufacturers | $39.5 million average annual receipts |
Frequently Asked Questions (FAQ) About NAICS Code 324
Q1: What products are covered under NAICS Code 324?
A: This code covers products like gasoline, diesel fuel, jet fuel, lubricants, asphalt, tar, coke, and other petroleum and coal-derived products.
Q2: Can a small business fall under NAICS 324?
A: Yes. Businesses with average annual receipts below $39.5 million can be classified as small under this NAICS code.
Q3: Why is NAICS Code 324 important for government contracting?
A: Many government contracts specify NAICS codes to identify industry sectors. Proper classification ensures eligibility and helps businesses target contracts in petroleum and coal product manufacturing.
Q4: Does NAICS 324 include oil drilling operations?
A: No. Oil drilling and extraction are classified under NAICS codes in the mining sector, not manufacturing.
Q5: How does this industry impact the economy?
A: NAICS 324 industries provide essential products for transportation, construction, manufacturing, and energy, underpinning both consumer and industrial activities.
Final Thoughts
NAICS Code 324 - Petroleum and Coal Products Manufacturing is a vital part of the manufacturing sector, encompassing diverse businesses refining petroleum and producing coal products essential for numerous industries. Understanding this NAICS code is crucial for companies aiming to classify their activities correctly, pursue government contracts, and comprehend their industry's scope.
Whether you are operating a refinery, asphalt plant, or lubricant production facility, familiarizing yourself with NAICS Code 324 will help position your business for growth and compliance.
Stay ahead with up-to-date NAICS code information and discover how your business fits into the evolving manufacturing landscape.
