325 - Chemical Manufacturing
The NAICS code 325 plays a crucial role in the manufacturing sector, representing the diverse and vital Chemical Manufacturing industry. If you’re involved in producing basic chemicals, resins, synthetic rubber, pesticides, or paints, this classification might apply to your business. In today’s post, we dive deep into NAICS 325, offering insights that are crucial for government contracting, compliance, and industry analysis.
What is NAICS Code 325?
NAICS code 325 covers establishments primarily engaged in the manufacturing of chemicals and chemical products. This broad category includes a variety of chemical production processes, ranging from the creation of raw chemical materials to complex finished chemical goods.
Industry Description:
- Manufacturing chemicals and chemical products
- Production of basic chemicals, resins, synthetic rubber
- Pesticides, fertilizers, paints, coatings, and other chemical specialties
Sector: Manufacturing
NAICS 325 falls squarely within the Manufacturing sector of the North American Industry Classification System. This sector encompasses businesses involved in the mechanical, physical, or chemical transformation of materials, substances, or components into new products.
Typical Business Types & Activities Under NAICS Code 325
Businesses classified under NAICS 325 are engaged in a variety of chemical manufacturing activities, including but not limited to:
- Basic Chemical Manufacturing: Production of inorganic and organic chemicals, industrial gases, dyes, and pigments.
- Pesticide and Fertilizer Manufacturing: Creation of chemical pesticides, herbicides, fungicides, and various types of fertilizers.
- Paint and Coating Manufacturing: Manufacturing of architectural coatings, industrial paints, varnishes, and related supplies.
- Synthetic Rubber and Resin Production: Manufacturing synthetic elastomers and various resins used in plastic and composite materials.
Size Standards for NAICS Code 325
The Small Business Administration (SBA) size standards for eligibility under NAICS 325 depend on the specific industry within the chemical manufacturing classification but typically are based on average annual receipts or number of employees.
- Most chemical manufacturing industries have a size standard of $38.5 million in average annual receipts.
- Some segments may also consider 1,000 employees as a threshold.
Businesses should consult the SBA’s Size Standards Table to confirm eligibility when pursuing government contracts.
Examples of Businesses Under NAICS 325
- A company producing industrial-grade sulfuric acid
- Manufacturers of agricultural herbicides and insecticides
- Firms specializing in manufacturing automotive paint coatings
- Producers of synthetic rubber products for tires and seals
- Chemical plants creating plastic resins for packaging industries
NAICS Code 325 - Chemical Manufacturing Details
| NAICS Code | Title | Sector | Description | Size Standard | Examples of Business Activities |
|---|---|---|---|---|---|
| 325 | Chemical Manufacturing | Manufacturing | Establishments primarily engaged in manufacturing chemicals and chemical products. | $38.5 million average annual receipts | Basic chemical manufacturing, pesticide production, paint manufacturing |
Frequently Asked Questions (FAQs)
What does NAICS code 325 include?
NAICS 325 includes all establishments primarily engaged in manufacturing chemicals and chemical products such as basic chemicals, synthetic rubber, pesticides, paints, and coatings.
How is NAICS 325 used in government contracting?
This code helps government agencies and contractors classify businesses for bidding on relevant contracts, ensuring eligibility and compliance with size standard requirements.
What is the size standard for NAICS code 325 for SBA programs?
Generally, the SBA sets size standards at $38.5 million in average annual receipts for most segments in this category, but always confirm based on your specific industry.
Can service companies be classified under NAICS 325?
No, NAICS 325 specifically applies to manufacturing establishments, not chemical service providers.
Where can I find more information about NAICS codes and size standards?
Visit the U.S. Census Bureau for NAICS classifications and the SBA for size standards.
Conclusion
NAICS 325 - Chemical Manufacturing is a vital classification within the manufacturing sector covering a wide range of chemical product production. Knowing your business’s NAICS code is essential for government contracting opportunities, regulatory compliance, and market analysis. Whether your company manufactures pesticides, paints, or synthetic resins, understanding NAICS 325 helps you better navigate the industry landscape and qualify for various government programs.
Optimize your contract bids and business strategy today by ensuring you’re properly classified under NAICS code 325.
