A Q&A with NSCA CEO Emeritus Chuck Wilson that explains why industry classification is so important, and how NSCA is driving improvement.
Universal classification systems like NAICS, SIC, and SOC make accurate industry analysis possible.
By categorizing occupations, industries and organizations can be analyzed, reported on, and communicated with. This makes it possible to measure economic activity and trends, benchmark performance, identify skills gaps and employment rates, and so much more.
Classification systems are also used to determine things like:
- Taxes
- Insurance premiums
- Safety standards
- Economic incentives
- Regulatory compliance
- Funding access
Due to the unique nature of their work, systems integrators are often misclassified. These mistakes can erode profitability, hinder growth, and create unnecessary risk.
Proper classification ensures that integrators are recognized for the services they provide instead of being grouped with unrelated industries. NSCA plays a critical role in making sure your work is properly classified to minimize risk.
As a member of the Connected Technology Industry Consortium, we also work with state legislatures to support the industry’s need for:
- Simplified occupational licensing laws based on scope of work
- Uniform licensing for trades and professions among states
- Eliminating unnecessary barriers to entry in the workforce
We recently sat down with NSCA CEO Emeritus Chuck Wilson so we could report on why industry classification is so important, and how NSCA is driving improvement as NAICS revisions approach in 2027.
Q: Why is industry classification so important for the commercial integration community?
A: Integrators are very different from other trades. When industry classifications lump everyone together, then licensure and credentialing become very confusing.
Through industry classification, we’ve created a unique identity for limited-energy systems and the integrators and professionals who work with these systems. Systems integrators have had their own CSI MasterFormat Divisions (27 and 28), which define their scope of services when it comes to communications, security and life safety systems. We also need an industry classification that matches those technical solutions.
Proper industry classification helps with proper insurance classification as well (especially workers’ compensation insurance). To maintain lower premiums, integrators need to be identified as technology solutions providers, which have lower risk profiles than other industries. As a result, integrators also have lower safety and mod rates.
Q: Are there anticipated changes to the National Electrical Code for the 2026 and 2029 cycles that could impact our industry classification?
A: To stay abreast of these changes, we have representation on several code-making panels. Class 4 fault-managed power technology, or digital power circuits, are likely going to be the main topic of conversation as the code acknowledges this innovation. Power-limited circuits (Articles 725 and 800) are evolving with higher capabilities and innovations that need to be understood by systems integrators.
Q: What does the Connected Technology Industry Consortium hope to achieve through proposed changes to the upcoming NAICS revision in 2027?
A: Systems integrators are very different from other trades when it comes to training requirements, skillsets, certifications, compliance, and standards surrounding their scope of services.
As buildings become smarter and the world becomes more connected, solutions become more integrated. This elevates the importance of integrators. An industry and occupation classification that defines this work is essential. To continue to advocate for those who provide mission-critical connected technologies, it’s crucial that the industry has an identity of its own to better define the solutions integrators provide.
