Analysis
NAICS 541420 is the 2022 national industry for industrial design services, part of 54142 (Industrial Design Services). Census lists 7 example activities under it in the official index.
County Business Patterns counts 1,591 US establishments in this code in 2023, employing 14,360 people at an average annual payroll of $109,297 per employee (88th percentile of national industries). 77% of the establishments have fewer than five employees, which marks it as a small-business industry.
Its index entries, the activities Census uses to assign businesses to this code, include automobile industrial design services, furniture design services, handtool industrial design services and industrial design consulting services, among 7 in all.
Census lists 3 related activities that belong elsewhere, most often in 541330, 541490 and 541715. Businesses that do several things are classified by their primary activity, the one that generates the most value, so check those boundaries before settling on this code.
For example, applying physical laws and principles of engineering in the design, development, and utilization of machines, materials, instruments, structures, processes, and systems are classified in 541330 (Engineering Services) instead.
Official definition
This industry comprises establishments primarily engaged in creating and developing designs and specifications that optimize the use, value, and appearance of products. These services can include the determination of the materials, construction, mechanisms, shape, color, and surface finishes of the product, taking into consideration human characteristics and needs, safety, market appeal, and efficiency in production, distribution, use, and maintenance. Establishments providing automobile or furniture industrial design services or industrial design consulting services are included in this industry.
Source: US Census Bureau, NAICS 2022 Manual.
Not this code if…
| The business mainly does | Use instead |
|---|---|
| Applying physical laws and principles of engineering in the design, development, and utilization of machines, materials, instruments, structures, processes, and systems | 541330 Engineering Services |
| Designing clothing, shoes, or jewelry | 541490 Other Specialized Design Services |
| Industrial research and development | 541715 Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) |
Index entries (7)
- Automobile industrial design services
- Furniture design services
- Handtool industrial design services
- Industrial design consulting services
- Industrial design services
- Packaging industrial design services
- Tool industrial design services