The Standard Industrial Classification (SIC) System is used to identify benchmark firms.

The Standard Industrial Classification (SIC) System is a numerical coding system used to classify different types of businesses according to the type of economic activity in which they are engaged. The SIC system is used by businesses, government agencies, and other organizations to identify and collect data on businesses in a specific industry. This system enables companies to benchmark their own performance against the performance of firms in the same industry. It can be used to compare business performance in terms of sales, profits, and other data points, allowing organizations to measure themselves against their direct competitors and in the larger market. This can be invaluable for businesses that are looking for new strategies to improve their performance or gain an edge in the marketplace.