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PBPC Calls for NAICS Updates to Better Measure the U.S. Bioeconomy
America’s bioeconomy is growing, but federal data does not fully capture its impact. That is why the Plant Based Products Council (PBPC) submitted comments to the White House Office of Management and Budget (OMB) during the comment period for proposed 2027 updates to the North American Industry Classification System (NAICS). PBPC is urging the federal government to establish classifications that better reflect renewable chemical and biobased product manufacturers.
NAICS codes are used to track economic activity across the United States, including employment, wages, manufacturing output, and industry growth. Today, however, manufacturers making materials from agricultural feedstocks can be grouped alongside companies producing similar materials from other inputs. That makes it difficult to accurately measure the economic contribution of the biobased products industry.
Better Data for a Growing American Industry
The need for better measurement has become more important as the American ag bioeconomy expands. According to the Department of Agriculture, the biobased products industry contributed $489 billion in value added to the U.S. economy in 2021. Biomanufacturing also supports millions of jobs, including high-quality opportunities in rural communities.
Better NAICS classifications would give policymakers and businesses a clearer picture of that activity and help identify opportunities to grow domestic manufacturing, attract private investment, and create new markets for American agricultural products.
This is not a new issue. Congress directed the Departments of Agriculture and Commerce in the 2018 Farm Bill to jointly develop NAICS codes for renewable chemical and biobased product manufacturers. Researchers, federal agencies, and industry stakeholders have also repeatedly identified current classifications as a barrier to accurately measuring the sector.
An Opportunity to Strengthen U.S. Leadership
The 2027 NAICS revision gives the federal government an opportunity to address this longstanding gap. PBPC’s comments call for amendments that better recognize renewable chemical and biobased product manufacturers and allow the United States to more consistently measure the growth of this important sector.
Want to learn more? Read PBPC’s full comments.