Pharmaceutical Preparation Manufacturing
Description
This U.S. industry comprises establishments primarily engaged in manufacturing in-vivo diagnostic substances and pharmaceutical preparations (except biological) intended for internal and external consumption in dose forms, such as ampoules, tablets, capsules, vials, ointments, powders, solutions, and suspensions.
Hierarchy
| Code | Title | Description |
|---|---|---|
| 32 | Manufacturing 2-digit sector | The Sector as a Whole The Manufacturing sector comprises establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products. The assembling of component parts of manufactured products is considered manufacturing, except in cases where the activity is appropriately classified in Sector 23, Construction. Establishments in the Manufacturing sector are often described as plants, factories, or mills and characteristically use power-driven machines and material handling equipment. However, establishments that transform materials or substances into new products by hand or in the worker's home and those engaged in selling to the general public products made on the same premises from which they are sold, such as bakeries, candy stores, and custom tailors, may also be included in this sector. Manufacturing establishments may process materials or may contract with other establishments to process their materials for them. Both types of establishments are included in manufacturing. Selected industries in the Manufacturing sector are comprised solely of establishments that process materials for other establishments on a contract or fee basis. Beyond these dedicated contract manufacturing industries, establishments that process materials for other establishments are generally classified in the Manufacturing industry of the processed materials. The materials, substances, or components transformed by manufacturing establishments are raw materials that are products of agriculture, forestry, fishing, mining, or quarrying as well as products of other manufacturing establishments. The materials used may be purchased directly from producers, obtained through customary trade channels, or secured without recourse to the market by transferring the product from one establishment to another, under the same ownership. The new product of a manufacturing establishment may be finished in the sense that it is ready for utilization or consumption, or it may be semi-finished to become an input for an establishment engaged in further manufacturing. For example, the product of the alumina refinery is the input used in the primary production of aluminum; primary aluminum is the input to an aluminum wire drawing plant; and aluminum wire is the input for a fabricated wire product manufacturing establishment. The subsectors in the Manufacturing sector generally reflect distinct production processes related to material inputs, production equipment, and employee skills. In the machinery area, where assembling is a key activity, parts and accessories for manufactured products are classified in the industry of the finished manufactured item when they are made for separate sale. For example, an attachment for a piece of metalworking machinery would be classified with metalworking machinery. However, component inputs from other manufacturing establishments are classified based on the production function of the component manufacturer. For example, electronic components are classified in Subsector 334, Computer and Electronic Product Manufacturing, and stampings are classified in Subsector 332, Fabricated Metal Product Manufacturing. Manufacturing establishments often perform one or more activities that are classified outside the Manufacturing sector of NAICS. For instance, almost all manufacturing has some captive research and development or administrative operations, such as accounting, payroll, or management. These captive services are treated the same as captive manufacturing activities. When the services are provided by separate establishments, they are classified in the NAICS sector where such services are primary, not in manufacturing. The boundaries of manufacturing and the other sectors of the classification system can be somewhat blurry. The establishments in the Manufacturing sector are engaged in the transformation of materials into new products. Their output is a new product. However, the definition of what constitutes a new product can be somewhat subjective. As clarification, the following activities are considered manufacturing in NAICS: <table width=100%><tr><td width=10%> </td><td><dl><dt style='padding-left: 10px; text-indent: -10px;'>Milk bottling and pasteurizing;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Water bottling and processing;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Fresh fish packaging (oyster<br/> shucking, fish filleting);</dt><dt style='padding-left: 10px; text-indent: -10px;'>Apparel jobbing (assigning<br/> materials to contract<br/> factories or shops for<br/> fabrication or other contract<br/> operations) as well as<br/> contracting on materials<br/> owned by others;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Printing and related activities;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Ready-mix concrete production;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Leather converting;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Grinding lenses to<br/> prescription;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Wood preserving;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Lapidary work for the trade;</dt></dl></td><td width=10%> </td><td><dl><dt style='padding-left: 10px; text-indent: -10px;'>Electroplating, plating, metal<br/> heat treating, and<br/> polishing for the trade;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Fabricating signs and<br/> advertising displays;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Rebuilding or remanufacturing<br/> machinery (i.e., automotive<br/> parts);</dt><dt style='padding-left: 10px; text-indent: -10px;'>Making manufactured homes<br/> (i.e., mobile homes) or<br/> prefabricated buildings,<br/> whether or not assembling/<br/> erecting at the customers'<br/> site;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Ship repair and renovation;</dt><dt style='padding-left: 10px; text-indent: -10px;'>Machine shops; and</dt><dt style='padding-left: 10px; text-indent: -10px;'>Tire retreading.</dt></dl></td><td width=10%> </td></tr></table> Conversely, there are activities that are sometimes considered manufacturing, but which for NAICS are classified in another sector (i.e., not classified as manufacturing). They include: 1. Logging, classified in Sector 11, Agriculture, Forestry, Fishing and Hunting, is considered a harvesting operation; 2. Beneficiating ores and other minerals, classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction, is considered part of the activity of mining; 3. Constructing structures, assembling prefabricated buildings, and fabricating at the construction site by contractors are classified in Sector 23, Construction; 4. Breaking bulk and reselling in smaller lots, including packaging, repackaging, or bottling products, such as liquors or chemicals; assembling and selling computers on a custom basis; sorting and reselling scrap; mixing and selling paints to customer order; and cutting metals to customer order for resale are classified in Sector 42, Wholesale Trade, or Sector 44-45, Retail Trade; and 5. Publishing and the combined activity of publishing and printing, classified in Sector 51, Information, transform information into a product for which the value to the consumer lies in the information content, not in the format in which it is distributed (i.e., the book or software compact disc). |
| 325 | Chemical Manufacturing 3-digit subsector | The Chemical Manufacturing subsector is based on the transformation of organic and inorganic raw materials by a chemical process and the formulation of products. This subsector distinguishes the production of basic chemicals that comprise the first industry group from the production of intermediate and end products produced by further processing of basic chemicals that make up the remaining industry groups. This subsector does not include all industries transforming raw materials by a chemical process. It is common for some chemical processing to occur during mining operations. These beneficiating operations, such as copper concentrating, are classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction. Furthermore, the refining of crude petroleum is included in Subsector 324, Petroleum and Coal Products Manufacturing. In addition, the manufacturing of aluminum oxide is included in Subsector 331, Primary Metal Manufacturing; and beverage distilleries are classified in Subsector 312, Beverage and Tobacco Product Manufacturing. As is the case of these two activities, the grouping of industries into subsectors may take into account the association of the activities performed with other activities in the subsector. |
| 3254 | Pharmaceutical and Medicine Manufacturing 4-digit industry group | The Chemical Manufacturing subsector is based on the transformation of organic and inorganic raw materials by a chemical process and the formulation of products. This subsector distinguishes the production of basic chemicals that comprise the first industry group from the production of intermediate and end products produced by further processing of basic chemicals that make up the remaining industry groups. This subsector does not include all industries transforming raw materials by a chemical process. It is common for some chemical processing to occur during mining operations. These beneficiating operations, such as copper concentrating, are classified in Sector 21, Mining, Quarrying, and Oil and Gas Extraction. Furthermore, the refining of crude petroleum is included in Subsector 324, Petroleum and Coal Products Manufacturing. In addition, the manufacturing of aluminum oxide is included in Subsector 331, Primary Metal Manufacturing; and beverage distilleries are classified in Subsector 312, Beverage and Tobacco Product Manufacturing. As is the case of these two activities, the grouping of industries into subsectors may take into account the association of the activities performed with other activities in the subsector. |
| 32541 | Pharmaceutical and Medicine Manufacturing 5-digit NAICS industry | This industry comprises establishments primarily engaged in one or more of the following: (1) manufacturing biological and medicinal products; (2) processing (i.e., grading, grinding, and milling) botanical drugs and herbs; (3) isolating active medicinal principals from botanical drugs and herbs; and (4) manufacturing pharmaceutical products intended for internal and external consumption in such forms as ampoules, tablets, capsules, vials, ointments, powders, solutions, and suspensions. |
| 325412 | Pharmaceutical Preparation Manufacturing 6-digit U.S. detail | This U.S. industry comprises establishments primarily engaged in manufacturing in-vivo diagnostic substances and pharmaceutical preparations (except biological) intended for internal and external consumption in dose forms, such as ampoules, tablets, capsules, vials, ointments, powders, solutions, and suspensions. |
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Classification References
- 01Manufacturing uncompounded medicinal chemicals and their derivatives--are classified in U.S. Industry 325411, Medicinal and Botanical Manufacturing;
- 02Manufacturing in-vitro diagnostic substances--are classified in U.S. Industry 325413, In-Vitro Diagnostic Substance Manufacturing; and
- 03Manufacturing vaccines, toxoids, blood fractions, and culture media of plant or animal origin (except for diagnostic use)--are classified in U.S. Industry 325414, Biological Product (except Diagnostic) Manufacturing.
Index Items
Adrenal medicinal preparations manufacturing
Analgesic preparations manufacturing
Anesthetic preparations manufacturing
Angiourographic diagnostic preparations manufacturing
Antacid preparations manufacturing
Anthelmintic preparations manufacturing
Antibacterial preparations manufacturing
Antibiotic preparations manufacturing
Antidepressant preparations manufacturing
Antihistamine preparations manufacturing
Antineoplastic preparations manufacturing
Antipyretic preparations manufacturing
Antiseptic preparations manufacturing
Antispasmodic preparations manufacturing
Astringent preparations manufacturing
Barbiturate preparations manufacturing
Barium in-vivo diagnostic substances manufacturing
Belladonna preparations manufacturing
Birth control pills manufacturing
Botanical extract preparations (except in-vitro diagnostics) manufacturing
Cardiac preparations manufacturing
Cathartic preparations manufacturing
Central nervous system stimulant preparations manufacturing
Coagulation in-vivo diagnostic substances manufacturing
Cold remedies manufacturing
Contraceptive preparations manufacturing
Contrast media in-vivo diagnostic substances (e.g., iodine, barium) manufacturing
Cough drops, medicated, manufacturing
Cough medicines manufacturing
Cyclopropane medicinal preparations manufacturing
Dermatological preparations manufacturing
Diagnostic biological preparations (except in-vitro) manufacturing
Dietary supplements, compounded, manufacturing
Digestive system preparations manufacturing
Digitalis medicinal preparations manufacturing
Diuretic preparations manufacturing
Effervescent salts manufacturing
Electrolyte in-vivo diagnostic substances manufacturing
Eye and ear preparations manufacturing
Fever remedy preparations manufacturing
Glandular medicinal preparations manufacturing
Hematology in-vivo diagnostic substances manufacturing
Herbal supplements, compounded, manufacturing
Hormone preparations (except in-vitro diagnostics) manufacturing
Insulin preparations manufacturing
Intravenous (IV) solution preparations manufacturing
In-vivo diagnostic substances manufacturing
Iodinated in-vivo diagnostic substances manufacturing
Laxative preparations manufacturing
Lip balms manufacturing
Metabolite in-vivo diagnostic substances manufacturing
Mouthwashes, medicated, manufacturing
Muscle relaxant preparations manufacturing
Nonprescription drug preparations manufacturing
Nuclear medicine (e.g., radioactive isotopes) preparations manufacturing
Oral contraceptive preparations manufacturing
Patent medicine preparations manufacturing
Penicillin preparations manufacturing
Pharmaceutical preparations (e.g., capsules, liniments, ointments, tablets) manufacturing
Pituitary gland preparations manufacturing
Radioactive in-vivo diagnostic substances manufacturing
Sedative preparations manufacturing
Sodium chloride pharmaceutical preparations manufacturing
Sodium salicylate preparations manufacturing
Suppositories manufacturing
Technetium medicinal preparations manufacturing
Thyroid preparations manufacturing
Tincture of iodine preparations manufacturing
Tranquilizer preparations manufacturing
Vermifuge preparations manufacturing
Veterinary medicinal preparations manufacturing
Vitamin preparations manufacturing
Water (i.e., drinking) decontamination or purification tablets manufacturing
Zinc oxide medicinal preparations manufacturing
How Item Can Help
Pharmaceutical preparation facilities rely on the WMS to enforce strict First-Expiry-First-Out (FEFO) compliance by automatically sorting and tracking batch lots in real time. This prevents the storage and distribution of expired or potentially contaminated products while maintaining accurate cold-chain records for regulatory audits.
The OMS synchronizes inventory levels across multiple fulfillment centers to enable instant order allocation based on proximity and product stability requirements. This integration reduces shipping delays for time-sensitive prescriptions and ensures that orders are fulfilled from the location with the freshest available stock.
Advanced Data Intelligence analyzes historical sales patterns to forecast demand for specific pharmaceutical formulations, allowing companies to optimize production schedules and warehouse capacity. These predictive insights minimize stockouts of critical drugs while reducing excess inventory costs and preventing the waste of perishable raw materials.
Item.com Tools
External Resources
Census.gov NAICS Detail
Official US Census Bureau definition and scope for NAICS 325412.
Pharmaceutical Manufacturing Association
Industry association dedicated to the pharmaceutical industry in the United States.
USDA NAICS Code Reference
Official United States Bureau of Labor Statistics reference page for pharmaceutical preparation manufacturing.
Industry-Specific Training
Online resource directory offering certified training and career pathways for pharmaceutical preparation workers.
