The limitations of WZ codes
As industries emerge — particularly in tech-based disciplines—some WZ definitions have become less reflective of modern businesses, prompting ongoing efforts to update the system.
This is particularly evident when you consider that around 200k active German companies are defined vaguely as ‘activities of holding companies’ and ‘management activities of holding companies’.
01. Lagging behind emerging industries
The current standard, WZ 2008, hasn’t been fully revised in over 15 years.
This means that it’s missing modern industries, including application software, web hosting, sensors, and data centres. Other areas, including renewable energy, e-commerce niches, and cryptocurrency services often lack a dedicated code.
This means that workarounds are often required when reporting, forcing businesses to use generic or outdated categories, which can blur important distinctions for research and policymaking.
02. Rigid and hierarchical
The five-digit numeric structure works well for traditional industries but struggles to capture hybrid business models — for example, a company that is both a software platform and a logistics provider.
Unfortunately, a firm can only list one primary WZ code, even if its revenue streams span multiple sectors. This can mean that secondary activities are omitted.
03. Reliability is dependent on self-reporting
When companies register, they typically choose their own code from the list. This can result in misclassifications, either by accident or for strategic reasons. For example, some owners could theoretically assign a tangentially related WZ code for more favourable discoverability.
Ultimately, these inconsistencies can distort industry-based statistics and speaks to the challenge of performing high quality market research with legacy classification tools like the WZ system.
04. Inconsistent detail across sectors
Certain industries, especially manufacturing, are described in high granularity (e.g., “Processing and preserving of poultry meat”).
On the other hand, service and knowledge-based sectors often have broad, catch-all categories, such as “Other information technology and computer service activities” or “Other professional, scientific and technical activities,” which barely define the nature of the work.
This imbalance can hinder meaningful cross-sector comparisons.
05. Not designed with commercial insight in mind
Much like the UK’s SIC codes, the WZ system was created with statistical and regulatory purposes in mind, rather than sales targeting, investment research, or competitive analysis.
Our own clients tend to find WZ codes poorly suited for market intelligence, and instead prefer using company data providers (like us) that offer more flexible, up-to-date taxonomies.
The alternative: Beauhurst Industries
Industries is our answer to dated systems like WZ and SIC codes, featuring both traditional and emerging industries.
For example, we cover both agriculture and agritech, banking and fintech, and manufacturing and robotics. This means that subscribers to the Beauhurst platform get a more holistic view of the market, and the businesses that operate within it.
Simply put, we’re defining the complete business economy as it is now, rather than as it was then.
How we did it
For over 14 years, we’ve blended machine learning models with years of industry expertise, which means you benefit from expansive, authoritative industry coverage across Germany and the UK.
The result is a set of ever-expanding industries that streamline the complexity of WZ codes, whilst also delivering the depth necessary to analyse the modern business economy.