SIC 3669 Communications Equipment, Not Elsewhere Classified

SIC 3669

This classification covers companies primarily engaged in manufacturing communications and related equipment, not elsewhere classified. Important products of this industry include intercommunication equipment, traffic signaling equipment, and fire and burglar alarm apparatus. In 1997 there were about 500 companies employing more than 25,000 workers with total shipments valued more than $4.2 billion. Establishments that provide security systems monitoring and maintenance are discussed in SIC 7382: Security Systems Services.

NAICS CODE(S)

334290

Other Communication Equipment Manufacturing

While this miscellaneous communications equipment industry includes a number of visible and important products, such as railroad signaling devices and various traffic control equipment, the revenue accrued in this industry originates primarily from the sale of security and smoke/fire alarm systems (about 63 percent). Traffic control equipment makes up about 25 percent, followed by intercommunications systems at a distant 4 percent.

In 2001, there were 431 firms operating 468 establishments in this industry. While there were some multi-billion dollar companies, the vast majority of companies were small or medium shops, employing fewer than 20 workers.

Alarm Systems

The United States has long dominated the alarm manufacturing and alarm monitoring industries worldwide. A myriad of alarm manufacturers have been able to establish themselves over the years: in 1997 the National Burglar and Fire Alarm Association estimated that an average of 13,100 local installation companies were operating in America. The number of alarm systems installed grew from 2.1 million in 1994 to 2.4 million in 1997, while total industry revenues grew from $9.8 billion to $13.9 billion, respectively.

From 1995 to 1998, consumers spent more than $33.0 billion on home security installations and monitoring. In 1997, Americans spent around $14.8 billion on professionally installed security products and services, up from $10.2 billion in 1995. The segment logged $17.5 billion in 2000 and $18.7 billion in 2001. Spending was expected to continue at an estimated rate of 4.3 percent per year, with a projected 18.0 percent of households having professionally installed security systems in 2002. Long-term factors that drive security system sales are economic conditions, crime, sales and marketing prowess...

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