SIC 5082 Construction and Mining (Except Petroleum) Machinery and Equipment

SIC 5082

This industry is comprised of establishments involved primarily in the wholesale distribution of construction, mining, and logging machinery and equipment. Industry products include cranes, dredges, and draglines (except ships), excavating machinery, front-end loaders, quarrying machinery and equipment, road construction and maintenance machinery, scaffolding, power shovels, and drilling equipment. Establishments engaged in marketing machinery and equipment for oil wells, however, are included in SIC 5084: Industrial Machinery and Equipment.

NAICS CODE(S)

421810

Construction and Mining (except Petroleum) Machinery and Equipment Wholesalers

In 2006, this industry consisted of an estimated 9,828 establishments that employed 109,705 workers. Industry sales were valued at more than $36.4 billion in 2006. The U.S. states with the highest sales volume included Texas, Illinois, California, and Florida, which together accounted for nearly 30 percent of the industry's output that year.

Demand for construction equipment fluctuated in accordance with spending in the construction industry. The industry managed to weather the global recession of the early 1990s with little more than a slowdown in sales growth. Fairly dramatic growth characterized the industry during the mid- to late 1990s, despite a nationwide trend toward business consolidation in most other sectors. Within this industry, sharp increases were seen in both the number of establishments and the size of their workforces.

As the industry entered the new millennium, it faced increased competition from such nontraditional participants as equipment rental services and large-format warehouse retailing. Industry analysts advised distributors dealing with contractors to focus on niche products and full-service offerings in order to keep their customers from turning to do-it-yourself retail outlets. Moreover, information technologies like the Internet provided new marketing challenges to the industry by allowing potential customers to reach easily outside of their local area to obtain equipment. As a result, numerous participants in the industry, as well as their trade associations, established Internet sites to reach the newly widened market.

Mineral processing machinery was valued at $3.1 billion for 2006. The construction machinery sector, including surface mining equipment, was valued at nearly $9 billion and dealers were expecting revenue...