SIC 3535 Conveyors and Conveying Equipment
SIC 3535
This category covers establishments primarily engaged in manufacturing conveyors and conveying equipment for installation in factories, warehouses, mines, and other industrial and commercial establishments. Establishments primarily engaged in manufacturing farm elevators and conveyors are classified in SIC 3523: Farm Machinery and Equipment; those manufacturing passenger or freight elevators, dumbwaiters, and moving stairways are classified in SIC 3534: Elevators and Moving Stairways; and those manufacturing overhead traveling cranes and monorail systems are classified in SIC 3536: Overhead Traveling Cranes, Hoists, and Monorail Systems.
333922
Conveyor and Conveying Equipment Manufacturing
Conveying systems have been an integral part of mining operations for nearly a century, but manufacturing industries have also become dependent on them. Regulations mandated by the Occupational Safety and Health Administration (OSHA) limited human exposure to certain harmful materials, requiring more extensive machine automation. With increased automation, conveying systems have become an integral part of manufacturing plant operations. Besides these uses, conveying systems have also become ubiquitous in airport baggage handling operations, and public and private package and mail handling operations. The industry has also benefited from the Internet's growth, as the boom in online sales has increased the need for conveyor systems for order picking and handling.
Conveyors and conveying equipment comprises one of the four major groupings of the material handling equipment manufacturing sector, which in turn is part of the huge domestic material handling market ($125 billion in 2005). Therefore, the economic trends of this sector are a good indicator of the conveyor industry's economic health. From the late 1990s the United States had seen its exports of material handling equipment gradually decline, according to the U.S. Department of Commerce, while imports have risen; making the nation a net importer of material handling equipment. Domestic manufactured conveyor systems have followed this trajectory with a steady decline in foreign sales and exports, while the U.S. market has seen an increase in imports of conveyor systems. However, the material handling sector "continues to enjoy a growth phase," according to a 2006 Material Handling Industry of America (MHIA) forecast, and the MHIA expects to see growth continue through 2007.
The conveyor and conveying equipment manufacturing industry is primarily composed of small establishments; in 2002 more than half had less than 20 employees, according to the most recent Census Bureau data, and these were fairly evenly scattered throughout the continental United States. In 1997 there were 897 establishments involved in conveyor and conveying equipment manufacturing, while in 2002 the number of establishments had dropped to 838. In 2005 only one domestically owned company was ranked among the world's leading manufacturers in this industry.
The conveying system industry is highly specialized, and therefore almost totally self-contained. While the industry relies heavily on suppliers for many of the materials consumed, the design and assembly of the systems is usually performed at one facility. Armed with design engineers and production facilities, the industry is capable of meeting individual material movement challenges in industries ranging from mining to heavy manufacturing to the airline industry. Standard equipment is produced in the pre-engineered sector of the industry.
Of the total number of establishments involved in this industry, about a quarter of them were involved with manufacturing unit handling conveyors and conveying systems, with an additional 2.5 percent dedicated to these systems' parts, attachments, and accessories. Another quarter were involved in manufacturing bulk material handling conveyors and conveying systems, with an additional 5 percent dedicated to these systems' parts, attachments, and accessories, according to U.S. Census Bureau data. Michigan, Ohio, and California hosted the greatest number of establishments involved in this industry, followed by Illinois, Pennsylvania, and Texas.
The first conveying systems were developed to draw water from wells in the ground. This method was used in various applications...
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