SIC 3431 Enameled Iron and Metal Sanitary Ware

SIC 3431

This category includes establishments primarily engaged in manufacturing enameled iron, cast iron, or pressed metal sanitary wares, such as bathtubs, sinks, toilets, and other bathroom and household plumbing fixtures. Nonmetallic plumbing products are listed in SIC 3088: Plastic Plumbing Fixtures, SIC 3261: Vitreous Sanitary Ware, and SIC 3469: Porcelain Enameled Kitchen, Household, and Hospital Ware.

NAICS CODE(S)

332998

Enameled Iron and Metal Sanitary Ware Manufacturing

INDUSTRY SNAPSHOT

Metal sanitary ware manufacturers compete in the household, commercial, and industrial plumbing product markets, producing products made of cast iron, enameled iron and steel, and stainless steel. Traditionally, these markets are directly influenced by the nation's construction markets and, therefore, are extremely cyclical.

The increased use of plastic and fiberglass plumbing products, as well as so-called "space age materials," reduced the demand for iron and steel plumbing products. In response to this change, manufacturers have developed composite materials that combine the strength and durability of metal with the lightweight and rustproof features of plastic and fiberglass products. A steady demand for stainless steel products, especially kitchen sinks, has kept approximately 80 manufacturers in business in the 2000s. By 2003 the construction industry was beginning to boom again, and with it rose sales in this industry.

ORGANIZATION AND STRUCTURE

Traditional wholesale distribution of plumbing products to building contractors is supplemented by retail distribution of plumbing products to the do-it-yourself consumer market. Typically, metal sanitary ware manufacturers distributed products through independent wholesale distributors of building products. Any advertising was of a technical nature and was aimed at the knowledgeable plumbing professional. Recently, the growth of replacement/remodeling markets for building products has increased profitability of plumbing products marketed directly to the consumer. In response, manufacturers have expanded marketing efforts, focusing on a consumer more concerned with function and style than with the technical specifications of the product.

BACKGROUND AND DEVELOPMENT

The fate of the plumbing producer has always been tied to the health of the nation's new construction markets. Economists label the demand for new construction as a leading indicator of this industry's growth because it provides insight into the future conditions of the overall economy. Hence, a decline in the demand for new construction usually precedes a slowdown in the nation's gross national product (GNP) growth. This held true in the recessions of 1982 and 1991, as construction activity began to decline a year before the rest of the economy slid into recession. Metal sanitary ware manufacturers felt the recessions...

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