SIC 5084 Industrial Machinery and Equipment

SIC 5084

This industry is comprised of establishments involved in the wholesale distribution of industrial machinery and equipment, not elsewhere classified. Products of the industry include chainsaws, citrus processing machinery, conveyor systems, industrial cranes, derricks, industrial diesel engines, elevators, ladders, lift trucks, machine and machinists' tools, oil refining machines, packing machinery, industrial paint spray equipment, wood pulp manufacturing machinery, industrial pumps and pumping equipment, industrial sewing machines, shoe manufacturing and repairing machinery, smelting machinery, welding machinery, and winches.

NAICS CODE(S)

421830

Industrial Machinery and Equipment Wholesalers

According to Dun & Bradstreet, there were 41,665 establishments employing approximately 366,766 people in the industrial machinery and equipment industry in 2006. Total sales for the industry that year were nearly $105 billion. The top segments within this industry in terms of sales were material handling machinery with more than $7 billion, petroleum industry machinery with sales of $5.6 billion, and diesel engine parts, which generated sales of more than $5.6 billion.

The top states, based on number of establishments and sales volume, included Texas, California, Illinois, and Ohio. Together, these four states generated more than 30 percent of all industry sales.

Industrial equipment sales suffered downturns during the early 1990s as lean fiscal performances stalled new plant investment in many sectors served by this industry. Recovery began in 1993, and the industry posted healthy sales' growth and modest profits in the mid-1990s. The wholesale distribution of all machinery, equipment, and supplies, including this category, made up 15 percent of the durable goods market for 1997, which totaled $193 billion. In 2006, this industry segment represented 34 percent and $33.8 billion, respectively. Trying to post higher returns, many in the industry reconfigured the way their companies distributed industrial machinery. Other industry strategies aimed at further increasing market strength included reducing costs, outsourcing distribution-related services, and seeking out new business, especially through the exploration of foreign markets. Strong prospects for export growth included Canada, Mexico, South America, the United Kingdom, France, Germany, Australia, Japan, China, and Africa.

Reed Research Group...