SIC 5044 Office Equipment

SIC 5044

This entry includes establishments primarily engaged in the wholesale distribution of office machines and related equipment, including photocopy and microfilm equipment; safes and vaults; accounting and adding machines; calculating machines; cash registers; duplicating machines; mailing machines; mimeograph equipment; typewriters; and addressing machines. These establishments also frequently sell office supplies, but establishments primarily engaged in wholesale distribution of office supplies are classified in SIC 5111: Printing and Writing Paper, SIC 5112: Stationary and Office Supplies, or SIC 5113: Industrial and Personal Service Paper. Establishments primarily engaged in wholesale distribution of office furniture are classified in SIC 5021: Furniture, and those involved primarily in wholesale distribution of computers and peripheral equipment are classified in SIC 5045: Computers and Computer Peripheral Equipment and Software.

NAICS CODE(S)

421420

Office Equipment Wholesalers

INDUSTRY SNAPSHOT

The office equipment industry is made up of establishments that distribute supplies and equipment from typewriters to safes to calculating machines. In 2003, photocopy machines, copying equipment, and cash registers dominated this industry, followed by vaults and safes, addressing and mailing machines, and duplicating machines.

The industry consisted of approximately 6,779 establishments in 2001, slightly down from 7,023 in 2000. By 2003, the number increased to 9,233 with more than $25 million in annual sales. The average number of employees per establishment was 15, and the average sales per establishment was almost $4 million. The majority of office equipment establishments were concentrated in California with 1,240 with sales of about $1 million. Florida followed with approximately 700 establishments and about $4 million in annual sales.

The wholesale distribution of office machines and related equipment employed about 147,160 people in 2001, up from 134,340 in 2000. The total number of employees continued to decline, and by 2003 the number dropped to 128,589.

BACKGROUND AND DEVELOPMENT

Xerox Corporation, the inventor of the copier in 1949, led the office equipment industry until the 1970s when Japanese rivals entered the market. Xerox sales representatives found themselves competing against local distributors of Minolta Camera Co. Ltd., Toshiba Corporation, and other companies. At the premium-priced end, Eastman Kodak Co. had become a powerful competitor as well. Xerox's quality-improvement strategy, however, helped the company regain much of its market share (about 38 percent in 1991). Xerox sells and rents machines and provides special financing to its largest accounts. Because Xerox machines are usually high-end product...