SIC 3559 Special Industry Machinery, Not Elsewhere Classified

SIC 3559

This classification covers establishments primarily engaged in manufacturing special industry machinery, not elsewhere classified, such as equipment for smelting and refining, cement making, clay working, glass making, incandescent lamp making, leather working, paint making, printed circuit boards, semiconductors, rubber working, cigar and cigarette making, tobacco working, shoe making, stone working machinery, industrial sewing machines, and automotive maintenance machinery and equipment. In the past, cotton ginning machinery was also included. Under the new NAICS codes, farm equipment and machinery (SIC 3523) is included in this classification. Cotton ginning machines are not included in that subclassificiation.

NAICS CODE(S)

333220

Rubber and Plastics Industry Machinery Manufacturing

333319

Other Commercial and Service Industry Machinery Manufacturing

333295

Semiconductor Manufacturing Machinery

INDUSTRY SNAPSHOT

The special industry machinery, not elsewhere classified classification was comprised of companies that manufactured a wide variety of miscellaneous machines used to produce goods in other industries. Numerous product offerings ranged from broom making contraptions to zipper makers, although semiconductor manufacturing equipment accounted for the largest portion of the classification's output.

The number and production volume of machines classified in this industry increased substantially during the industrial revolution, particularly after World War II. By the early 1980s, about $5.0 billion in annual U.S. machinery sales were attributed to this SIC. Although overall U.S. industrial machinery sales growth slowed during the 1980s, a surging demand for high-tech semiconductor manufacturing equipment doubled industry revenues to about $10.0 billion in 1989.

While a U.S. recession in the late 1980s and early 1990s depressed many industrial machinery segments, semiconductor machine sales continued to grow. Renewed U.S. competitiveness in high-tech equipment manufacturing allowed domestic competitors to thwart their Japanese rivals. In addition, increased semiconductor demand from industries such as telecommunications augmented growth. Output expanded throughout the mid-to-late 1990s, though the cyclical nature of the industry did drive output down in 1997, causing a "tech recession" that continued into the early 2000s.

Despite being affected by business cycles in the chip making industry, the long-term prospects for semiconductor equipment manufacturing appeared strong. In the mid-to-late 1990s, there were several powerful trends behind the growing demand for silicon wafer fabrication systems. A global increase in PC sales drove increased demand for semiconductors of all kinds, plus new chips being produced required more memory. For example, Intel's first Pentium chip required at least 16 megabytes of memory, almost double that of 486-based PCs. Also, the rapid growth of telecommunications and the use of electronics in automobiles increased semiconductor sales. The lightning-fast changes in the computer industry have rendered the first Pentium chip something of a dinosaur even to casual computer users, and there seems to be little evidence that changes will not continue on their rapid course. As of the early 2000s, the outlook was positive for the industry's chip makers, partly due to improved technology and expectations for better performance, and partly due to an increase in service requirements.

ORGANIZATION AND STRUCTURE

The special industry machinery industry encompassed a plethora of devices, including tire retreading machinery, stone tumblers, tile making equipment, automotive frame straighteners, lumber drying kilns, cork cutters, brick makers, shoe repair equipment, leather-working devices, and plastic molding machines.

Semiconductor manufacturing equipment was the leading segment in this industry, and it saw spectacular growth in the 1990s. For example, in 1987 shipments from this segment were valued at just $1.01 billion, but by 1992 had more than doubled to $2.27 billion, or 21.6 percent of the total industry's output. By 1995, that total had ballooned even more, reaching $6.80 billion, and U.S. Census Bureau figures listed the value of shipments in 1997 at $11.20 billion. By the end of the decade, this growth had leveled off.

Other groups that fall into this category include plastics and rubber industry manufacturing (with 1997 shipments valued at $3.8 billion); power boiler and heat exchange manufacturing ($3.8 billion); other commercial and service industry machinery ($9.3 billion); and all other industrial machinery ($8.7 billion).

Semiconductor equipment was expected to remain the largest and fastest growing sector of the industry throughout the 1990s. As of the mid-1990s, semiconductor production involved a sequence of more than 200 steps using numerous machines. Although the manufacturing process varies depending on the type of chip produced, four basic functions are typically performed to complete a semiconductor wafer, or circuit: 1) deposition of thin film on the (usually silicon) wafer; 2) impurity doping, when selected impurities are introduced that controlled conductivity; 3)...