Industrial and Commercial Machinery and Equipment, NEC

SIC 3599

Companies in this industry

Industry report:

This industry is made up of firms that manufacture miscellaneous machinery and equipment not elsewhere classified. It also encompasses establishments primarily engaged in producing or repairing machinery and equipment on a job or order basis for other companies. Examples of industry output include carnival amusement rides, catapults, sludge tables, flexible tubes and hoses, weather vanes, and non-vehicle engine filters. Motor vehicle engine filter manufacturers are classified separately in SIC 3714: Motor Vehicle Parts and Accessories, and those manufacturing coin-operated amusement machines are classified in SIC 3999: Manufacturing Industries, Not Elsewhere Classified.

According to the U.S. Census Bureau, 1,487 establishments operated in this category for part or all of 2004. Industry-wide employment totaled approximately 147,945 workers receiving a payroll of nearly $5.6 billion. Companies in this industry tended to be small in size, with about 64 percent employing less than 100 workers. The Annual Survey of Manufactures reported that overall shipments for the industry were valued at more than $39.3 billion in 2005. Additionally, for the industry a total of 109,236 employees worked in production in 2005, putting in nearly 221 million hours to earn wages of nearly $3.7 billion.

According to the Annual Survey of Manufacturers, shipment values increased to $42.4 billion in 2007 before trending downward to $40.8 billion in 2008. The industry as a whole employed 105,176 production workers who put in about 211 million hours earning $3.6 billion in wages in 2007. The total number of production workers fell to an estimated 95 million in 2008, as did the total number of hours to almost 183 million earning nearly $3.3 billion in wages.

General Dynamics Corp. of Falls Church, Virginia, led the industry with 2005 sales of more than $21 billion on the strength of 72,200 employees. In second place was New York City-based Siemens Corp. with more than $17 billion in 2005 sales and 17,000 employees. Rounding out the top three was Applied Materials Inc. of Santa Clara, California, with 2005 sales of more than $9 billion and 12,576 employees.

General Dynamics Corporation's revenues continued to climb with a reported $27.2 billion in 2007 and $29.3 billion in 2008 before reaching nearly $32 billion in 2009 with 91,700 employees. Siemens Corp. reported revenues of $22.4 billion in 2009 with 69,000 employees. Lastly, Applied Materials Inc.'s fell to $5.01 billion in 2009 compared to $9 billion in 2005 with 13,032 employees.

Products for the "all other motor vehicle part manufacturing" segment are divided into five subcategories: filters for internal combustion engines and motor vehicles (new); exhaust system parts (new); motor vehicle wheels (new); trailer hitches (for travel trailers, automobile trailers, and light duty truck trailers; and all other motor vehicle parts and accessories (new and rebuilt). Of the specific segments in 2002, exhaust system parts (new) comprised the largest portion of shipment values, with about 21 percent, while filters for combustion engines and motor vehicles (new) and motor vehicle wheels (new) each held just less than 10 percent of the market. The miscellaneous category of all other motor vehicle parts and accessories (new and rebuilt) maintained the biggest portion of the industry with 52 percent of shipment values and included such products as motor vehicle bumpers, frames, fuel tanks, radiators, air conditioning hoses, windshield wiper blades, sunroofs, heater cores, and air bags.

All other motor vehicle parts and accessories (new and rebuilt) continued to outperform all other industry categories with shipments totaling $23.3 billion in 2007, falling slightly to $22.0 billion in 2008. The exhaust system parts (new) category had shipments totaling $8.1 billion in 2007 reaching $9.4 billion in 2008. Filters for internal combustion engines and motor vehicles (new) category was valued at $3.9 billion in 2007, declining slightly to $3.5 billion in 2008. The industry shipped $3.9 billion motor vehicle wheels (new) in 2007, before plummeting to $2.9 billion in 2008, a reflection of the depressed automobile industry.

A slowdown in capital spending by durable goods manufacturers during the 1980s dampened sales and profit growth in comparison to the 1960s and 1970s. Revenue growth averaged only 4 percent annually between 1982 and 1990, mirroring capital spending increases. New capital expenditures for all manufacturing establishments were up roughly 14 percent in 1995, contributing to the relative health of this industry. That year, the value of products in this category totaled $26.9 billion; this was a 19 percent increase from 1994. Strong U.S. economic performance in the mid-to-late 1990s and recovering foreign markets, notably in Europe and East Asia, were expected to produce continued prosperity for the industry.

In the mid-1990s, capital investment by domestic industry accounted for approximately 55 percent of miscellaneous industrial machinery purchases. About 30 percent of the industry's mid-1990s sales were exports; the remaining 15 percent of production was consumed by numerous market niches. The armed forces, for example, purchased about 2 percent of output, and communication service industries made up slightly less than 1 percent of the market. In 2000 shipment values spiked for the "all other motor vehicle parts manufacturing" category, reaching $43.5 billion, but then experienced annual declines, falling by about 10 percent to $39.3 billion in 2005.

In specific segments, trends in the amusement park sector were initially moving away from roller coasters in the mid-2000s, toward more family friendly rides and features, which would affect this sector of the industry. However, some growth is occurring as several major amusement parks have plans to construct new roller coasters, such as Cedar Point in Sandusky, Ohio, that announced in September 2006 it would add to its world record total of 16 roller coasters.

As the end of the decade nears, there were signs of an economic turnaround, at least for General Dynamics who"s earnings were up. In fact, Jay L. Johnson, CEO of General Dynamics told The New York Times in October of 2010 that he "received more orders for more business jets in the third- quarter than in any comparable period since mid-2008, another indication of recovery in the market for corporate planes." Heidi Wood, an analyst at Morgan Stanley agreed and reported that business flights were also on the rise and "a recovery appears under way."

© COPYRIGHT 2018 The Gale Group, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. For permission to reuse this article, contact the Copyright Clearance Center.

News and information about Industrial and Commercial Machinery and Equipment, NEC

Research and Markets Offers Report: Other Measuring and Controlling Device Manufacturing Industry in the U.S. and its International Trade.(Report)
Health & Beauty Close-Up; September 23, 2009; 700+ words
...Subsector (334), and the Manufacturing Sector (31-33). Its SIC equivalent codes are: 3599 - Industrial and Commercial Machinery and Equipment, NEC (water leak detectors); and 3829 - Measuring and Controlling Devices, NEC (except medical...
OSHA scrutinizes woodworking plants for Amputation risk. (Trends & News).
Wood & Wood Products; March 1, 2002; 700+ words
...Sheet Metal Work 3441 Fabricated Structural Metal 3714 Motor Vehicle Parts and Accessories 3599 Industrial and Commercial Machinery and Equipment, NEC 3443 Fabricated Plate Work (Boiler Shops) 2431 Millwork 2421 Sawmills and Planing Mills, General...
Research and Markets Adds Report: All Other Miscellaneous Electrical Equipment and Component Manufacturing Industry in the U.S. and its International Trade - Q3 2010 Edition.(Report)
Entertainment Close-up; September 21, 2010; 700+ words
...Miscellaneous Electrical Equipment and Component...manufacturing industrial and commercial electric apparatus...switchgear, relays, industrial controls, batteries...Apparatus, NEC; and 3699 - Electrical Machinery, Equipment, and Supplies, NEC (other electrical...
Research and Markets Offers Report: All Other Miscellaneous Electrical Equipment and Component Manufacturing Industry in the U.S. and its International Trade [Q4 2009 Edition].(Report)
Entertainment Close-up; December 27, 2009; 700+ words
...Miscellaneous Electrical Equipment and Component...manufacturing industrial and commercial electric apparatus...switchgear, relays, industrial controls, batteries...Apparatus, NEC; and 3699 - Electrical Machinery, Equipment, and Supplies, NEC (other electrical...
Research and Markets Offers Report: Other Measuring and Controlling Device Manufacturing Industry in the U.S. and its International Trade.(Report)
Health & Beauty Close-Up; September 23, 2009; 700+ words
...residential, commercial, and appliance...control of industrial process variables...irradiation equipment; and electromedical...are: 3599 - Industrial and Commercial Machinery and Equipment, NEC (water leak...Controlling Devices, NEC (except medical...
OSHA scrutinizes woodworking plants for Amputation risk. (Trends & News).
Wood & Wood Products; March 1, 2002; 700+ words
...expanded National Emphasis Program on Hazardous Machinery Associated with Amputations. Effective Nov...Motor Vehicle Parts and Accessories 3599 Industrial and Commercial Machinery and Equipment, NEC 3443 Fabricated Plate Work (Boiler Shops...
Sumitomo, Nissan and NEC to Promote Membership-based Charging Service for Electric Vehicles (EV).
JCN Newswires; December 22, 2010; 700+ words
...maintenance of charging equipment by working with...feasibility. NEC will provide...governments. About NEC Corporation NEC Corporation...passenger cars, commercial vans, trucks...forklifts, textile machinery and other industrial machinery and...
Sumitomo, Nissan and NEC to Promote Membership-based Charging Service for Electric Vehicles (EV)
JCN Newswires; December 21, 2010; 700+ words
...maintenance of charging equipment by working with...feasibility. NEC will provide...governments. About NEC Corporation NEC Corporation...passenger cars, commercial vans, trucks...forklifts, textile machinery and other industrial machinery and...

Search all articles about Industrial and Commercial Machinery and Equipment, NEC