Transportation Services, NEC

SIC 4789

Industry report:

This category covers establishments primarily engaged in furnishing transportation or services incidental to transportation that are not classified elsewhere. Included in this industry are stockyards that do not buy, sell, or auction livestock; and pipeline terminals.

According to 2009 U.S. Census Bureau statistics, there were just over 600 establishments engaged in the miscellaneous transportation services industry, which employed about 9,600 people. The workforce earned more than $231.5 million in wages while generating more than $867 million in revenue.

Reflecting the multifaceted operations in this industry were two of the leading companies, Rescar Inc., of Downers Grove, Illinois, which had $92.3 million in revenue in 2010, and Hulcher Services Inc., of Denton, Texas, with $35.2 million in 2010 revenues. Rescar is a privately held company that offers maintenance services to companies that own and/or lease rail rolling stock. Services include mechanical repair, exterior painting, interior coating, and cleaning. These are provided from a nationwide network of more than 100 locations in the United States and Canada, at site facilities or from a field services group. Hulcher Services provides railroad service maintenance and repair, as well as environmental and disaster-response services.

The U.S. Department of Agriculture (USDA) generally controls the rail stockyards industry. The USDA administers the Packers and Stockyards Act of 1921, which contains various financial protections for the industry and serves as the policing law to control unfair, deceptive, or anti-competitive practices. The Grain Inspection, Packers, and Stockyards Administration (GIPSA) is the specific USDA agency overseeing stockyards. The Packers and Stockyards Program had an annual appropriation of $23.6 million in 2010, an increase of $1.3 million from the previous year. The GIPSA also oversees the Food Safety and Inspection Service. Through these two agencies, the GIPSA ensures standards for quality assessments, regulates handling practices, and manages a network of federal, state, and private laboratories that provide impartial, user-fee-funded official inspection and weighing services.

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