Durable Goods, NEC

SIC 5099

Companies in this industry

Industry report:

This industry classification includes wholesale distributors of durable goods that are not categorized elsewhere. It includes distributors of prerecorded audio cassettes, compact discs, and phonograph records; fire extinguishers; firearms and ammunition, except sporting; coin-operated game machines; luggage; monuments and grave markers; musical instruments; nonelectric signs; and forest products, except lumber, such as cordwood, hewn logs, and wood chips.

According to Dun & Bradstreet, the durable goods industry consisted of 25,907 establishments in 2006, employing 107,998 workers and generating sales of more than $24 billion. The average sales generated per establishment totaled about $1 million. States with the highest number of establishments were California with 3,825, Texas with 2,166, Florida with 2,004, and New York with 1,657.

In the late 2000s, there were a reported 31,906 establishments engaged in the wholesale distribution of durable goods, not elsewhere classified with industry-wide employment of 125,432 workers. Although the total number of establishments increased, as did the workforce; shipment values fell to an estimated $13.6 billion in 2009. California, Florida, and Texas maintained their market presence responsible for 34 percent of product shipments.

Despite the economic turmoil over the past few years, the durable goods industry was beginning to pick up pace in September 2010. However, in one research report compiled by Joel Naroff, president of Naroff Economic Advisors "Since the economy is moving forward at a lackluster pace...we should expect durable goods demand to rise moderately at best," The U.S. Department of Commerce reported following a 1.0 percent drop in orders in August, orders increased 3.3 percent to $199.2 billion in September. For the all other durable goods sector shipments increased 3.1 percent, while new orders increased 3.7 percent. "Orders for durable goods are quite volatile from month to month, but the trend in new orders is considered a valuable leading indicator of the economy as a whole," cited from MarketWatch.

In 1997 Dun & Bradstreet listed 22,521 establishments in the durable goods industry, which generated $659 billion in sales, up from $617 billion in 1996. The industry also generated profits of approximately $107 billion dollars, up $15 billion from the previous year. In 1998 profits dropped to roughly $100 billion, due in large part to struggling overseas economies, especially in Asia. Orders for durable goods rose again in 1999, to a record $186 billion dollars in August. However, over the next two months the U.S. Department of Commerce reported that orders for durable goods had fallen 1.3 percent.

The overall industry classification is made up of several product categories. The leading categories in sales consist of music (media such as CDs, cassettes, etc.), $3 billion; safety equipment and supplies, $2.2 billion; wood and wood by-products with sales of $1.2 billion; and musical instruments, $1.1 billion.

Dun & Bradstreet listed 76 U.S. dealers of non-sporting firearms in 2006. Most of these dealers had less than 10 employees and reported sales between $50,000 and $500,000, with more successful dealers commonly being located in higher crime areas like Los Angeles, California.

According to statistics, the top performing category in the late 2000s was coin-operated amusement machine dealers. Collectively, 80 U.S. dealers shared more than $3.9 billion in sales in 2009. In addition, there were 1,548 candle dealers throughout the U.S. that constituted 8.9 percent in market share with sales totaling over $2.4 billion. Another top performing industry category was advertising curtain dealers with sales of $1.1 billion.

The firearms and ammunition, except sporting sector climbed at an alarming rate, with tax revenue totaling $121.7 million in the first half of 2009 alone. According to the U.S. Treasury Department, Alcohol and Tobacco Tax and Trade Bureau demand for handguns and long guns increased 42 percent, while ammunition climbed 49 percent during the same time period. Retailers could hardly keep their store shelves stocked with ammunition. "Bullet makers say the reasons for these shortages include the wars in Iraq and Afghanistan, which have made bullet components such s copper and brass more expensive," cited from The Washington Post in November 2009. Also, speculation surrounding the ongoing "gun-control debate" helped spur sales.

In the product category of luggage and travel gear, Samsonite was the world's largest manufacturer during the 2000s. The maker of American Tourister, Lark, and Samsonite brands reported $967 million in U.S. sales in 2006 and had 5,000 employees. While no sales figures were available, Samsonite's retail unit filed for bankruptcy protection in 2009. The company employeed 5,000 workers.

Warner-Elektra-Atlantic Corp., a subsidiary of multimedia conglomerate Time Warner Entertainment Co., L.P., is one of the nation's leading distributors of prerecorded music. It had sales of more than $200 million in 2005. Yamaha Corporation of America was one of the leading U.S. distributors of musical instruments, posting $806 million in sales in 2005.

Warner Music Group Corp., parent of Warner-Elektra-Atlantic Corp., reported revenues of $3.1 billion in 2009. Japan-based parent company of Yamaha Corporation of America had revenues of $4.7 billion in 2009, falling to $4.4 billion in 2010.

The durable goods industry employed 72,000 workers in the mid-1990s, and had an annual payroll exceeding $2 billion. The average industry worker brought home approximately $588 dollars per week in pay in 1997. A 1999 survey of leading U.S. employers indicated that the biggest demand for workers in 2000 would come from durable goods manufacturers, 30 percent of which reported plans to hire employees.

In 2003, the workforce had increased to 114,615 workers, yet decreased to nearly 108,000 in 2006. The majority of establishments employed fewer than five people. There were nearly 21,000 establishments with five or less employees in 2006. There were 2,244 with between five and nine employees; 1,341 employed between 10 and 24; 356 employed between 25 and 49; 151 employed between 50 and 99; 87 employed between 100 and 499; and four establishments employed more than 500.

In 2009, industry-wide employment reached 127,881 compared to 108,000 in 2006. The majority or 51.3 percent employed between two and four employees, while 33.7 percent reported one employee.

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