Nondurable Goods, NEC

SIC 5199

Companies in this industry

Industry report:

This category covers wholesalers of nondurable goods, not elsewhere classified, such as art goods, industrial yarns, textile bags, and bagging burlap.

Industry Snapshot

Just a glance at the miscellaneous nondurable goods industry shows how complex it is to place every U.S. nondurable good into a distinct group. Even if each segment of this scattered industry was given its own classification, the need for new categories would likely emerge within a few months. Items listed in this diverse category include artists' materials, textile bags, baskets, brooms, burlap, candles, charcoal, Christmas trees, clothes hangers, tropical fish, glassware, animal and vegetable greases, hairbrushes, ice, industrial yarn, cigar and cigarette lighters, matches, paper novelties, smokers' pipes, plant food, crude rubber, sheet music, wigs, wood carvings, woolen and worsted yarns, worms, and many other items.

The overall nondurable goods industry saw steady and significant growth between 2000 and 2007, according to the U.S. Census Bureau's 2008 Statistical Abstract of the United States, with nondurable goods outpacing durable goods. Wholesale nondurable goods revenues jumped approximately 30 percent during that time span.

According to a 2009 D&B Sales and Marketing Solutions industry report, this industry sector consisted of 63,623 establishments. There were a total of 235,071 people employed, generating annual sales of over $41.8 billion. The majority of miscellaneous nondurable goods establishments were concentrated in California (11,235), followed by Florida (7,037), Texas (5,503), and New York (5,245). Combined, these states controlled more than 45 percent of the market as a whole, generating almost $18 billion in total sales in 2008. Most significant categories included advertising specialties ($5.6 billion in revenues), gifts and novelties ($4.0 billion), packaging materials ($3.8 billion), pet supplies ($2.7 billion), and crude rubber ($2.1 billion).

Each of the varied segments of the wholesale nondurable goods industry was affected by different economic, social, and environmental pressures during the late years of the first decade of the 2000s--some more than others. For example, the crude rubber segment saw a significant jump in prices. The U.S. tire industry, which was also attempting to respond to pressure to increase safety and fuel efficiency, raised prices. The gifts and home d�cor market, according to a 2009 report by Souvenirs, Gifts, and Novelties, saw growth throughout the second half of the decade, although concerns about the economy shadowed the market outlook. For its part, the packaging industry was affected by the decline in consumer spending in response to the economic downturn late in the decade. However, the industry continued efforts to develop more environmentally friendly packaging, with positive growth starting to be realized as the economy rebounded in the early 2010s. Pet product wholesalers found the traditional roles between wholesalers and local retailers further eroded by Internet sales, which were expected to continue to grow throughout the twenty-first century's second decade.

Figures from the U.S. Census Bureau showed that overall sales for miscellaneous nondurable goods merchant wholesalers reached almost $200 billion in 2011. The industry employed a total of 331,210 workers in 2009, according to the U.S. Bureau of Labor Statistics, and the average annual salary for all occupations in the industry was $40,160. Employment was expected to decline almost 9 percent from 2008 to 2018.

A leading company in the miscellaneous wholesale nondurable goods industry in the early 2010s was Golden State Foods Corp. A privately held food-processing company based in Irvine, California, Golden State Foods had about $4 billion in sales in 2011--up $1 billion from four years earlier--and 3,000 employees. The company supplied over 130 products, including hamburger patties, buns, tomatoes, lettuce, ketchup, and mayonnaise, to some 20,000 fast-food eateries. The company's largest customer was McDonald's restaurants and it operated from 20 distribution centers. Golden State Foods was controlled by investment firm Wetterau Associates, and management and employees own the remaining portion.

Keystone Foods LLC, based in West Conshohocken, Pennsylvania, was another major McDonald's supplier. The company, which is one of the largest makers of hamburger patties and chicken products, posted 2007 revenues of $5.5 billion and employed 130,000. By 2011 it operated 50 distribution and processing centers that serviced more than 28,000 restaurants around the world. The firm was purchased by Brazil's Marfrig Alimentos in 2010.

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News and information about Nondurable Goods, NEC

Add: US Jobs Report-STATS-Payroll employment chg by industry.
FWN Select; December 7, 2001; 700+ words
...Wholesale trade -25 -17 -22 -7 -1.8 Durable goods -23 -9 -11 -15 -2.7 Nondurable goods -2 -8 -11 8 -0.3 Retail trade -14 -119...public relation -1 0 -1 4 0.7 Services, nec na na na na na Government -6 19 -24 73 2...

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