SIC 3599
INDUSTRIAL AND COMMERCIAL MACHINERY AND EQUIPMENT, NOT ELSEWHERE CLASSIFIED

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.

NAICS Code(s)

336399 (All Other Motor Vehicle Part Manufacturing)

In 2001, there were approximately 1,390 establishments in this highly fragmented industry, manufacturing such diverse equipment as carnival rides, weather vanes, catapults, leak detectors, grinding castings, and boiler tube cleaners.

Tech Packaging Inc. of Jacksonville, Florida, led the industry with 2001 sales of $1.5 billion on the strength of 100 employees. In second place was Alstom Inc. of Windsor, Connecticut, with $442 million in sales and 1,700 employees. Rounding out the top three was Pall Aeropower Corp. of Clearwater, Florida, with sales of $271 million and 500 employees. Nearly all the companies in this industry employed fewer than 20 workers. Typically, small to mid-sized machine shop receipts account for as much as 70 percent of industry revenues.

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 specific segments, trends in the amusement park sector were moving away from roller coasters in 2004, toward more family friendly rides and features, which would affect this sector of the industry. Sales of filter pitchers were declining each year, but revenue was increasing. Brita held 80 percent of this market segment in 2002.

The industry's labor force numbered 168,635 in 2001, including 131,522 production workers. Industry payroll was almost $6 billion, and total industry shipments were valued at $40.9 billion.

Further Reading

Baker, Deborah J., ed. Ward's Business Directory of US Private and Public Companies. Detroit, MI: Thomson Gale, 2003.

Infotrac Company Profiles. 17 February 2000. Available from http://web4.infotrac.galegroup.com .

Lazich, Robert S., ed. Market Share Reporter. Detroit, MI: Thomson Gale, 2004.

O'Brien, Tim, "Big Ticket Projects Scarce in 2004: Parks Focus on Family Rides, Amenities." Amusement Business, 5 January 2004.

U.S. Census Bureau. Statistics of U.S. Businesses: 2001. 1 March 2004. Available from http://www.census.gov/epcd/susb/2001/us/US332311.htm .

U.S. Department of Commerce. Annual Survey of Manufactures. Washington: GPO, 2002.