SIC 3489

This category covers establishments primarily engaged in manufacturing ordnance and accessories, not elsewhere classified, such as naval, aircraft, anti-aircraft, tank, coast, and field artillery having a bore more than 30 mm. (or more than 1.18 inch), and components. Establishments primarily engaged in manufacturing small arms and parts 30 mm or less are classified in SIC 3484: Small Arms; those manufacturing tanks are classified in SIC 3795: Tanks and Tank Components; and those manufacturing guided missiles are classified in Industry Group 376 (Guided Missiles and Space Vehicles and Parts).

NAICS Code(s)

332995 (Other Ordnance and Accessories Manufacturing)

Alliant Tech Systems Inc., of Edina, Minnesota, led the industry with 2001 sales of $1.8 billion and 11,600 employees. In second place was ITT Industries Defense Electronics and Services, with $1.3 billion in sales and 10,000 total employees. In a distant third place was Lockheed Martin Naval Electronic and Surveillance System, with $289 million in sales and 600 employees.

The ordnance and accessories industry declined in the post-Cold War era, along with other high-tech industries such as aerospace and the manufacture of search and navigation equipment. The decline in defense spending, along with the private sector recession of 1990 and 1991, were the main causes of the employment losses and downturns experienced in this industry since 1987.

The value of shipments in the ordnance and accessories industry was $1.31 billion in 1991. Shipments declined every year since 1989, and reached a five-year low in 1996. The industry peaked in 1984, with $1.93 billion in shipments and 14,700 workers involved in production. Still, in accordance with the steady descent of shipment values, the number of workers in this field has dropped slightly every year since 1984.

The industry is highly labor intensive, having only 19 percent as much investment per production worker as that for the manufacturing sector as a whole. On average, annual hours worked by production workers are slightly lower than those worked in the manufacturing sector at large, although hourly wages are 49 percent higher. Figures for 2001 showed 7,000 employees in 57 establishments, some 2,700 of whom worked in production capacities, producing total shipments valued at $1.3 billion and receiving an annual payroll of $397 million. Projected employment figures for 2004 showed a decline in the industry, with a total of 3,300 employees in 68 establishments.

Following the attack on the World Trade Center on September 11, 2001, and the subsequent war on terrorism, there was a general increase in defense spending, which helped to keep the industry on track for growth. In early 2004, for example, there were plans to manufacture antimissile systems for nearly 7,000 domestic commercial planes. Such systems, which were in place on military planes, were expected to cost approximately $3.4 billion. Also in 2004, industry leader Alliant Techsystems Inc. was contracted to produce millions of dollars worth of tank training ammunition and precision artillery fuzes for the U.S. Army.

The top five industries and sectors buying the outputs of the ordnance and accessories industry are listed as follows: federal government purchase, national defense, with a 72.0 percent share; exports, with a 24.4 percent share; ordnance and accessories, not elsewhere classified, with a 2.4 percent share; change in business inventories, with a 1.0 percent share; and small arms ammunition, with a 0.2 percent share.

Further Reading

"ATK Awarded Funding Increments Worth $34 Million for Next-Generation Precision Artillery Fuze." Alliant Techsystems Inc. 17 February 2004. Available from .

"ATK Receives Orders Worth $67 Million for Tank Training Ammunition." Alliant Techsystems Inc. 1 March 2004. Available from .

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

"Clearwater, Fla., Aerospace Plant May Help Fight Against Terror." Knight Ridder/Tribune Business News. 7 January 2004.

Darnay, Arsen J., ed. Manufacturing and Distribution USA. Detroit: Thomson Gale, 2003.

Hoover's Company Fact Sheet. "Alliant Techsystems Inc." 2 March 2004. Available from .

U.S. Census Bureau. 1997 Economic Census-Manufacturing. 12 February 2000. Available from .

——. Statistics of U.S. Businesses: 2001. 1 March 2004. Available from .

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

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