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Top Trends in the U.S. Miscellaneous Manufacturing Industry

Posted by IndustrySelect on Monday, June 17, 2024

 Miscellaneous Manufacturing Industry: Key Facts and Statistics

All signs point to miscellaneous goods manufacturers as a rich prospecting field. Since 2019, prices have been on the rise. Three years ago, the industry took off, growing 6.3% per year. But first, what is the miscellaneous manufacturing industry?

The Miscellaneous Manufacturing Industry (SIC 3900) is a broad category that includes establishments primarily engaged in manufacturing products not classified in any other manufacturing major group. This includes a diverse range of industries. For instance, it covers the production of precious metal jewelry, silverware, and other plated ware. It also includes the manufacturing of various musical instruments as well as dolls, toys, games, and sporting and athletic goods. Essentially, if a manufacturing process doesn't fit neatly into another category, it's likely to be classified under Miscellaneous Manufacturing (SIC 3900).

Both businesses and consumers buy this industry’s merchandise.

As a potential vendor, that variety can provide you with alternative customers if demand decreases in a particular category. A look at industry statistics will give you direction in choosing specific sales targets.

The Latest Statistics and Trends on the U.S. Miscellaneous Manufacturing Industry

The 16,014 companies manufacturing miscellaneous goods in the U.S. provide 280,108 jobs. This is an increase of 1.12% over last year’s employment figures. The industry reported 74 billion in total annual average sales.

These manufacturers distribute 24% of their products internationally. This compares with 29% for total U.S. manufacturing. The importation of raw materials matches manufacturing as a whole at 11%.

This industry has more female ownership than all U.S. manufacturing, at 3% versus 2%. Minority ownership is average, at 1%.

A smaller percentage of these companies is publicly owned than for total manufacturing, 2% compared to 5%.

Miscellaneous manufacturing concentrates in the South, with 32% of companies located there. The Midwest is home to 26%. The West houses 21% and the Northeast 16%.

While location may be your key to choosing your sales targets, your products or services may best serve a specific subindustry.

Subindustries in the Miscellaneous Manufacturing Industry

These sectors differ substantially in terms of raw material and equipment requirements. They need suppliers of everything from precious metals to ink as well as various services.

Jewelry and Silverware

This subindustry uses melting and shaping equipment. In addition to raw materials, manufacturers require services such as accounting and insurance. Design services and digital design tools offer additional sales opportunities.

Musical Instruments

Predictions suggest this market will grow 3.52% annually through the decade’s end. Many musical instrument manufacturers are using advanced technology to improve their product’s performance. If you deal in this type of tech, this subindustry is a promising target.

Toys and Sporting Goods

The net U.S. demand for these products exceeds $28 billion. Of this, 70% of shipments are sporting goods. In general, sporting goods sales are growing faster than those of toys. Unfortunately, this country imports twice the number of toys it produces domestically. Depending on your line, sporting goods may be a more robust prospect.

Pens, Pencils, Office and Art Supplies

Due to a dropoff in retail distribution and supply chain disruptions, this subindustry took a hit during the pandemic. However, the outlook is encouraging, with an annual growth of 4.5% projected through 2030. This sector strives to maintain strong relationships with suppliers to ensure the flow of finished goods to their customers. Now is the time to present yourself as a reliable vendor.

Miscellaneous Products

These include brooms, brushes, signs and advertising specialties. The price index for brooms, brushes, and mops has risen since 1992, with a sharper increase just before 2022. Manufacturers use supplies for signs and advertising specialties, which include metals and paints. They also need electronic and electrical equipment.

The available markets in these industries will also depend on industry trends. You can explore some of these below.

Industry Trends and Outlook

While much of U.S. manufacturing has been contracting, a commenter on the miscellaneous manufacturing industry gave a sunnier outlook. The report stated that sales were steady as of Oct. 2023, with the stabilization of the supply chain post-pandemic. Sales and revenue appeared to be as expected – a good sign. However, another report from Dec. 2023 indicates that customers pushed their orders into the first quarter of 2024, causing an expansion in the end-of-year inventory.

The fourth quarter also had some indicators these companies might have found troubling. The return on assets fell slightly from 7.53% in the third quarter to 7.52%. Over the same period, the return on investment took a somewhat steeper dive from 9.82% to 8.98%. Return on equity fell even more steeply from 17.66% to 13.39%. Over the same three months, gross margins plunged from 30.38% to 15.18%.

This drop in profitability could create a reluctance to order new materials. The situation should be straightening out as the quarter gets underway. These pain points, however, may also create an opening for financial consulting services.

Another potential snag to consider is the effects of drought on the Panama Canal. If water levels fall too much, ships won’t be able to get through with supplies or goods for sale. Relations with China will also play a factor in exports and imports. Production delays due to the strikes by the United Auto Workers (UAW) may slow demand for items used by the automotive industry. Timing will be vital in approaching new prospects.

Miscellaneous manufacturing will concentrate on data collection. These manufacturers will process the information to streamline processes and improve productivity. The internet will play a vital role in these operations. Electronic devices connect through networks to electronic dashboards. These display and process the incoming measurements, enabling operators to detect problems and prevent slowdowns. Miscellaneous manufacturers will also be investing in preventive maintenance by using Internet of Things (IoT) techniques to reduce downtime and avoid rejects.

This trend opens a market for software manufacturers and electronics services. Faster production may also require changes in logistics arrangements to accommodate more rapid shipping.


Reaching Companies in the Miscellaneous Manufacturing Industry

Miscellaneous goods manufacturers struggling with financial pain points pin their hopes on the IoT, creating many needs for services and equipment. You can take advantage of these openings – if you can reach the right people. IndustrySelect can help. Our database is powered by an expert research team that provides up-to-date company profiles, giving you the location, industry, and size to select your most likely prospects. You can access executives’ names, positions, and direct emails, pitching straight to contacts authorized to make a deal.

Set up your free demo account of IndustrySelect, loaded with 500 real company profiles, to see how powerful top-notch information can be!

 

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