| SIC Codes: | 2396 3292 3465 3519 3531 3585 3592 3647 3694 3711 3713 3714 3715 3716 3721 3724 3728 3731 3732 3751 3761 3764 3769 3792 3799 |
| NAICS Codes: | 336310 336320 336390 336999 336992 336991 336612 336611 336510 336419 336415 336414 336413 336412 336411 336370 336360 336350 336340 336330 336212 336213 336214 336211 336111 336112 336120 |
Companies in this industry manufacture transportation equipment, including motor vehicles and parts, aircraft and other aerospace products, ships and boats, and railroad rolling stock. Major companies include US-based Boeing, Ford, and General Motors, as well as EADS (the Netherlands), Fiat (Italy), SAIC (China), Toyota (Japan), and Volkswagen (Germany).
Demand is driven by employment and interest rates, growth in consumer income, military budgets, and the overall economic climate. The profitability of individual companies depends on manufacturing efficiency, technical expertise, and product quality. Large companies enjoy economies of scale in manufacturing and purchasing, as well as advantages in marketing and distribution. Small companies can compete by specializing in niche markets. The industry is highly concentrated: the 50 largest firms generate about 70 percent of industry revenue.
Major products include cars and light trucks, aircraft, locomotives, boats and ships, and related parts. Motor vehicles and parts account for 65 percent of industry revenue, followed by aerospace products (about 25 percent). Rail and waterborne equipment each account for less than 5 percent of the sector's sales. Other transportation equipment includes bicycles, motorcycles, and armored vehicles.