Transportation Equipment
Industries in the Transportation Equipment Manufacturing subsector produce equipment for transporting people and goods. Transportation equipment is a type of machinery. An entire subsector is devoted to this activity because of the significance of its economic size in all three North American countries.
Establishments in this subsector utilize production processes similar to those of other machinery manufacturing establishments - bending, forming, welding, machining, and assembling metal or plastic parts into components and finished products. However, the assembly of components and subassemblies and their further assembly into finished vehicles tends to be a more common production process in this subsector than in the Machinery Manufacturing subsector.
NAICS has industry groups for the manufacture of equipment for each mode of transport - road, rail, air and water. Parts for motor vehicles warrant a separate industry group because of their importance and because parts manufacture requires less assembly, and the establishments that manufacture only parts are not as vertically integrated as those that make complete vehicles.
Land use motor vehicle equipment not designed for highway operation (e.g., agricultural equipment, construction equipment, and materials handling equipment) is classified in the appropriate NAICS subsector based on the type and use of the equipment.
Quick Statistics
The subsector's revenue for the year 2008 was approximately $628.4 billion USD, with an estimated gross profit of 20.75%. Import was valued at $254.3 billion USD from 224 countries. The subsector also exported $215.5 billion USD worth of merchandise to 160 countries. Adding import value to and subtracting export value from the subsector's shipment value, the total domestic demand for the subsector in 2008 was $667.3 billion USD.