NAICS Code 423990-04 - Distribution Centers (Wholesale)

Marketing Level - NAICS 8-Digit

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NAICS Code 423990-04 Description (8-Digit)

Distribution Centers (Wholesale) are establishments primarily engaged in the wholesale distribution of durable goods, such as machinery, equipment, and supplies, to retailers, contractors, industrial, institutional, or commercial users. These centers act as intermediaries between manufacturers and retailers, providing a range of services such as storage, transportation, and order fulfillment. Distribution Centers (Wholesale) may also provide value-added services such as assembly, packaging, and labeling of products.

Hierarchy Navigation for NAICS Code 423990-04

Tools

Tools commonly used in the Distribution Centers (Wholesale) industry for day-to-day tasks and operations.

  • Forklifts
  • Conveyor systems
  • Pallet jacks
  • Hand trucks
  • Barcode scanners
  • Automated storage and retrieval systems
  • Order picking software
  • Inventory management software
  • Shipping software
  • Stretch wrap machines
  • Carton sealers
  • Label printers
  • Pallet wrappers
  • Dock levelers
  • Racking systems
  • Material handling equipment
  • Warehouse management systems
  • RFID technology
  • Automated guided vehicles
  • Electric pallet jacks

Industry Examples of Distribution Centers (Wholesale)

Common products and services typical of NAICS Code 423990-04, illustrating the main business activities and contributions to the market.

  • Industrial machinery and equipment
  • Electrical supplies
  • Plumbing supplies
  • HVAC equipment and supplies
  • Building materials
  • Office equipment and supplies
  • Safety equipment and supplies
  • Janitorial supplies
  • Medical equipment and supplies
  • Automotive parts and supplies
  • Farm and garden equipment and supplies
  • Sporting goods equipment and supplies
  • Food service equipment and supplies
  • Beauty and personal care products
  • Toys and games
  • Pet supplies
  • Electronics and appliances
  • Furniture and home decor
  • Clothing and accessories

Certifications, Compliance and Licenses for NAICS Code 423990-04 - Distribution Centers (Wholesale)

The specific certifications, permits, licenses, and regulatory compliance requirements within the United States for this industry.

  • Hazardous Materials Endorsement (HME): A certification required for drivers who transport hazardous materials. The certification is issued by the Transportation Security Administration (TSA).
  • Commercial Driver's License (CDL): A license required for drivers who operate vehicles with a gross weight of 26,001 pounds or more, or who transport hazardous materials. The license is issued by the Department of Transportation (DOT).
  • Occupational Safety and Health Administration (OSHA) Certification: A certification required for workers who handle hazardous materials. The certification is issued by OSHA.
  • International Organization for Standardization (ISO) 9001 Certification: A certification that ensures a company's quality management system meets international standards. The certification is issued by ISO.
  • National Institute for Occupational Safety and Health (NIOSH) Certification: A certification required for workers who handle hazardous materials. The certification is issued by NIOSH.

History

A concise historical narrative of NAICS Code 423990-04 covering global milestones and recent developments within the United States.

  • The Distribution Centers (Wholesale) industry has a long history dating back to the early 20th century when the first distribution centers were established in the United States. These centers were initially set up to help manufacturers and wholesalers store and distribute their products more efficiently. Over time, the industry has evolved to become an essential part of the supply chain, providing a range of services such as inventory management, order fulfillment, and transportation. In recent years, the industry has seen significant growth due to the rise of e-commerce and the increasing demand for fast and reliable delivery services. Companies such as Amazon and Walmart have invested heavily in building their own distribution centers to meet the growing demand for online shopping. In the United States, the Distribution Centers (Wholesale) industry has experienced steady growth over the past decade. According to data from the US Census Bureau, the industry generated over $1.2 trillion in revenue in 2019, up from $1.1 trillion in 2010. This growth can be attributed to several factors, including the increasing popularity of e-commerce, the rise of omnichannel retailing, and the growing demand for faster and more efficient delivery services. Despite the challenges posed by the COVID-19 pandemic, the industry has continued to grow, driven by the surge in online shopping and the need for contactless delivery options. Overall, the Distribution Centers (Wholesale) industry has a rich history and a bright future ahead.

Future Outlook for Distribution Centers (Wholesale)

The anticipated future trajectory of the NAICS 423990-04 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.

  • Growth Prediction: Growing

    The future outlook for the Distribution Centers (Wholesale) industry in the USA is positive. The industry is expected to grow in the coming years due to the increasing demand for e-commerce and online shopping. The COVID-19 pandemic has accelerated the shift towards online shopping, which has increased the demand for distribution centers. The industry is also expected to benefit from the growth of the manufacturing sector, which will increase the demand for wholesale distribution of goods. However, the industry may face challenges such as rising labor costs, increasing competition, and the need to adopt new technologies to remain competitive.

Industry Innovations for NAICS Code 423990-04

Recent groundbreaking advancements and milestones in the Distribution Centers (Wholesale) industry, reflecting notable innovations that have reshaped its landscape.

  • Automation: Many distribution centers are adopting automation technologies such as robotics and automated guided vehicles (AGVs) to improve efficiency and reduce labor costs.
  • Data Analytics: The use of data analytics is becoming increasingly important in the industry to optimize supply chain management and improve operational efficiency.
  • Green Initiatives: Many distribution centers are adopting green initiatives such as using renewable energy sources and reducing waste to improve sustainability and reduce costs.
  • Last-Mile Delivery: The industry is adopting new technologies such as drones and autonomous vehicles to improve last-mile delivery and reduce delivery times.
  • Collaboration: Many distribution centers are collaborating with other companies in the supply chain to improve efficiency and reduce costs.

NAICS Code 423990-04 - Distribution Centers (Wholesale)

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