AL AZRAR BUILDING MATERIALS TRADING

Construction

NAICS #23 | The Sector as a Whole

The construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as building sites also are included in this sector.

Construction work done may include new work, additions, alterations, or maintenance and repairs. Activities of these establishments generally are managed at a fixed place of business, but they usually perform construction activities at multiple project sites. Production responsibilities for establishments in this sector are usually specified in (1) contracts with the owners of construction projects (prime contracts) or (2) contracts with other construction establishments (subcontracts).

Establishments primarily engaged in contracts that include responsibility for all aspects of individual construction projects are commonly known as general contractors, but also may be known as design-builders, construction managers, turnkey contractors, or (in cases where two or more establishments jointly secure a general contract) joint-venture contractors. Construction managers that provide oversight and scheduling only (i.e., agency) as well as construction managers that are responsible for the entire project (i.e., at risk) are included as general contractor type establishments. Establishments of the "general contractor type" frequently arrange construction of separate parts of their projects through subcontracts with other construction establishments.

Establishments primarily engaged in activities to produce a specific component (e.g., masonry, painting, and electrical work) of a construction project are commonly known as specialty trade contractors. Activities of specialty trade contractors are usually subcontracted from other construction establishments but, especially in remodeling and repair construction, the work may be done directly for the owner of the property.

Establishments primarily engaged in activities to construct buildings to be sold on sites that they own are known as operative builders, but also may be known as speculative builders or merchant builders. Operative builders produce buildings in a manner similar to general contractors, but their production processes also include site acquisition and securing of financial backing. Operative builders are most often associated with the construction of residential buildings. Like general contractors, they may subcontract all or part of the actual construction work on their buildings.

There are substantial differences in the types of equipment, work force skills, and other inputs required by establishments in this sector. To highlight these differences and variations in the underlying production functions, this sector is divided into three subsectors.

Subsector 236, Construction of Buildings, comprises establishments of the general contractor type and operative builders involved in the construction of buildings. Subsector 237, Heavy and Civil Engineering Construction, comprises establishments involved in the construction of engineering projects. Subsector 238, Specialty Trade Contractors, comprises establishments engaged in specialty trade activities generally needed in the construction of all types of buildings.

Force account construction is construction work performed by an enterprise primarily engaged in some business other than construction for its own account and use, using employees of the enterprise. This activity is not included in the construction sector unless the construction work performed is the primary activity of a separate establishment of the enterprise. The installation and the ongoing repair and maintenance of telecommunications and utility networks is excluded from construction when the establishments performing the work are not independent contractors. Although a growing proportion of this work is subcontracted to independent contractors in the Construction Sector, the operating units of telecommunications and utility companies performing this work are included with the telecommunications or utility activities.

Wholesale Trade

NAICS #42 | The Sector as a Whole

The Wholesale Trade sector comprises establishments engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The merchandise described in this sector includes the outputs of agriculture, mining, manufacturing, and certain information industries, such as publishing.

The wholesaling process is an intermediate step in the distribution of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of (a) goods for resale (i.e., goods sold to other wholesalers or retailers), (b) capital or durable nonconsumer goods, and (c) raw and intermediate materials and supplies used in production.

Wholesalers sell merchandise to other businesses and normally operate from a warehouse or office. These warehouses and offices are characterized by having little or no display of merchandise. In addition, neither the design nor the location of the premises is intended to solicit walk-in traffic. Wholesalers do not normally use advertising directed to the general public. Customers are generally reached initially via telephone, in-person marketing, or by specialized advertising that may include Internet and other electronic means. Follow-up orders are either vendor-initiated or client-initiated, generally based on previous sales, and typically exhibit strong ties between sellers and buyers. In fact, transactions are often conducted between wholesalers and clients that have long-standing business relationships.

This sector comprises two main types of wholesalers: merchant wholesalers that sell goods on their own account and business to business electronic markets, agents, and brokers that arrange sales and purchases for others generally for a commission or fee.

(1) Establishments that sell goods on their own account are known as wholesale merchants, distributors, jobbers, drop shippers, and import/export merchants. Also included as wholesale merchants are sales offices and sales branches (but not retail stores) maintained by manufacturing, refining, or mining enterprises apart from their plants or mines for the purpose of marketing their products. Merchant wholesale establishments typically maintain their own warehouse, where they receive and handle goods for their customers. Goods are generally sold without transformation, but may include integral functions, such as sorting, packaging, labeling, and other marketing services.

(2) Establishments arranging for the purchase or sale of goods owned by others or purchasing goods, generally on a commission basis are known as business to business electronic markets, agents and brokers, commission merchants, import/export agents and brokers, auction companies, and manufacturers' representatives. These establishments operate from offices and generally do not own or handle the goods they sell.

Some wholesale establishments may be connected with a single manufacturer and promote and sell the particular manufacturers' products to a wide range of other wholesalers or retailers. Other wholesalers may be connected to a retail chain, or limited number of retail chains, and only provide a variety of products needed by that particular retail operation(s). These wholesalers may obtain the products from a wide range of manufacturers. Still other wholesalers may not take title to the goods, but act as agents and brokers for a commission.

Although, in general, wholesaling normally denotes sales in large volumes, durable nonconsumer goods may be sold in single units. Sales of capital or durable nonconsumer goods used in the production of goods and services, such as farm machinery, medium and heavy duty trucks, and industrial machinery, are always included in wholesale trade.

Other Professional Equipment and Supplies Merchant Wholesalers

NAICS #42349 | This industry comprises establishments primarily engaged in the merchant wholesale distribution of professional equipment and supplies (except ophthalmic goods and medical, dental, and hospital equipment and supplies). Merchant wholesale distribution of professional equipment, instruments, and/or goods sold, prescribed, or used by ophthalmologists, optometrists, and opticians, such as ophthalmic frames and lenses, and sunglasses,--are classified in Industry 423460, Ophthalmic Goods Merchant Wholesalers; Merchant wholesale distribution of medical professional equipment, instruments, and supplies used by medical and dental practitioners (except ophthalmic equipment, instruments, and goods used by ophthalmologists, optometrists, and opticians) and medical facilities--are classified in Industry 423450, Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers; Merchant wholesale distribution of silverware and plated flatware--are classified in Industry 423940, Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers; Merchant wholesale distribution of books--are classified in Industry 424920, Book, Periodical, and Newspaper Merchant Wholesalers; and Merchant wholesale distribution of school furniture--are classified in Industry 423210, Furniture Merchant Wholesalers.

Hardware Merchant Wholesalers

NAICS #42371 | This industry comprises establishments primarily engaged in the merchant wholesale distribution of hardware, knives, or handtools. Merchant wholesale distribution of nails, noninsulated wire, and screening--are classified in Industry 423510, Metal Service Centers and Other Metal Merchant Wholesalers; Merchant wholesale distribution of motor vehicle handtools and equipment--are classified in Industry 423120, Motor Vehicle Supplies and New Parts Merchant Wholesalers; Merchant wholesale distribution of machinists' precision handtools--are classified in Industry 423830, Industrial Machinery and Equipment Merchant Wholesalers; and Merchant wholesale distribution of disposable plastics knives and eating utensils--are classified in Industry 424130, Industrial and Personal Service Paper Merchant Wholesalers.

Plumbing and Heating Equipment and Supplies (Hydronics) Merchant Wholesalers

NAICS #42372 | This industry comprises establishments primarily engaged in the merchant wholesale distribution of plumbing equipment, hydronic heating equipment, household-type gas appliances (except gas clothes dryers), and/or supplies. Selling and installing plumbing, heating and air conditioning equipment--are classified in Industry 238220, Plumbing, Heating, and Air-Conditioning Contractors; Merchant wholesale distribution of warm air heating and air-conditioning equipment--are classified in Industry 423730, Warm Air Heating and Air-Conditioning Equipment and Supplies Merchant Wholesalers; and Merchant wholesale distribution of household-type electrical appliances, room air-conditioners, gas clothes dryers, and/or household-type audio or video equipment--are classified in Industry 423620, Electrical and Electronic Appliance, Television, and Radio Set Merchant Wholesalers.

Other Miscellaneous Durable Goods Merchant Wholesalers

NAICS #42399 | This industry comprises establishments primarily engaged in the merchant wholesale distribution of durable goods (except motor vehicle and motor vehicle parts and supplies; furniture and home furnishings; lumber and other construction materials; professional and commercial equipment and supplies; metals and minerals (except petroleum); electrical goods; hardware, and plumbing and heating equipment and supplies; machinery, equipment and supplies; sporting and recreational goods and supplies; toy and hobby goods and supplies; recyclable materials; and jewelry, watches, precious stones and precious metals). Merchant wholesale distribution of automobiles and other motor vehicles, motor vehicle supplies, tires, and new and used parts--are classified in Industry Group 4231, Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers; Merchant wholesale distribution of furniture and home furnishings--are classified in Industry Group 4232, Furniture and Home Furnishing Merchant Wholesalers; Merchant wholesale distribution of lumber, plywood, millwork, wood panels, brick, stone, roofing, siding, and other nonelectrical construction materials--are classified in Industry Group 4233, Lumber and Other Construction Materials Merchant Wholesalers; Merchant wholesale distribution of photographic; office; computer and computer peripheral; medical, dental, hospital, ophthalmic; and other commercial and professional equipment and supplies--are classified in Industry Group 4234, Professional and Commercial Equipment and Supplies Merchant Wholesalers; Merchant wholesale distribution of coal and other minerals and ores and semifinished metal products--are classified in Industry Group 4235, Metal and Mineral (except Petroleum) Merchant Wholesalers; Merchant wholesale distribution of electrical goods--are classified in Industry Group 4236, Electrical and Electronic Goods Merchant Wholesalers; Merchant wholesale distribution of hardware, and plumbing, heating, air conditioning, and refrigeration equipment and supplies--are classified in Industry Group 4237, Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers; Merchant wholesale distribution of construction, mining, farm, garden, industrial, service establishment, and transportation machinery, equipment and supplies--are classified in Industry Group 4238, Machinery, Equipment, and Supplies Merchant Wholesalers; Merchant wholesale distribution of sporting goods and accessories; billiard and pool supplies; sporting firearms and ammunition; and/or marine pleasure craft, equipment, and supplies--are classified in Industry 423910, Sporting and Recreational Goods and Supplies Merchant Wholesalers; Merchant wholesale distribution of toys, fireworks, playing cards, hobby goods and supplies and/or related goods--are classified in Industry 423920, Toy and Hobby Goods and Supplies Merchant Wholesalers; Merchant wholesale distribution of automotive, industrial, and other recyclable materials--are classified in Industry 423930, Recyclable Material Merchant Wholesalers; and Merchant wholesale distribution of jewelry, precious and semiprecious stones, precious metals and metal flatware, costume jewelry, watches, clocks, silverware, and/or jewelers' findings--are classified in Industry 423940, Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers.

Paint, Varnish, and Supplies Merchant Wholesalers

NAICS #42495 | This industry comprises establishments primarily engaged in the merchant wholesale distribution of paints, varnishes, and similar coatings; pigments; wallpaper; and supplies, such as paint brushes and rollers. Establishments primarily engaged in the merchant wholesale distribution of artists' paints are classified in Industry 424990, Other Miscellaneous Nondurable Goods Merchant Wholesalers.