How Big is the US Aircraft Parts Distribution Industry?

How big is the US aircraft parts distribution industry? It is difficult to get a perfectly accurate number, but we can use US Census Bureau data to approximate the size.

The Census Bureau tracks industries under the North American Industry Classification System. This is abbreviated “NAICS” and people often refer to NAICS Codes as the codes by which the Census Bureau tracks industries.

The NAICS code for aircraft parts distributors is 423860. This code also includes commercial vessels, golf carts, railroad cars, and military vehicles so it is a little broader than just aircraft parts distributors, but it would also exclude those businesses who identify under another NAICS code, like repair stations, air carriers or manufacturers (but manufacturers’ parts distributors are counted under this NAICS code, when they are separately reported). If we assume that these two groups cancel each other out (the extra industries under 423860 and the companies that distribute parts but are classified under other NAICS Codes) then we can assume that 423860 probably represents a good proxy for the size for the aircraft parts distribution industry.

Note that this NAICS-based vision of the industry will include both commercial aviation and general aviation.

The Census Bureau maintains statistics for NAICS code 423860. The Census Bureau 2017 statistics for NAICS code 423860 show a total of 2139 businesses, with annual sales of 49 billion dollars. Those businesses employ over 37,000 employees with an annual payroll of 2.5 billion dollars. The 2017 statistics for NAICS code 423860 are the most recent that are currently available to the public.

Census maintains Statistics on US Businesses (SUSB). These are currently available through 2016. If we examine the 2016 SUSB data, then we can identify industry business sizes, as well. 2016 SUSB data showed 2158 businesses under NAICS code 423860, distributed according to the following table: