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NAICS 336340 Quarterly Industry Report

Motor Vehicle Brake System Manufacturing

Comprehensive industry research for valuation professionals, business owners, buyers, and lenders

NAICS Code: 336340Sector: 33Updated: Q1 2026

About This Report

This Fair Market Value industry report for NAICS 336340 draws on verified data from the U.S. Census Bureau[5], Bureau of Labor Statistics[6], and the Small Business Administration[7]. Our research team compiles establishment counts, employment data, and SBA eligibility criteria specific to motor vehicle brake system manufacturing. Reports are updated quarterly to reflect new Census releases and regulatory changes.

Industry Snapshot

Key metrics for the motor vehicle brake system manufacturing industry.

Establishments
231
2024 annual average[1]
5-Year Growth
-7.7%
Establishment count, 2017–2022[2]
Avg. SBA Loan
$263K
7(a) program, FY 2025[4]
Industry Revenue
$10M
2022 Economic Census[2]
Share of Sector
0.1%
By establishment count, 2022 Census[2]
NAICS Sector
33

Industry Definition & Overview

Motor Vehicle Brake System Manufacturing (NAICS 336340) encompasses establishments primarily engaged in manufacturing and rebuilding motor vehicle brake systems and related components. Products include disc brake calipers and rotors, drum brake assemblies and shoes, brake master cylinders, power brake boosters, anti-lock braking system (ABS) hydraulic modulators, electronic stability control (ESC) units, brake pads and friction linings, brake hoses and lines, and parking brake assemblies. The U.S. Census Bureau[5] classifies this industry under motor vehicle parts manufacturing. Roughly 312 active businesses employ an estimated 22,500 workers in this industry. OEM production supplies complete brake corner modules to vehicle assembly plants, with Tier 1 suppliers delivering pre-assembled caliper, rotor, and bracket assemblies ready for installation. Aftermarket replacement parts represent a substantial and recurring revenue stream, as brake pads, rotors, and calipers are wear items requiring periodic replacement throughout a vehicle's service life. Manufacturing processes include gray iron casting and machining for rotors and drums, aluminum die casting and CNC machining for calipers, friction material compounding and pressing for brake pads, rubber hose construction and fitting assembly, and electronic hydraulic unit assembly for ABS and ESC systems. Regenerative braking systems in hybrid and electric vehicles supplement friction braking, potentially extending pad and rotor service intervals but also requiring compatibility engineering between electronic and mechanical brake systems. FMVSS 135 governs light vehicle braking performance requirements, while FMVSS 121 applies to air brake systems on heavy vehicles. Copper-free brake pad formulations mandated in several states have driven reformulation of friction materials across the industry to eliminate copper fiber content while maintaining stopping performance and wear characteristics.

What's Included in This Industry

  • Disc brake caliper and rotor manufacturing
  • Drum brake assembly and shoe production
  • Brake pad and friction lining manufacturing
  • ABS hydraulic modulator production
  • Electronic stability control unit manufacturing
  • Brake master cylinder and booster production
  • Brake hose and line manufacturing
  • Parking brake assembly production
  • Air brake system component manufacturing
  • Brake fluid reservoir and valve production

NAICS Classification Hierarchy

NAICS classification hierarchy for 336340
LevelDescriptionCode
SubsectorTransportation Equipment Manufacturing336
Industry GroupMotor Vehicle Parts Manufacturing3363
NAICS IndustryMotor Vehicle Brake System Manufacturing33634
National IndustryMotor Vehicle Brake System Manufacturing336340

Related NAICS Codes

Related NAICS codes and their relationships
CodeDescriptionRelationship
336330Motor Vehicle Steering and Suspension Components (except Spring) ManufacturingManufactures steering and suspension components that work alongside brakes as critical vehicle safety systems but classifies under a separate chassis parts manufacturing code
336350Motor Vehicle Transmission and Power Train Parts ManufacturingProduces motor vehicle transmissions and drive train components rather than the braking and deceleration systems manufactured in this safety-critical parts classification
336310Motor Vehicle Gasoline Engine and Engine Parts ManufacturingManufactures gasoline engines and engine parts rather than the friction and hydraulic brake systems produced in this dedicated brake manufacturing industry
336390Other Motor Vehicle Parts ManufacturingProduces other motor vehicle parts not specifically classified in brake, engine, steering, or electrical categories separate from the brake-specific products manufactured here
336320Motor Vehicle Electrical and Electronic Equipment ManufacturingManufactures vehicle electrical equipment including the ABS and ESC electronic control units that integrate with the hydraulic brake hardware produced in this classification
331511Iron FoundriesOperates iron foundries producing gray iron castings used in brake rotors and drums but classifies under general foundry operations rather than finished brake component manufacturing

Geographic Concentration

Top states by share of national establishments.

Top 10 states by establishment share for Motor Vehicle Brake System Manufacturing
#State% Est.Total Est.
1Ohio
16.3%
25
2Michigan
9.8%
15
3California
8.5%
13
4Kentucky
7.8%
12
5Georgia
6.5%
10
6North Carolina
5.9%
9
7Indiana
5.2%
8
8Illinois
4.6%
7
9Texas
3.9%
6
10Missouri
3.9%
6
Source: County Business Patterns, U.S. Census Bureau[3]

SBA Lending Summary

16
Total SBA Loans
$4.2M
Total Loan Volume
$263K
Average Loan Size
10 yrs
Average Loan Term
9.33%
Average Interest Rate
136
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[7] sets the size standard for NAICS 336340 at 1,000 employees. Firms below this threshold qualify for small business set-aside contracts and SBA-backed lending programs. Federal procurement includes brake components for military vehicle maintenance, replacement rotors and pads for government fleet vehicles, and air brake parts for heavy military trucks. The SBA's contracting programs[8] support manufacturers pursuing Defense Logistics Agency brake parts and GSA fleet maintenance supply contracts. Eligible businesses can access SBA 7(a) loans[9] for working capital, equipment, and acquisition financing, while 504 loans[10] support major fixed-asset purchases including real estate and heavy machinery.

Top SBA Lenders

Top SBA lenders by volume for this industry
#LenderLoansVolumeAvg Loan
1JPMorgan Chase Bank, National Association8$2.8M$350K
2KeyBank National Association8$1.4M$175K
View Full SBA Lending Details for NAICS 336340Includes top lenders, geographic distribution, annual trends, and loan-level analysis

Frequently Asked Questions

Common questions about this industry.

What types of businesses are classified under NAICS 336340?
Manufacturers of motor vehicle brake systems and components classify here. Products include disc brake calipers, rotors, brake pads, drum brakes, ABS modulators, ESC units, master cylinders, power boosters, and air brake components per the Census Bureau[5] classification.
How is the motor vehicle brake manufacturing industry structured?
Roughly 312 businesses employ an estimated 22,500 workers per Census data[11]. Global Tier 1 suppliers dominate OEM brake module supply while numerous aftermarket manufacturers produce replacement pads, rotors, and calipers for the independent repair market.
What is the SBA size standard for NAICS 336340?
The SBA[7] sets the threshold at 1,000 employees. Businesses with fewer than 1,000 average employees qualify as small for federal contracting preferences and SBA-backed financing programs including 7(a) and 504 loans.
What NAICS codes are related to brake system manufacturing?
Related codes include 336330 (Steering and Suspension), 336350 (Transmissions), 336310 (Engines), 336390 (Other Vehicle Parts), 336320 (Vehicle Electrical), and 331511 (Iron Foundries). Each covers other automotive component categories or upstream casting operations distinct from finished brake system production.
What industries purchase motor vehicle brake systems?
Automobile assemblers, parts wholesalers, repair shops, iron foundries, and heavy truck manufacturers interact most directly. Brake pad and rotor replacement is among the most frequent vehicle maintenance services, creating strong and predictable aftermarket demand independent of new vehicle production cycles.
What activities are included in NAICS 336340?
Activities include casting and machining brake rotors and drums, die casting and machining brake calipers, compounding and pressing friction materials for brake pads, assembling ABS hydraulic modulators and ESC units, manufacturing master cylinders and power boosters, producing brake hoses and steel lines, and rebuilding brake components to original equipment specifications.
Can brake system manufacturers qualify for SBA loans?
Yes, firms below 1,000 employees qualify for SBA lending programs[8] including 7(a) and 504 loans. CNC machining centers, brake dynamometer test stands, friction material pressing equipment, and iron casting furnaces represent capital investments suited to SBA 504 equipment financing.
Where are brake system manufacturers concentrated?
Production concentrates in the Midwest automotive corridor including Michigan, Ohio, and Indiana near vehicle assembly plants. Aftermarket brake parts manufacturers also operate in Tennessee, North Carolina, and California near large vehicle populations and auto parts distribution centers. Iron foundry operations for rotor and drum casting locate near raw material sources and OEM machining facilities.

Sources & References

Government datasets and editorial sources used in this report.

  1. [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
  2. [2]U.S. Census Bureau, Economic Census census.gov
  3. [3]U.S. Census Bureau, County Business Patterns census.gov
  4. [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
  5. [5]U.S. Census Bureau census.gov
  6. [6]Bureau of Labor Statistics bls.gov
  7. [7]Small Business Administration sba.gov
  8. [8]SBA's contracting programs sba.gov
  9. [9]SBA 7(a) loans sba.gov
  10. [10]504 loans sba.gov
  11. [11]Census data naicslist.com

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