NAICS 423690 Quarterly Industry Report
Other Electronic Parts and Equipment Merchant Wholesalers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 423690Sector: Wholesale Trade (42)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 423690 draws on data from the U.S. Census Bureau[5] economic profiles, Bureau of Labor Statistics[6] employment surveys, and SBA size standard publications[7]. Our research team tracks semiconductor market cycles, component availability trends, and electronics manufacturing demand to provide valuation context for electronic parts wholesale operations. Updated quarterly, each data point is sourced to its originating federal or institutional database.
Industry Snapshot
Key metrics for the other electronic parts and equipment merchant wholesalers industry.
Industry Definition & Overview
Other Electronic Parts and Equipment Merchant Wholesalers (NAICS 423690) encompasses establishments primarily engaged in the merchant wholesale distribution of electronic parts and equipment not classified under electrical apparatus (423610), household appliances (423620), computers (423430), or photographic equipment (423410). Product categories include semiconductor components, capacitors, resistors, transistors, printed circuit boards, communication equipment, electronic connectors, antennas, amplifiers, and other discrete electronic components and assemblies.
The electronic component distribution channel serves electronics manufacturers, contract assemblers, repair operations, and research facilities. Distributors maintain broad inventories of active and passive components from hundreds of manufacturer lines, providing the supply chain connectivity that enables just-in-time manufacturing operations. According to the U.S. Census Bureau[5], about 3,504 businesses operated in this industry with approximately 327,000 employees, making it one of the larger wholesale trade segments by employment.
The semiconductor supply chain relies heavily on authorized franchise distributors and independent brokers who provide allocation management, demand forecasting, and technical design-in support. Component shortages and surplus cycles create volatile market conditions that distributors must navigate. Value-added services include programming, testing, kitting, tape-and-reel packaging, and quality inspection. The global nature of electronics manufacturing means distributors operate international logistics networks connecting Asian manufacturing hubs with design and assembly operations worldwide. Counterfeit component screening has become an additional critical service.
What's Included in This Industry
- Semiconductor component wholesale distribution
- Passive electronic component wholesaling (capacitors, resistors)
- Printed circuit board wholesale distribution
- Communication equipment wholesale operations
- Electronic connector wholesale distribution
- Antenna and transmitter wholesale operations
- Amplifier wholesale distribution
- Industrial electronic control wholesale operations
- Electronic test equipment wholesale distribution
- Cable assembly and wire harness wholesale operations
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Wholesale Trade | 42 |
| Subsector | Merchant Wholesalers, Durable Goods | 423 |
| Industry Group | Household Appliances and Electrical and Electronic Goods Merchant Wholesalers | 4236 |
| NAICS Industry | Other Electronic Parts and Equipment Merchant Wholesalers | 42369 |
| National Industry | Other Electronic Parts and Equipment Merchant Wholesalers | 423690 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 423610 | Electrical Apparatus and Equipment, Wiring Supplies, and Related Equipment Merchant Wholesalers | Electrical apparatus and wiring merchant wholesalers distribute construction electrical products rather than the discrete electronic components covered here |
| 423620 | Household Appliances, Electric Housewares, and Consumer Electronics Merchant Wholesalers | Household appliance merchant wholesalers distribute assembled consumer electronics rather than the electronic parts and components in this classification |
| 423430 | Computer and Computer Peripheral Equipment and Software Merchant Wholesalers | Computer equipment merchant wholesalers distribute assembled computing systems rather than the individual electronic parts and components covered here |
| 334412 | Bare Printed Circuit Board Manufacturing | Bare printed circuit board manufacturing produces the PCB substrates that electronic component distributors supply alongside active components to assemblers |
| 334413 | Semiconductor and Related Device Manufacturing | Semiconductor and related device manufacturing produces the chips, transistors, and integrated circuits distributed through electronic parts wholesale channels |
| 334290 | Other Communications Equipment Manufacturing | Other communications equipment manufacturing produces radio, antenna, and signal processing devices distributed through electronic parts wholesale networks |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 20.6% | 2,136 |
| 2 | Florida | 9.4% | 970 |
| 3 | Texas | 9.1% | 943 |
| 4 | New York | 6.8% | 705 |
| 5 | Illinois | 4.0% | 410 |
| 6 | New Jersey | 3.3% | 337 |
| 7 | Georgia | 2.9% | 302 |
| 8 | Michigan | 2.7% | 275 |
| 9 | Massachusetts | 2.6% | 269 |
| 10 | Pennsylvania | 2.5% | 258 |
% Of Establishments
0%
21%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
360
Total SBA Loans
$208.1M
Total Loan Volume
$578K
Average Loan Size
10 yrs
Average Loan Term
10.32%
Average Interest Rate
2,200
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[7] classifies Other Electronic Parts and Equipment Merchant Wholesalers under NAICS 423690 with a size standard of 250 employees. While a few large global distributors dominate component sales volume, thousands of smaller independent and specialty distributors operate below the SBA ceiling. Qualifying firms can access SBA lending programs[8] for inventory financing, warehouse technology, and working capital to manage the rapid inventory turns and large SKU counts typical of electronic component distribution. 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
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Community Bank & Trust-West Georgia | 8 | $40.0M | $5.0M |
| 2 | Newtek Bank, National Association | 40 | $24.0M | $600K |
| 3 | Legacy Bank | 16 | $21.8M | $1.4M |
| 4 | Regions Bank | 16 | $21.3M | $1.3M |
| 5 | America First FCU | 8 | $17.1M | $2.1M |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 423690?
NAICS 423690 covers merchant wholesalers distributing semiconductors, capacitors, resistors, printed circuit boards, communication equipment, connectors, antennas, and other electronic parts. These include large authorized franchise distributors, independent component brokers, and specialty electronics wholesalers. Per the U.S. Census Bureau[5], about 3,504 businesses operated in this industry with approximately 327,000 employees.
How is NAICS 423690 structured within the classification system?
This code is the residual category in Industry Group 4236 (Household Appliances and Electrical and Electronic Goods Merchant Wholesalers), Subsector 423 (Merchant Wholesalers, Durable Goods), and Sector 42 (Wholesale Trade). It shares Industry Group 4236 with 423610 (electrical equipment) and 423620 (household appliances).
What is the SBA size standard for NAICS 423690?
The SBA[7] sets the size standard at 250 employees. Businesses below this threshold qualify as small businesses for federal contracting set-asides and SBA-guaranteed loan programs.
Which NAICS codes are most closely related to 423690?
Electrical equipment wholesalers (423610) distribute construction electrical products. Computer wholesalers (423430) handle assembled systems. Semiconductor manufacturers (334413) and PCB makers (334412) supply components. Per Census Bureau NAICS references[11], the discrete component focus distinguishes 423690 from assembled product distribution codes.
What industries interact most with electronic parts wholesalers?
Electronics manufacturers and contract assemblers are the primary customers purchasing components for production. Communication equipment makers (334210, 334220) consume electronic parts heavily. Per Bureau of Labor Statistics[6] data, electronics manufacturing employment and semiconductor market cycles drive demand for electronic component distribution.
What specific activities are included in NAICS 423690?
Activities include distributing semiconductors, passive components, circuit boards, connectors, communication equipment, antennas, amplifiers, and industrial controls. Many distributors offer programming, testing, kitting, and tape-and-reel services. Per Census Bureau definitions[5], electrical construction materials, household appliances, and assembled computers are excluded.
Can electronic parts wholesalers access SBA loans?
Yes. Distributors with fewer than 250 employees qualify for SBA loan programs[8] including 7(a) loans for inventory financing and working capital, 504 loans for warehouse and testing facilities, and microloans for smaller capital investments. Component inventory carrying high per-unit values requires substantial working capital.
Where are electronic parts wholesalers concentrated in the United States?
Distribution hubs cluster near electronics manufacturing centers. Silicon Valley, the Dallas-Fort Worth area, the Northeast corridor, and Southern California support major distribution operations. National distributors operate warehouse networks near electronics assembly plants and OEM design centers. Independent brokers and specialty distributors maintain offices in technology corridors across the country.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA size standard publications sba.gov
- [8]SBA lending programs sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504 loans sba.gov
- [11]Census Bureau NAICS references census.gov
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