NAICS 423860 Quarterly Industry Report
Transportation Equipment and Supplies (except Motor Vehicle) Merchant
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 423860Sector: Wholesale Trade (42)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 423860 synthesizes data from the U.S. Census Bureau[5], Bureau of Labor Statistics[7], and Small Business Administration[6] to profile the transportation equipment wholesale sector. Our research team analyzes trade flow data and FAA parts distribution records to provide accurate market intelligence. The report examines SBA size standards, related NAICS classifications, and regulatory requirements unique to transportation equipment distribution. Fair Market Value updates this NAICS 423860 profile quarterly to incorporate new Census data and transportation industry developments.
Industry Snapshot
Key metrics for the transportation equipment and supplies (except motor vehicle) merchant industry.
Industry Definition & Overview
Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers (NAICS 423860) encompasses establishments primarily engaged in the merchant wholesale distribution of transportation equipment other than motor vehicles and marine pleasure craft. Product categories include aircraft and aircraft parts, railroad rolling stock and supplies, commercial marine vessels and equipment, motorized passenger golf carts, and other specialized transportation equipment. Wholesalers in this industry also handle replacement parts, avionics systems, locomotive components, and maritime navigation equipment.
Distribution channels vary dramatically by product segment. Aircraft parts wholesalers operate under strict FAA certification requirements, maintaining traceable inventory with airworthiness documentation for every component. Railroad equipment distribution involves fewer but larger transactions, often requiring specialized railcar loading facilities and siding access. Marine vessel wholesalers may operate waterfront facilities with dock access for delivery and customer inspection. According to the U.S. Census Bureau[5], establishments must take ownership title to qualify as merchant wholesalers under this classification.
The SBA[6] sets the size standard at 100 employees for this industry. Capital requirements run extremely high in certain segments; a single used commercial aircraft can cost millions of dollars, tying up significant working capital. Aircraft parts represent the largest subsegment by establishment count, with thousands of parts distributors supporting commercial airlines, regional carriers, and general aviation operators worldwide. Golf cart distribution has grown steadily as retirement communities and planned developments adopt cart-friendly transportation infrastructure beyond traditional golf course applications.
What's Included in This Industry
- Wholesale distribution of aircraft and aircraft engines
- Distribution of aircraft parts and avionics equipment
- Wholesale of railroad rolling stock and rail supplies
- Distribution of commercial marine vessels and boat equipment
- Wholesale of motorized passenger golf carts
- Distribution of locomotive parts and components
- Wholesale of maritime navigation and communication equipment
- Distribution of airport ground support equipment
- Wholesale of railroad track maintenance equipment
- Distribution of transportation safety and signaling equipment
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Wholesale Trade | 42 |
| Subsector | Merchant Wholesalers, Durable Goods | 423 |
| Industry Group | Machinery, Equipment, and Supplies Merchant Wholesalers | 4238 |
| NAICS Industry | Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers | 42386 |
| National Industry | Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers | 423860 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 423110 | Automobile and Other Motor Vehicle Merchant Wholesalers | Covers automobile and motor vehicle merchant wholesalers, handling the vehicle categories specifically excluded from this transportation equipment classification |
| 423120 | Motor Vehicle Supplies and New Parts Merchant Wholesalers | Distributes motor vehicle supplies and new parts through wholesale channels, serving the automotive aftermarket rather than aviation or rail sectors |
| 423810 | Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers | Handles construction and mining machinery wholesaling, sharing heavy equipment distribution logistics with railroad and marine equipment distributors |
| 423820 | Farm and Garden Machinery and Equipment Merchant Wholesalers | Distributes farm and garden machinery through wholesale channels, with some overlap in golf cart and utility vehicle distribution to agricultural customers |
| 336411 | Aircraft Manufacturing | Manufactures aircraft that flow through wholesale distribution channels, representing the primary upstream manufacturing source for aviation equipment wholesalers |
| 336510 | Railroad Rolling Stock Manufacturing | Produces railroad rolling stock that these wholesalers distribute to rail operators, transit agencies, and industrial rail customers across the country |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Florida | 23.3% | 554 |
| 2 | California | 13.7% | 326 |
| 3 | Texas | 9.7% | 230 |
| 4 | Washington | 3.7% | 89 |
| 5 | New York | 3.6% | 86 |
| 6 | Illinois | 3.2% | 77 |
| 7 | New Jersey | 3.0% | 72 |
| 8 | Georgia | 2.9% | 69 |
| 9 | Arizona | 2.6% | 63 |
| 10 | North Carolina | 2.4% | 56 |
% Of Establishments
0%
23%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
384
Total SBA Loans
$238.5M
Total Loan Volume
$621K
Average Loan Size
10 yrs
Average Loan Term
9.88%
Average Interest Rate
1,864
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[6] classifies NAICS 423860 under merchant wholesale trade with a size standard of 100 employees. Firms meeting this threshold qualify as small businesses for government contracting preferences and SBA financing. Transportation equipment wholesalers can access SBA 7(a) loans[8] for inventory acquisition and facility improvements. Aircraft parts distributors frequently use 504 loans[9] for warehouse expansions and climate-controlled storage facilities. Federal aviation and defense contracting creates additional opportunities for SBA-certified small businesses in this classification.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Regions Bank | 16 | $74.6M | $4.7M |
| 2 | Bank of America, National Association | 32 | $29.4M | $919K |
| 3 | Midwest Regional Bank | 8 | $29.3M | $3.7M |
| 4 | TD Bank, National Association | 32 | $16.8M | $525K |
| 5 | First State Bank Nebraska | 8 | $16.0M | $2.0M |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 423860?
NAICS 423860 includes merchant wholesalers distributing aircraft, aircraft parts, railroad equipment, commercial marine vessels, golf carts, and other non-automotive transportation equipment. These businesses take title to goods and resell to airlines, railroads, marine operators, and other transportation companies. Source: U.S. Census Bureau[5]
How is this code different from motor vehicle wholesaling?
NAICS 423860 specifically excludes motor vehicles, which fall under NAICS 423110. It also excludes marine pleasure craft (recreational boats), which are classified under NAICS 423910. This code focuses on commercial and industrial transportation equipment: aircraft, trains, ships, and specialty vehicles like golf carts.
What is the SBA size standard for NAICS 423860?
The SBA sets the size standard at 100 employees for transportation equipment and supplies merchant wholesalers. Businesses at or below this level qualify as small for federal contracting set-asides and SBA financing programs. Source: SBA Size Standards[6]
What NAICS codes are related to transportation equipment wholesaling?
Key related codes include 423110 (motor vehicle wholesalers), 423810 (construction machinery wholesalers), 336411 (aircraft manufacturing), 336510 (railroad rolling stock manufacturing), and 336611 (ship building). Source: Census NAICS[5]
What industries work closely with transportation equipment wholesalers?
Primary customers include commercial airlines, regional air carriers, freight railroads, transit agencies, marine shipping companies, and golf course operators. Upstream partners include aircraft manufacturers, railroad equipment producers, and marine vessel builders. MRO providers and fleet management companies also interact frequently with these distributors.
What products are included in NAICS 423860?
Products include aircraft, aircraft engines and parts, avionics, railroad rolling stock, locomotive components, commercial ships and boats, marine electronics, golf carts, airport ground support equipment, and railroad track maintenance machinery. Source: Census Bureau[5]
Can transportation equipment wholesalers get SBA loans?
Yes, small businesses under NAICS 423860 can access SBA 7(a) loans for inventory and working capital, 504 loans for facilities and major equipment, and Express loans for quicker financing needs. Defense and aviation contracting opportunities add value to SBA small business certification. Source: SBA Loan Programs[10]
Where are transportation equipment wholesalers concentrated?
Aircraft parts distributors concentrate near aviation hubs like Miami, Dallas, Los Angeles, and Atlanta. Railroad equipment wholesalers cluster along major rail corridors in the Midwest and South. Marine equipment distributors locate near major ports and shipyards along the Gulf Coast, Pacific Northwest, and Northeast seaboard. Source: BLS QCEW[11]
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]SBA sba.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA 7(a) loans sba.gov
- [9]504 loans sba.gov
- [10]SBA Loan Programs sba.gov
- [11]BLS QCEW bls.gov
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