By James Surrago
Wholesalers of non-durable goods in the United States number 191,000, employ slightly more than 3 million people, and generate $3.7 billion in written premium--2.79% of countrywide commercial lines premium.
In the last five years premiums in this market grew by .08%, employment grew 5.2%, and the number of establishments grew 5.5%. The loss experience for the group as a whole generally appears to be reasonable, with loss ratios for the most part in the high 50s to low 60s. Only two of the 33 classifications in this market segment report poor loss experience--drugs, proprietaries and sundries; and wholesale administration and auxiliary services (SIC Codes 5120 and 519\).
Of the 33 wholesalers of non-durable goods categories, seven experienced both premium and employment growth during the most recent five-year period: stationery and office supplies; confectionery; plastics materials and basic shapes; drugs, proprietaries, and sundries; men's and boys' clothing; flowers and florists' supplies; and farm supplies.
The vast majority of these businesses are small--97.6% of the enterprises employ fewer than 100 workers each. Of the 191,000 wholesalers of non-durable goods, more than 160,000, or 83.8%, employ fewer than 20 each, generate an average account premium of about $7,600, and represent one-third of the $3.7 billion market.
The vast majority of the 160,000 small wholesalers, or 69.8%, employ fewer than 10 each, develop an average account premium of just under $5,000, and represent 17.75% of the $3.7 billion premium market. Those employing between 10 and 19 workers each develop an average account premium of $21,300 and represent 15.4% of the total market.
Another 26,000, or 13.7%, employ between 20 and 99 each, develop an average account premium of almost $51,000, and represent 36.5% of the total premium market.
The vast majority of these businesses are small--97.6% of the enterprises employ fewer than 100 workers each. Of the 191,000 wholesalers of non-durable goods, more than 160,000, or 83.8%, employ fewer than 20 each, generate an average account premium of about $7,600, and represent one-third of the $3.7 billion market.
The vast majority of the 160,000 small wholesalers, or 69.8%, employ fewer than 10 each, develop an average account premium of just under $5,000, and represent 17.75% of the $3.7 billion premium market. Those employing between 10 and 19 workers each develop an average account premium of $21,300 and represent 15.4% of the total market.
Another 26,000, or 13.7%, employ between 20 and 99 each, develop an average account premium of almost $51,000, and represent 36.5% of the total premium market.
| SIC | Industry Description | 5-Year Employment | 5-Year Premium | |||
| Growth Rate | Growth Rate | |||||
| 5112 | Stationery and office supplies | 25.14% | 14.28% | |||
| 5145 | Confectionery | 20.86% | 4.27% | |||
| 5162 | Plastics materials & basic shapes | 20.60% | 11.60% | |||
| 5120 | Drugs, proprietaries, and sundries | 18.59% | 6.80% | |||
| 5136 | Men's and boys' clothing | 15.83% | 3.93% | |||
| 5193 | Flowers & florists' supplies | 10.81% | 10.66% | |||
| 5191 | Farm supplies | 10.20% | 1.97% | |||
| 5149 | Groceries and related products, nec | 9.92% | -3.68% | |||
| 5142 | Packaged frozen foods | 8.66% | -1.19% | |||
| 5194 | Tobacco and tobacco products | 8.24% | -3.26% | |||
| 5148 | Fresh fruits and vegetables | 6.75% | -0.83% | |||
| 5182 | Wine and distilled beverages | 6.33% | -5.38% | |||
| 5169 | Chemicals & allied products, nec | 6.30% | -1.79% | |||
| 5143 | Dairy products, exc. dried or canned | 5.43% | -6.43% | |||
| 5139 | Footwear | 5.35% | -3.49% | |||
| 5137 | Women's and children's clothing | 4.92% | -5.51% | |||
| 5181 | Beer and ale | 3.74% | -8.61% | |||
| 5113 | Industrial & personal service paper | 2.02% | -7.67% | |||
| 5111 | Printing and writing paper | 0.78% | -6.74% | |||
| 5199 | Non-durable goods, nec | -0.36% | -6.29% | |||
| 5192 | Books, periodicals, & newspapers | -0.68% | -9.56% | |||
| 5171 | Petroleum bulk stations & terminals | -0.81% | -6.87% | |||
| 519\ | Wholesale Admin. & Aux. | -1.46% | -9.53% | |||
| 5144 | Poultry and poultry products | -1.55% | -7.73% | |||
| 5131 | Piece goods & notions | -2.03% | -11.03% | |||
| 5147 | Meats and meat products | -2.18% | -13.31% | |||
| 5153 | Grain and field beans | -2.82% | -6.01% | |||
| 5146 | Fish and sea foods | -6.23% | -14.08% | |||
| 5172 | Petroleum products, nec | -6.25% | -12.38% | |||
| 5154 | Livestock | -7.35% | -6.86% | |||
| 5159 | Farm-product raw materials, nec | -8.25% | -11.44% | |||
| 5141 | Groceries, general line | -8.54% | -19.88% | |||
| 5198 | Paints, varnishes, and supplies | -14.08% | -20.63% | |||
Source: ISO Market Profiler
In the Rough Notes West region, nearly 41,400 wholesalers of non-durable goods represent $791 million in premium, or 3.85% of the total commercial lines market. As a group, they are considerably more important to the region's economy than the rest of the country.
In the chart below are the 10 largest categories of non-durable goods wholesalers in the region.
West Region
| SIC | Industry | $ DWP (000) | # Estabs. | ||
| 5149 | Groceries and related products, nec | 86,984 | 3,663 | ||
| 519\ | Wholesale Admin. & Aux. | 80,176 | 1,119 | ||
| 5120 | Drugs, proprietaries, and sundries | 49,887 | 1,974 | ||
| 5171 | Petroleum bulk stations & terminals | 48,156 | 1,630 | ||
| 5199 | Non-durable goods, nec | 45,704 | 5,167 | ||
| 5169 | Chemicals & allied products, nec | 39,334 | 1,892 | ||
| 5148 | Fresh fruits and vegetables | 36,559 | 1,948 | ||
| 5141 | Groceries, general line | 31,181 | 986 | ||
| 5191 | Farm supplies | 30,941 | 2,815 | ||
| 5153 | Grain and field beans | 26,763 | 1,177 | ||
Source: ISO Market Profiler
Together, these 10 categories account for 54% of the 41,400 non-durable goods wholesalers in the West region and represent 60.1% of the $791 million premium market.
In line with the country as whole, non-durable goods wholesalers employing fewer than 20 people represent 82.1% of the region's total of 41,400 wholesale establishments and account for 34.9% of the $791 million market. Of these, 28,600, or 70.3%, employ fewer than 10 workers each, develop an average account premium of approximately $5,200, and represent 18.9% of the $791 million market.
Another 5,600 wholesalers employing between 10 and 19 workers each, develop an average account premium of $22,500 and account for 13.8% of the premium market. The West region also supports 5,600 mid-sized wholesalers, each employing between 20 and 99, that develop an average account premium of $54,800.
Information on this and other niche markets is available from ISO by calling toll-free: (800) 888-4ISO ((800) 888-4476); e-mail: info@iso.com.
James Surrago is vice president - Data Management & Information Services of the Insurance Services Office, Inc. (ISO).