How to define durable/non-durable good industries? For example, is the industry of Wholesale and retail trades defined as durable good industry? Thanks in advance.
Just to add on to the previous post.
According to the BEA (www.bea.gov): durable goods are tangible products that can be stored or inventoried and that have an average life of at least three years.
Non-durable goods are tangible products that can be stored or inventoried and that have an average life of less than three years.
The taxonomy of the order of industries that falls under this definition according to the North American Industry Classification System (NAICS) [which can be found here: https://www.census.gov/cgi-bin/sssd/naics/naicsrch?chart=2012 ] are as follows:
**Durable goods** NAICS code(s) Wood products 321 Nonmetallic mineral products 327 Primary metals 331 Fabricated metal products 332 Machinery 333 Computer and electronic products 334 Electrical equipment, appliances, and components 335 Motor vehicles, bodies and trailers, and parts 3361 Other transportation equipment 3364 Furniture and related products 337 Miscellaneous manufacturing 339 **Nondurable goods** Food and beverage and tobacco products 311 + 312 Textile mills and textile product mills 313 + 314 Apparel and leather and allied products 315 + 316 Paper products 322 Printing and related support activities 323 Petroleum and coal products 324 Chemical products 325 Plastics and rubber products 326
To answer your question; the industry of Wholesale and retail trades does not fit into the NAICS definition of durable nor nondurable goods industries as they are manufacturing industries (industries engaged in the transformation of goods, materials or substances into new products)
Wholesale and retail trades falls under NAICS sector 42 thru 44 and 45 (www.census.gov/naics). These industries are engaged in sales of any type of goods and is the final step in the distribution supply chain of merchandise.
Wholesale is the resale of new and used goods to retailers, business-to-business trade or to other types of wholesalers.
Retail trade industry are industries that sells mostly to individuals and not businesses (but sometimes this happens at a smaller scale). Usually, retail refers to retail outlets where people shop.
Hope this helps.
Happy New Year!
The US BEA defines durable goods as those lasting three years or more:
PCE is classified by type of product as follows. Goods consist primarily of tangible commodities that can be stored or inventoried, but they also include certain intangible products, such as software. Durable goods are goods that have an average useful life of at least 3 years. Nondurable goods are goods that have an average useful life of less than 3 years. Services are commodities that cannot be stored or inventoried and that are usually consumed at the place and time of purchase. ... Durable goods [include]: motor vehicles and parts, furnishings and durable household equipment, recreational goods and vehicles, and other durable goods.