Analysis
NAICS 425120 is the 2022 national industry for wholesale trade agents and brokers, part of 42512 (Wholesale Trade Agents and Brokers). Census lists 13 example activities under it in the official index.
County Business Patterns counts 34,595 US establishments in this code in 2023, employing 240,007 people at an average annual payroll of $71,674 per employee (55th percentile of national industries). 78% of the establishments have fewer than five employees, which marks it as a small-business industry.
Between 2018 and 2023 the number of establishments fell 10% and employment fell 14%. The 2018 count used NAICS 2017, so part of a large move can come from codes being redefined rather than from businesses opening or closing.
Its index entries, the activities Census uses to assign businesses to this code, include agents and brokers, durable goods, wholesale trade, agents and brokers, nondurable goods, wholesale trade, automobile auction agents and brokers, wholesale trade and business to business electronic markets, durable goods…, among 13 in all.
For example, group purchasing organizations purchasing and selling goods on their own account are classified in 423 (Merchant Wholesalers, Durable Goods, or Subsector 424, Merchant Wholesalers, Nondurable Goods) instead.
Census lists 2 related activities that belong elsewhere, most often in 423 and 561990. Businesses that do several things are classified by their primary activity, the one that generates the most value, so check those boundaries before settling on this code.
Official definition
This industry comprises wholesale trade agents and brokers acting on behalf of buyers or sellers in the wholesale distribution of goods, including those that use the Internet or other electronic means to bring together buyers and sellers. Agents and brokers do not take title to the goods being sold but rather receive a commission or fee for their service. Agents and brokers for all durable and nondurable goods are included in this industry.
Illustrative Examples:
Independent sales representatives Manufacturers' sales representatives Group purchasing organizations (acting as agents for goods distribution)
Source: US Census Bureau, NAICS 2022 Manual.
Not this code if…
| The business mainly does | Use instead |
|---|---|
| Group purchasing organizations purchasing and selling goods on their own account | 423 Merchant Wholesalers, Durable Goods, or Subsector 424, Merchant Wholesalers, Nondurable Goods |
| Group purchasing organizations acting as agents for services | 561990 All Other Support Services |
Index entries (13)
- Agents and brokers, durable goods, wholesale trade
- Agents and brokers, nondurable goods, wholesale trade
- Automobile auction agents and brokers, wholesale trade
- Business to business electronic markets, durable goods, wholesale trade
- Business to business electronic markets, nondurable goods, wholesale trade
- Durable goods agents and brokers, wholesale trade
- Durable goods business to business electronic markets, wholesale trade
- Electronic markets, durable goods, business to business, wholesale trade
- Electronic markets, nondurable goods, business to business, wholesale trade
- Group purchasing organizations (acting as agents for goods distribution)
- Nondurable goods agents and brokers, wholesale trade
- Nondurable goods business to business electronic markets, wholesale trade
- Petroleum brokers