Variant of NAICS 1997 - Labour Force Survey (LFS) Industries

7 - Services-Producing Sector

8 - Trade

41 - Wholesale Trade

This sector comprises establishments primarily engaged in wholesaling merchandise and providing related logistics, marketing and support services. The wholesaling process is generally an intermediate step in the distribution of merchandise; many wholesalers are therefore organized to sell merchandise in large quantities to retailers, and business and institutional clients. However, some wholesalers, in particular those that supply non-consumer capital goods, sell merchandise in single units to final users.

This sector recognizes two main types of wholesalers, that is, wholesale merchants and wholesale agents and brokers.

Wholesale Merchants

Wholesale merchants buy and sell merchandise on their own account, that is, they take title to the goods they sell. They generally operate from warehouse or office locations and they may ship from their own inventory or arrange for the shipment of goods directly from the supplier to the client. In addition to the sale of goods, they may provide, or arrange for the provision of, logistics, marketing and support services, such as packaging and labelling, inventory management, shipping, handling of warranty claims, in-store or co-op promotions, and product training. Dealers of machinery and equipment, such as dealers of farm machinery and heavy-duty trucks, also fall within this category.

Wholesale merchants are known by a variety of trade designations depending on their relationship with suppliers or customers, or the distribution method they employ. Examples include wholesale merchants, wholesale distributors, drop shippers, rack-jobbers, import-export merchants, buying groups, dealer-owned cooperatives and banner wholesalers.

The first eight subsectors of wholesale trade comprise wholesale merchants. The grouping of these establishments into industry groups and industries is based on the merchandise line or lines supplied by the wholesaler.

Wholesale Agents and Brokers

Wholesale agents and brokers buy and sell merchandise owned by others on a fee or commission basis. They do not take title to the goods they buy or sell, and they generally operate at or from an office location.

Wholesale agents and brokers are known by a variety of trade designations including import-export agents, wholesale commission agents, wholesale brokers, and manufacturer's representatives and agents.

418 - Miscellaneous Wholesaler-Distributors

This subsector comprises establishments, not classified to any other subsector, primarily engaged in wholesaling merchandise, such as recyclable materials, paper, paper products and disposable plastic products, agricultural supplies, chemicals and allied products, logs and wood chips, minerals, ores and precious metals, and second-hand goods (except machinery and automotive).

• Exclusion(s):

  Establishments primarily engaged in:

  • wholesaling used automotive parts and accessories (See 415 Motor Vehicle and Parts Wholesaler-Distributors)
  • wholesaling used machinery (See 417 Machinery, Equipment and Supplies Wholesaler-Distributors)

4181 - Recyclable Material Wholesaler-Distributors

This industry group comprises establishments primarily engaged in wholesaling recyclable metals, paper and paperboard, and other recyclable materials.

• Exclusion(s):

  Establishments primarily engaged in:

  • operating facilities in which recyclable materials are removed from waste, or mixed recyclable materials are sorted into distinct categories and prepared for shipment (See 56292 Material Recovery Facilities)

• Example Activities:

  • Waste materials, wholesale

41819 - Other Recyclable Material Wholesaler-Distributors

This industry comprises establishments, not classified to any other industry, primarily engaged in buying, breaking up, sorting, grinding, shredding and selling recyclable materials, such as plastic, glass, textiles, liquids and sludges.

• Exclusion(s):

  Establishments primarily engaged in:

  • manufacturing intermediate or finished products from recycled materials(31-33)
  • compounding plastics resins from recycled plastic products (See 32599 All Other Chemical Product Manufacturing)

418190 - Other Recyclable Material Wholesaler-Distributors

This Canadian industry comprises establishments, not classified to any other industry, primarily engaged in buying, breaking up, sorting, grinding, shredding and selling recyclable materials, such as plastic, glass, textiles, liquids and sludges.

• Example Activities:

  • Bottles, waste, wholesale
  • Glass scrap, wholesale
  • Grinding into flakes used plastic milk jugs and similar plastic containers
  • Liquid waste recovery (collection only)
  • Oil, waste, wholesale
  • Rags, paper, rubber and bottles (scrap), wholesale
  • Recycling empty bottles
  • Rubber waste, wholesale
  • Shredding rubber tires for rubber and metal content
  • Textile waste, wholesale
  • Waste oil collection
  • Waste rags, wholesale