Industrial Machinery Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,800 industrial machinery manufacturers in the US produce the machines required to make other products. These can range from simple mechanical modules that perform a single function to complex computer-controlled machines that perform multiple processing functions. Key customer markets are woodworking, metals, plastics, paper, textiles, bookbinding, printing, food, and semiconductor production.
Pressure to Innovate
Manufacturing processes are becoming increasingly automated and computer-driven.
Dependence On Exports
Exports account for nearly two-thirds of US industrial machinery manufacturers’ revenue and create additional risks for manufacturers.
Industry size & Structure
The average industrial machinery manufacturer has 48 employees and produces about $13.6 million in annual revenue.
- About 2,800 companies employ 134,000 workers and generate $38 billion in annual revenue.
- 65% of firms have less than 20 employees.
- About 250 facilities are very large, employing 500 or more workers.
- Large companies include Siemens AG, ABB, Honeywell, and Lam Research Corp.
Industry Forecast
Industrial Machinery Manufacturers Industry Growth
Recent Developments
Nov 30, 2024 - Record Prices and Profits
- Producer prices for industrial machinery manufacturers climbed to another new high in September, extending a relatively steep climb that began in early 2021 as the manufacturing sector reopened following pandemic-related shutdowns. The producer price index rose 3.4% in September compared to a year ago after rising 4.1% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. After-tax profits for machinery companies jumped 15.9% year over year in the second quarter to a record high level. Employment by industry was relatively flat YoY in September, while the average industry wage rose 1.2% over the same period to $30.05 per hour, BLS data show.
- Prices for machinery and industrial equipment are likely to rise if President-elect Donald Trump makes good on his campaign promise to impose tariffs on Canada and Mexico, Newsweek reports. Canada and Mexico export heavy machinery, engines, and industrial tools used in manufacturing and construction to the US. If Trump's tariffs are imposed, US industries will face higher costs for equipment, such as industrial machinery, boilers and electrical equipment, according to Newsweek. Moreover, the higher costs could slow down construction and manufacturing projects, which in turn could hit companies in those industries. Tariffs would have widespread ramifications for US manufacturers, making it more expensive to produce goods that use foreign components. And if Canada and Mexico respond with retaliatory tariffs, it could also make it more expensive for US manufacturers to export goods to foreign markets. Also, higher prices for imported machinery and equipment could cause domestic manufacturers to raise their prices.
- China's monthly trade surplus reached a record $99 billion in June, prompting concern among its trading partners that a glut of Chinese manufactured goods would harm their own industrial output and economies, The New York Times reports. China’s trade surplus with the US rose to nearly $32 billion in June, up from $29 billion a year earlier, as China exported more and bought less, according to NYT. China’s imports shrank as Chinese companies and households took a more cautious approach to spending. As Chinese consumers pull back, China is looking to international markets to keep factories humming. Governments in the US, the EU, Brazil, India, Turkey, and elsewhere are responding by raising tariffs or imposing new ones on manufactured goods from China. The Biden administration recently imposed new tariffs on various Chinese-made goods, including EVs and semiconductors. Chinese factories produce almost a third of the world’s manufactured goods.
- According to the latest Census Bureau figures, US capital expenditures for robotic equipment totaled $12,960 million (not statistically different than 2021) and accounted for 1.1% of total equipment expenditures in 2022. The manufacturing sector was the largest investor, accounting for more than half (56.2%) of all robotic equipment expenditures – nearly $7.3 billion that year. Amid a stubborn labor shortage, manufacturers rely increasingly on automation, including robots, for some tasks to achieve greater productivity. Also, collaborative robots (aka "cobots”) that work alongside humans are becoming increasingly popular with smaller manufacturers that cannot afford expensive industrial robots.
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