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
Jan 30, 2025 - Price Rising, Profits Falling
- Producer prices for industrial machinery manufacturers hit another new high in December, extending a relatively steep climb that began in early 2021 as the manufacturing sector reopened following pandemic-related shutdowns. The producer price index rose 3.7% in December compared to a year ago after rising 4% in the previous December-versus-December annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by industry inched up 0.8% year over year in November, while the average industry wage rose 3.9% over the same period to a new high of $31.14 per hour, BLS data show. Despite record high prices, after-tax profits for machinery companies tumbled 25.8% YoY in the third quarter and were down 26% versus Q2.
- President Trump's tariffs threats, if realized, could worsen the existing labor shortage in the US manufacturing sector, Inc reported in December. If, as the president has suggested, 25% tariffs on imports from Mexico, Canada, the European Union, and other US trading partners, result in largescale reshoring of jobs to the US, it would add to the tally of US factory jobs currently going unfilled. According to data cited by The Wall Street Journal, the number of available manufacturing jobs that went unfilled each month held steady at about 100,000 throughout 2024. Moreover, the domestic labor pool may not be able to fill millions of new positions expected to be created in the next few years, Inc writes. Trump’s promise to deport undocumented workers and restrict immigration would only exacerbate the current labor shortage, some business owners say.
- 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.
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