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
May 30, 2024 - Wages, Prices Hit New Highs
- Producer prices for industrial machinery manufacturers rose 2.4% in March compared to a year ago after rising 9.8% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices continue to rise, albeit less steeply, despite falling sales, shipments, and new orders for industrial machinery. Machinery industry sales declined by 2.6% in Q4 2023 compared to Q4 2022 and were down 6.4% versus Q3 2023. Still, after-tax profits for machinery companies rose 6.9% in Q4 2023 year over year. Employment by the industry contracted 2.1% in March compared to a year ago while average industry wages jumped 8% over the same period to $30.63 per hour, a new high, BLS data show.
- According to newly released 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.
- In the largest grant yet to flow from the $53 billion Chips Act, Intel has been awarded $8.5 billion for chip-plant construction, The Wall Street Journal reported in March. The money will help to fund chip plants in Arizona, New Mexico, Ohio, and Oregon, according to the Commerce Department which is overseeing the grants. Overall, Intel is expected to invest more than $100 billion in US projects over the next five years. Commerce Secretary Gina Raimondo said the Intel investments will put the US on track to producing 20% of the world’s leading-edge chips by the end of the decade, up from about 12% in 2020. Other semiconductor manufacturers to receive awards under the 2022 Chips Act include New York-based GlobalFoundries, with additional grants expected to be awarded soon to Micron Technology and Samsung Electronics, among others, per WSJ. Semiconductor companies are key customers of industrial machinery manufacturers.
- Just 25% of US farms currently use connected equipment or devices to access data, putting them at a big disadvantage in today’s increasingly connected agricultural sector, according to a recent white paper by the Association of Equipment Manufacturers (AEM). “Without ubiquitous connectivity, the agriculture industry cannot fully embrace the new tools and technologies that will enable it to meet the productivity and sustainability demands of the future,” writes AEM. Underscoring the importance of connectivity, farm machinery giant Deere is investing billions of dollars to build out computer-assisted services for farmers and recently signed a deal with SpaceX’s Starlink business to connect tractors, seed planters, crop sprayers, and other equipment in areas that lack adequate internet service, The Wall Street Journal reports. The lack of Wi-Fi service is even greater outside the US, with more than 70% of the acres farmed in Brazil lacking adequate connectivity, per WSJ.
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