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
Sep 30, 2024 - Prices Rise to New High
- Producer prices for industrial machinery manufacturers rose to a new high in July, extending a relatively steep climb that began in early 2021 as the manufacturing sector reopened following pandemic-related shutdowns. The producer price index rose 3.3% in July compared to a year ago after rising 3.8% in the previous July-versus-July annual comparison, according to the latest US Bureau of Labor Statistics data. Meanwhile, employment by industrial machinery manufacturers was flat year over year in July, as was the average industry wage, which inched up 0.2% over the same period to $29.56 per hour, down $1.40 from its peak in April, BLS data show
- Campaign promises to strengthen the languishing US manufacturing sector, if realized, would boost domestic demand for industrial machinery. As part of her “America Forward” agenda, VP Kamala Harris has outlined $100 billion in new investments in manufacturing, offering tax credits to boost investment and create industrial jobs, investments in AI, science, and energy development, and supporting American-made products. Former President Trump has proposed instituting a four-year plan to boost manufacturing so that the US doesn’t need to rely on China for crucial goods. He has promised big corporate tax cuts for manufacturing and protectionist across-the-board tariffs. In September, Trump threatened to slap farm and construction equipment manufacturer John Deere with a 200% tariff if it moved some production from Iowa to Mexico as planned. The Fed’s rate cut in September and signal of more to come by year’s end stands to benefit the US industrial sector.
- 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.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.