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 2,900 industrial machinery manufacturers in the US produce the machines required to make other products. These can range from relatively 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.

Keeping Up With Technology Advances

In order to remain competitive, manufacturing processes are rapidly and increasingly becoming automated.

Dependence On Exports

Exports account for about 58% of US industrial machinery manufacturers’ revenue and create additional risks for manufacturers.

Industry size & Structure

The average industrial machinery manufacturer has 40 employees and produces about $13 million in annual revenue.

    • About 2,900 companies employ 116,000 workers and generate $38 billion in annual revenue.
    • 64% of firms have less than 20 employees.
    • About 236 facilities are very large, employing 500 or more workers.
    • Large companies include Siemens AG, ABB, Honeywell, and General Electric.
                                  Industry Forecast
                                  Industrial Machinery Manufacturers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 25, 2022 - Manufacturing Employment Exceeds Pre Pandemic Levels
                                  • US manufacturing is making a strong comeback with employment in the sector currently at 12,922,000 employees – the most since November 2008 – according to the latest jobs report from the Labor Department. Through October 2022, the manufacturing sector added 367,000 new jobs. Manufacturing grew by 32,000 jobs in October, continuing the resurgence of this blue-collar sector, which now provides 137,000 more jobs than it did before the pandemic. In October, much of the monthly job gains in manufacturing were driven by durable goods manufacturing (+23,000 jobs or 71% of manufacturing jobs added). Some of the largest monthly changes in durable goods manufacturing were in transportation equipment, computer and electronic products, and fabricated metal products, with each of those industries adding 5,000 jobs in October.
                                  • Manufacturers are facing a potential shortage of diesel fuel that has driven up the price to a record premium over gasoline and crude oil, according to The Wall Street Journal. While the price of gasoline is up about 14% so far this year, the price for diesel has risen by about 50%, to $5.35 a gallon, according to energy price data from AAA/OPIS. The gains widened the gap between the two fuels to an all-time high of $1.61, versus 23 cents a year ago. Dwindling stocks, the war in Ukraine, severe weather, and other disruptions to the global energy markets are behind the widening gap, WSJ reported in November 2022. Wholesale diesel, delivered into New York harbor, traded at a record premium to crude oil in October, according to the Energy Information Administration, which also reported the country had only 25 days of diesel in reserve, the lowest since 2008.
                                  • A majority (63%) of manufacturing leaders surveyed expect the US economy to enter a recession this year or in 2023, according to the National Association of Manufacturers (NAM). The percentage of respondents to the NAM Manufacturers’ Outlook Survey for 3Q 2022 who were somewhat or very positive about the outlook for their own company was 75.6% – the lowest measure since Q4 2020 – and down from 82.6% in the second quarter. The expected growth rates for sales, full-time employment, and capital investments over the next 12 months -- 3.3%, 2.0%, and 2.2%, respectively -- were all lowest since Q4 2020. Moreover, the expected growth rate for inventories over the next 12 Months was down 0.8%, marking the first decline since Q3 2020. Small manufacturers (those with fewer than 50 employees) were the least upbeat in their outlook.
                                  • Industrial machinery manufacturers are closely watching the formulation of domestic and international regulations regarding the reporting of environmental, social, and governance (ESG) impacts. The Securities and Exchange Commission (SEC), the International Sustainability Standards Board (ISSB), and the Global Reporting Initiative (GRI) are each developing auditing and accounting standards for publicly traded companies that not only impact industrial machinery manufacturers’ own reporting but also the reporting of companies that purchase their machinery. Demand for machinery with minimized environmental impact is likely to follow and could drive the design of new industrial machinery.
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