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 2,860 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.

Pressure to Innovate

Manufacturing processes are becoming increasingly automated and computer-driven.

Dependence On Exports

Exports account for about two-thirds 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 $15.6 million in annual revenue.

    • About 2,860 companies employ 130,900 workers and generate $44.7 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 General Electric.
                                  Industry Forecast
                                  Industrial Machinery Manufacturers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Jan 30, 2024 - Producer Prices Rose in 2023
                                  • Producer prices for industrial machinery manufacturers increased by 2.6% in 2023 after rising 8.4% and 12.2% in 2022 and 2021, respectively. The industry’s pricing power eased last year amid softer demand for industrial machinery later in 2023 as contraction gripped the US manufacturing sector. While quarterly sales and profits for machinery companies rose sharply in Q2 2023 compared to a year ago, new orders and shipments fell in the back half of the year and inventories rose. Employment by industrial machinery manufacturers declined through November while average industry wages reached a new high of nearly $30 per hour.
                                  • 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.
                                  • Nearshoring is on the rise as global companies adopt a more regional approach to manufacturing and selling, according to a new survey from Accenture. The survey of 1,230 senior executives across 14 countries and 11 industries found that 85% of companies plan to manufacture and sell most of their products in the same region in 2026. In the US, 91% of companies intend to accomplish this, up from 52% today. Regional sourcing and production are important because they make companies less vulnerable to disruption. Mexico, with its easy access to the US market, is the primary beneficiary with manufacturing there soaring. Global consulting firm AlixPartners notes the nearshoring trend has accelerated in recent years due to the passage of new regulations and legislation in the US, including the CHIPS Act, Infrastructure Investment and Jobs Act, Inflation Reduction Act, and the Build America, Buy America Act among other factors.
                                  • Robots don’t rule the world yet, but their use in industrial applications is growing, according to the latest World Robotics report from the International Federation of Robotics. The report recorded 553,052 industrial robot installations in factories worldwide – a growth rate of 5% in 2022, year-on-year. By region, 73% of all newly deployed robots were installed in Asia, 15% in Europe, and 10% in the Americas. 2022 was the second consecutive year in which installations topped 500,000. In 2023, the industrial robot market is expected to grow by 7% to more than 590,000 units worldwide. China is by far the largest market. On average, annual robot installations in China have grown by 13% each year (2017-2022). The US accounted for 71% of the installations in the Americas in 2022, rising 10% to 39,576 units, just shy of the peak level of 40,373 units achieved in 2018.
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