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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Quarterly Insight, 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.
Dependence On Exports
Exports account for about 67% of US industrial machinery manufacturers’ revenue and create additional risks for manufacturers.
Keeping Up With Technology Advances
In order to remain competitive, manufacturing processes are rapidly and increasingly becoming automated.
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
Coronavirus Update
Apr 22, 2022 - IIoT Speeds Manufacturing
- Industrial manufacturers are using the industrial internet of things (IIoT) to speed production and delivery of machinery to customers, according to a new industry report. Combining automation, connectivity, and analytics, IIoT is being deployed to drive manufacturing efficiency. By streamlining the flow of information, IIoT enables real-time decision making, enhances production efficiency, minimizes machine breakdowns and downtime, and lowers manufacturing costs.
- The invasion of Russia into Ukraine has resulted in sanctions on Russia that raise the costs of some raw materials, potential US bans on Russian imports, operating restrictions for US firms manufacturing in Russia, and worsened supply chains and shipping issues. US firms that sell to Russia or have production operations in Russia are prohibited from engaging in transactions with most Russian financial institutions. Material shipments from Ukraine are likely to dry up as fighting continues.
- The value of manufacturers’ shipments of industrial machinery nearly doubled in February 2022 compared to a year earlier. In addition, February sales were nearly double pre-pandemic levels. Industrial machinery shipments had been on a steady rise until March 2021, when growth accelerated.
- Industrial machinery manufacturers raised their prices by 16.9% in March 2022 versus a year earlier. While price increases account for a portion of sales growth, a rise in shipment volume is also at play.
- The Institute for Supply Management (ISM) projects a 6.5% 2022 revenue increase for the manufacturing sector in 2022. The ISM noted in its Semiannual Economic Forecast released in December 2021 that 65% of its respondents expect 2022 revenues to top 2021 revenues, with 15 of the 18 manufacturing sectors tracked by ISM pegged for revenue growth. Manufacturing continues to perform at a strong level, going back to March 2020.
- New orders for US manufactured durable goods, an indicator of demand for industrial machinery, fell 2.2% month-over-month in February of 2022, the most since April of 2020, surpassing market expectations of a 0.5% decline. The biggest declines were registered for orders of machinery (-2.6% versus 3% growth in January) and primary metals (-0.9% versus -0.3%), according to the US Census Bureau.
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