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
Recent Developments
Mar 30, 2024 - Wages Up, Employment Down in 2023
- Employment by industrial machinery manufacturers fell 1.8% in December compared to a year ago after rising 7.3% in the previous annual comparison, according to the US Bureau of Labor Statistics. By comparison, average industry wages continued to climb in 2023 ending the year at a new high of $30.26 per hour in December, a 7% year-over-year change, BLS data show. Profits for machinery companies rose steeply in the first half of 2023 as producer prices and sales rose.
- 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.
- 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.
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.