Machinery Manufacturing Industry Profile

The US machinery manufacturing industry includes more than 20,000 companies with combined annual revenue of about $315 billion. Major companies include Applied Materials, Baker Hughes, Carrier, Caterpillar, Deere, Kennametal, and divisions of General Electric. The industry, which is fragmented overall, is made up of numerous segments that are concentrated.

The global machinery manufacturing industry generates more than $2 trillion in annual revenue. Top producers include China, Germany, Japan, the US, and South Korea. Major companies based outside the US include Canon, CNH Global, Guangxi LiuGong Machinery, Mitsubishi Heavy Industries, Tetra Laval International, and Sandvik.

For more information on some key components of the machinery manufacturing industry, please also see the following industry profiles: Agricultural Machinery Manufacturing, Construction Machinery Manufacturing, Metalworking Machinery Manufacturing, Oil & Gas Field Equipment Manufacturing, Printing Machinery & Equipment Manufacturing, and Semiconductor Equipment Manufacturing.

COMPETITIVE LANDSCAPE

Demand for machinery depends on overall industrial activity and on the health of sectors such as agriculture, construction, manufacturing, oil and gas exploration and production, and power generation. The profitability of individual companies depends on engineering expertise and efficient production. Large companies have economies of scale in purchasing. Small companies can compete effectively by specializing. The industry is capital-intensive: average annual revenue per worker is about $315,000.

Imports, which account for about 40 percent of the US machinery market, come largely from Japan (mainly engines and construction equipment); China (generally smaller items like pumps and ...