Motor & Generator Manufacturing Industry Profile

US manufacturing of electric motors and generators involves about 400 companies with combined annual revenue of about $10 billion. Major companies include AMETEK, Baldor Electric (part of Switzerland-based ABB), Franklin Electric, and Regal Beloit, as well as divisions of Emerson Electric and GE. The US industry is highly concentrated: the 50 largest companies generate more than 80 percent of revenue.

The global motor and generator manufacturing industry has revenues of about $90 billion annually. Major companies based outside the US include ABB (Switzerland), Mitsubishi Electric and Nidec (Japan), Schneider Electric (France), and Siemens (Germany).

COMPETITIVE LANDSCAPE

Industrial and manufacturing companies drive demand. The profitability of individual companies depends on efficient production. Small companies can compete by specializing. While larger companies, like GE, produce mainly a standard line of products, smaller companies are more likely to adapt products for customers' special needs. The industry is capital-intensive: average annual revenue per employee is about $300,000.

Exports of motors and generators, which represent about half of US production, go primarily to Mexico and Canada. Imports account for more than 60 percent of the US market. Mexico is the largest foreign supplier of motors and generators to the US market.

PRODUCTS, OPERATIONS & TECHNOLOGY

Fractional horsepower motors (fractions of one horsepower) and integral horsepower motors (multiples of one horsepower) are the largest product categories; other products include "prime mover" generators (powered by prime movers like diesel or steam engines); and motor-generator sets. ...