Companies in this industry manufacture various kinds of machinery used in agriculture, mining, construction, or manufacturing. Major companies include Applied Materials, Caterpillar, Deere, divisions of General Electric, Halliburton, and Kennametal (all based in the US), along with Canon (Japan), CNH Industrial (UK), Mitsubishi Heavy Industries (Japan), Sandvik (Sweden), Tetra Laval International (Switzerland), and XCMG Construction Machinery (China).
Top countries for machinery manufacturing include China, Germany, Japan, South Korea, and the US. Machinery demand closely follows growth in GDP, and emerging markets are expected to post the most robust growth in the coming years. However, slowing economic growth in China and lower commodity prices have put downward pressure on overall machinery demand.
The US machinery manufacturing industry includes more than 20,000 companies with combined annual revenue of about $380 billion. 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, Food Product Machinery Manufacturing, HVAC Equipment Manufacturing, Metalworking Machinery Manufacturing, Oil & Gas Field Equipment Manufacturing, Printing Machinery & Equipment Manufacturing, and Semiconductor Equipment Manufacturing.
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 US industry,...