Motor & Generator Manufacturing
Description
Companies in this industry manufacture electric motors, power generators, and motor generator sets. Major US companies include AMETEK, Franklin Electric, and Regal Rexnord, as well as divisions of Emerson Electric and GE Motors; major companies based outside the US include ABB (Switzerland), Nidec (Japan), Panasonic (Japan), and Siemens (Germany).
Leading countries in the production of motors and generators include Germany, Japan, the US, Sweden, and Brazil, according to IEC Motors. The uninterrupted power supply market is expected to push the market's revenue to $153 billion by 2029, according to the Business Research Company.
US manufacturing of electric motors and generators involves about 420 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion.
The industry does not include makers of starter motors and battery charging alternators for internal combustion engines or makers of turbine generator sets.
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 US industry is highly concentrated: the 50 largest companies account for about 90% of revenue.
US exports of motors and generators go primarily to Mexico and Canada. Imports account for about 80% of the US market. Mexico and China are the largest foreign suppliers of motors and generators to the US market.
PRODUCTS, OPERATIONS & TECHNOLOGY
The largest product categories of motor and generator manufacturing companies include integral horsepower motors and prime mover generators, which both account for a combined 40% of industry revenue. This is followed by land transportation motors at more than 10%.
The very large number of specialized uses for basic industrial machines has prevented the emergence of dominant competitors. Good economies of scale in manufacturing exist for some commodity-type products like medium electric motors, but the large variety of types and sizes of products limit production runs, and therefore limit cost advantages for large producers. Even a $100 million company may produce dozens of variations of its major product.
The production process is similar in that it requires precision machining of metal components, so that various moving parts work with the most efficient use of energy. Usually there are only a few moving parts, but these must fit precisely. The products also have various electrical controls and are typically sold to other manufacturers that incorporate them into other products.
A production plant typically has various machine tool stations and metal presses, where raw materials, like steel, brass, aluminum, and copper, and semi-finished parts like castings are shaped. In assembly areas, the manufactured parts and other purchased parts are combined into the finished product. Although most precision work is done automatically by sophisticated machinery, a large amount of manual labor is required to feed the machinery and assemble the product.
Leading countries in the production of motors and generators include Germany, Japan, the US, Sweden, and Brazil, according to IEC Motors. The uninterrupted power supply market is expected to push the market's revenue to $153 billion by 2029, according to the Business Research Company.
US manufacturing of electric motors and generators involves about 420 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion.
The industry does not include makers of starter motors and battery charging alternators for internal combustion engines or makers of turbine generator sets.
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 US industry is highly concentrated: the 50 largest companies account for about 90% of revenue.
US exports of motors and generators go primarily to Mexico and Canada. Imports account for about 80% of the US market. Mexico and China are the largest foreign suppliers of motors and generators to the US market.
PRODUCTS, OPERATIONS & TECHNOLOGY
The largest product categories of motor and generator manufacturing companies include integral horsepower motors and prime mover generators, which both account for a combined 40% of industry revenue. This is followed by land transportation motors at more than 10%.
The very large number of specialized uses for basic industrial machines has prevented the emergence of dominant competitors. Good economies of scale in manufacturing exist for some commodity-type products like medium electric motors, but the large variety of types and sizes of products limit production runs, and therefore limit cost advantages for large producers. Even a $100 million company may produce dozens of variations of its major product.
The production process is similar in that it requires precision machining of metal components, so that various moving parts work with the most efficient use of energy. Usually there are only a few moving parts, but these must fit precisely. The products also have various electrical controls and are typically sold to other manufacturers that incorporate them into other products.
A production plant typically has various machine tool stations and metal presses, where raw materials, like steel, brass, aluminum, and copper, and semi-finished parts like castings are shaped. In assembly areas, the manufactured parts and other purchased parts are combined into the finished product. Although most precision work is done automatically by sophisticated machinery, a large amount of manual labor is required to feed the machinery and assemble the product.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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