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), Sany Heavy Industry (China), and Tetra Laval International (Switzerland).
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. A strengthening global economy and improving prices for many commodities may help drive demand for several categories of machinery.
The US machinery manufacturing industry includes more than 20,000 companies with combined annual revenue of about $350 billion. Key components of the industry are covered in profiles for 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.
While the global economy has improved and prices for many commodities have risen, mounting trade tensions and geopolitical uncertainty are prompting machinery manufacturers and their customers to focus on increasing productivity. Machinery manufacturers can improve competitiveness by investing in products and services that leverage connectivity and data to forge more collaborative and lucrative relationships with customers. To that end, many machinery manufacturers are developing connected products that collect and analyze operational data which helps customers cut operating costs, predict machinery maintenance requirements, and increase efficiency.
Global Strategy -- Emerging markets will drive a significant share of future machinery demand, and domestic players in developing countries are increasingly focused on expansion into new markets, intensifying global competition. To remain competitive, companies must pursue a strategy that wrings costs out of global supply chains while developing products targeted to specific regional markets.
Leveraging Data Analytics -- Through onboard digital sensors and connectivity, machinery can gather and share massive amounts of operational data, which can be used to increase customer productivity and efficiency. This progression toward the internet of things (IoT) also creates opportunities for machinery companies to offer new support services that generate more revenue than traditional maintenance and repair agreements.
Strategic Technology Partnerships -- As technology becomes more ingrained in machinery products, manufacturers are increasingly partnering with technology companies to develop equipment connectivity, data analytics, and software. However, partnership contracts must remain flexible so they can be adapted as business needs evolve.
Products, Operations & Technology
Major products are farm and construction machinery, metalworking and other manufacturing machinery, HVAC and commercial refrigeration equipment, and general-use
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms