The Machinery and Equipment Industry in the United States

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The U.S. Machinery and Equipment Manufacturing Industry

U.S. machinery industries had sales of $345.1 billion in 2010.  The United States is the world’s largest market for machinery,conveyor belt with dollar bills as well as the third-largest supplier.  American manufacturers hold a 67.5 percent share of the U.S. domestic market.

U.S. manufacturers’ commitment to technological innovation is key to their continued leadership in a highly competitive global marketplace. Application of information technology to machinery to achieve greater productivity, efficiency and sustainability is critical. In addition, numerous American universities are engaged in advanced research in related engineering and scientific disciplines that contribute to competitive U.S. machinery industries.

Machinery industries provide essential and highly sophisticated technology for many other manufacturing and service industries. Process control and other automation technologies enable end-users to maximize the productivity of their equipment.  Sales of many types of machinery typically are accompanied by a variety of high-value services, including specialized architecture, engineering, and logistics.

More than 1 million Americans were employed directly in manufacturing machinery in February 2011.  These jobs are almost entirely in high-skill, well-compensated professions and trades.  Machinery companies have added more than 54,000 jobs since January 2010.  Machinery manufacturing also supports the jobs of hundreds of thousands of Americans in a variety of other manufacturing and service industries.

Thousands of U.S. companies manufacture machinery.  Most are SMEs, but there are also many large, publically traded firms and iconic American brands that trade on a global scale. Machinery is manufactured throughout the United States, but is concentrated in the industrial Midwest.  California and Texas are also important locales for machinery industries.

U.S. machinery industries are also strong and consistent exporters.  In 2010, U.S. machinery industries reported exports worth more than $124.6 billion, an increase of more than 20 percent over 2009, and enjoyed an $18 billion trade surplus.  Many machinery manufacturers find the United States to be a premier location to manufacture for export to neighboring markets like Canada and Mexico.

Industry Subsectors

Manufacturing Machinery: Machinery and equipment used to manufacture a wide range of goods out of metal and plastic. Manufacturing Machinery consists of technologies that find application in many other manufacturing industries, such as automotive, aerospace and medical devices. It includes machine tools for cutting, stamping and forming metal; plastics and rubber manufacturing machinery; and a wide range of cutting tools, dies and accessories.

Industrial Process Machinery: Equipment and technology used in a wide range of industries to operate and automate industrial processes.  Industrial process technology includes basic products such as electric motors, pumps, valves and compressors and industrial controls, as well as material handling equipment.  Process control systems are especially important to achieving the greatest productivity from industrial plant and equipment.

Heavy Off-Road Equipment:   Construction and mining equipment and related systems.  This subsector includes self-propelled equipment, implements, accessories and components for use in construction, forestry, mining and utilities. Off-road diesel engines and fluid-power technology are also important components of off-road equipment.

Power and Energy Equipment: Equipment and machinery for generating, transmitting and distributing electric power as well as machinery used for oil and gas exploration and production.  Major categories include turbines, power transmission equipment and internal combustion engines (except automotive gasoline and aircraft) for electric utility and industrial applications.  Also includes oil and gas field machinery.

Food and Agricultural Technology: Equipment used to grow, process, package, transport, and distribute food and beverages.  Food and Agricultural Technology includes agricultural equipment, food processing and packaging machinery, commercial and industrial refrigeration equipment, and commercial food service equipment.