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Industrial Machinery Manufacturing
First Research, Aug 2009, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US industrial machinery manufacturing industry includes about 26,000 companies with combined annual revenue of $350 billion. Major companies include Caterpillar, Deere, and divisions of General Electric. The industry, which is fragmented overall, is made up of numerous segments that are concentrated.
COMPETITIVE LANDSCAPE
Demand for machinery depends on overall industrial activity and on the health of sectors such as agriculture, construction, 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 industry is capital-intensive: average annual revenue per worker is about $320,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are farm and construction machinery, manufacturing machinery, metalworking machinery, commercial machinery, and general machinery such as engines and pumps. While some products, such as tractors or heaters, are finished products, others, like motors, are components used in further production, and some, like textile looms, are custom-designed for a particular manufacturing process.
Manufacture involves producing and assembling components. Companies either make or buy components and various types of mechanical, hydraulic, and electrical control systems. Manufacturing often involves forging, machining, and welding activities that require skilled labor. Products often have a high engineering content. Product design usually involves CAD systems, which sometimes are hooked directly into a computer-aided manufacturing (CAM) process.
Production is typically on an assembly line, except for the largest pieces of machinery, which may ...
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