3 MIN. READ
Industrial machines enable large- and small-scale manufacturing. They can be found in tens of thousands of facilities across the United States.
Without hyperbole, it's quite appropriate to say that millions of jobs exist because of industrial machines. This article will take a look at some key facts about this industry, based on data collected by MNI.
Far-Reaching Influence
In some circles, industrial machines are still thought of as large units, like multi-axis CNC machines or complex integrated systems such as assembly lines. However modern technology has miniaturized many machines.
Relatively small units can generate large production runs, while additive manufacturing methods (commonly called 3D printing) have revolutionized rapid prototyping.
Industrial machines are used to make internal combustion engines, turbines for power production, agricultural equipment, oil and gas exploration devices, food products, mineral extractors, furniture, gears and dozens of other items.
Because of this deep integration with other branches of manufacturing and production, the industrial machine industry is extremely robust.
How the IoT is Changing the Industry
The Internet of Things has impacted industrial machines at every level of operation. Manufacturers now offer software that monitors tolerances, time before scheduled maintenance and energy usage.
This enables end users to maximize productivity while minimizing operating costs and downtime. Additionally, machine manufacturers can monitor the same data streams and offer customized aftermarket support for their products, realizing a previously ignored revenue stream.
Technology is also assisting in the creation of new machines. Rather than drafting sketches or building prototypes, collaborative manufacturing methods utilize simulations to test designs for compliance, performance and usability before committing to hardware. This increases value by eliminating the need to redraw or redesign components.
Industry Economics and Data
When it comes to economic impact, industrial machine manufacturers are hard to beat. The industrial machineery industry in the United States currently accounts for nearly $1.6 trillion in sales.
Over 1.7 million Americans are directly employed by this sector, up 48,000 since the same time last year for a total increase of 2.81%.
Information collected and verified by MNI, publisher and compiler of the industrial data that powers IndustryNet, also gives us insight into the global impact of these companies.
International distribution has increased to 37%, up 8% from last year.
While only 12% import raw material, an exemption on import tariffs for many of the materials used in construction of industrial machines has helped mitigate fluctuating or spiking prices on finished products.
The overwhelming majority of industrial machine companies are privately held, with only 6% being public in structure. Of the 46,609 companies in the sector, 2% are owned by women.
This is similar to the percentage represented in U.S. manufacturing as a whole.
Domestic distribution is concentrated rather evenly in two areas of the country, aligning closely with manufacturing overall.
The South and Midwest contain 28% and 38%, respectively, for a total of 225,936 companies. The remainder is spread equally in the West and Northeast with roughly 17% each.3
The tariffs imposed by the Trump administration over the past year have made it harder for manufacturers to cut costs.
In some cases, manufacturers have chosen to raise prices and source their materials from other countries to promote continued success despite the higher costs associated with the tariffs.
Searching for Industrial Machinery Manufacturers?
Are you looking for an industrial machinery supplier? IndustryNet can help you find the right supplier for your industrial machinery needs.
Providing data on more than 400,000 manufacturers in 10,000-plus categories, IndustryNet can help streamline your purchasing process.
Visitors to IndustryNet can set up a free user accounts, build custom lists of potential suppliers, send quote requests, download company catalogs, view company photo and video libraries, and more.
Click here to start your free search.
Are you in sales, marketing, prospecting or business development? MNI also provides industrial sales leads in the industrial machinery sector. Learn more about how MNI's IndustrySelect subscription can help you find more customers in 2020.Click here to try out a free demo!
Article Sources
https://www.digitalistmag.com/customer-experience/2018/04/03/make-industrial-machinery-more-profitable-with-iot-06042223
https://mni.net/
https://www.plm.automation.siemens.com/global/en/industries/industrial-machinery-heavy-equipment/heavy-equipment/collaborative-manufacturing.html
https://ustr.gov/issue-areas/industry-manufacturing/industrial-tariffs
https://www.enviromon.net/iot-industry-use-cases-sensors/
https://azure.microsoft.com/en-us/blog/how-you-can-use-iot-to-power-industry-4-0-innovation/
