Companies like 3M, ABB, GE, Honeywell International, Lockheed Martin, Boeing, and many more are prospering in the capital goods field. With that being mentioned, it would be correct to say that nowadays, many companies focus on making capital goods and play major roles in this field, like chemical companies, electronic goods-making companies, and many more. Capital goods denote those products which are used in the production of a consumer good. For instance, batteries are capital goods used in many companies as energy sources for making other products.
Not only batteries, heavy machinery, electronics equipment, construction equipment, etc., are examples of capital goods. Many companies only produce capital goods and supply them to other industries. They focus on making engines, machines, chemicals, and many other products. Many large companies produce capital goods for various sectors like General Electric, United Rentals Inc, etc.
What Comes Under the Capital Goods Sector?
Any company or industry that helps other industries by making such products that they can use to manufacture other items. Many industries come under the capital goods sector. Here are some of them.
- Chemical industry
Various companies use chemicals to make products like paints, soaps, adhesives, and detergents. They generally use natural resources like oil, natural gas, water, and minerals to make those products.
- Automotive industry
They make various parts and components for cars, trucks, bikes, and every vehicle.
- Machinery industry
The industry is focused on making heavy machinery for creating other products. They also sell machines and equipment to other industries.
- Electronics industry
The industry produces products depending upon its buyers and what type of products they need. That’s why the industry creates a complex sector. However, four main components of the industry are- consumer electronics, semiconductors, industrial, and telecommunication.
- Textile industry
The industry makes fabric materials like cotton, nylon, rayon, and wool. Moreover, they also manufacture dyes and other components for clothing manufacturers.
Top 10 companies in the capital goods field
There are many capital goods companies in the United States, but some have more impact in the social and economic areas than others. Here are some details of the top companies.
- 3M
3M is one of the biggest companies in the capital goods field in the USA, with its headquarters in Minnesota. The company started in 1902 and has produced different kinds of capital goods for various industries. They mainly manufacture protection films, adhesives, window films, and laminates.
Apart from that, they also made products related to medical and dental services. In the company, employees get different benefits like stock options, health insurance, retirement plans, and more.
- ABB
The organization is an old and reputed company in the capital goods field. In Zurich, Switzerland, the company started its business in 1891. In 1898 they opened their branch in the USA. The company is popularly known as ABB limited.
They manufacture capital goods related to mining, utility, and energy sectors. They are famous for manufacturing control products, circuit breakers, cable systems, modular manufacturing systems, switches, electronic equipment, and various automotive components. Currently, over 10,000 employees work in the company.
The company sold over $26 billion in 2021. Apart from that, the company is now a major supplier of industrial robots to other industries. In the company, the employees get several benefits such as paid leaves, health insurance, disability insurance, and lots more.
- General Electric (GE)
General Electric, known as GE, started its journey in 1892 as a manufacturer company for various sectors. They make products for the aviation industry, renewable energy, power, and health care departments. Both in New York and Boston, the company has its headquarters. Currently, over 10000 employees work there.
They are well known for making aircraft engines, wind turbines, software, weapons, electric motors, and other machines. In 2021 the company had revenue of $20.3 billion.
In the company, employees get many benefits. For example, they get a signing bonus, flexible work schedule, medical insurance, disability insurance, dental and vision insurance, and more.
- Honeywell International
The company started its journey in 1885 and is also known as Honeywell. They are popular in making industrial, chemical, aerospace, and automotive products. The company sells above $30 million annually. More than 100000 employees work in the company.
Honeywell mainly manufactures special chemicals, plastics, automotive products, engineered materials, and many others. Employees get health insurance, retirement plans, parental leave, sign-on bonus, and life insurance.
- Lockheed Martin
Lockheed Martin is a major company providing various goods in different business fields like military support, aerospace, technology, and security. They make products like rotary and mission systems, missiles, fire controls, and aeronautics. The company is situated in Maryland and started its journey in 1995.
However, some products like fire sensors, strike weapons, and other weapons for defense and air missiles are well renowned by the company. As they produce different weapons and security devices, the company has four business divisions: mission systems, missiles, fire control, and space and aeronautics.
The company incomes around $65 billion grossly every year. In the company, employees get benefits like flexible schedules, tuition reimbursement, health insurance, paid vacation leaves, relocation assistance, and many more.
- United Rental Inc
The company was founded in 1997 in Connecticut. They mainly provide various products to the construction industry. With more than 18000 employees, the company gives different industrial equipment to construction sites.
The company sells different construction-related vehicles and rents equipment to construction companies, homeowners, and industrial companies. They have the reputation of being the “largest equipment rental company” in the world. Their most reputed equipment includes aerial work platforms like scissor lifts, boom lifts, and forklifts. Besides that, they also provide earthmoving equipment, material handling equipment, and much more.
Company employees get health insurance, retirement plans, parental leave, paid vacation leave, and many more.
- Boeing
Boeing is the leading company in the aerospace manufacturing industry. The company started its journey in 1916, and its office headquarters is in Illinois. In 2021 the company had revenue of $62,286 million with over 140000 employees.
The company provides its goods to industries like commercial planes, defense, space and security, and many others. They are well known for manufacturing commercial aircraft, military aircraft, electronic defense systems, and launch systems.
Employees get several company benefits: health insurance, education assistance, international relocation assistance, free transport, work-from-home options, child care, and much more. In the world, the company is considered the largest aerospace company.
- Caterpillar Inc (CAT)
The company started its journey in 1925, and right now, it is a leading brand in producing construction equipment. In Illinois, the company has its headquarters. The company has over 100000 employees and branches in 193 countries. In 2021 the company had earned around $51 billion.
They provide their goods to construction sites such as mining areas, oil extraction sites, etc. Some well-known products are mining equipment, diesel-electric locomotives, gas turbines, gas engines, and many more. They manufacture awesome machines for paving, drilling, and hydraulics.
Employees get many benefits from the company. They get health insurance, dental insurance, vision insurance, long-term disability insurance, temporary disability insurance, life insurance, and much more.
- Northrop Grumman
The company started its journey in 1939, and its headquarters is in Virginia. They mainly manufacture products related to the aerospace and defense industry. The company is considered one of the biggest weapon manufacturers in the world. With over 90000 employees presently working in the company, they have over $30 billion in revenue annually.
They manufacture varieties of defense-related products. Their reputed products include military aircraft, aerial vehicles, stealth bombers, chain guns, rocket launch systems, autocannons, electronic systems, and munitions.
Employees get several benefits from the company, such as health insurance, retirement plans, tuition reimbursement, life insurance, paid leave, and more.
- Union Pacific
Union Pacific is one of the oldest companies in the capital goods field. The company started its journey in 1862, and currently, its headquarters is in Nebraska. With around 30000 employees, the company earned about $6.5 billion in 2021.
They made products for transportation, especially rail industry related. But other than that, they also manufacture automotive, chemical, intermodal, coal, agriculture, and more products. They also made products for the logistics industry.
Employees in the company get numerous benefits such as health insurance, life and accident insurance, retirement plans, educational assistance, and much more. Besides, the company also provides wellness programs for employees like paid vacation, transportation spending accounts, and more.
How to get a job in the capital goods field?
If you want to get a job in the capital goods field in the future, then the easiest way is to get an engineering degree first. After the engineering course, you can apply for a capital goods manufacturing company and get experience in the field.
Besides engineering, you can also search for an internship program in companies and enter the vast sector. Electrical, mechanical, and robotics engineers get handsome salaries in the field. Apart from engineers, different managers also get jobs in the industry regarding quality management, corporate portion of the sector.
FAQs
- Are raw materials capital goods?
No, raw materials are not capital goods. Humans make capital goods that are tangible and used to make other products for human consumerism. Capital goods products are used in different industries to make specific items and to provide services. Raw materials are already present, like metals may be used to produce capital goods or consumer goods. In contrast, capital goods are manufactured products like machines, chemicals, tools, etc.
- Why are capital goods important in economics?
Capital goods are the primary products that any company will need to manufacture their consumer products. So, capital goods act as an indicator. If more companies purchase, then it indicates that the whole economy is growing. Because they indicate market growth, they are important in economics. Also, it provides the minimum requirement for a new company to start its business. For example, if a new company fails to buy capital goods due to a lack of funds, they don’t even have the right idea about the industry they are trying to enter.
Moreover, when more companies use the same equipment and produce in large quantities, the cost of the products decreases in the market, which benefits everyone.
- Are houses capital goods?
The answer is a little tricky. Generally, people live in the house and use it as a consumer good. But if a house or building is used in some products, it can be represented as capital goods. If you use a house for producing goods and providing service, then the house will also be a capital good.
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