Manufacturing is one of the largest and most important sectors of the U.S. economy, representing 12% of overall GDP and directly employing over 10 million workers. Capital goods manufacturing, also known as industrial equipment or capital goods, refers to businesses that manufacture long-lasting and heavy-duty items such as computers, chemicals, or machines with large initial costs.
These are expensive purchases that typically cost hundreds of thousands of dollars per unit and have a useful life of over 10 years. But what do these companies do exactly? What types of companies perform these functions? Do you want to work in capital goods? Keep reading! This article will explain what these businesses do and how you can break into this field.
What are Capital goods?
Capital goods are durable and long-lasting goods used for the production of other goods and services. They are generally more expensive than consumer goods. Two examples of capital goods include machinery and computers. The main difference between CG and inventory is that inventory is intended for sale to customers, while capital goods are not. The category of capital goods includes what is commonly referred to as heavy industry, which are manufacturing industries producing items like mining equipment, large-scale construction equipment, ships, machine tools, and turbines.
How Many Jobs are Available in Capital Goods
- Compressors : These machines are used to control pressure in a variety of processes like air conditioning, refrigeration, and water treatment.
- Computer hardware : Computers are a type of computer hardware. Computer hardware refers to machines that are an integral part of a computer system.
- Construction equipment : This equipment is used to build large structures and other infrastructure. Examples include bulldozers, excavators, and cranes.
- Drilling equipment : Drilling equipment is used to create holes in the earth. Drilling equipment can be used in the extraction of minerals, oil, water, and other resources.
- Electrical equipment : Electrical equipment is used in the generation, transmission, and distribution of electricity.
- Industrial chemicals : These chemicals are used in a variety of manufacturing processes. They can also be used in other industries like agriculture, water treatment, and mining.
- Mining equipment : Mining equipment is used to extract minerals and other resources from the earth.
Why choose the Capital goods industry as a career path?
The capital goods industry is large, important, and growing. It consists of many sectors that rely on each other to produce and distribute their goods. This interdependence means that when one sector is weak, it can have a negative effect on the entire industry.
For example, when the aviation sector suffers, it can cause a decrease in demand for drilling equipment and turbines. Because of this interdependence, the capital goods industry is very difficult to break into. Employers expect job candidates to have a large amount of experience and training, a specific skillset, and academic qualifications. They also want candidates to have job security, as most people inside the capital goods industry work for large, established companies. This makes it difficult for people fresh out of school to break into the field.
What are the main sectors that comprise Capital Goods Industry?
Aircraft – This sector manufactures commercial and military aircraft. It also repairs, maintains, and modifies these aircraft. Aerospace – This sector manufactures aircraft engines, parts, and spacecraft. It also repairs and maintains these items. Construction equipment – This sector designs and manufactures construction equipment. It also sells and repairs these items. Drilling equipment – This sector manufactures drilling equipment. It also repairs and maintains these items. Electrical equipment – This sector designs and manufactures components used in electric power transmission and distribution. Industrial chemicals – This sector manufactures chemicals used in the manufacturing process. It also provides chemicals used in the agriculture, mining, and water treatment industries. Mining equipment – This sector manufactures mining equipment. It also repairs and maintains these items.
Types of jobs in the Capital Goods Industry
There are many different types of jobs in the Capital Goods industry. The two main types are Engineering and Management. Engineering roles are focused on the design and development of specific products and technologies.
Management involves overseeing a team or company, making strategic decisions, and planning for the future. CG also has sectors that are not considered part of the core industry. These include companies that manufacture niche products or operate in specialized industries.
These sectors can be found in the following industries :
- Aerospace : Airlines, airports, and airlines’ suppliers.
- Construction : Companies that design, build, and maintain buildings and other structures.
- Drilling : Companies that extract oil and gas from the ground.
- Electrical : Companies that design and maintain transmission and distribution of electricity.
- Industrial chemicals : Companies that produce chemicals used in industry.
- Mining : Companies that extract minerals from the ground.
Best Websites to Find Capital Goods Jobs in the USA
There are many online resources that can help you find capital goods jobs. Some of the best websites to use to search for openings include Indeed, Monster, and LinkedIn. Make sure to tailor your resume for each job you apply for. There are also many conferences happening throughout the year where you can meet potential employers.
Why is the CG Industry Important?
The capital goods industry is important for a number of reasons. Firstly, it is the largest manufacturing sector in the United States, accounting for about 40% of all U.S. manufacturing. The industry also generates 15% of U.S. gross domestic product, making it hugely significant to the economy. In addition, the capital goods industry employs millions of people across the country. CG provides a way for people to earn a living and support their families. Last, but not least, the capital goods industry is essential to national defense. This sector produces military equipment, such as aircraft and tanks, used by the United States Armed Forces.
Best paying jobs in the Industry
The highest paying job in the Capital Goods industry is an engineer.
Engineers earn an average annual salary of $108,000. The second highest-paid job is a
computer hardware engineer. This job pays an average salary of $98,000. Other high-paying jobs in the industry include managers, sales engineers, and aerospace engineers. These jobs pay an average salary of $95,000, $95,000, and $94,000, respectively.