This is one of the most common questions we have received from our readers in the last few months. And we have decided to write this post to answer the question. So, if you have also been asking what companies are in the capital goods field, you should keep reading this.
It will provide you with all the information you need about the industry and the major companies there. So, let’s get to work!
Capital Goods; What about Them?
Capital goods are products or assets used by businesses to produce other goods or products. Companies in the field literarily purchase these products, repurpose them, and then resell them to other companies who will use them to produce new products.
There are lots of companies across the world that offer capital goods – that’s because of the important role capital goods play in the growth of any economy. Some examples of capital goods are machinery, automotive, equipment, buildings, chemicals, steel, textile, and electronics.
What Is the Difference Between Capital Goods and Consumer Goods?
Unlike capital goods, consumer goods are not produced for other companies. Instead, they are created for the final consumer. So consumer goods are goods purchased to be used by the final consumer, and that is why they are also often referred to as final goods. They are meant to be used by the end user.
Examples of consumer goods are food, clothing, electronics, and vehicles. These products can either be durable or nondurable, depending on how long they last before they are replaced or discarded. However, the same good could serve as both a capital good and a consumer good.
For example, if a land owner purchases a riding lawn mower to mow his yard, the mower is considered a consumer good. On the other hand, if the same mower is bought by a lawn care business, it is considered a capital good.
What Industries Belong to the Capital Goods Sector?
The capital goods field is broad and so contains many companies of different sizes and forms. These companies are companies that are primarily involved in the production and selling of capital goods. Companies that produce goods for any of the industries below typically belong to the capital goods sector:
- Furniture
- Electronics
- Construction
- Music instruments
- Infrastructure
- Automobile
- Power technology
- Tools and equipment
Now that you have an idea of what capital goods are and what type of industries they serve, let’s consider some common companies in the field.
What Companies Are In the Capital Goods Filed?
#1: Union Pacific
Union Pacific is a company in the transportation and logistics industry. The company was created in 1862 and deals with the production of coal, chemicals, agricultural products, intermodal products, and automotive products.
The company presently has more than 10,000 employees and operates in most parts of the U.S. If you are looking to secure a job in the company, there are lots of amazing benefits awaiting you.
#2: Honeywell International
Honeywell International is another popular company in the capital goods field. So, the list of what companies are in the capital goods field won’t be complete without including Honeywell International.
The company is involved in the production of a wide range of capital products, including aerospace systems and equipment, automotive products, building, and industrial systems and services, control technologies (industrial automation), electronics and entertainment software, fire and security solutions, home and building automation solutions, medical devices, and diagnostics.
Honeywell International presently has more than 10,000 employees and grosses about $32 million in income per year!
#3: Caterpillar Inc. (CAT)
Caterpillar Inc. (CAT) is one of the largest companies in the capital goods field. They design, manufacture, and market construction and mining equipment and diesel engines for use in those industries. The company was founded in 1925 and is headquartered in Peoria, Illinois. CAT presently has more than 110,000 employees across the globe.
#4: 3M
3M is a giant manufacturing company in the capital goods field. So when you are asking, ‘what companies are in the capital goods field,’ you should have your eyes on 3M too. The company was founded in 1902 and has its headquarters in Minnesota. 3M produces more than 60,000 different types of products and has its branches in more than 200 countries.
3M specializes in the production of window films, adhesives, paint protection films, and more. It also makes medical and dental products, car products, electronic devices, and health care software. 3M presently has about 94,000 employees worldwide.
#5: General Electric (GE)
General Electric was created in 1889 and has its headquarters in Massachusetts. It is a manufacturing company that creates products for aviation, renewable energy, power, and health care sectors. They produce aircraft engines, software, weapons, wind turbines, electric motors, and more. GE’s revenue in 2021 was $20.3 billion. And presently, the company has more than 168,000 employees working for them.
#6: Lockheed Martin
Lockheed Martin is a global aerospace, defense, security, and advanced technologies company that employs approximately 100,000 people worldwide.
Lockheed Martin has a long history of innovation and technology development and has been the prime contractor on some of the most significant and successful military aircraft programs.
The company provides products, services and solutions in systems integration, mission operations, and information technology to government and commercial customers all over the world.
#7: United Rentals Inc.
United Rentals Inc. is one of the largest equipment rental companies in the United States, with a network of over 1,100 locations across North America. The company offers a comprehensive range of equipment for rent and sale, including building materials, construction tools and machinery, earthmoving equipment, forklifts and lift trucks, scaffolding, pumps and wellheads, utility vehicles, and more.
In addition to its extensive rental fleet, United Rentals also sells new and used equipment from leading manufacturers on its website. The company grosses over $6 billion per year and has more than 10,000 employees.
#8: Boeing
Boeing is one of the largest companies in the capital goods market. The company’s stock price has risen by over 20% since its IPO, and it is currently valued at $71.5 billion.
Boeing is a leading supplier of commercial jets and military aircraft to airlines around the world. It’s also a major producer of helicopters and other aerospace products, such as satellites, launch vehicles and missile systems.
The company was founded in 1916 and has its headquarters in Seattle, Washington. Boeing presently grosses over $58 million per year and has more than 10k employees working in the company.
#9: Union Pacific
Union Pacific is a railroad company based out of Omaha, Nebraska. The company was founded in 1862 and is one of the few remaining railroads that were not part of the nationalization movement in the United States. The company today has more than 32,000 miles of track across 23 states and employs over 15,000 people.
Union Pacific produces materials for the transportation and logistics industries. They create coal, chemicals, agricultural products, automotive products, intermodal products, and more. In 2021, the company grossed around $6.5 billion.
#10: Northrop Grumman
Lastly on this list of ‘what companies are in the capital goods field’ is Northrop Grumman. This is a US aerospace and defense technology company. It was formed in 1994 when Northrop merged with Grumman. The company has about 70,000 employees and has annual revenue of about $30 billion.
Northrop Grumman specializes in aircraft manufacturing, missile systems, information systems, electronics, and communications systems; it also provides services like cybersecurity, aircraft maintenance, and logistics support.
The company is based in Los Angeles, California, and has facilities across the globe, including Washington DC, Maryland, New York City, San Diego, and San Antonio.
What Are the Best-Paying Jobs In Capital Goods?
Taking a small step away from ‘what companies are in the capital goods field,’ let’s consider some high-paying jobs in the sector. This will not only help you determine what you can do but what your salary projection could be.
Jobs in the sector pay well, and there is high demand for them. However, the amount you can earn working in the sector depends on a variety of factors. These include your experience, skills set, and what role you are occupying. Below are some of the high-paying jobs in capital goods you can have your eyes on.
-
Electrical engineer
Electrical engineers are usually in charge of overseeing and designing the electrical system of companies. To work as an electrical engineer, you will need to possess the right degree and experience. The average salary of an electrical engineer is $90,000 per year.
-
Industrial designer
Working as an industrial designer means you will be designing components or products. You may need to have a degree in industrial design to work as an industrial designer. You can also walk your way easily with getting this type of job if you have an experience with industrial designs. The average salary of an industrial designer is $74,000 per annum.
-
Manufacturing engineer
You can earn up to $80,000 per year as a manufacturing engineer. All you will be doing in this role is overseeing machinery and production processes to make sure everything works as planned. You will also be tasked with troubleshooting and production lines.
-
Quality control manager
These professionals are responsible for ensuring that products are in good condition and that they are produced according to the industry standard. You will need to have a degree in engineering or related fields to be a quality control manager. The average salary you can expect per year here is $88,000.
-
Manufacturing engineer
They deal with the machinery, looking out for areas where there could be an improvement in the equipment and manufacturing processes. The average salary of a manufacturing engineer is $80,000 per year.
-
Sales engineer
A sales engineer is responsible for selling capital goods to the customers of a given company. You can call them the head of the customer service department because their job is solely focused on ensuring customers have the best experience. And that could mean offering the required support and answering questions that customers might have concerning the company’s products or services. The average salary of a sales engineer is $74,000 per annum.
Is Capital Goods a Good Career Path?
If you’re looking for a career path that will allow you to make a living, get paid well, and grow your skillset, capital goods may be the industry for you!
The capital goods sector is one of the largest in the world. It includes everything from power plants and oil refineries to construction equipment and telecommunications systems. It’s an ever-changing landscape, so if you’re interested in working with new technologies or developing new skills, there are plenty of opportunities.
The pay is also excellent: while entry-level positions might only pay $20-30 per hour (or less), higher-level positions can pay up to $70 per hour or more. And while there may be downsides like long hours or dangerous conditions (depending on what type of work you’re doing), overall, most people who work in this field say they love their jobs because they feel like they’ve made a difference in their communities.
What Is the Average Salary of a Worker In the Capital Goods Field?
Now you know that jobs in the sector are highly rewarding as workers there are paid handsomely for their services. However, if you are still asking what the average salary of a worker in the capital goods industry is, then this sector might help.
The average salary of a worker in capital goods is $60,000 per year. Nevertheless, the amount you can make working in the field will depend on various factors. These include your education level, your experience, and the role you are looking to apply for. If you have a degree in electronic engineering, you might earn up to $107,000 per year working as an electronics engineer.
What Are the Things To Consider Before Opting for A Job In Capital Goods?
Capital goods is a field that requires a lot of skill, knowledge, and physical output. Before you apply for a job in capital goods, you must be sure that you have the right educational qualification for the role you are applying for. You must also have a vast knowledge and skill set that can help you perform well at work.
You will also be required to be present in person most of the time. Jobs here require physical presence because the products they produce are also physical. So to make the best impact on customers and help them enjoy the best experience, you will need to be available physically.
You will also need to be physically fit to do this job because it is very demanding physically. You will have to lift heavy objects and carry them around all day long and sometimes outside as well. So make sure that your body is able to handle those demands before taking on this type of job!
