Capital goods, or business capital equipment, refer to the long-term physical assets that companies use to produce their goods and services. These can include land, buildings, heavy machinery, and vehicles. So, what companies are in the capital goods field?
Some of the companies that are typically associated with this field include General Electric, Caterpillar, 3M, Boeing, Honeywell International, United Technologies Corp., Siemens AG, and many others.
Whether you are interested in working for a manufacturer of aircraft engines or the latest robotic manufacturing equipment, there are many exciting opportunities to explore in the capital goods field. So if you’re ready to start your career or transition into this dynamic industry, keep reading this article to explore more about capital goods industry!
What Are Capital Goods?
Capital goods are physical assets that a company uses in the production process to manufacture products and services that consumers will later use. Capital goods are also known as fixed assets since they tend to be long-term investments that stay with the company for many years. Examples of capital goods include:
- manufacturing equipment
- vehicles
- buildings and land
- computers
- industrial machinery
- other large-scale items that are used to produce goods and services
Capital goods can be divided into two categories: durable capital goods and non-durable capital goods.
Durable Capital Goods
A durable capital good can be defined as an asset that is designed for long-term use in a particular industry or market. A car is one example of a durable capital good since it is designed to be used for many years. Other examples of durable capital goods include computers, machinery, and tools.
Non-durable Capital Goods
Non-durable capital goods are investments that are useful to a business but don’t last for very long. Examples of non-durable capital goods include machinery, tools, and computer equipment. Additionally, non-durable capital goods often come with a relatively low initial cost, making them an attractive option for businesses that are operating on a tight budget.
Capital Goods Company Sectors
Capital Goods Company Sectors are a cornerstone of the modern economy. These sectors are responsible for manufacturing and delivering the goods that keep our industries running, from machinery to equipment to electronics.
Whether you work in one of these sectors or rely on them for your job, it is important to understand how they function and what role they play in keeping our economy growing and thriving.
Aerospace
Aerospace companies play an essential role in keeping our economy and manufacturing sector growing by providing the critical capital goods needed to build, maintain, and operate modern transportation systems.
From aircraft and spacecraft to rocket launch systems and satellites, aerospace companies produce sophisticated materials and technologies that enable everything from air travel to telecommunications to international trade.
Automobile
Automobile companies are a key part of this sector, producing the vehicles and capital goods that are crucial for businesses, consumers, and the overall economy to thrive. These companies play an essential role in keeping our economy thriving and growing by providing goods that are needed to produce other products or services.
Chemicals
Chemicals play a major role in many industrial companies’ processes, and they can be found in almost every industry sector. Chemicals are widely used as inputs to manufacturing processes, and they are also used to make consumer products like cosmetics, clothing, and food.
Chemicals can be divided into several major categories based on their application. Some of the main chemical industries include the production of fertilizers, pharmaceuticals, polymers, and detergents.
Construction
The construction sector provides a wide range of capital goods and materials used in the construction industry. With a strong focus on innovation and efficiency, companies in this sector are constantly working to improve their products and services.
Whether it’s developing new building materials or streamlining processes for constructing large-scale projects, companies in the construction sector are at the forefront of driving progress in this vital industry.
Electronics
Electronics is one of the largest subsectors in capital goods. The electronics industry provides communication electronic equipment, data processing equipment, and other electronic products used for telecommunication, medicine, education, and entertainment purposes.
In the world’s economy, Japan is one of the leading countries with a considerable market share in the high-tech electronic systems sector, which includes computers, telecommunications devices, and consumer electronics.
Furniture
Furniture is a capital good that is used to furnish the house and workplace. It includes beds, wardrobes, tables, chairs, etc. There are different types of furniture according to their use or place they are placed, such as office furniture like executive chairs, tables, and stools.
Infrastructure
Infrastructure is the most important sector in Capital Goods Companies. It provides the material basis for our company and all the other sectors to function properly.
Infrastructure is a broad term that encompasses a wide range of public and private goods, including physical assets such as roads, bridges, railways, power grids, airports, and seaports; communication networks such as telephone, internet, and radio; and public services such as water supply and sanitation.
Machinery
Machinery is a critical component of many industries and businesses, serving a wide range of functions that are essential to these sectors. Whether it’s used in manufacturing processes, construction projects, agricultural operations, or another industry altogether, machinery is an invaluable tool for getting work done quickly and efficiently.
Musical instruments
Musical instruments are a vital part of any music industry, as they are used to create the sounds and melodies that drive popular songs and genres. Some of the most common musical instruments include pianos, guitars, drums, wind instruments, and stringed instruments.
Capital Goods Company sectors such as construction, aerospace, automotive manufacturing, and many others rely on musical instruments to create the sounds used in their products. Whether it is a guitar-based sound used in automotive exhaust systems or a stringed instrument used to create soothing background music for office buildings, musical instruments are a crucial part of these sectors’ operations.
Networking equipment
Networking equipment is a critical part of any modern business or organization, providing the infrastructure needed to connect people and devices within a network. Capital Goods Company is a leading manufacturer and provider of networking equipment, offering cutting-edge products and solutions for businesses and organizations of all sizes.
Whether you need routers, switches, modems, or any other type of networking hardware, Capital Goods Company has the products and expertise to meet your needs.
Power Technology
Power technology is one of the most critical sectors in today’s global economy. This sector includes various products, from large-scale power plants to small-scale solar panels. It is responsible for providing energy to millions of homes and businesses worldwide.
Given its central role in supporting modern society, power technology is a highly lucrative industry, with companies in this sector generating billions of dollars in revenue each year.
Textile
As one of the largest and most established players in this space, textile has a deep understanding of what it takes to be successful in this sector. From fabric and yarn production to textile machinery manufacturing and design, the textile sector is essential for keeping the global economy running smoothly.
Tools
The tools sector of Capital Goods Company is responsible for the production of various types of equipment and machinery used in manufacturing, construction equipment, and other industries. The sector comprises a number of different sub-sectors, each with its own specialized area of expertise.
The tools sector produces a wide range of products, from simple hand tools to complex machinery. The sector is constantly innovating and developing new products to meet the ever-changing needs of its customers.
Capital Goods vs Consumer Goods
Capital goods are man-made products a business uses to produce consumer or other capital goods. On the other hand, consumer goods are products used by consumers. Capital goods include items like buildings, machinery, and tools. While examples of consumer goods include food, appliances, clothing, and automobiles.
So, what’s the difference between capital goods and consumer goods? Capital goods produce other goods, while individuals use consumer goods for personal consumption. This distinction is important because it ultimately affects a company’s bottom line.
Investing in capital goods can be risky because there’s no guarantee that the resulting products will sell. On the other hand, consumer goods are more likely to sell because people will always need and want them. Therefore, businesses must carefully consider which type of good to produce before making any decisions.
Capital goods vs. Consumer goods is a question of risk versus reward. Capital goods may be riskier, but they also have the potential for higher rewards. Consumer goods are less risky but also have lower potential rewards. It’s up to each business to decide which type of good is right for them.
Major Companies in the Capital Goods Sector
The capital goods sector is a vital part of the economy, providing the machinery and equipment needed for production and construction. Companies in this sector include manufacturers of transportation equipment, engines, turbines, and industrial machinery.
The United States is home to some of the largest and most well-known companies in the capital goods sector. Here are some major companies in the Capital Goods Sector:
3M
3M is a diversified technology company that operates in various sectors, including healthcare, industrial, and consumer markets. It is one of the largest companies in the capital goods sector and has a long history of innovation and success.
In addition to its strong product portfolio, 3M has a long history of innovation. It has been involved in major technological advances such as the development of the first synthetic adhesive bandage and the creation of the Post-it® note.
ABB
ABB is a world leader in electrification products, robotics and motion, industrial automation, and power grids, serving global customers in utilities, industry, and transport & infrastructure. Continuing a history of innovation spanning more than 30 years, ABB is writing the future of industrial digitalization with two clear value propositions: bringing electricity from any power plant to any plug and automating industries from natural resources to finished products.
As the title partner and official electrification partner of Formula E, the fully electric international FIA motorsport class, ABB is pushing the boundaries of e-mobility to contribute to a sustainable future. ABB operates in more than 100 countries with about 105,000 employees (2021).
Boeing
Boeing is one of the world’s largest aerospace companies and a leading manufacturer of commercial jetliners and defense, space, and security systems. A top U.S. exporter, the company supports airlines and U.S. Boeing products and tailored services include commercial airplanes, satellites, digital connectivity, military aircraft, missiles, human space exploration, and more.
The company has a long history of innovative products and services, dating back to 1916 when it was founded by William E. Boeing in Seattle. Boeing has subsidiaries and joint ventures around the world, including in the United Kingdom, Canada, China, and Russia. The company’s global reach and customer base offer significant growth opportunities.
Caterpillar, Inc
Caterpillar, Inc. is a major American corporation that produces heavy construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company was founded in 1925 by Benjamin Holt and C. L. Best Tractor Company. Caterpillar’s headquarters are in Deerfield, Illinois.
Caterpillar is the world’s largest manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company has a long history of innovation and has been a major player in the development of new technologies for the construction and mining industries. Caterpillar is a global leader in the production of heavy equipment and its products are used in over 150 countries around the world.
Deere & Company
Deere & Company has a long history of innovative products and services, dating back to 1837 when John Deere invented the steel plow. Its agricultural and forestry equipment, Deere & Company also manufactures a wide range of construction and forestry equipment, including excavators, loaders, backhoes, and skid steers. The company’s credit segment provides financing for customers and dealers to purchase Deere equipment.
Deere & Company is a major player in the capital goods sector. The company’s products are used in a variety of industries, including agriculture, construction, and forestry. Deere & Company has a strong presence in the United States and international markets.
Ford Motor Company
Ford Motor Company is an American multinational automaker that has its main headquarters in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903. The company sells automobiles and commercial vehicles under the Ford brand and most luxury cars under the Lincoln brand.
Ford Motor Company is one of the largest automakers in the world. The company designs, manufacture, markets, and services a full line of Ford cars, trucks, SUVs, electrified vehicles, and Lincoln luxury vehicles. Ford also provides financial services through the Ford Motor Credit Company.
General Electric
General Electric is a major player in the capital goods sector. The company produces a wide variety of products, including aircraft engines, locomotives, and power generation equipment. GE has a long history of innovation and is a trusted name in the industry.
GE has a global reach and is committed to helping its customers meet the challenges of the future. The company invests heavily in research and development and is always looking for new ways to improve its products and services. GE is a reliable partner for companies in the capital goods sector.
Raytheon
Raytheon is one of the largest companies in the capital goods sector. It is a major defense contractor and makes military equipment, missiles, and radar systems.
The company was founded in 1922 and is headquartered in Waltham, Massachusetts. It has over 174,000 employees (2021), and its products are used by the US military and many other countries around the world.
Raytheon is a large company with many products, but it is best known for its missiles. It makes a wide variety of missiles, including air-to-air missiles, anti-tank missiles, and cruise missiles.
Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 100,000 people worldwide. The company’s main business segments include Aeronautics, Information Systems & Global Solutions, Missiles and Fire Control, and Space Systems. Lockheed Martin is one of the largest defense contractors in the world.
Honeywell International
Honeywell International is a major player in the capital goods sector. The company produces a wide range of products, including aircraft engines, turbines, and other heavy machinery. In addition to its manufacturing activities, Honeywell also provides services to the aviation and aerospace industries.
Honeywell’s products are used in a variety of applications, ranging from commercial aviation to defense and space. The company has a strong presence in both the United States and Europe, and its products are sold in over 150 countries around the world. Its headquarters are in Morris Plains, New Jersey.
Northrop Grumman
Northrop Grumman is one of the largest companies in the capital goods sector. It is a leading supplier of aircraft, spacecraft, missiles, and electronics. The company operates in over 45 countries. Northrop Grumman is headquartered in Falls Church, Virginia.
Siemens
Siemens is a German-based company focusing on electrification, automation, and digitalization. The company is headquartered in Munich and was founded in 1847. Siemens reported revenue of around €86.85 billion in 2019.
The company operates through nine divisions: Power & Gas, Wind Power & Renewable Energy Management, Building Technologies, Mobility, Digital Factory, Process Industries & Drives, Healthcare, and Siemens Financial Services. Siemens is one of the largest providers of electrification products in the world.
The company’s product portfolio includes gas and steam turbines, wind turbines, generators, and grid infrastructure solutions.
Union Pacific
Union Pacific is one of the largest railroad companies in the United States. It provides transportation and logistics services for a variety of industries, including agriculture, energy, automotive, chemicals, and consumer goods. Union Pacific has a large network of railroads that covers more than 32,000 miles across 23 states in the western and midwestern United States.
United Rentals, Inc
United Rentals, Inc. is an American equipment rental company with approximately 1,100 locations in North America. It is the largest equipment rental company in the world, with a fleet of over 130,000 pieces of equipment. The company has its headquarters in Stamford, Connecticut. The company was founded in 1997 by Bradley Jacobs, who is currently the CEO.
Best Paying Jobs in the Capital Goods Sector
The capital goods sector comprises a wide range of industries that produce physical products used in the construction, manufacturing, and production of other goods and services. Jobs in this sector are, therefore, critical to the economy, and those who work in it are typically well-paid.
There are many jobs in the capital goods sector, from engineers and designers to production workers and managers. To find the best-paying jobs in this sector, it is essential to consider the nature of the work, the level of experience and education required, and the geographical location.
Here’s a list of the best-paying jobs in the Capital Goods Sector:
Electrical Engineer
As an electrical engineer in the capital goods sector, your responsibilities will include designing, developing, testing, and supervising the manufacture of electrical equipment. You will also be responsible for ensuring that this equipment meets safety and quality standards. Your average salary will be around $101,600 per year.
Industrial Engineer
An industrial engineer in the capital goods sector typically has a wide range of responsibilities, from improving manufacturing processes to designing and managing complex production systems. They may also be involved in research and development, product design and quality control. Industrial engineers in the capital goods sector earn an average salary of $73,445 per year.
Quality Control Engineer
As a quality control engineer in the capital goods sector, your responsibilities will include ensuring that all products meet quality standards. You will also be responsible for conducting quality audits and investigating any complaints. In order to be successful in this role, you will need to have strong attention to detail and excellent problem-solving skills. The average salary for a quality control engineered materials in the capital goods sector is $72,175 per year.
Manufacturing Engineer
As a Manufacturing Engineer in the capital goods sector, your responsibilities will include ensuring that manufacturing processes are efficient and effective, as well as investigating ways to improve them. You will also be responsible for maintaining quality control standards and keeping up to date with advances in manufacturing technology.
In addition, you will liaise with other departments, such as design and sales to ensure that the manufacturing process meets customer requirements. The average salary for a Manufacturing Engineer in the capital goods sector is $72,769 per year.
Manufacturing Director
The Manufacturing Director in the capital goods sector is responsible for leading and coordinating all manufacturing activities in the company. They ensure that all products are manufactured according to the highest quality standards and meet customer expectations.
The Manufacturing Director also oversees the budget for all manufacturing operations and ensures that the company’s products are competitively priced. In addition, the Manufacturing Director is responsible for developing and implementing new manufacturing technologies and processes. The average salary for a Manufacturing Director in the capital goods sector is $85,400 per year.
Robotics Engineer
Robotics engineers in the capital goods sector are responsible for developing, designing, and testing robots and robotic systems. They also create algorithms and controls for these systems, as well as work on research and development projects.
Robotics engineers typically have a bachelor’s degree in engineering or a related field. The average salary for a robotics engineer in the capital goods sector is $83,072 per year.
FAQs
Is Water a Capital Resource?
No, water is not a capital resource. It is a natural resource that is essential to life, but it is not a capital resource. A capital resource is something that is used to produce goods or services and generate wealth. Water cannot be used to produce anything or generate wealth. Therefore, it is not a capital resource.
How Long Does Capital Goods Scheme Last?
The Capital Goods Scheme (CGS) provides that, in most cases, each capital good will have a Value-Added Tax (VAT) life or adjustment period of 20 intervals. It is during this period that adjustments are required to be made.
This means that the CGS can last for a significant amount of time, depending on the nature of the capital good in question. Therefore, it is important to be aware of the length of time that the CGS may apply in order to ensure that you are able to make the necessary adjustments during the relevant period.
What are Some Examples of Consumer and Capital Goods?
Some examples of consumer goods include food, clothing, automobiles, and electronics. These items are all purchased by individuals for their own personal use. Capital goods, on the other hand, are used in the production process of other goods and services. Examples of capital goods include machinery, equipment, and buildings.
Conclusion
Many companies in the capital goods field, but some of the most well-known, include General Electric, Honeywell, and Siemens. These companies produce essential products for many industries, including transportation, energy, healthcare, and manufacturing.
The job opportunities in the capital goods field are varied and plentiful. There are many companies to choose from, so do your research and find the one that best suits your needs. You can find yourself on an exciting and fulfilling career path with a little effort.
