Machinery & Equipment
This labour intensive industry creates parts and end products that apply mechanical force to perform work. The assembly operations for these end products are complex, which differentiates this industry from the fabrication industry. The establishments involved are engaged in designing, manufacturing and supplying industrial and commercial machinery and equipment. The machinery and equipment industry can be broken down into three industry groups: special purpose machinery (agricultural, construction, and mining) manufacturing (commercial and service) and general-purpose machinery (ventilation and engines). Machinery industries are trade dependant, both as a source of their inputs and as a market for their goods. This means that market fluctuations abroad influence manufacturers to a greater extent than many other industries. The Machinery and Equipment industry is also a mature one with well established and specialised firms. This means that there are very few new entrants and therefore a lower strategic threat. However, this industry is under pressure to become automated in order to keep up or ahead of the competition.
Common characteristics of the machinery and equipment industry
Machinery and Equipment manufacturers share many common characteristics:
- Competition for lower prices.
- Continuing to be innovative, especially in the special purpose machinery sector as quality is more important than price.
- Waste regulations.
- Becoming more technologically advanced in terms of management of production.
- Safety.
- Lean manufacturing.
- Trade dependent.
