Big things that businesses use to make their products and services are called capital goods. These big things can be land, buildings, big machines, and cars and trucks. What kinds of businesses use these big things?
Some businesses that use these big things are General Electric, Caterpillar, 3M, Boeing, Honeywell International, United Technologies Corp., Siemens AG, and more.
If you want to work for a business that makes plane engines or new robot-making machines, there are lots of fun jobs to look at in the capital goods area. If you want to start working or change to this active work area, keep looking at this writing to learn more about the capital goods work area!
What Companies are in the Capital Goods Field in US?
What Are Capital Goods?
Capital goods are big items a company uses to make things that people will use later. These big items, also called fixed assets, stay with the company a long time, like many years. Some examples of capital goods are:
- Things to make other things (manufacturing equipment)
- Cars and trucks (vehicles)
- Buildings and land
- Computers
- Big machines (industrial machinery)
- Other big items used to make goods and services
Capital goods can be split into two groups: durable capital goods and non-durable capital goods.
Durable Capital Goods
A durable capital good is a big item meant to be used for a long time in a certain kind of work or market. A car is a kind of durable capital good because it is made to be used for many years. Other things like durable capital goods are computers, big machines, and tools.
Non-durable Capital Goods
Non-durable capital goods are things that help a business but don’t last a long time. Examples of these goods are machines, tools, and computer stuff. Also, non-durable capital goods usually don’t cost a lot at first, which is good for businesses that don’t have a lot of money to spend.
Capital Goods Company Sectors
Capital Goods Company Sectors make and give us things like machines, equipment, and electronics that are very important for our modern economy. These sectors help keep our businesses going and are very important.
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Whether you work in these sectors or need them for your job, it’s good to know how they work and how they help our economy get bigger and do well.
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#1: Aerospace
Aerospace companies are very important because they help our economy and the making-things sector get bigger by giving the important big items needed to create and use modern moving systems.
They make things like airplanes, spacecraft, rocket launching systems, and satellites. Aerospace companies make complex stuff and technologies that let us do lots of things, from flying in planes to talking over distances to trading with other countries.
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#2: Automobile
Car companies are very important in this sector, making vehicles and big items that are needed for businesses, people, and the whole economy to do well. These companies are crucial because they help our economy do well and get bigger by providing things that are needed to make other things or services.
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#3: Chemicals
Chemicals are very important in lots of factory companies’ work and you can find them in nearly every business sector. They are used a lot to help make things in factories and also used to make things people use like makeup, clothes, and food.
Chemicals can be split into some big groups depending on how they are used. Some of the main chemical-making industries make things like fertilizers, medicines, plastics, and cleaning soaps.
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#4: Construction
The building sector gives many big items and stuff used to make buildings. Companies in this sector work hard to make their things and services better, always thinking of new and smart ways to do things.
Whether it’s making new stuff to build with or making the building of big projects easier and faster, companies in the building sector are leading in making things better in this very important industry.
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#5: Electronics
Electronics is a big part of the capital goods area. The electronics industry gives us things like communication equipment, computer equipment, and other electronic items used for talking over distances, medicine, learning, and having fun.
In the world economy, Japan is a top country with a big part of the market in the high-tech electronic systems area. This includes computers, devices for communication, and electronics for regular people to use.
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#6: Furniture
Furniture is a big item used to put things in houses and workplaces. It has things like beds, closets, tables, and chairs. There are different kinds of furniture for different uses or places, like office furniture which has special chairs, tables, and stools.
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#7: Infrastructure
Infrastructure is the most needed area in Capital Goods Companies. It gives the basic things our company and all other areas need to work right.
Infrastructure means a lot of public and private things, including physical things like roads, bridges, train tracks, power lines, airports, and seaports; talking networks like phones, internet, and radio; and public services like water supply and cleaning.
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#8: Machinery
Machinery is a very important part of many kinds of work and businesses, doing many needed jobs in these areas. Whether it’s used to make things, build stuff, do farm work, or any other kind of work, machinery is a very useful tool for doing jobs fast and well.
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#9: Musical instruments
Musical instruments are very important in the music industry because they make the sounds and tunes in popular songs and types of music. Common musical instruments include pianos, guitars, drums, wind instruments, and string instruments.
Capital Goods Company areas like building, aerospace, car making, and many more use musical instruments to make sounds for their products. Whether it’s a sound from a guitar used in car exhaust systems or a string instrument making calm background music for office buildings, musical instruments are a key part of these areas’ work.
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#10: Networking Equipment
Networking equipment is very important for any modern business or group, helping to connect people and machines in a network. Capital Goods Company makes and gives networking equipment and has new, advanced products for all businesses and groups, big or small.
Whether you need routers, switches, modems, or any other kind of networking machine, Capital Goods Company has the things and know-how to help you.
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#11: Power Technology
Power technology is a very important area in the world economy today. This part includes different products, from big power plants to small solar panels. It gives energy to millions of houses and businesses all over the world.
Because it has a main role in helping modern life, power technology is a very money-making industry. Companies in this area make billions of dollars every year.
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#12: Textile
Textile, being one of the biggest and oldest in this area, knows well how to do well in this sector. From making fabric and yarn to making and designing textile machines, the textile area is very important for helping the world economy work well.
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#13: Tools
The tools part of Capital Goods Company makes many types of equipment and machines used in making things, building things, and in other industries. This part has different smaller parts, each knowing a lot about its own special area.
The tools part makes many products, from easy hand tools to complicated machines. It’s always coming up with new products to help its customers who have changing needs.
Capital Goods vs Consumer Goods
Capital goods are things made by people that businesses use to make consumer goods or other capital goods. For example, buildings, machines, and tools. Consumer goods are things that people use, like food, tools for home, clothes, and cars.
So, what is the difference between capital goods and consumer goods? Capital goods make other goods, and people use consumer goods for themselves. This difference is important because it can change a company’s money-making.
Putting money into capital goods can be risky because we can’t be sure the things made will be sold. But, consumer goods are more likely to be sold because people will always need and want them. So, businesses have to think well about what kind of good to make before deciding.
Capital goods vs. Consumer goods is about measuring risk against reward. Capital goods might be more risky, but they can also bring bigger rewards. Consumer goods are less risky but might bring smaller rewards. Each business has to choose which kind of good is better for them.
Major Companies in the Capital Goods Sector
The capital goods part is very important to the economy because it gives the machines and equipment needed to make things and build stuff. Companies in this part make things like transportation equipment, engines, turbines, and big machines.
The United States has some of the biggest and most famous companies in the capital goods part. Here are some big companies in the Capital Goods Sector:
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3M
3M is a big company that works in different areas like health, big industries, and things for regular people. It is one of the biggest companies in the capital goods part and is known for creating new things.
3M has made important things like the first sticky bandage and the Post-it® note. It has a history of making new things.
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ABB
ABB is a leader in making products related to electricity, robots, industry automation, and power networks, helping customers all over the world. For over 30 years, they have been making new things in industrial digital technology. They want to bring electricity from any power plant to any plug and automate industries from start to end.
ABB is a partner in Formula E, which is an electric car race, and they want to help make a future with clean energy. They work in more than 100 countries and have about 105,000 workers (2021).
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Boeing
Boeing is one of the biggest companies in the world for making airplanes and systems for defense and space. They export a lot from the U.S., helping airlines and U.S. They make and give services for commercial airplanes, satellites, internet connectivity, military planes, missiles, space exploration, and more.
Boeing was made by William E. Boeing in Seattle in 1916. They work in many countries, including the United Kingdom, Canada, China, and Russia. They have chances to grow because they work with many countries and customers.
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Caterpillar, Inc.
Caterpillar, Inc. is a big U.S. company that makes heavy machines for building and mining, engines that run on diesel and natural gas, and big gas turbines. It was started by Benjamin Holt and C. L. Best Tractor Company in 1925, and its main office is in Deerfield, Illinois.
Caterpillar makes the most construction and mining equipment, engines, and gas turbines in the world. They have made many new technologies for building and mining. They are a world leader in making heavy machines and their things are used in over 150 countries.
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Deere & Company
John Deere made the steel plow in 1837 and started Deere & Company. This company makes things like farming and forestry equipment, and also construction tools like excavators and loaders. They also help people and dealers buy their equipment by providing money solutions. They work in the U.S. and other countries.
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Ford Motor Company
Ford Motor Company makes cars and is located in Dearborn, Michigan. Henry Ford started the company in 1903. They sell Ford and Lincoln cars and trucks all over the world and also help people buy them through their Ford Motor Credit Company.
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General Electric
General Electric (GE) makes a lot of different things, like engines for planes and equipment to make power. They are known for creating new things and work all over the world to help their customers with future challenges.
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Raytheon
Raytheon, based in Massachusetts and started in 1922, makes things for the military, like equipment, missiles, and radar systems. With over 174,000 workers, they provide products for the U.S. military and other countries.
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Lockheed Martin
Lockheed Martin is a big company in Maryland that works in security and aerospace, having about 100,000 workers around the world. They work in different business parts like aeronautics and space systems and are one of the biggest defense contractors globally.
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Honeywell International
Honeywell International makes many products, like engines for planes and heavy machines, and offers services to the aviation and aerospace industries. Based in New Jersey, their products are used in commercial flying, defense, and space in the U.S., Europe, and 150 other countries.
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Northrop Grumman
Northrop Grumman makes aircraft, spacecraft, missiles, and electronics, working in over 45 countries, and is based in Virginia.
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Siemens
Siemens, started in 1847 and based in Germany, works on electrification, automation, and digitalization. They have several business parts, such as Power & Gas, and Wind Power & Renewable Energy Management, and make products like wind turbines and grid solutions.
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Union Pacific
Union Pacific, one of the biggest railroad companies in the U.S., helps transport things for many industries over 32,000 miles in 23 states in the western and midwestern U.S.
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United Rentals, Inc
United Rentals, Inc., started in 1997 and based in Connecticut, rents out equipment with about 1,100 locations in North America. With over 130,000 pieces of equipment, it’s the biggest equipment rental company in the world.
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Conclusion:
Some big companies that make important things like machines and equipment are General Electric, Honeywell, and Siemens. They make stuff that is needed in different areas like moving things around, making power, taking care of people’s health, and making other things.
If you want a job in this area, there are lots of choices and different types of jobs available. Take some time to look into the different companies and find one that you like.
With a bit of hard work, you can have a job that is exciting and makes you happy.