Capital goods or tangible assets are the materials that are utilized by companies for the manufacture of products or services. In other words, capital goods include assets that help a company in the production of their products that are then shipped to market for selling purposes. Capital goods cover a large range of materials. These include tools, vehicles, equipment, machinery and even buildings. Any company that manufactures stuff like machinery of some sort, aircrafts, automobiles etc. fall in the capitals good field. These physical assets are then purchased and then used by further industries that use them for shipping or manufacturing services. All the companies that create capital goods fall in the capital goods sector (also called the industrials sector). The companies involved in the capital goods field deal with engineering, electrical equipment, machinery that are used for manufacturing certain products, construction projects and even aerospace and defense. The capital goods field usually suffers from any fluctuations in the wider business market. If the business is doing well and market is booming, then more companies will purchase from the capital goods sector to meet the demand of products in the market. If the business slows down due to any reason, then demand for capital goods decreases which leads to drop in market prices.
The capital goods can also be repurposed by the buying company for other purposes rather than for manufacturing of products or services. In the current age of globalization, you would find multiple companies that are involved in the manufacture of capital goods due to ever increasing demand of products. Despite their large numbers, there are some companies that are more prominent than others and dominate the capitals good sector. This article will take a look at some of these major companies involved in the capital goods field.
Companies in capital goods field
The following are some major companies in the capital goods sector:
ABB (also known as ABB limited) is a company that is a part of utility, energy and mining industry in the capital goods sector. The company was founded all the way back in 1898 and has a huge number of employees that fall between 5-10,000. The company has a huge presence in North Carolina market where the headquarters of the company is also located. The different products manufactured by the company include electronic equipment like switches, circuit breakers, cable systems, control products etc. In addition to selling these products, the company also provides services for their installation. Repair services are also available at the company. On an average, the company ahs been known to gross about 26 million dollars every year.
3M is a company that is known for manufacturing and selling different kinds of capital goods. The company was founded in the year 1902 and has almost 93,000 employees amongst its ranks. The headquarters of the company is located in the state of Minnesota. The company is known for manufacturing and selling over 60,000 different kinds of products. These include a wide variety of products like paint protection films, window films, abrasives, laminations, adhesives, dental products, car products, medical products, health care software etc. It is an international company with offices in over 80 different countries.
Boeing is a company that with capital goods of aerospace and defense nature. The company was founded in 1916 and has over 10,000 employees in its ranks. Boeing has the distinction of being the largest aerospace company in the world. Global services, commercial planes and defense, space and security are the three different distinct units in the company. The company has its offices in 150 different countries where it supports various airlines. Services offered by the company include weapons, launch systems, electronic defense systems, military and commercial aircrafts, satellites etc. The company grosses almost 60 million dollars each year.
Caterpillar Inc. (also known as CAT) is a company known for providing construction goods. The company was founded in 1925 and has more than 10,000 employees. The company has a network spread in 180 different countries. The company works with resource and construction industries. Facilities provided include mining equipment, gas turbines, gas engines, hydraulics, paving and drilling equipment etc. It brings in more than 40 billion dollars in revenue each year.
The General Electric is a manufacturing industry in the industrials sector. The company was founded in 1892 and has over 10,000 employees. The company has a headquarter in New York and also in Boston. Services provided by the company include electric motors, energy of various forms, aircraft engines, wind turbines, weapons, software etc. It grosses almost 10 billion dollars each year.
Honeywell International or Honeywell is also a company that is a part of the manufacturing industry. The company was founded in 1885 and has over 10,000 employees. The different products provided by the company include engineered materials, plastics, chemicals, automotive products etc. It works closely with chemical, automotive and aerospace industries. It grosses over 30 million dollars each year.
Lockheed Martin is a part of the aerospace and defense industry. The company was founded in 1995 and has at least 10,000 employees. It is one of the biggest companies in the aerospace field. The company produces defense weapons, strike weapons, air missiles, fire sensors etc. The company basically produces equipment for the US Department of Defense. The company brings in more than 65 billion dollars each year.
Northrop Grumman also specializes in the aerospace and defense department. It was founded in 1939 and has over 90,000 employees. The company produces electronic systems, stealth bombers, rocket launch systems, satellites, munitions, autocannons, chain guns, military aircrafts etc. The company has multiple headquarters in the USA. It grosses more than 30 billion dollars each year.
Union Pacific deals with transportation and logistics services. It was founded in 1862 and has over 10,000 employees. It produces intermodal products, automotive products, agricultural products, coal, chemicals etc. The company connects Mexican and Canadian rail systems while also connecting 23 different states in western USA. It grosses almost 10 billion dollars each year.
United Rentals Inc.
United Rentals deals with construction services in the capital goods industry. It was founded in 1997 and has over 10,000 employees. It is the largest company in the world when it comes to equipment rental services. The company has multiple offices including one in every Canadian province. It works with construction companies, industrial companies, homeowners, municipalities etc. It grosses over 6 billion dollars each year.
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