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Companies in this industry manufacture transportation equipment, including motor vehicles and parts, aircraft and other aerospace products, ships and boats, and railroad rolling stock. Major companies include US-based Boeing, Ford, and General Motors, as well as Airbus Group (the Netherlands), Bombardier (Canada), Fiat Chrysler (the UK), SAIC (China), Toyota (Japan), and Volkswagen (Germany).
The global transportation equipment manufacturing industry generates as much as $4 trillion in annual revenue. Leading transportation equipment-producing countries include Brazil, China, France, Germany, India, Italy, Japan, South Korea, and the US.
The US transportation equipment manufacturing industry includes about 10,000 companies with combined annual revenue of about $860 billion.
Demand is driven by employment and interest rates, growth in consumer income, military budgets, and the overall economic climate. The profitability of individual companies depends on manufacturing efficiency, technical expertise, and product quality. Large companies enjoy economies of scale in manufacturing and purchasing, as well as advantages in marketing and distribution. Small companies can compete by specializing in niche markets. The US industry is highly concentrated: the 50 largest firms generate about 70 percent of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include cars and light trucks, aircraft, locomotives, boats and ships, and related parts. Motor vehicles and parts account for 60% of industry revenue, followed by aerospace products (about 25%). Rail and waterborne equipment each account for less than 5% of the sector's sales. Other transportation equipment includes bicycles, motorcycles, and ...
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