Transportation Equipment Manufacturing Industry Profile

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 (the Netherlands), Bombardier (Canada), Fiat Chrysler Automobiles (the UK), SAIC Motors (China), Toyota (Japan), and Volkswagen (Germany).

Leading motor vehicle manufacturing countries include the US, China, Germany, Japan, India, and South Korea, according to Statista.

The US transportation equipment manufacturing industry includes about 12,000 companies with combined annual revenue of about $950 billion.

COMPETITIVE LANDSCAPE

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 concentrated: the 50 largest firms generate about 70% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include trucks, trucks and bus chassis (more than 20%), complete passenger vehicles (10%), and civilian aircraft (10%). Other products include automotive job stampings and aircraft subassemblies.

Primary raw materials for transportation equipment include steel, aluminum, plastic, and rubber. Some vehicles may require the use of advanced alloys and composites, and manufacturers are constantly exploring new materials to reduce costs, increase fuel efficiency, and improve performance. Materials make up a ...