The capital goods industry is a huge part of the U.S.
economy, accounting for about 17% of gross domestic product (GDP) and 13% of total employment in the country according to estimates from the U.S.Bureau of Labor Statistics (BLS).
This translates to nearly 6 million people working in jobs directly related to this sector, with another 3 million or so employed indirectly through the supply chain and other roles that interact with capital goods companies.
But how many jobs are available in capital goods?
- 1 What is a Capital Good?
- 2 Why Does it Matter That They’re Called Capital Goods?
- 3 Who Uses Capital Goods and Why Do They Matter?
- 4 Which Industries Consistently Utilize The Most Capital Goods?
- 5 Where Are These Industries Hiring the Most People?
- 6 Capital Goods Industry Jobs with the Highest Wages
- 7 How Many Jobs Are Available In Capital Goods
What is a Capital Good?
A capital good is a durable good used in the production of other goods or services.
In other words, it is an investment that is used to produce more capital.
Common examples of capital goods include machinery, buildings, and vehicles.
Examples of companies who provide capital goods are Ford Motor Company, Caterpillar Inc., General Electric Company, and International Business Machines Corporation.
The labor market for these types of jobs varies depending on industry type.
Why Does it Matter That They’re Called Capital Goods?
The term capital goods encompasses a wide range of businesses and products.
To many people, it simply refers to anything that is used to produce other goods and services.
In economics, however, the term has a more specific meaning.
It refers to durable goods that are used in the production process, such as machinery, tools, and buildings.
The capital goods sector is an important part of the economy because it provides the equipment and facilities that businesses need to produce their products.
In 2015, total U.S. investment in new equipment totaled $512 billion according to the Bureau of Economic Analysis (BEA).
The BEA estimates that total investment in manufacturing grew by $7 billion last year while spending on non-durable goods declined by $8 billion.
Durable-goods investment increased by 4% over 2014 levels, largely due to increased spending on industrial machinery and construction and mining equipment.
Who Uses Capital Goods and Why Do They Matter?
Capital goods are the machines, tools, buildings, and other physical things that businesses use to produce other goods and services.
They’re a key part of the economy because they make it possible for businesses to be productive.
Without them, we wouldn’t have cars, computers, or many of the other things we rely on every day.
For example, without capital goods like trucks and forklifts, warehouses couldn’t operate.
It’s hard to know exactly how many jobs there are in this sector because different kinds of capital goods (and the skills needed to work with them) require different types of expertise.
But experts estimate that there may be as many as 3 million U.S.
jobs in this area–which means one out of ten jobs in the United States is related to capital goods!
Which Industries Consistently Utilize The Most Capital Goods?
1.The construction industry is one of the most consistent users of capital goods.
2.Other industries that use capital goods include mining, forestry, and oil and gas extraction.
3.The transportation and warehousing industry also relies heavily on capital goods.
4.The manufacturing sector is another top user of capital goods, specifically in the production of machinery, equipment, and vehicles.
The automotive industry alone uses more than $1 trillion worth of capital goods annually.
5.Finally, commercial and residential construction both rely on heavy machinery to produce their final products, which includes housing developments and office buildings.
Where Are These Industries Hiring the Most People?
The job market for capital goods is strong, with many industries hiring the most people in this field.
The top industries for employment in this field are construction, manufacturing, and transportation.
These industries are hiring the most people because they require workers to create and maintain the infrastructure of our society.
In order to keep up with the demand for these services, these industries need to hire more workers.
Construction, for example, has a high demand for heavy equipment operators and laborers who can help build buildings as well as roads.
Manufacturing needs workers to operate machinery and production lines so that products can be made on time.
Transportation also needs workers who are trained to transport cargo from one place to another safely and efficiently.
Capital Goods Industry Jobs with the Highest Wages
1.The capital goods industry is responsible for the production of equipment and machinery used in the production of other goods and services.
2.This industry employs millions of workers across the globe, and job opportunities are expected to grow in the coming years.
3.In terms of wages, the capital goods industry offers some of the highest-paying jobs available.
4.For example, positions such as engineers and project managers can earn six-figure salaries.
5.On average, employees who work in this industry make more than $50 per hour.
6.Workers with a bachelor’s degree typically start out at about $40 per hour and have the potential to reach $100 per hour or more over time with experience.
|Job Title||Number Of Jobs In The U.S.||2020-2030 Job Growth Rate||Job Openings|
|Business Development Manager||286,000+||8%||296,000+|
|Quality Control Manager||122,000+||1%||96,000+|
|Research and Development Technician||22,000+||7%||123,000+|
How Many Jobs Are Available In Capital Goods
If you’re looking for a job in the capital goods sector, you may be wondering how many jobs are available.
The answer depends on a number of factors, including the current state of the economy and the specific skillset you bring to the table.
However, according to statistics from the Bureau of Labor Statistics (BLS), there are about 1.3 million jobs available in this field as of 2016.
According to the BLS, employment in general was lower than expected during that year.
Although the total percentage change is not known, it’s estimated that less than 2% of these jobs were lost during this time period due to employment shifts among industries or shifts between full-time and part-time work.
Furthermore, manufacturing jobs declined by more than 3% during that year alone.
Considering that fewer people are employed in factories now than they were ten years ago, we can only assume that capital goods jobs will continue to decline at a similar rate.
With an aging population, new positions will also likely become scarce.
One of the most common concerns among those seeking jobs in this industry is whether or not they’ll have enough experience to compete with other applicants who have been working in their desired field for decades.