The machine industry or machinery industry is a subsector of the industry, that produces and maintains machines for consumers, the industry, and most other companies in the economy.

This machine industry traditionally belongs to the heavy industry. Nowadays, many smaller companies in this branch are considered part of the light industry. Most manufacturers in the machinery industry are called machine factories.

Overview

The machine industry is a subsector of the industry that produces a range of products from power tools, different types of machines, and domestic technology to factory equipment etc. On the one hand the machine industry provides:

The means of production for businesses in the agriculture, mining, industry and construction.

The means of production for public utility, such as equipment for the production and distribution of gas, electricity and water.

A range of supporting equipment for all sectors of the economy, such as equipment for heating, ventilation, and air conditioning of buildings.

These means of production are called capital goods, because a certain amount of capital is invested. Much of those production machines require regular maintenance, which becomes supplied specialized companies in the machine industry.

On the other end the machinery industry supplies consumer goods, including kitchen appliances, refrigerators, washers, dryers and a like. Production of radio and television, however, is generally considered belonging to the electrical equipment industry. The machinery industry itself is a major customer of the steel industry.

The production of the machinery industry varies widely from single-unit production and series production to mass production. Single-unit production is about constructing unique products, which are specified in specific customer requirements. Due to modular design such devices and machines can often be manufactured in small series, which significantly reduces the costs. From a certain stage in the production, the specific customer requirements are build in, and the unique product is created.

Classification

The machinery industry produces different kind of products, for example engines, pumps, logistics equipment; for different kind of markets from the agriculture industry, food & beverage industry, manufacturing industry, health industry, and amusement industry till different branches of the consumer market. As such companies in the machine industry can be classified by product of market.

In the world of today all kinds of Industry classifications exists. Some classifications recognize the machine industry as a specific class, and offer a subdivision for this field. For example, the Dutch Standard Industrial Classification of 1993, developed by the Statistics Netherlands, give the following breakdown of the machinery industry:

This composition of the machinery industry has been significantly altered with latest revision of the Dutch Standard Industrial Classification of 1993. The Standard Industrial Classification of 1974 broke down the machinery industry into nine sectors:

Agricultural machine industry

Metalworking Machine - Industry and machine tool factories

Manufacturers of machinery and equipment for the food, chemical and allied industries

Manufacturers of machinery and equipment for the rubber and plastics

Manufacturers of gears, gearing and driving elements

Manufacturers of machinery and equipment and wood furniture etc.

Manufacturers of steam boiler, and power tools industry

Office machinery industry

Other machinery and equipment industry

It may be clear that classification is by markets, and the more recent classification is by product.

Machine industry in different countries

Germany

In Germany, in 2011 about 900,000 people were employed in the machine industry and an estimated of 300,000 abroad. The combined turnover of the sector was €130 billion, of which 60% came from export. There were about 6,600 active companies, and 95% of those companies employed less than 500 people. Each employee generated an average of 148,000 Euro. Some of the largest companies in Germany are DMG Mori Seiki AG, GEA Group, Siemens AG, and ThyssenKrupp.

France

In the French machinery industry in 2009 about 650,000 people were employed, and the sector generated a turnover of 98 billion euros. Because of the crisis, the turnover of the sector had fallen by 15 percent. Due to stronger consumer spending and continuing demand from the energy sector and transport sector, the damage of the crisus was still limited.

The Netherlands

In the Netherlands in 1996, a total of some 93,000 workers were employed in the machinery industry, with approximately 2,500 companies present. In 1000 of these companies there were working 20 or more employees. In the Netherlands, according to the Chamber of Commerce in this subsector of the industry in 2011 some 15,000 companies were active. Some of the largest companies in the Netherlands are Lely (company), Philips and Stork B.V..

United States

U.S. machinery industries had total domestic and foreign sales of $413.7 billion in 2011. The United States is the world’s largest market for machinery, as well as the third-largest supplier. American manufacturers held a 58.5 percent share of the U.S. domestic market.