Transportation Equipment Manufacturing

Transportation Equipment Manufacturing

Brief Excerpt from Industry Overview Chapter:

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).

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.