What Is Capital Goods?
The term ‘capital goods’ is generally understood to refer to those goods that companies are used in the creation of other goods and services; they are products that businesses apply in their day-to-day operations like tools, machinery, and land improvements.
For example, a company may purchase a computer to run inventory control software, or trucks on which to transport its goods — items like this, and others, could be considered capital goods and have a life cycle that varies depending on their function; some last for decades while others wear out quickly.
Capital Goods vs. Consumer Goods
Basically, capital goods are the first product that helps companies make other goods and services, generally, they may be Fixed Assets or Tangible Assets. On the other side consumer goods is the end product that consumer uses and have no other objective. These products are provided by Consumer Durable Companies, Non-durable Companies, and Service Companies
For instance, companies make Pizza Makers by using heavy machinery and selling them to the restaurants, and after that restaurants make Pizza using those makers and serve them to the final customer. So in that situation, the Machinery of a pizza maker is an example of Capital Goods and the final product (Pizza) is called consumer goods.
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Top 10 Capital Goods Companies (2022)
Hundreds of companies manufacture capital goods worldwide and people who are investors or job seeker interested to know what are the best companies in the capital goods field, what are their products, how much their market size, job opportunities, and much more things.
So in this post, we ranked 10 leading companies in the capital goods industry based on many factors, and they make good choices for anyone in the market.
#1 General Electric
|👨💼 CEO||H. Lawrence Culp Jr.|
|📍 Headquarter||Boston, MA, USA|
|💰 Market Cap||$86,687,981,568.0|
|📦 Products||Commercial and Military Aircraft Engines and Systems|
|🎉 Employees Benefits||Medical insurance, Paid time off days, Work flexibility, Dental insurance, Signing bonus, Disability insurance, and Vision insurance|
General Electric is one of the largest corporations in the United States. Company has focused primarily on manufacturing in areas that are related to electricity generation, electricity distribution, as well as aviation and other transportation fields, Renewable Energy, research, corporation and healthcare area. GE make $74.2 billion revenue in last year 2021 from producing and selling weapons, aircraft engines, software, wind turbines, electric motors and different types of energies.
General Electric has ranked 38th position on Fortune 100 companies by Fortune magazine. In addition, company had a 4.0 (★★★★☆) average employee rating out of 5 stars on Glassdoor.
|👨💼 CEO||Jim Umpleby|
|📍 Headquarter||Deerfield, Illinois, United States|
|💰 Market Cap||$115,816,833,024.0|
|👨👨👦 Employees||97,000 +|
|📦 Products||Construction & Mining Equipment like Diesel and natural gas engines, Industrial gas turbines and diesel-electric locomotives|
|🎉 Employees Benefits||Health insurance, Vision insurance, Paid time off days, Relocation assistance, Dental insurance, and Retirement plans|
Caterpillar Inc. is a multinational corporation which was formed in 1925, and has been listed on the New York Stock Exchange (NYSE). In an attempt to create the world’s best industrial company, Caterpillar engineers continuously improve upon machinery for customers across five sectors: construction industry, resource industries, transportation industries, facility solutions industry, and energy sector companies.
Company agenda is clear that encompasses global expansion and strengthening, product development and innovation, and manufacturing excellence. Also they have offices in 180 countries, 97,000 number of employees and generate revenue of $51.0 billion in 2021 which is 22% grew up from 2020.
#3 Lockheed Martin
|👨💼 CEO||Jim Taiclet|
|📍 Headquarter||Bethesda, Maryland, United States|
|💰 Market Cap||$119,897,169,920.0|
|📦 Products||Aircraft, space launchers, satellites, and defense systems|
|🎉 Employees Benefits||Dental insurance, Tuition reimbursement, Retirement plans, Health insurance, Flexible schedule, Paid time off days, and Relocation assistance|
Lockheed Martin is a global security and aerospace company, which engages and operates through four product segments: Aeronautics, Information Systems & Global Solutions (IS&GS), Missiles and Fire Control (MFC) and Space Systems. Last year they made $67 billion revenue, had 49th position on fortune 500 companies, and 4.1 (★★★★☆) average employee rating out of 5 stars on Glassdoor.
The Company’s Aeronautics segment provides civil and military aircraft structures, systems integration and final assembly; leading edge technologies for reconnaissance, surveillance, navigation and communication; integrated avionics; IS&GS; aircraft modernization and sustained services; training systems and production representative engineering services for global commercial airline customers.
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#4 Northrop Grumman
|👨💼 CEO||Kathy Warden|
|📍 Headquarter||Falls Church, Virginia, United States|
|💰 Market Cap||$73,177,284,608.0|
|📦 Products||Military aircraft, Military vessels Missiles, missile defense systems Autocannons, chain guns & munitions Satellites & space Information technology Electronic sensors and systems Rocket launch systems|
|🎉 Employees Benefits||Health insurance, Paid time off days, Employee discounts, Tuition reimbursement, and Retirement plans|
It is the largest defense contractor in the aerospace, defense, and technologies market with FY2021 sales of $35.7 billion and 90,000 employees worldwide. The company was ranked number 86 in the 2021 Fortune 500 list of the largest United States corporations by total revenue.
Northrop Grumman specializes in building anti-aircraft and anti-missile weapons, electronics, fire control systems, shipbuilding and logistics services. Products include mission electronics and systems; space, intelligence, surveillance and information systems; shipbuilding and submarine systems; fire control solutions for military weapons systems including precision strike.
#5 Boeing Company
|👨💼 CEO||Dave Calhoun|
|📍 Headquarter||Chicago, IL, USA|
|💰 Market Cap||$78,232,018,944.0|
|👨👨👦 Employees||1,40,000 +|
|📦 Products||Commercial Jetliners & Engines|
|🎉 Employees Benefits||Relocation assistance, Dental insurance, Parental leave, Vision insurance, Paid time off days, Health insurance, and Disability insurance|
The Boeing company provides customers with a portfolio of products and services through its Boeing Military Aircraft; Global Services; Commercial Airplanes; and Space, Launch and Missile Systems activities. It built its reputation from delivering safe and dependable aircraft to major airlines & governments around the world and make $62.29 billion revenue in the 2021. Also, Boeing company an amazing place to work for with 4.0 start employee rating. Its ability to be nimble while maintaining a steadfast commitment to its core values–Innovation, Quality, Performance, Respect and Responsibility.
#6 United Rentals
|👨💼 CEO||Matthew John Flannery|
|📍 Headquarter||Stamford, Connecticut, United States|
|💰 Market Cap||$21,301,557,248.0|
|📦 Products||Aerial Work Platforms, Air Compressors & Tools, Compaction, Concrete & Masonry, Earthmoving Equipment, Forklifts, Lawn & Landscape, and Light Towers & Generators|
|🎉 Employees Benefits||Health insurance, Vacation days, Retirement plans, and Company truck|
United Rentals, Inc. (URI) is the largest equipment rental company in the world and one of the largest publicly traded equipment rental companies in the United States. Company providing services in over 49 states and covering a wide range of industries including construction, real estate, oil & gas, transportation, manufacturing and healthcare in order to fulfill its renters’ needs. They report $9.7 billion in 2021 which is 13% grew up from 2020, 4.0/5.0 Star rating, and had a ranked in fortune 500 companies list.
#7 Raytheon Technologies
|👨💼 CEO||Gregory J. Hayes|
|📍 Headquarter||Waltham, Massachusetts, United States|
|💰 Market Cap||$143,829,041,152.0|
|👨👨👦 Employees||1,74,000 +|
|📦 Products||Aircraft engines, avionics, cybersecurity, guided missiles, air defense systems, satellites, and drones.|
|🎉 Employees Benefits||Health and wellness plan, Retirement savings, Income and asset protection, Work and life support, Relocation assistance, and Tuition reimbursement|
Raytheon Technologies Corporation designs, develops, and manufactures technology for government and commercial markets. Raytheon employs approximately 1,74,000 employees worldwide and reported 2021 sales of $64 billion. Company products include fighter aircraft, missile defense, radar systems, space launch vehicles, night vision equipment, GPS receivers, radar systems, telecommunications, information technology and electronic warfare systems that support military customers and allied countries around the world.
#8 Union Pacific
|👨💼 CEO||Lance M. Fritz|
|📍 Headquarter||Omaha, Nebraska, USA|
|💰 Market Cap||$139,735,564,288.0|
|👨👨👦 Employees||31,000 +|
|📦 Products||Chemicals, Coal, Agricultural & Automotive Poducts|
|🎉 Employees Benefits||Retirement plans, Vision insurance, Tuition reimbursement, Vacation days, Medical insurance, and Dental insurance|
Union Pacific Corporation is the principal operating company of Union Pacific Railroad, provides rail services, logistics, coal, chemicals, agricultural & automotive products and supply chain management solutions to customers in the U.S. and Canada. The Company’s network comprises 32,000 route miles of track that are connected to 11,000 customers locations serving every major container port in the eastern half of North America.
According to official data, 2021 year is the most profitable for company. The UNP reported net income of $6.9 billion and earnings per diluted share of $9.95, it grew by nearly 20% from the previous year’s earnings of $8.19 per diluted share.
#9 MMM (3M)
|👨💼 CEO||Mike Roman|
|📍 Headquarter||Saint Paul, MN, USA|
|💰 Market Cap||$85,080,006,656.0|
|📦 Products||Abrasives, Adhesives, Sealants & Fillers, Advanced Materials, Automotive Parts & Hardware, Building Materials,|
|🎉 Employees Benefits||Retirement plans, Dental insurance, Vision insurance, Stock options, Vacation days|
Minnesota Mining & Manufacturing (3M) is a large and 120 years old corporation that produces a wide range of products and brands including adhesives, abrasives, bonding systems and materials, paint protection films, composites, dental and orthodontics products, electronics components, laminates, health care software. MMM company operates in more than 87 countries, have sixty thousand product and roughly $35.4 billion in revenues as of 2021.
#10 Honeywell International
|👨💼 CEO||Darius Adamczyk|
|📍 Headquarter||Charlotte, North Carolina, United States|
|💰 Market Cap||$133,661,925,376.0|
|👨👨👦 Employees||1,03,000 +|
|📦 Products||Head Protection, Earmuffs, Eye & Face Wear, Safety Googles, and Fall Protection|
|🎉 Employees Benefits||Health insurance, Retirement plans, Parental leave, Life insurance, Paid time off days, and Sign on bonus|
Created in 1906, Honeywell continues to grow as we build on our more than 100-year history of innovation and quality service. They provide technology and solutions to customers in the commercial, industrial, automotive and building markets. Company generate $34.39 Billion revenue in 2021 by manufacturing product lines include aerospace products, healthcare technologies, mobility systems, control technologies for buildings and critical infrastructure, and security products.
Top 100 Capital Goods Stocks List
For your informational purposes, we have compiled a list of the top 100 publicly traded capital goods companies. The rankings are based on market cap, but you can also filter by company name, ticker and the stock live price.
|IT||WIllinois Tool Works||$264.9||$21,332,766,720.0|
|JCI||Johnson Controls International||$54.6||$37,955,702,784.0|
|SWK||Stanley Black & Decker||$120.4||$18,182,223,872.0|
|WAB||Westinghouse Air Brake Technologies||$93.4||$17,059,323,904.0|
|AOS||A. O. Smith||$60.6||$9,452,464,128.0|
|FBHS||Fortune Brands Home & Security||$70.5||$9,217,485,824.0|
|HII||Huntington Ingalls Industries||$211.2||$8,455,966,208.0|
|WSC||WillScot Mobile Mini Holdings||$36.3||$8,075,323,392.0|
|WMS||Advanced Drainage Systems||$110.4||$9,312,226,304.0|
|LECO||Lincoln Electric Holdings||$135.3||$7,930,163,200.0|
|ST||Sensata Technologies Holding||$47.1||$7,397,114,368.0|
|SITE||SiteOne Landscape Supply||$136.5||$6,133,772,288.0|
|MDU||MDU Resources Group||$27.4||$5,563,683,840.0|
|AQUA||Evoqua Water Technologies||$36.5||$4,429,255,168.0|
|VRT||Vertiv Holdings Co||$11.3||$4,258,435,584.0|
|SPR||Spirit AeroSystems Holdings||$31.4||$3,297,533,696.0|
|MSM||MSC Industrial Direct||$84.9||$4,697,411,584.0|
|ZWS||Zurn Water Solutions||$28.6||$3,603,692,544.0|
Best ETF For Capital Goods Sector (2022)
Industrial companies are often considered the backbone of a country’s economy, and for good reason. In fact, the Industrial Sector is the largest sector in the U.S. economy, yet many investors overlook this sector when making investment decisions simply because there are other sectors that yield better growth characteristics; however, tremendous value can be found in this sector.
#1 (ITA) iShares U.S. Aerospace & Defense ETF
- AUM: $3 Billion
- Expense Ratio: 0.42%
- Annual Dividend Yield: 0.83%
#2 (PPA) Invesco Aerospace & Defense ETF
- AUM: $775 Million
- Expense Ratio: 0.61%
- Annual Dividend Yield: 0.58%
#3 (EVX) VanEck Environmental Services ETF
- AUM: $75 Million
- Expense Ratio: 0.55%
- Annual Dividend Yield: 0.25%
Best Paying Jobs in Capital Goods Industry?
There are many jobs available in Capital Goods with different sector like Sales, manufacturing, engineering and more. If you are looking for high paid jobs in industry, so here are the 8 best paying jobs:
|Best Job||Average Salary In US|
|Senior Design Engineer||$110,000|
|Quality Control Manager||$100,000|
|Business Development Manager||$100,000|
I hope that you have enjoyed this blog post about the capital goods field, the products and their companies. To bookmark this page would be a good idea because there is a lot of information on it that you will refer to in the future; also, try to learn something new every day 🙂
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