Capital goods are essential goods that are essential for the existence of people. This goods mainly form the bedrock of which other product are being created, and this even includes the consume goods, which the consumer will later use.
Today, there are over thousands of companies today in the world that rely on capital goods for their production or to offer their services. This companies directly rely on the capital goods company to make capital goods available to them.
And in this article, I will be sharing be sharing with you everything that you need to know about what companies are in the capital goods field, the importance of the capital goods in the economy. And most importantly, show you 12 largest capital goods companies that you should know.
What Are Capital Goods Companies?
Basically, Capital goods are goods that are produced directly, without being made from any other thing. There are usually used alongside “raw materials” by big “consumer companies” for their own manufacturing. They basically include goods such as – factories or industries, land or buildings, and equipment, machineries or tools.
On the other hand, “Capital goods companies” are the companies that produce this “capital goods”. There are the companies that are either in charge of land activities, or making any of the other “capital goods”. Including, big machines and engines that will be used alongside raw materials by the consumer goods companies for their own production.
What Are 8 Examples Of Capital Goods?
There are lot of examples of capital goods. Below are a 8 of them –
- Electronics such as wires for electricity during production
- Power technology or electricity
- Buildings or facilities
What Companies Are In The Capital Goods Field?
Companies that are in the capital goods field are the companies that are essential for the production of other activities, which alongside raw materials, they can be used for production by the consumer goods company.
Top 12 Companies That Are In The Capital Goods Field
There are lot of capital goods company today in the world. Most of this Capital goods companies are very different one from the other, and also specialize on various sectors. Below are 12 of this companies that are in the capital goods field –
1. 3M –
Founded in the year 1902 and with it headquarters at Minnesota, United States. 3M is one of the largest companies in the Capital goods field. It deals manufacturing of multiple capital products such as adhesive tapes, window films, abrasives, electrical devices and machines, aerospace and automotive, health care softwares and lot of others. They are responsible for the production of about a hundred thousand different types of capital goods across their offices in over 200 counties of the world.
2. ABB –
A multinational company founded in the year 1891, ABB is considered to be one of the largest capital goods company in the world today. They are based in Zurich, Switzerland and they specialize in the production electronic equipment with some of their products being circuit breakers, cable systems, drives and motors, electric vehicle charging infrastructure, low voltage products, Industrial analytics, AI and lot of others.
3. Boeing –
Known for their contribution in the aerospace sector, Boeing are considered to be the largest aerospace company in the world, with an average revenue of about $60.74 Billion in 2021, according to the Companies Market Cap official website.
There were founded in the year 1916, and they are currently based in Illinois. Their services includes the following;
- Building of military aircraft
- Creating of electronic defense systems
- Aerospace launch systems
- Building of commercial aircrafts
4. Caterpillar Inc –
Caterpillar Incorporated, popularly known in it abbreviated name “CAT” is a multinational capital goods company, tasked with the task of producing capital goods not just for the United States, but to every countries of the world.
There are an American fortune 100 corporation tasked with providing top quality designs, developing and manufacturing machines, heavy engines, insurance and financial products to their customers.
Most heavy industrial materials used during road construction are mostly produced by the Caterpillar Inc.
They were founded in the year 1925 and they currently have their offices across more than 193 countries in the world as of today.
5. Ford Motor –
Founded by Henry Ford, in the year 1903, Ford Motor, is one of the oldest automobile companies that has survived up to this day.
They currently have their headquarters at Dearborn, Michigan, United States.
Ford Motors specializes in the sales of automobiles and commercial vehicles via the “Ford” brand. And this include commercial cars which can be used by the consumer companies to transport their goods, as well as the luxury automobiles.
6. General Electric –
Founded in the year 1892, in New York, United States, multinational company, General Electric is one of the largest capital goods companies in the world today.
They are world energy giants, providing capital goods products such as power and water, energy management and control, oil and gas, appliances and lighting, aircraft engines and lot of others with their office spanning across over 150 countries in the world.
7. Honeywell International –
Founded in the year 1906 in Indiana, United States, Honeywell International is a multinational company that deals with the production of capital goods.
They provide major capital goods such as Chemical products, aerospace materials, automotive products, engineered materials, plastic materials and lot of others.
8. Intel –
A top tech company based in California, Intel was founded in the year 1968. They are widely known for their role in the computing space, which includes; cloud computing, data center, Internet of Things, and PC solutions. Currently, Intel are the world’s largest semiconductor producer in the world, and they produce processors and lot of other computer components.
9. Lockheed Martin –
Founded in the year 1995, and with it headquarters at Maryland, Lockheed Martin is a large capital goods company. They mainly deal with the production of capital goods items in the following field; aerospace, arms, defense, information security, and technology.
They produce fire controls, missiles, fire sensors, air missions, strike weapons and lot of other items. It currently make sales to over 100 countries across the world.
10. Northern Grumman –
Just like most of the other companies on this list, Northern Grumman is a capital goods company. It was founded in the year 1939 and currently has it headquartered based in Virginia, United States.
They company is known for producing remarkable products in the following fields; aerospace, defence, cyber security and others. They produce items such as military aircraft, chain guns, munitions, rocket launch systems, electronic systems, as well as vehicles.
11. Siamens AG –
A German multinational conglomerate corporation and also one of the largest industrial manufacturing company in Europe, Siamens AG was incorporated in the year 1957. They are known for their roles in the following fields – industry, infrastructure, transport, healthcare and in tech. The “AG” is a German abbreviation, known in full as Aktiengesellschaft.
12. Union Pacific –
Founded in the year 1862 and with it headquarters set up in Nebraska, Union Pacific is one of the Largest capital goods company available today in the world. They specialize in creating logistic and transport items, as well as agricultural products. They create coal, agricultural products, automotive products and lot of others.
What Does Capital Goods Companies Produce?
Capital goods companies produces lot of things. Mainly, the goods that the produce are mainly used alongside “raw materials”, for the production of other items.
Are Capital Goods Important For The Economy?
Yes, Capital goods are very important for the economy. They are very useful for economic growth, as they play a key factor in the production of other goods, which will also help to increase the growth of the economy.