Emerson Electric - Competitors

Emerson Electric Competition

Now Viewing Emerson Electric's competition in: Industrial Machinery Manufacturing

Recent Developments

Industrial Production Growth Slows - US industrial production, an indicator of demand for industrial machinery, rose 1 percent in February 2008 compared to February 2007. Many experts cite a softening labor market and economic weakness as key causes of low industrial production growth. Industrial production would've been even lower if not for increasing US exports, according to Global Insight.

Funding Cut Proposed for Program Supporting Small Manufacturers - </strong>Funding for a federal program to help small US manufacturers become more efficient may be reduced to $4 million in 2008 from nearly $90 million in 2007. Experts say that industrial machinery manufacturers benefit when companies that participate in the Manufacturing Extension Partnership program buy more efficient machinery. The National Institute of Standards and Technology says that the program doesn't fit in with its<strong> </strong>core function of advancing cutting-edge science.

US Manufactured Goods Trade Deficit Shrinking - The manufactured goods trade deficit, which fell 16 percent year-over-year in January 2008, according to the US Commerce Department, will likely benefit industrial machinery manufacturers. US exports of manufactured goods rose 11 percent, while imports rose just 1 percent.

Competitive Landscape

Demand for machinery depends strongly on the health of the US economy and various subsectors such as the construction industry. The profitability of individual companies is tied to engineering expertise and efficient production operations. Small companies can compete effectively if they produce machinery with unique characteristics. The industry is capital-intensive and fairly automated: average annual revenue per worker is about $225,000.

Full Industry Overview For Industrial Machinery Manufacturing

Industrial Machinery Manufacturing Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US agriculture, construction, mining, oilfield, and metalworking machinery; as well as special, general, service, and miscellaneous industry machinery is forecast to grow at an annual compounded rate of 4.2 percent between 2007 and 2012.

Machinery Production Growth Improves

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.