Emerson Electric - Competitors

Emerson Electric Competition

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

Recent Developments

Exports of Industrial Machinery Increase - US machinery exports, excluding electrical, rose 12.1 percent in the first four months of 2008 compared to the same period the previous year. Europe was a region with particularly marked growth with increased exports in France, 28.8 percent; Belgium, 21.7 percent; the Netherlands, 13.4 percent; and the UK, 11.9 percent.

US Manufacturers Optimistic About North American Growth - According to results of a National Association of Manufacturers survey, 44 percent of North American companies intend to expand production in the US over the next three years. About 57 percent of US manufacturers believe that they'll increase their global competitiveness over the next five years. Although generally positive about the economic outlook, manufacturer concerns include labor costs, tax policies, and the shortage of skilled labor.

Outsourcing Declines Amid Rising Shipping, Materials Costs - As oil prices continue to climb, many manufacturers are reevaluating the value of outsourcing production to low labor cost areas, such as China, according to The Wall Street Journal. Since 2000, the cost of transporting a 40-foot container from China to the US has tripled; costs are expected to continue to climb as oil prices near $200 per barrel. Although high fuel and raw material costs are expected to slow outsourcing, few jobs already shipped overseas are expected to return to the US.

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, and 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.