When it’s time to pursue a career, you may wonder, Is capital Goods a good career path? Well, it is common that many career-oriented people choose typical jobs such as engineering, medicine, education, or technology, but no one thinks about investing in the capital goods industry.
Choosing a career can be a challenging and overwhelming process. It is important that whatever field you choose, you should possess a passion for it and that your skills resonate with the job. Before you arrive at a decision, explore the insights of the industry and how it will benefit you in the long run.
Capital goods jobs are one of those industries that have experienced a significant expansion and can provide you with enormous career benefits.
Despite its strong salary package, capital goods positions also offer a wide range of abilities that can be used in various technological sectors.
For those fascinated by manufacturing and production, the capital goods business is the perfect place to pursue a career.
Thus, we will discuss the capital goods industry, which has numerous work opportunities and is always in high demand.
You must wonder exactly what capital goods or jobs are in this field. In this article, we have explicitly discussed all your questions. Keep reading
What Are Capital Goods?
Capital goods are intermediary items used to create the final product or services. The assets and tools used in creating a product for final user consumption are all capital goods. In simple terms, products used in the production processes are classified as capital goods. It includes all manufacturing assets such as machinery, equipment, vehicle, plants, chemicals, textile machinery, printing and packaging machinery, etc.
The capital goods industry is a huge market with good growth potential. This sector is also known as the industrial sector because it deals with the manufacturing and distribution of goods. Capital goods are used in manufacturing, production, mining, agriculture, and many other industries. This industry has diverse job opportunities, such as aerospace, defense, chemical, electric equipment, etc.
Capital goods are essential for businesses to expand their line of operational goods. Factors such as inflation, interest rates, and economic growth drive capital goods demand.
Example Of Capital Goods
- Textile- It includes wool, cotton, and nylon
- Automotive- It contains bikes, cars, vehicles components
- Chemical- It has natural gases, oil, and minerals.
- Electronics include semiconductors, telecommunications, construction equipment, and consumer electronics.
Consumer Vs Capital Goods
Capital goods are a tangible item that serves as a means of production. If we categorize goods into two broad sections, we will have consumer goods and capital goods. Consumer goods are items made for user consumption, whereas capital goods are items used for the manufacturing and production of consumer goods.
Vegetables are a consumer good because we consume them. Farmers produce vegetables on the farm, plant seeds, water them, trim them, and then bring them to the retail market. The tools and vehicles used in the process, such as trucks, machinery, watering sprinklers, shovels, and vehicles, are all capital goods.
Also note that the same item can be a capital or a consumer good, depending upon its nature of usage. For example, if the books are purchased for reading by an individual, they will be a consumer good, but if these books are bought to be kept in the college library, they will be considered capital goods.
Capital Goods Career Outlook
If you are passionate about product manufacturing and construction or want to work on machinery and equipment, then the capital goods specialist role is an ideal career choice.
This is an industry with good career opportunities. As technology becomes, more advanced daily, the capital goods market is taking a huge share. For example, with the auto industry trending toward electric, there is an increased demand for lithium and specialized machinery.
As semiconductor chips are becoming increasingly popular in the cellphone and car industries, there is an increased demand for chip-making equipment. The capital goods industry provides unique opportunities for job seekers with specialized knowledge and skills, along with the reward of job security. This industry will likely expand rather than falter with the rise of automation and technological advancement. There is a lot more; top capital goods companies provide competitive wages and good benefits.
What Makes The Capital Good Industry a Good Career Choice?
The following points will justify why you should consider pursuing the capital goods industry as your career path.
1. It Is Vital For Economic Growth.
No business can run without capital goods. Machinery, equipment, vehicles, plant, and assets are all part of the production; without these resources, none of the products can exist. Therefore, capital goods play a significant role in businesses carrying out their line of operations, which boosts the economy.
2. It Promises Job Security.
If you want to step into an industry that is well established and promises job security, you should consider the capital goods sector. These companies deal in producing goods and services in bulk quantities for consumer companies, so the role of an employee becomes so essential. Because they operate at a larger level, human resource is required to cater to the increasing demand.
3. It Is a Highly-Paid Job.
This sector’s maximum amount of work makes it a highly paid-industry. People in this industry are associated with risk-based tasks and therefore paid a good amount for their work. Anyone willing to enjoy competitive salaries and comfortable life can opt for the capital goods sector. You can expect a 6-figure wage.
4. It Has Great Growth Potential.
The capital goods market is an emerging industry that is in a growing trend. With Nearly $100 billion in production projected by 2025, it becomes an increasingly popular category regarding career opportunities.
Capital goods professionals work on various projects, each requiring a different skill set and multiple clients dealing. This will add up to their learning working in real-life situations.
5. It Provides a Flexible Working Environment.
Although the nature of tasks is tough, it provides employees with the leverage of flexible working. One has to work long hours to meet the project requirement and deadlines, but the associated benefits outweigh the cost.
6. It Offers Many Entry-Level Opportunities.
While entering any field, you need to be a combination of some knowledge, skills, and expertise. But when it comes to the capital goods business, you can enjoy many entry-level jobs with the least qualifications and experience. As you land the job, you will gradually hone your skills and climb the ladder.
7. It Is a Satisfying Job.
The capital goods sector is about creating and manufacturing tangible products that involve physical involvement. When you see the result in its physical form, it gives you a sense of achievement. This is comparatively different from jobs whose derivatives are often abstract. Also, the physical aspect makes one stay healthy compared to the desk job.
How To Get The Best-Paying Jobs In Capital Goods?
The best way to get into the capital goods business is to get a bachelor’s degree in engineering and manufacturing with several years of experience. You should also possess some skills and knowledge of manufacturing. Also, start your career by exploring internship opportunities or entry-level positions in the respective field.
In addition, you can look for career opportunities with similar backgrounds like sales, business development, or marketing.
How Does The Capital Goods Industry Contribute To The Economy?
The capital assets industry significantly contributes to the economy’s growth and stability, paving the way for innovation and generating employment and revenue. Capital assets’ role is crucial as they tend to increase the economic productive capacity in the long run.
The capital goods industry is closely connected with economic stability. If the demand for a product rises, it shows signs that businesses and the economy are also flourishing.
Many developing countries like the USA strive to produce or create new capital assets that can make their working task easier. With new machinery and technology, skilled people are hired, greatly reducing unemployment. With better technology and machines, production efficiency is achieved.
The capital goods industry leads other sectors for parallel contribution to the economy. When a new capital product is launched, the consumer industry utilizes these capital assets to make a highly optimized product for end users. When the final product reaches the market with good marketing, it produces profit. The government earns by levying the tax, and all other sectors charge up equally.
What Is The Career Scope Of The Capital Goods Market?
With the projected $100 billion production value by 2025, the capital goods industry can be an emerging sector with growing opportunities.
According to the Bureau of Labor Statistics report, about 1.3 million jobs are available in the capital goods sector.
Which Industries Work In Capital Goods?
The group of companies that help other businesses to carry out their operational functions is in the list of capital goods industry. Most organizations have their portfolio of products or services to be consumed by end users, but some companies produce items for other businesses, such as machinery and tools.
If you are exploring a career that is both economically proficient with industrial processes, then capital good is a promising career path. Here is a list of those companies.
- Electronic industry
- Steel industry
- Automotive Industry
- Chemical Industry
- Textile Industry
1. Electronics Industry
The Electronic industry has the largest share in the capital goods sector. The function of this industry is to supply electronic components to manufacturing companies to create consumer electronic products.
It has subdivisions such as semiconductors, industrial goods, consumer electronics, and telecommunications.
2. Steel Industry
The steel industry is primarily connected with steel-related products. Since steel is the most useful material in construction and manufacturing products thus constitutes a larger share of volume in the capital goods industry.
3. Automotive Industry
The automotive industry works around designing, developing, marketing, and selling motor vehicles. This industry supplies vehicle components such as bikes, trucks, cars, etc. It is one of the largest industries in terms of revenue.
4. Chemical Industry
The company that engages in producing chemicals and their derivatives. The chemical industry incorporates all those products that involve heavy use of chemicals, such as fertilizers, detergents, adhesives, soap, etc. Other businesses collaborate with these chemical industries to produce final products.
5. Textile Industry
The textile industry deals in the research, development, manufacturing, designing, and distribution of yarn, fabrics, and clothing. Wholesalers and retailer then purchase these products in bulk quantities and refines them to sell them to final consumers.
What Are The Best Career Jobs Available In The Capital Goods Sector?
Many job opportunities available make a capital good industry a good career path. These jobs revolve around the manufacturing area, creating products from raw materials and assembling the parts to make a final product.
|Job title||Description||Average Salary per year|
|Senior Mechanical Engineer||A person with knowledge of mechanical systems, including testing, debugging, and analysis. He guides engineering tools and product specifications and assesses design applications. He also conducts analytical tests to ensure the team’s proficiency and works together for plan modifications if necessary.||$90, 160|
|Industrial Designer||An individual with the responsibility of designing concepts for each product or service. They sketch designs, brainstorm, and create a blueprint for each development. They combine art, engineering, and business to develop a product that people use daily.||$74, 000|
|Business Development Manager||A business developer is a person who handles all business development tasks, such as developing beneficial proposals, negotiating contracts, and communicating effectively with stakeholders. He plans, leads, and executes all company’s development strategies.||$ 68, 735|
|Warehouse Worker||A professional individual that performs inventory management duties, from stocking products, shelving, processing orders, restocking, and preparing the delivery of goods. This role is a full-time job with intense supervision of each product.||$ 31, 519|
|Manufacturing Technician||He is in charge of operating industrial equipment, working with different manufacturing tools, and performing assigned product production and assembly tasks.||$ 48, 000|
|Quality Control Inspector||These individuals are solely responsible for checking each project fulfilling standard quality requirements. They also manage the shipment of inventory and raw materials, measure each specification of items, examine functionality, and supervise the team to maintain product quality standards.||$30,000- $50,000|
|Research and Development Manager||They oversee all research-related activities and develop data-driven products for the company.They gather insights about the latest trends and technologies to improve existing products and anticipate the potential of newer products.||$97, 000|
|Computer-Aided Design Technician||An expert that uses Computer Aided Design software to work on complex designing and technical drawings. He creates plans, elevations, and building layouts and handles other technical details and specifications||$50, 000|
|Manufacturing Engineer||The role of the engineer manager is to plan, direct and coordinate all engineering projects and oversee the successful execution of strategies to ensure projects are done promptly. He is also responsible for project logistics and resource management.||$82, 000|
|Sales Engineer||The role of the sales engineer revolves around sale maximization. The duties involve: Selling products to customers. Supervising sales volume. Overseeing profitability targets for each development. Preparing sales plans. Performing a regular status review.||$132, 290|
|Project Development Manager||They are project managers with the role of managing and delegating tasks. He is responsible for project delivery and serves as a middleman between management, customers, and employees.||$ 77, 420|
|Assembler||A person who put together several product-related tasks such as understanding instructions to manufacture products carefully, assembling components to arrive at the final product, providing maintenance of assembled equipment, analyzing issues, and taking precision measurements to ensure product efficiency.||$31, 000|
Top 10 International Capital Goods Company
- General Electric- handles the manufacturing of products including aviation, wind turbines, power and energy, weapons, electric motors, etc.
- Honeywell International- It operates in the aerospace, technology, performance material
- Lockheed Martin- serves in technology aerospace, military, and security.
- Union Pacific- A Railroad Company that creates chemicals, automotive, coal, and other products.
- United Rental Inc. – The world’s largest equipment rental company, which deals in industrial products.
- Boeing- Manufacturer of commercial jets, it is the largest aerospace company globally.
- Caterpillars Inc. – The biggest manufacturer of mining and construction equipment.
- Northrop Grumman- Another aerospace and defense company
- 3M- It deals in consumer goods such as lamination, dental equipment, adhesive, medical software, etc.
- ABB Limited- A technology leader that deals in utility, industry, transportation materials
A beginner pursuing a career must find it difficult to decide which career path would be ideal for him. Among diverse career options, one of the clearest career paths can be investing your skills in the capital goods industry.
Is Capital Goods a Good Career Path? Yes, it is. Pursuing your career in the capital goods industry is an excellent career decision. Jobs in the capital goods market are highly specialized and offer good compensation.
Capital Goods Jobs are one of the fastest-growing jobs with diverse job opportunities. It is a job that connects qualified professionals with manufacturing occupations.
There are various high-paying job opportunities in this sector if you’re looking for them. You can pursue several excellent options with the right skills and experience. You can learn more about command economy principles to make an even more significant impact in this field. You can create an even more substantial contribution to the capital goods sector with proper training and credentials.