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Three Trends Impacting Service Machinery Manufacturers in 2020

Posted by IndustrySelect on Tuesday, February 11, 2020

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3 MIN. READ

We recently briefly covered the U.S. service machinery manufacturing industry and the top nine companies that inhabit it. This industry manufactures a number of products including food service appliances, cleaning products and maintenance supplies. Today, you'll see the industry in greater depth.

If you're a salesperson or marketer in the manufacturing market, stay tuned. You won't want to miss this summary of key trends that will affect U.S. service machinery manufacturing moving forward.

1. The U.S. South Leads in Number of Service Machinery Manufacturers

According to data collected by MNI, compiler and publisher of the industrial information that powers IndustrySelect, 31% of service machinery manufacturers are in the Midwest. The south actually eclipses that, with 32% of service machinery manufacturers. The West doesn't fall far behind either, with a little more than 21% of manufacturers.

The ubiquity of service machinery manufacturers across the U.S. at large makes the industry more widespread and flexible than many other U.S. manufacturers.

2. Service Machinery is Growing

Data from MNI indicates the U.S. service machinery manufacturing market added more than 5,000 jobs last year, with the total number of jobs in the industry increasing from roughly 52,000 to around 57,000.

That's significant because the U.S. manufacturing market as a whole is struggling right now. President Donald Trump's tariffs and trade wars have negatively affected many manufacturers. His steel tariffs have cost the U.S. steel economy well in excess of $5.5 billion, and many U.S. manufacturers have actually eliminated jobs.

Additionally, the new manufacturing industries that have created jobs can't always fill them. In fact, research from Deloitte shows 89% of manufacturers have to leave openings unfilled due to a lack of sufficiently qualified applicants.

The service machinery manufacturing industry's ability to skirt these barriers and continue to grow is impressive. The industry's large number of companies and the ubiquity of the products it creates may contribute to its durability. For example, there will always be demand for cleaning supplies and kitchen appliances.

By contrast, industries like oil and gas may fluctuate more due to a number of factors. Two of these are the rise of electricity and the international price of gas compared to the national cost of gas.

3. The Industry is Turning to Technology to Accelerate Growth

Most of the manufacturing trends to watch in 2020 note the importance of cutting-edge technologies such as automation, machine learning, AI and the IoT (Internet of Things).

Companies in the services machinery manufacturing industry are already investing heavily in these solutions. For example, Emerson, the third-largest manufacturer in the industry, restructured its entire business model around advancements in automation and the IoT.

Innovative technologies can help manufacturers improve every aspect of business, from product engineering to production times to quality assurance to customer satisfaction. The potential for these technologies is almost limitless, so expect to see investment rates in these solutions accelerate in the coming years.

Tap Into this Growing Market

The U.S. industrial service machinery industry is growing. If you're a sales leader or marketer looking to break into the service machinery industry, IndustrySelect can help. IndustrySelect provides clients with touch-point data for potential leads, including contact information and other actionable data. To learn more about how you can use IndustrySelect to generate reliable leads for your company, visit our website.

Sources:

https://markets.businessinsider.com/news/stocks/trump-trade-war-loss-of-manufacturing-jobs-contradicts-purpose-tariffs-2019-10-1028577666
https://www.bloomberg.com/news/articles/2019-07-07/the-trump-tariff-twist-that-s-cost-u-s-steel-5-5-billion
https://www2.deloitte.com/us/en/insights/industry/manufacturing/manufacturing-skills-gap-study.html?mod=djemRTE_h
https://www.emerson.com/en-us

 

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