Key Facts and Statistics in the U.S. Transportation Equipment Industry

4 MIN. READ

The transportation equipment and automotive manufacturing sector is a vital part of the United States economy. It encompasses a wide range of industries, from automobile and truck manufacturers to suppliers of parts and components, as well as companies involved in the design, development, and marketing of vehicles. 

The many subsectors of this segment afford you sales opportunities for a wide array of materials and parts. Transportation equipment also offers you an impressive marketplace for assemblies and subassemblies—more so than with machinery in general.

Key Trends in the U.S. Transportation Equipment Industry 

According to MNI, compiler and publisher of the industrial data that powers IndustrySelect, as a segment of U.S. manufacturing, some transportation equipment statistics are similar to the entire sector. You will find, however, that others vary in notable ways:

• While minority ownership, at 1%, is the same for both, woman-owned businesses make up 2% of total manufacturing but only 1% of transportation equipment.

• The transportation equipment sector imports 14% of its materials, compared to 11% for manufacturing as a whole.

• Most striking is the difference in international distribution: 42% for transportation equipment versus only 29% for total manufacturing. A larger slice of transportation equipment companies are publicly owned, at 12%, compared to 5% of all manufacturers.

MNI data finds there are currently 10,470 transportation equipment manufacturers in the U.S. that provide 1,384,462 jobs. Jobs in the sector have increased 5.3% over the past year (July 2023-July 2024). Annual average reported sales among tranportation equipment manufacturers for the year reached nearly $1 trillion. MNI’s geographic data also provides some interesting trends:

• The largest percentage of transportation equipment companies locate their facilities in the South and Midwest, at 34% and 31%, respectively.

• For the most part, these numbers track the states with the largest production of cars and car parts.

• With 23% housed in the West and 12% in the Northeast, these areas still present prospecting possibilities. For example, you can find die molding in New York and automotive trim in Massachusetts.

Electric vehicle production is concentrated in California. You can find bicycle manufacturers in states around the country, including Oregon, Colorado, and Minnesota. You can develop a shipbuilding clientele in Maine, California, Wisconsin, Tennessee, North Carolina, and many other states. Every subindustry has unique needs that an effective sales force can fill.

Looking to do business with the transportation equipment industry? Reach 10,000 transportation equipment companies and 26,000 executives with the Transportation Equipment Industrial Database

The Subindustries

The transportation equipment segment covers seven subindustries. With the trend toward onshoring, whether you sell resins or rugs, at least one should offer an opening for a domestic supplier.

Motor Vehicles and Equipment

Forecasters predict that by the close of 2023, Americans will buy 15 million new vehicles. These include cars and light trucks. One million electric vehicles will contribute to the sales boom. Positioning yourself to supply car and truck manufacturers looks like a good bet.

Aircraft and Parts

Following serious supply chain difficulties, this subindustry also expects to see growth. The aircraft engine market looks particularly promising. Part sales are rising in primary and secondary markets. Demand for spares draws increasing interest. You may find this an excellent time to offer them.

Ship and Boat Building and Repairing

The global market for this subindustry grew 8.4% annually over the past year. Future growth is expected to slow to 7.9% through 2027. Still, these are exciting marketplace statistics.

Railroad Equipment

After suffering hard times through the pandemic, railroad equipment is barreling ahead. The subindustry has strong concerns about sustainability. If you offer products or services to address that issue, the time may be right to penetrate this market.

Motorcycles, Bicycles and Parts

Several factors drive growth in this industry. They include traffic congestion, fuel prices, and the demand for sustainability. Increasing consumer interest in electric bikes spurs sales. While this is another subindustry that suffered from supply chain blockages during the pandemic, its recovery appears strong.

Guided Missiles, Space Vehicles and Parts

Predictions have the global market growing at 3.5% annually through 2028. Increased investment in space exploration drives demand. Microsatellites also find a rising market. New technology development will be your key to becoming a supplier.

Miscellaneous Transportation Equipment

This subindustry includes vehicles and accessories such as travel trailers, campers, and tanks. Recreational vehicle sales are down due to consumers' fears about the economy. This trend is projected to reverse in 2024, but at present, this subindustry may not be your first choice for a market to tackle.

Outlook for the U.S. Transportation Equipment Industry

The U.S. automotive industry is one of the largest in the world, with major manufacturers such as General Motors, Ford, and Chrysler (now Stellantis) headquartered in the country. These companies, along with foreign manufacturers with significant operations in the U.S., like Toyota, Honda, and BMW, produce millions of vehicles annually, contributing significantly to the country’s GDP.

The sector is known for its innovation and technological advancements. From the development of electric vehicles to the integration of advanced safety features and autonomous driving technologies, the U.S. automotive industry continues to be at the forefront of technological innovation.

However, the sector also faces several challenges. These include fluctuating fuel prices, stringent environmental regulations, and changing consumer preferences. The ongoing global chip shortage has also impacted production, leading to delays and increased costs.

The future of the U.S. automotive industry is expected to be shaped by several trends. The shift towards electric vehicles (EVs) is likely to continue, driven by environmental concerns and supportive government policies. Autonomous vehicles also represent a significant growth opportunity, with many companies investing heavily in this technology. However, the industry must also navigate challenges such as regulatory uncertainties and infrastructure needs.

Demand for hydrogen transportation equipment is on the rise. Many view hydrogen as a clean alternative to fossil fuels. Still, its transportation involves significant challenges. Chilled liquid tanks and pressurized tanks offer an alternative to pressurized pipelines.

Each method is most effective under specific conditions. Pressurized tanks are best for short hauls. Chilled liquid tanks cost less to use for greater distances. Transportation aboard a ship offers an option, as does mixing hydrogen with natural gas.

Since these technologies are in the developmental stage, they are wide open for innovation. If your company prefers to get in on the ground floor of a market, hydrogen transportation equipment could be a good place to start.

Reaching Out

Your ability to exploit the opportunities in the transportation equipment industry hinges on making the right contacts at the right time. IndustrySelect can help. With a subscription, you can access complete and up-to-date profiles of companies with needs that match your offerings. You will get locations, competitors, and, most importantly, contact information, including the emails of executives who can close a deal. Try a free demo today and see how far transportation equipment can take you.