Transportation Equipment Manufacturing Industry Overview

Products, Operations & Technology
Major products include cars and light trucks, aircraft, locomotives, boats and ships, and related parts. Motor vehicles and parts account for 60% of industry revenue, followed by aerospace products (about 25%). Rail and waterborne equipment each account for less than 5% of the sector’s sales. Other transportation equipment includes bicycles, motorcycles, and armored vehicles Large companies enjoy economies of scale in manufacturing and purchasing, as well as advantages in marketing and distribution. The profitability of individual companies depends on manufacturing efficiency, technical expertise, and product quality. Competitive Landscape
Demand is driven by employment and interest rates, growth in consumer income, military budgets, and the overall economic climate. Major companies include US-based Boeing, Ford, and General Motors, as well as Airbus Group (the Netherlands), Bombardier (Canada), Fiat Chrysler (the UK), SAIC (China), Toyota (Japan), and Volkswagen (Germany). The US industry is highly concentrated: the 50 largest firms generate about 70 percent of industry revenue. Small companies can compete by specializing in niche markets. Excerpt from Transportation Equipment Manufacturing Report
Companies in this industry manufacture transportation equipment, including motor vehicles and parts, aircraft and other aerospace products, ships and boats, and railroad rolling stock.

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