by Capital goods industry, which involves the production and maintenance of machinery, equipment, and infrastructure, play a crucial role in the economy.
Positions in this field often offer competitive salaries, but compensation can vary widely depending on factors like industry, experience, and location.
In this article, we will explore what do capital goods jobs pay for various roles. We will also highlight key factors that influence earnings and offer insights into the career prospects in this sector.
What are capital goods?
Capital goods are tangible assets used by businesses to produce other goods and services.
Examples of capital goods include:
- Machinery and Equipment. Industrial machines, conveyor belts, and manufacturing equipment.
- Tools. Hand tools, power tools, and specialized tools used in production.
- Buildings and Infrastructure. Factories, warehouses, and office buildings used for production and operations.
- Vehicles. Trucks, forklifts, and other vehicles used to transport materials and products.
These goods are essential for the functioning of industries like manufacturing, construction, and transportation, and they play a crucial role in driving economic growth and productivity.
- What is the difference between capital goods and consumer goods?
| Aspect | Capital Goods | Consumer Goods |
|---|---|---|
| Purpose and Use | Used by businesses to produce other goods and services; they are integral to the production process. | Purchased by individuals for personal enjoyment or use; they are the final products in the consumption cycle. |
| Examples | - Machinery: Lathes, CNC machines - Equipment: Conveyor systems, industrial robots - Tools: Hand tools, power tools - Buildings: Factories, warehouses - Vehicles: Forklifts, trucks | - Durable Goods: Smartphones, appliances - Non-Durable Goods: Food, beverages, toiletries - Services: Haircuts, entertainment |
| Lifecycle and Value | Typically have a long lifespan, often used for several years; involve significant capital investment; depreciated over time due to wear and tear. | Usually have a shorter lifespan as they are consumed or used relatively quickly; generally lower cost per unit compared to capital goods. |
| Economic Role | Drives business productivity and operational efficiency; crucial for expanding production capabilities and improving quality. | Directly affects consumer satisfaction and quality of life; influences demand patterns and spending behavior in the economy. |
| Depreciation | Depreciated over time as they are used; accounted for in financial statements through depreciation methods. | Usually not depreciated in financial statements as they are consumed quickly or have shorter useful lives. |
| Investment | High initial investment required; long-term asset for businesses; critical for capital budgeting and financial planning. | Lower initial investment compared to capital goods; focuses on immediate consumption and personal satisfaction. |
| Impact on Business | Essential for increasing production capacity, improving operational efficiency, and reducing costs over time. | Impacts sales and revenue directly; consumer preferences and purchasing power affect demand. |
What companies are in the capital goods field?
1. Caterpillar Inc.
Headquarters: Deerfield, Illinois, USA
Caterpillar is a leading manufacturer of construction and mining equipment, as well as diesel and natural gas engines and industrial gas turbines.
- Products: Excavators, bulldozers, wheel loaders, and other heavy machinery.
- Key Markets: Construction, mining, agriculture, and energy sectors.
2. Siemens AG
Headquarters: Munich, Germany
Siemens focuses on electrification, automation, and digitalization, serving various sectors including industrial automation, smart infrastructure, mobility, and healthcare.
- Products: Industrial automation equipment, building technologies, mobility solutions, and medical devices.
- Key Markets: Industry, energy, healthcare, and infrastructure.
3. General Electric (GE)
Headquarters: Boston, Massachusetts, USA
GE operates across multiple sectors including power, renewable energy, aviation, and healthcare, providing a broad range of products and services.
- Products: Gas and steam turbines, jet engines, medical imaging equipment, and industrial automation solutions.
- Key Markets: Power generation, aviation, healthcare, and renewable energy.
4. Honeywell International Inc.
Headquarters: Charlotte, North Carolina, USA
Honeywell operates in aerospace, building technologies, performance materials, and safety and productivity solutions.
- Products: Control systems for buildings, safety products, industrial automation equipment, and aerospace components.
- Key Markets: Aerospace, building management, industrial processes, and consumer products.
5. Rockwell Automation
Headquarters: Milwaukee, Wisconsin, USA
Rockwell Automation specializes in industrial automation and information technology, focusing on improving productivity.
- Products: Programmable logic controllers (PLCs), industrial software, sensors, and network equipment.
- Key Markets: Manufacturing, energy, and infrastructure.
6. ABB Ltd.
Headquarters: Zurich, Switzerland
ABB is a global leader in electrification and automation technologies, aimed at improving productivity and energy efficiency.
- Products: Electrical grids, industrial robots, automation systems, and motors.
- Key Markets: Utilities, industry, transportation, and infrastructure.
7. Komatsu Ltd.
Headquarters: Tokyo, Japan
Komatsu is a major manufacturer of construction and mining equipment known for its technological solutions for the industry.
- Products: Excavators, bulldozers, dump trucks, and other heavy machinery.
- Key Markets: Construction, mining, and forestry.
8. Johnson Controls International plc
Headquarters: Cork, Ireland
Johnson Controls provides products and services related to building efficiency, including HVAC systems, building automation, and energy solutions.
- Products: HVAC systems, building management systems, fire and security products.
- Key Markets: Commercial buildings, industrial facilities, and automotive.
9. Mitsubishi Heavy Industries Ltd.
Headquarters: Tokyo, Japan
Mitsubishi Heavy Industries manufactures a wide range of machinery and equipment for various applications.
- Products: Power systems, shipbuilding, aerospace components, and industrial machinery.
- Key Markets: Energy, transportation, aerospace, and industrial sectors.
10. Schneider Electric SE
Headquarters: Rueil-Malmaison, France
Schneider Electric specializes in energy management and automation solutions, aimed at optimizing energy usage and improving efficiency.
- Products: Electrical distribution equipment, building management systems, industrial automation solutions, and energy software.
- Key Markets: Energy management, industrial automation, and smart homes.
What do capital goods jobs pay?
Below are the factors that influence wage levels within the capital goods industries.
Industry Demand
High demand for capital goods and services can drive up salaries. Companies may offer competitive pay to attract and retain skilled professionals in a booming sector.
During the construction boom of the early 2000s, the world saw increased demand for the machinery, leading to higher salaries for engineers and sales staff.
Company Size
Larger organizations or those with strong financial performance offer higher wages and better benefits compared to smaller firms or struggling financially.
Job Role
Senior positions with greater responsibility, such as engineers or project managers, command higher salaries compared to entry-level roles.
Geographic Location
Wages can vary significantly based on location. Positions in high-cost living areas or major industrial hubs often offer higher pay to compensate for the higher cost of living.
An engineer working in San Francisco for Honeywell may receive a higher salary compared to a similar role in a less expensive city, reflecting the higher cost of living.
Education and Experience
Advanced degrees and specialized certifications can lead to higher salaries. Extensive experience and a proven track record in the industry also contribute to higher compensation.
Skills
Expertise in cutting-edge technologies or specialized skills (e.g., automation systems, advanced manufacturing techniques) can command premium wages.
Economic Conditions
Economic downturns or recessions may lead to salary freezes or reductions, while growth can result in increases and bonuses.
During the 2008 financial crisis, many companies faced salary freezes and layoffs.
Unionization
In some regions or organizations, labor unions negotiate salaries and benefits, which can impact compensation levels.
Company Policy
Each company has its own policies, which can affect salary levels. Organizations with structured compensation systems may offer more predictable salary ranges.
Market Competitiveness
Companies often adjust salaries based on what competitors are offering to ensure they remain competitive in attracting and retaining talent.
Top 10 best paying jobs in capital goods
1. Chief Technology Officer (CTO)
- Average Salary: $200,000 - $300,000+ per year
Oversees the technology and product development strategy of the company. Influences innovation and competitive advantage, driving technological advancements and integrating new technologies.
Requirements:
- Advanced degree in Engineering, Computer Science, or related field (e.g., MBA preferred)
- Extensive experience in technology leadership
- Proven track record of strategic planning and successful project execution
- Strong knowledge of industry trends and technologies
2. Engineering Director
- Average Salary: $150,000 - $250,000 per year
Leads engineering teams and projects, responsible for overseeing product development and innovation. Ensures engineering projects align with company objectives and standards, contributing to the successful development of products and systems.
Requirements:
- Bachelor’s or Master’s degree in Engineering
- Significant experience in engineering management and leadership
- Expertise in project management and cross-functional team leadership
- Strong problem-solving and communication skills
3. Senior Project Manager
- Average Salary: $130,000 - $200,000 per year
Manages large-scale projects, ensuring they are completed on time, within scope, and on budget. Plays a critical role in ensuring project success and alignment with strategic objectives, directly affecting the company’s efficiency.
Requirements:
- Bachelor’s degree in Engineering, Business, or related field
- Project Management Professional (PMP) certification preferred
- Extensive experience in managing large-scale projects
- Strong organizational and leadership skills
4. Principal Engineer
- Average Salary: $120,000 - $180,000 per year
Provides high-level technical expertise and guidance on engineering projects and solutions. Drives innovation and technical excellence, often leading critical projects and contributing to major advancements in technology.
Requirements:
- Bachelor’s or Master’s degree in Engineering
- Deep expertise in a specific engineering discipline
- Proven experience in leading complex engineering projects
- Strong analytical and technical problem-solving skills
5. Product Manager
- Average Salary: $110,000 - $170,000 per year
Defines product vision and strategy, manages development processes, collaborates with cross-functional teams, and oversees market analysis and performance. Directly influences the success of products in the market, affecting revenue and customer satisfaction.
Requirements:
- Bachelor’s degree in Business, Engineering, or related field
- Experience in product management, preferably within the capital goods sector
- Strong understanding of product lifecycle management
- Excellent communication and strategic planning skills
6. Sales Director
- Average Salary: $120,000 - $180,000 per year (plus bonuses and commissions)
Develops and executes sales strategies, leads teams, manages key client relationships, and drives revenue growth. Essential in generating sales and revenue, shaping company growth, and building long-term client relationships.
Requirements:
- Bachelor’s degree in Business, Marketing, or related field
- Extensive experience in sales management and strategy
- Proven track record in achieving sales targets and managing large teams
- Strong negotiation and relationship-building skills
7. Operations Manager
- Average Salary: $100,000 - $150,000 per year
Oversees day-to-day operations, optimizes production processes, manages operational staff, and ensures compliance with safety and quality standards. Enhances operational efficiency and effectiveness, impacting overall productivity and cost management.
Requirements:
- Bachelor’s degree in Operations Management, Engineering, or related field
- Experience in manufacturing or production management
- Strong understanding of operational processes and efficiency improvements
- Excellent leadership and problem-solving abilities
8. Systems Architect
- Average Salary: $110,000 - $160,000 per year
Designs and integrates complex systems, develops architecture frameworks, and ensures technical solutions align with business requirements. Critical in shaping the technical infrastructure and ensuring system solutions meet organizational needs and performance standards.
Requirements:
- Bachelor’s or Master’s degree in Computer Science, Engineering, or related field
- Extensive experience in designing and implementing complex systems
- Strong knowledge of system architecture principles and practices
- Proven ability to manage technical projects and collaborate with multiple teams
9. Financial Analyst (Senior/Lead)
- Average Salary: $90,000 - $140,000 per year
Analyzes financial data, prepares reports, forecasts trends, and supports budgeting and investment decisions. Provides critical insights that guide strategic decision-making and influence company financial health.
Requirements:
- Bachelor’s degree in Finance, Accounting, or related field (CFA or CPA preferred)
- Extensive experience in financial analysis and reporting
- Strong analytical skills and proficiency in financial modeling
- Ability to interpret complex financial data and provide strategic insights
10. Automation Engineer
- Average Salary: $85,000 - $130,000 per year
Develops, tests, and maintains automation systems, and troubleshoots issues. Enhances productivity and operational efficiency by implementing automation solutions, reducing manual effort, and optimizing processes.
Requirements:
- Bachelor’s degree in Engineering, Computer Science, or related field
- Experience in designing and implementing automation systems
- Proficiency with automation tools and technologies
- Strong problem-solving skills and attention to detail
Entry-level jobs in the capital goods industry
1. Manufacturing Technician
- Average Salary: $40,000 - $50,000 per year
Operates machinery, assists in the production process, performs quality checks.
Requirements:
- High school diploma or GED
- Technical certification (preferred)
- Basic mechanical skills and familiarity with tools
- Attention to detail and ability to follow procedures
2. Mechanical Engineer (Junior)
- Average Salary: $60,000 - $75,000 per year
Assists in designing, testing, and improving machinery and equipment.
Requirements:
- Bachelor’s degree in Mechanical Engineering or related field
- Knowledge of CAD software (e.g., AutoCAD, SolidWorks)
- Strong problem-solving and analytical skills
- Internship or relevant experience (preferred)
3. Quality Control Inspector
- Average Salary: $35,000 - $45,000 per year
Inspects products and materials for defects, ensuring they meet industry standards.
Requirements:
- High school diploma or GED
- Training or certification in quality control (e.g., Six Sigma, ISO standards) is a plus
- Keen attention to detail
- Basic understanding of measurement tools (e.g., calipers, gauges)
4. Logistics Coordinator
- Average Salary: $40,000 - $55,000 per year
Manages supply chain operations, coordinates shipments, and tracks inventory.
Requirements:
- Bachelor’s degree in Supply Chain Management, Business, or related field (preferred)
- Strong organizational skills
- Proficiency with logistics software (e.g., SAP, Oracle)
- Excellent communication and problem-solving skills
5. Sales Representative (Industrial Equipment)
- Average Salary: $45,000 - $60,000 per year (with potential commissions)
Sells machinery and equipment to businesses, assists in client relationship management.
Requirements:
- Bachelor’s degree in Business, Marketing, or related field (preferred)
- Strong communication and negotiation skills
- Technical understanding of the products (training often provided)
- Previous sales experience (a plus)
6. CNC Machine Operator
- Average Salary: $38,000 - $50,000 per year
Operates CNC (Computer Numerical Control) machines for precision manufacturing.
Requirements:
- High school diploma or GED
- Technical training in CNC operation (certification preferred)
- Ability to read blueprints and technical drawings
- Precision and attention to detail
7. Entry-Level Project Coordinator
- Average Salary: $45,000 - $55,000 per year
Assists in managing engineering and production projects, coordinates timelines and resources.
Requirements:
- Bachelor’s degree in Business, Engineering, or Project Management
- Strong organizational and multitasking skills
- Familiarity with project management software (e.g., MS Project, Asana)
- Good communication and teamwork abilities
8. Welder/Fabricator
- Average Salary: $35,000 - $48,000 per year
Assembles and welds metal parts for machinery or infrastructure.
Requirements:
- High school diploma or GED
- Welding certification (e.g., AWS Certified Welder)
- Proficiency in various welding techniques (e.g., MIG, TIG)
- Ability to read blueprints and specifications
9. Supply Chain Analyst (Junior)
- Average Salary: $50,000 - $60,000 per year
Analyzes data to improve procurement, logistics, and inventory processes.
Requirements:
- Bachelor’s degree in Supply Chain Management, Business Analytics, or a related field
- Strong analytical and data interpretation skills
- Proficiency in Excel and data management tools (e.g., Tableau, SAP)
- Internship or relevant experience (preferred)
10. Production Planner
- Average Salary: $45,000 - $55,000 per year
Develops production schedules, coordinates materials, and resources for efficient operations.
Requirements:
- Bachelor’s degree in Operations Management, Industrial Engineering, or a related field
- Strong organizational skills and attention to detail
- Experience with ERP systems (e.g., SAP, Oracle)
- Good communication skills and ability to handle tight deadlines
Is capital goods a good career path?
A job in the capital goods industry can be highly rewarding, but its suitability depends on various factors including personal interests, skills, and professional goals.
Below is a breakdown of why a career in capital goods might be a good choice, along with potential considerations.
Pros:
- High earning potential. The sector offers competitive salaries and opportunities for advancement, especially for specialized roles and senior positions.
- Diverse opportunities. Careers in this field span various fields such as engineering, project management, operations, and sales, providing diverse professional paths.
- Impactful work. Employees in capital goods contribute to major projects and infrastructure, influencing construction, energy, and transportation.
- Innovation and technology. The industry often involves working with cutting-edge technology and innovative solutions, which can be exciting and rewarding for those interested in technological advancements.
- Global opportunities. Many companies operate internationally, offering opportunities to work in different countries and experience diverse cultures.
- Stability. Capital goods is a fundamental industry supporting essential infrastructure and industries, which can offer job stability even during economic downturns.
Cons:
- Complexity and responsibility. Roles can be complex and come with significant responsibility, which can be demanding and stress-inducing.
- Industry cyclicality. The sector can be cyclical, influenced by economic fluctuations and industry-specific downturns, which can impact job security and growth.
- Long hours. Certain positions, especially in project management and operations, may require long hours and involve high-pressure situations.
- Specialization required. Many high-paying roles require specialized skills and extensive experience, which can involve significant investment in education and professional development.
- Geographic limitations. Jobs in this sector might require relocation to access the best opportunities.
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FAQ
- Do I need a degree to enter the capital goods industry?
- Not necessarily. Some roles require a bachelor’s degree (e.g., engineering positions), while others may only need a high school diploma and technical training (e.g., CNC operator, welder).
- What are the growth opportunities in this sphere?
- The industry offers clear career paths advancing from technician or junior engineer to senior positions, project management, and specialized roles like R&D or quality assurance.
- Which certifications can enhance my job prospects?
- Useful documents include Six Sigma, CNC machining or welding certifications (AWS), and engineering licenses (e.g., FE/EIT for engineers).
- What industries hire capital goods professionals?
- Key sectors include manufacturing, construction, aerospace, automotive, energy, and logistics.
- Are there opportunities for remote work in this industry?
- While remote work is limited, certain roles like project management, sales, and some engineering tasks can be done from home.
Conclusion
In summary, capital goods jobs offer a range of salaries depending on specific roles, industries, and geographic locations.
While entry-level positions might start at a lower rate, experienced professionals and those with specialized skills can command higher wages.
Understanding these variations can help job seekers and career changers make informed decisions about pursuing a job in the capital goods industry.
