Is capital goods a good career path?
This is a question many people ask themselves when they first look at the career options available to them. Choosing a career path is obviously one of the most important decisions in a person’s life.
The numerous career options have made it both challenging and easy for people entering the workforce to choose from.
Many people weigh the pros and cons but don’t necessarily find themselves advancing past basic tasks in their current positions.
In this post, we will be discussing what are capital goods, jobs in the capital goods sector, examples of capital goods, and a lot more.
What are Capital Goods?
There are two types of goods, capital goods, and consumer goods. Consumer goods are final goods that the end customer uses. Consumer goods can refer to either goods or services and can be durable or nondurable.
Capital goods are defined as palpable items that are manufactured, these manufactured goods, these manufactured goods are afterward used to produce a consumer good or final product.
If an item is bought by a consumer, it is not a capital good but if that same item is bought by a company, for the sole purpose of producing other goods and services then it is referred to as capital goods.
For example, a washing machine that is purchased by a consumer is not a capital good. But a computer that is purchased by a drycleaning firm for the purpose of rendering laundry services, is now a capital good.
Industries in Capital Goods
The capital goods sector consists of various industries that help other businesses. These businesses produce products and services for the end consumer.
In this section of this article, we will focus on some of the industries that make up the capital goods sector.
- Chemical Industry
The chemical industry uses chemicals to produce products like adhesives, paints, detergents, soaps, etc.
These industries use raw materials and natural resources like water, oil, minerals, and natural gas to manufacture end products.
- Automotive Industry
The automotive industry refers to industries that manufacture vehicle parts instead of dealers and salesmen who sell them.
The electronic industry is the largest sector in the capital goods sector. It comprises semiconductors, telecommunications, industrial, and consumer electronic goods. Parts supplied by electric companies are used to produce an electronic device.
- Steel Industry
The steel industry produces and recycles steel scrap and steel products. Steel is a crucial building material and is highly sought-after for many uses.
- Machinery Industry
The machinery sector manufactures large machines and equipment and supplies equipment to other companies. Typically, the general public does not purchase these items.
- Textile Industry
Textiles provide cotton, wool, and nylon fabrics as well as coloring agents like dyes that are used as raw materials by the clothing industry.
Jobs in the Capital Goods Sector
The question – is capital goods a good career path can be answered better by looking at some of the jobs available in this sector. These jobs are commonly in the manufacturing sector. This sector consists of the production of new products from raw materials or assembly components.
You may be wondering how many jobs are available in the capital goods sector. The great news is that because there are various sub-sectors in this sector, there are many job opportunities.
The capital goods industry employs almost 6 million people, accounting for 13% of total employment in the US. The US bureau of statistics shows that capital goods will expand by 6% by 2026.
Below are the lists of jobs
1. Manufacturing Engineer
This team of engineers works in the manufacturing sector, and their major duty is to make sure that everything runs smoothly in the manufacturing of products.
Manufacturing Engineer requires a set of skills and qualifications such as
- Problem-solving skills.
- Good information technology skills
- Ability to work well under pressure.
- Leadership skills.
- Teamwork skills.
- Excellent communication skills.
- Knowledge of equipment for purchase, installation, and repair.
- Commercial awareness.
The average salary for Manufacturing Engineers as reported by Payscale is $71,980/year.
2. Electrical Engineer
It is the role of electrical engineers to design, develop, test, and oversee the production of electrical equipment, such as electric motors, radar and navigation systems, communications systems, or equipment used to generate electricity.
Additionally, they are involved in designing electrical systems for cars and airplanes. The typical annual income for electrical engineers is $78,016. However, the highest limit may exceed $200k annually.
One of the industries where you can discover such a rich offer is the capital goods industry, which offers some of the most lucrative electrical engineering positions available.
3. Quality Control Manager
To make sure that products adhere to quality and efficiency standards, a quality control manager is in charge of managing employees and overseeing product development processes. To make sure the finished products meet their requirements and specifications, the quality control manager also works with clients.
A quality control manager makes an average of $72,175 a year in the US.
4. Business Development Manager
In a typical capital goods company, the job duties of business development managers include planning, managing, and coordinating business development activities.
- Pursuing leads and moving them through the sales cycle.
- Setting goals and developing plans for business and revenue growth.
- Researching prospective accounts in target markets.
- Researching, planning, and implementing new target market initiatives.
According to Payscale, the average salary for a Business Development Manager is $75,544.
5. Marketing Manager
For capital goods businesses, marketing managers are in charge of implementing, putting into action, and carrying out strategic marketing plans that will draw in potential customers and keep old ones happy.
They often have a degree in marketing or a closely related discipline, as well as several years of relevant work experience. As of February 2022, the US average income for a marketing manager is $109,831.
6. Sales Engineer
For businesses in the capital goods sector, sales engineers have a specialty in high-tech and scientifically developed products.
Sales engineers utilize their technical expertise to portray the advantages of their product or service compared to those of their competitors and also to explain to potential clients the advantages of their products or services.
The average annual salary for sales engineers is $74,250.
7. Senior Mechanical Engineer
One of the highest paying positions in the capital goods sector is this one. However, a candidate needs to have roughly 10 years of experience to land a job and function in this area.
The development, design, construction, testing, and inspection of mechanical systems and devices, such as machines, tools, and engines, fall within the purview of a senior mechanical engineer.
Because mechanical engineering is such a broad field, they work in a variety of different industries designing a wide range of products. Senior mechanical engineers in capital goods make an average of $110,000 a year.
A senior mechanical engineer may earn more than $200k annually. Some of the highest paying careers in the world are in the field of mechanical and electrical engineering.
8. Industrial Designer
Industrial designers are in charge of creating the concepts for produced goods including toys, gadgets for the home, and cars, among other things. They blend business, engineering, and the arts to produce goods that are pleasing to the eye.
To be successful in this position in terms of capital goods, one needs a college degree in industrial design and some years of work experience. The average pay for an industrial designer is $60,832, according to Payscale. According to Indeed, the average yearly wage for an industrial designer in the US is $68,653.
9. Research and Development Manager
Manager of research and development is another well-paying and desirable position in the capital goods sector. Their primary duty is to manage and oversee the research and development (RD) projects in order to meet organizational needs and profit from prospective new goods.
Additionally, they develop and put into implementation RD procedures. According to Salary.com, the average Research and Development Manager salary in the United States is $144,880 as of 2022. However, it typically ranges between $126,187 and $166,452.
10. Engineering Managers
The capital goods industry’s highest-paid employees include engineering managers. Planning, leading, and coordinating engineering activities within a corporation are the primary responsibilities of an engineering manager.
If working in capital goods is your desired job, then start getting ready for the basic requirements. For people with engineering degrees and several years of working experience, the post is highly reserved.
The engineering Manager’s responsibility includes:
- Manages staff and assigns tasks to engineering and technical personnel.
- Leads teams in the development of new products, solutions, and processes.
- Designs, implements, and refines product development, testing, and manufacturing processes.
- Oversees project logistics and resource allocation.
The average salary of an engineering manager in the United States is $137,956 as of February 25, 2022
Pros of capital goods career
If you’re considering a job in capital goods, you might want to find out more about the benefits of this sector. Here are some of the key benefits of working in capital goods, which should encourage you to apply.
To help you become the best employee you can be, these companies often provide exceptional training and perhaps even mentorships.
For those that put in the effort and develop their talents, growth possibilities in larger firms are often accessible. An individual can move from an entry-level production role to a leadership position like plant operator or quality control manager.
Many jobs in the capital goods sector do pay more than the national average. Even people without degrees may be able to find work paying more per hour than other jobs.
Apart from a relatively good salary in this sector, a lot of companies in this sector provide additional benefits like dental insurance, parental leave, health and disability insurance, and many more.
Cons of Capital Goods career
It is important to know the disadvantages of a capital goods career.
Many jobs in the capital goods industry do call for specific knowledge. Even while certain jobs may not require advanced degrees, having strong technical skills is still advantageous.
These jobs are not for people who prefer to relax. Most jobs in this sector require a lot of movement and standing for most of the day.
The necessity for humans to perform the labor can be reduced because of technological and automation advancements, particularly for those without a formal education.
Regarding learning and finances, it can be difficult to keep up with the rapidly evolving technologies.
Notwithstanding all the disadvantages listed above, the capital goods sector is a fantastic option for any talented person.
Is Capital Goods a Good Career Path?
Most definitely! Young professionals who wish to progress in their careers and stay current while earning stable incomes will find the capital goods sector to be exciting.
What Companies are in the Capital Goods Industry?
If you’re looking for a job in the capital goods sector, you have a lot of great possibilities. Here’s a list of top companies in the capital goods sector.
- Union Pacific (UP)
The company ships goods such as food, cars, coal, agricultural items, and chemicals in a timely and safe manner.
- General Electric (GE)
In the fields of power, renewable energy, aviation, and healthcare, GE has long been a pioneer. Today, GE is the industry leader in the delivery of solutions for data analytics, materials science, and additive manufacturing.
- United Rental Inc. (URI)
With sites in 49 states and eleven Canadian provinces, United Rentals has the greatest retail network of any other provider and is the largest equipment rental firm in the world.
- Boeing (BA)
It is a multinational firm based in the United States that develops, produces, and markets aircraft, helicopters, rockets, satellites, telecommunications gear, and missiles on a global scale.
- Caterpillar Inc. (CAT)
is an American Fortune 100 company that uses a global dealer network to create, develop, build, produce, market, and sell machines, engines, financial products, and insurance to clients.
- ABB (ABBN)
is a top global technology business that drives social and industrial change for a more prosperous and sustainable future.
- Northrop Grumman (NOC)
Northrop Grumman is a global aerospace and defense technology company based in the United States.
- Ford Motor Company (F)
is a global American automobile manufacturer with its headquarters in Dearborn, Michigan. The company sells cars and trucks under the Ford brand, as well as luxury vehicles under the Lincoln luxury brand.
- Lockheed Martin (LMT)
It is an American firm with interests across the globe in aerospace, weaponry, defense, information security, and technology.
- Honeywell International (HON)
is an American global conglomerate firm that is publicly traded with its headquarters in Charlotte, North Carolina. Aerospace, building technologies, performance materials and technology, and safety and productivity solutions make up its four main business sectors.
The majority of companies in the capital goods sector give their employees’ welfare a lot of consideration. Capital Goods are therefore regarded as a promising job choice for young workers.
If you desire to work in the capital goods industry, you might find that manufacturing, construction, and technical advancement are your passions.
Finally, in order to succeed in your job as a capital goods specialist, you must possess a number of skills, including outstanding communication skills, a desire to achieve results, curiosity, courage, and confidence.
Hope this post was helpful in answering your question – Is capital goods a good career path?