Industrial Machinery Sector

The Industrial Machinery sector is an umbrella that includes a range of large and important manufacturing sub-sectors that create end-products and typically employ multiple metal forming processes. Major markets served include agricultural, construction, energy, industrial, infrastructure, mining and transportation and includes:


  • Agriculture, Construction, and Mining Machinery Manufacturing: NAICS 3331
  • Industrial Machinery Manufacturing: NAICS 3332
  • Commercial and Service Industry Machinery Manufacturing: NAICS 3333
  • Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing: NAICS 3334
  • Metalworking Machinery Manufacturing: NAICS 3335
  • Engine, Turbine, and Power Transmission Equipment Manufacturing: NAICS 3336
  • General Purpose Machinery Manufacturing: NAICS 3339


The overall sector support over one million jobs in the US and over 30,000 businesses. Research and development is extremely critical to most Industrial Machinery businesses and role of technology is rising. Some key trends in the sector are:


  • Additive manufacturing (3D printing): is beginning to reduce design-to-manufacturing cycle times and can dramatically alter the economics of production, and can reduce time-to-market
  • Internet of Things: The connected factory uses the internet to link machines, sensors, computers and humans to enable higher levels of information monitoring, collection, processing, and analysis.
  • Robotics: Though the market for automated manufacturing machines has expanded, many experts feel that the widespread use of robotics and unmanned control technologies will not address all productivity concerns. Robotic implementation is evolving on a different path in the U.S. and other mature economies. In many cases, robots are employed to complement rather than replace workers. This concept, known as “cobotics,” teams operators and machines to make complex parts of the assembly process faster, easier, and safer.
  • Augmented reality: Recent advances in computer vision, computer science, information technology and engineering have enabled manufacturers to deliver real-time information and guidance at the point of use. Users simply follow the text, graphics, audio, and other virtual enhancements superimposed onto goggles or real assemblies as they perform complex tasks on the factory floor.
  • There have been important examples of the industry reshoring some previously offshored production.
  • Examples of firms in the sector: Caterpillar, Deere & Company, AO Smith Corp, Lincoln Electric Holdings Inc., Manitowoc Company, Illinois Tool Works, Terex Corp., Astec Industries, Toyota, Samsung Electronics, AGCO Corporation, Alamo Group, Ford, Hewlett-Packard, Hitachi, IBM, Lindsay Corporation, Siemens and General Electric


Merced County is located in a rich sweet spot, being in-between Los Angeles and the Bay Area with easy access to key global logistics assets like the Port of Oakland and Los Angeles.


  • The County offers very easy road and rail access to points north and south, and onward into the US market
  • Merced County’s cost structure is far lower than metropolitan areas
  • The County is a center point for a large commuting skilled labor shed
  • Merced’s leadership has established an extremely business-friendly environment, with easy permitting and low costs for investing businesses.