Is Capital Goods a Good Career Path in 2022?

Is Capital Goods a Good Career Path?

If you’re looking for a career path that will help you earn a good income, one option you can explore is working in the field of capital goods.

Everyone knows that a career in the sciences can be a great way to jumpstart your future. The challenge is figuring out which field is right for you.

The world of capital goods can be intimidating. After all, capital goods are large and established companies that supply the world with everything from household appliances to aircraft engines.

Capital goods industries produce equipment that businesses use to manufacture products. These manufacturers of finished goods include everything from electronics manufacturers and automobile companies down to small home-based businesses and chains like Walmart or Home Depot.

They’re also big businesses—they make up nearly 40% of the manufacturing industry in the US alone. That means there’s a lot to know about working as a member of this industry, but it doesn’t have to be scary.

In this blog post, we’ll cover some basic information about what it means to work as a capital goods professional, and whether or not this career path is for you.

What Is the Capital Goods Industry?

The term “capital goods” refers to products like machinery, vehicles, machinery, and equipment that businesses use to generate revenue. These products are widely available to consumers, but their primary purpose is to generate profit for businesses.

In the United States alone, the capital goods industry employs roughly 9.7 million people and contributes an annual economic output of nearly $1 trillion. The industry also has a large impact on society.

While the majority of products in this category are for domestic use, many are used to generate electricity and run complex machinery in manufacturing processes.

Examples of these products include aircraft engines, heavy machinery like mining equipment, and power generation equipment.

Read: How Many Jobs Are Available in Consumer Non-Durables? 2022

Career Paths in Capital Goods Industry?

If you’re interested in finding a path that will help you earn a good income while staying in one place, you may want to consider a career in the field of capital goods.

The best way to get a better idea of what it means to work in this industry is to look at the types of companies that make up the constituents of the capital goods industry.

The largest companies in the field of capital goods are manufacturers. These are companies that create finished products, like electronic devices and vehicles.

The second largest industry in this field is construction and engineering. These companies are focused on designing and building infrastructures like roads, bridges, and buildings.

The third-largest industry is agriculture. These companies make equipment like tractors, harvesters, and even fertilizer applicators.

The capital goods industry is made up of many different types of jobs. The most common jobs are machinery engineers, transportation engineers, construction managers, and process manufacturing engineers.

Other job types include maintenance engineers, production engineers, materials scientists, purchasing managers, and sales managers.

Working Conditions in the Capital Goods Industry

One of the big draws of working in the capital goods industry is that you’ll be working outdoors in a variety of different environments.

Whether you end up working in an electronics factory or a manufacturing plant that makes construction equipment, the work you do will involve working in an outdoor environment. Depending on the industry you work in, you may also work indoors at some point during the workday.

Working in the capital goods industry can be demanding, but it doesn’t pose any inherent dangers. Working conditions can vary depending on your employer, but they’re generally safe.

How Much Do Workers in Capital Goods Earn?

This is a bit tricky because wages vary by job type and location. But, in general, workers in the capital goods industry make an average of $86,000 per year. This is a relatively high pay compared with most jobs, but it’s a high salary within the manufacturing industry.

On the other hand, wages are lower than many other career paths that require a college education. Workers in this industry can earn more by pursuing a four-year degree, but they can also earn a higher salary without a degree by becoming certified.

Highest Paying Jobs in Capital Goods

If you’re interested in finding a path that can help you earn a good income, you may want to pay attention to the highest-paying jobs in the field of capital goods. These are the areas where you can expect to see the highest salaries in this industry.

Chief Executive Officer in Manufacturing: Salaries in this industry vary significantly, and the best salary you’ll see is a little over $200,000 per year. However, the top-earning chief executives in this industry are earning upwards of $300,000 per year.

Director of Engineering in Manufacturing: This is one of the highest-paying engineering fields in the nation. The salary is a little under $120,000 per year, but the highest-paid directors in this industry are earning upwards of $200,000 per year.

Chief Financial Officer in Manufacturing: This is a lower-paying job in the capital goods industry, but it comes with the best salary in the nation. The top salary in the industry is over $192,000 per year.

Vice President of Marketing in Manufacturing: This is another low-paying job in the capital goods industry, but it comes with the second-best salary in the nation—$120,000 per year.

Senior Vice President of Finance in Manufacturing: The best salary in this industry is just under $200,000 per year.

Director of Operations in Manufacturing: The salary for this job is just over $120,000 per year. This is a lower-paying job in the industry.

Education & Certification for Capital Goods Professionals

If you want to work in the capital goods industry, you’ll need to understand some basics about the products you’re selling. To do this, you’ll likely want to earn a degree in a related field, such as engineering. You may also want to get certified in a specific area so that businesses know you’re an expert in your field.

Certification programs, which are offered by professional organizations and industry associations, are usually available through community colleges. Certification can improve your job opportunities and pay in the capital goods industry because employers prefer to hire certified professionals.

To get certified in the capital goods field, you’ll take exams that cover topics like materials science, manufacturing processes, process controls, and more. You’ll need to study for these exams and pass them to earn certification.

Pros of Working in Capital Goods

You Will Make a Good Income

If you want to make a good income without a ton of effort, working in the capital goods industry is for you. These businesses rely on healthy revenues to stay afloat, so it’s in their best interest to keep costs low and maintain strong profit margins. As a result, there are always opportunities for employees to make good wages.

Variety in Work

Similar to the way that works in the sciences is diverse, work in the capital goods industry is diverse as well. Depending on your employer, you can be working in a wide array of disciplines. For example, you might be working as an engineer in a company that makes household appliances, but you might also be working in the finance department of a major corporation.

Work With High-Tech Equipment

In addition to working with equipment that makes things, like manufacturing plants or construction equipment, you may also work with high-tech equipment. Some of the equipment that you’ll work with within the capital goods industry is highly advanced, and you may be among the first people in the world to work with it.

Cons of Working in Capital Goods

Dangerous Work

Like any industry, the work in the capital goods industry can be dangerous. Working with hazardous materials, for example, can be dangerous. A good way to keep yourself safe is to work in a controlled environment and wear proper safety equipment.

Long Hours

The nature of the work in the capital goods industry makes it demanding. In fact, the American Society for Industrial Engineering once said that the work in the industry is more demanding than that of an astronaut. That means you’ll be expected to work long hours, and you’ll be expected to work hard.

Low Job Security

The nature of work in the capital goods industry means that a good amount of jobs are susceptible to being outsourced to other countries. This can mean that a layoff could be permanent, and you could be out of a job at any time.

Career Path May Not Be Rapid

In the world of high-tech innovation, the path to fortune can be a quick one. Even the most successful companies can go bust in a few years. On the other hand, it can take decades for a company to grow large enough to be considered a capital good.

Final Words

Overall, the work in the capital goods industry can be rewarding, but it also comes with a lot of challenges. Weighing these against the benefits and disadvantages, it seems likely that the work in this industry will be rewarding.

The capital goods field is a big and established industry with a ton of responsibility and innovation. But it doesn’t have to be an intimidating field to get into. By gaining a solid understanding of the industry and its products, you can get started on the path to a rewarding career. That said, it may be worth taking a look at the industry to see if it’s right for you.

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