Many people are wondering, “Is capital goods a good career path” at this time. The economy is unstable, so it’s difficult to tell which careers will be popular in the future. Capital goods are a solid option to consider. This sector is set to experience significant expansion shortly, and there are numerous growth opportunities.
This post will discuss “Is capital goods a good career path” and the advantages and disadvantages of working in capital goods.
What are Capital Goods?
Capital goods refer to durable goods used to produce other goods or services. They are not consumed immediately like consumer goods; instead, they are used in the production process. Machinery, tools, buildings, vehicles, and other equipment are all capital goods.
Capital goods are utilized in manufacturing, agriculture, mining, and other industries. Unlike consumer goods, capital goods are rarely consumed by households directly. They have a longer lifespan than consumer goods.
Capital goods are crucial to any economy and play a significant role in economic development. Capital goods may be either new or utilized. New capital goods are known as Fixed Capital Formation (FCF), whereas used capital goods are known as durable equipment.
Capital goods are necessary for businesses to expand and produce more goods. Interest rates, inflation, and economic growth are some factors that affect the demand for capital goods.
Before learning about our topic- “Is capital goods a good career path,” let’s look at the examples of capital goods.
Example of Capital Goods
- Machinery: This can include everything from industrial robots to machine tools.
- Buildings: This can include office buildings, warehouses, factories, warehouses, and retail stores.
- Vehicles: These can have cars, buses, trucks, trains, and boats.
- Tools: This can consist of hand tools, power tools, and computer equipment.
- Natural resources: This can include land, water, minerals, and timber.
These are just a few examples of capital goods. In reality, nearly any physical asset can be considered a capital good.
Is Capital Goods a Good Career Path?
Certainly YES! The capital goods field is a great career choice if you want to work in an industry that will grow continuously.
The sector will benefit from technological advancements as time passes. For example, lithium will be in high demand as the automobile industry transitions to electric vehicles. Semiconductor chips will be in need as they become more prevalent in the cellphone and automobile industries.
In the capital goods sector, workers with specialized knowledge and abilities have the opportunity to find work, as well as job security. As technology improves, automation increases, and the capital goods industry expands, this industry will not falter.
Therefore, the answer to your question, “Is capital goods a good career path” is simply yes.
Why is a Career in Capital Goods a Great Path?
The capital goods industries offer an excellent career path for anyone interested in manufacturing, engineering, or business.
Here are a few reasons why a career in capital goods is a great path:
#1. The capital goods sector is vital to the economy
Businesses cannot function without capital goods like machines, equipment, and structures used to produce other goods and services. Therefore, the capital goods industry critically supports the economy.
#2. The capital goods sector offers job security
Businesses must have capital goods to operate, and this need will always result in high demand for these items. That means people who work in this sector will always be necessary and have good job security.
#3. The capital goods sector offers higher wages
Capital goods jobs are well-paid due to the nature of the work and the skills required. Because of this, a capital goods career can provide a decent standard of living.
#4. The capital goods industry is growing
The demand for capital goods will expand as the global economy grows. Those looking to enter the industry or advance their career should seize this opportunity. Working in the capital goods sector provides excellent learning about economics. Knowledge of how the economy operates may help you in other areas, including the stock market or real estate.
The image below shows the demand for capital goods.
What do Capital Goods Jobs Pay?
To know Is capital goods a good career path, it is essential to learn what capital goods jobs pay.
The capital goods sector offers a range of occupations. What capital goods jobs pay depends on various factors like experience, qualifications, skills, etc. An assembler earns $26,000 annually (however, the average salary for an assembler is $31,000 annually).
The quality control inspector, an entry-level job in the capital goods industry, pays $30,000 annually at the very least and as much as $50,000 for experienced individuals.
On the other hand, software designers earn more than $100,000 annually, while the highest-paid mechanical engineers earn over $120,000 annually.
What are the Industries in Capital Goods?
Capital goods comprise a wide range of industries. These businesses provide the equipment and raw materials that other sectors require to operate. Knowing what enterprises are in the capital goods sector will help us answer -Is capital goods a good career path?
The Chemical industry uses chemicals to create products such as paints, adhesives, detergents, soaps, and many others. Firms also utilize natural products like oil, minerals, water, and natural gas to create end items.
The automotive sector refers to businesses that create vehicle parts rather than dealers or salespeople who sell them.
The electronic sector constitutes the most significant portion of the capital goods sector. This sector comprises semiconductors, telecommunications, industrial, and consumer electronic products.
An electronic device is produced using parts supplied by electric companies.
Steel products and steel scrap are produced and recycled in the steel industry. Because steel is a critical construction material, it is highly coveted for various applications.
The machinery industry produces heavy machines and equipment and supplies other companies with equipment. The public usually does not purchase these items.
Textiles manufacture cotton, wool, and nylon fabrics, as well as coloring substances such as dyes, which the apparel industry uses as raw materials.
What are the Best Paying Jobs in Capital Goods?
Is capital goods a good career path? What are the highest paying jobs in capital goods?
Capital goods jobs can pay up to $100,000 annually with the proper training and experience.
The highest-paying capital goods jobs include Project Manager, Sales Manager, Marketing Manager, Software Developer, and Engineering Manager, among others. The highest ten percent of these Managers earn $135,220, with a median salary of $77,420.
Here is a list of the best-paying jobs in capital goods:
|Capital Goods Careers||Capital Goods Salaries||Minimum Education|
|Engineering Manager||$149,530||Bachelor’s Degree in Engineering|
|Marketing Manager||$141,490||Bachelor’s Degree in Marketing or Advertising|
|Sales Manager||$132,290||Bachelor’s Degree|
|Training and Development Manager||$115,640||Bachelor’s or Master’s Degree|
|Software Developer||$110,140||Bachelor’s Degree in Computer Science|
|Mechanical Engineer||$90,160||Bachelor’s Degree in Mechanical Engineering|
|Electrical Engineer||$103,390||Bachelor’s Degree in Electrical Engineering|
|Industrial Engineer||$88,950||Bachelor’s Degree in Industrial Engineering|
|Project Manager||$88,688||Bachelor’s Degree in Management|
|Business Analyst||$122,000||Bachelor’s Degree in a quantitative field|
|Quality Control Inspector||$40,460||High school diploma or GED|
|Human Resource Manager||$120,000||Bachelor’s Degree in Human Resources|
|Warehouse Worker||$31,519||High school diploma or GED|
|Credit Controller||$166,973||Bachelor’s Degree in Accounting or Finance|
|Customer Service Representative||$40,424||High school diploma or GED|
How many Jobs are Available in the Capital Goods Sector?
The capital goods sector employs almost 6 million people and accounts for 13 percent of all jobs in the United States. Because this sector is so diverse, there are numerous job opportunities available.
Capital goods, including industrial equipment, construction equipment, and trucks, are predicted to grow by 6 percent by 2026, compared to an annual increase of only 0.7 percent in total employment.
Capital goods investment broke records in 2021, bucking the trend of the last economic recession, the Great Recession, when capital goods investments were down. Capital goods expenditures have recovered from the recession, except for the aerospace industry.
This trend towards more technology and expansion has enormous implications for employment. There are over 10.5 million job openings in the U.S., of which 858,000 are in manufacturing.
Even though capital goods investment will boost productivity, overall productivity will be hindered by a labor shortage. As a result, employers will look to hire “new collar” workers, individuals with analytics and automation skills and a more technical skillset than conventional blue-collar or white-collar employees.
The ability to develop specialized, technical skillsets to pursue a career in capital goods is a unique opportunity for up-and-coming job seekers due to advancing technologies.
Pros of a Career in Capital Goods Sector
While wondering Is capital goods a good career path, you may want to learn about the benefits of this sector. Here are some main capital goods jobs advantages that will give you many reasons to apply in this sector.
- Salary. Many of the jobs in capital goods do offer higher than average wages. Even those with no degrees may find jobs with a higher hourly rate than other jobs.
- Benefits. Many companies that offer opportunities in capital goods are some of the biggest in the world. With this, we usually find better than average benefits, including healthcare benefits, life insurance, time off, etc.
- Growth. Growth opportunities in larger companies are often readily available for those that work hard and improve their skills.
- Training. These companies typically offer excellent training and sometimes even mentorships to help you be the best employee you can be.
- Locations. You can relocate anywhere you desire because many of these businesses have locations worldwide.
Above mentioned points are just a few advantages that capital jobs offer.
Cons of a Career in Capital Goods Sector
If you want to gain complete knowledge to your question, “Is capital goods a good career path,” it is essential to notice all the downsides of a capital goods career.
- Injury. Some jobs can be a bit dangerous due to the often used machinery. They can overheat, or you can be injured doing repairs. You must use caution in your day-to-day work.
- Technical. Many of the jobs in capital goods do require specialized skills. While some jobs require no advanced degrees, it is still helpful to have very technical abilities.
- Physical. These jobs are not for those that want to sit back. Most positions will be very active and require standing or moving for much of the day.
- Automation. Technological and automation improvements can minimize people’s need to do the work, especially those without formal education.
- Technology. Keeping up with the ever-changing technologies can be challenging regarding learning and finances.
Despite all the drawbacks mentioned above, the capital goods industry is an excellent choice for every talented individual.
What Companies are in the Capital Goods Industry?
The Capital Goods field offers a wide variety of jobs, and it’s essential to consider various factors before deciding where to work. Compensation, job satisfaction, work-life balance, and company culture are all critical considerations.
Here are some of the best employers in the Capital Goods industry:
- Union Pacific (UP)
- General Electric (GE)
- United Rental Inc. (URI)
- Boeing (BA)
- Caterpillar Inc. (CAT)
- ABB (ABBN)
- Northrop Grumman (NOC)
- Ford Motor Company (F)
- Lockheed Martin (LMT)
- Honeywell International (HON)
To understand this topic further, read our review on “What companies are in the capital goods field? “.
If you want to work in the capital goods business, you might discover your passion for manufacturing and construction, and technological development. Capital goods are a great choice if you want to work in an industry that will experience continuous development.
As technology advances, the capital goods sector will benefit. The capital goods sector provides different opportunities for job seekers with unique skills and knowledge, with job protection as a result.
Hopefully, this guide answers your question, “Is capital goods a good career path.”
What kind of jobs are available in the Capital Goods Sector?
Senior mechanical engineers, sales managers, marketing managers, manufacturing engineers, electrical engineers, quality control inspectors, and industrial engineers are among the jobs in the capital goods sector. A degree in engineering and years of experience are frequently necessary.
What is the career outlook for jobs in the Capital Goods Sector?
Is capital goods a good career path? What is the career outlook in this sector?
The capital goods sector is expected to expand in the coming years, and therefore there will be a demand for employees with the right qualifications and knowledge. Therefore, the career outlook for jobs in the Capital Goods Sector is generally favorable.
What are the tips for applying for jobs in the Capital Goods Sector?
It will help if you emphasize your abilities and credentials when seeking employment in Capital Goods. It is also wise to discover the business you are applying to, ensuring that you are a suitable fit for the position. Finally, don’t be reluctant to bargain for salary and benefits during the hiring process.