SelectUSA Machinery and Equipment Industry
Industry Overview
The machinery and equipment industry is one of the largest and most competitive industries in the United States. The industry includes a wide range of subsectors such as machinery, electrical equipment and appliances, and computer and electronic products, which include semiconductor manufacturing. In 2024, machinery and equipment manufacturing accounted for 20 percent of manufacturing value added.
The industry employs a significant number of workers in the United States. According to SelectUSA’s Cluster Mapping dashboard, SelectUSA’s interactive, and data-driven tool designed for investors, companies, and economic development organizations to identify industry concentrations across the United States at the state and county level, the production technology and heavy machinery industry cluster employs more than one million individuals. Illinois, Michigan, Oklahoma, Texas, and Wisconsin have a high employment share and a high concentration of employees compared to the nation as a whole in the production technology and heavy machinery industry cluster. Meanwhile, the information technology and analytical instruments industry cluster employs more than 1.6 million individuals. California, Massachusetts, Oregon, Texas, and Washington have a high employment share and a high concentration of employees compared to the nation as a whole in the information technology and analytical instruments industry cluster.
The economic impact of machinery and equipment manufacturing reaches across the U.S. economy. The industry provides essential and sophisticated technology for many other manufacturing and service industries. Industrial process controls and other automation technologies enable end-users to maximize the productivity of their equipment. Sales of many types of machinery are accompanied by a variety of high-value services as well, including specialized architecture, engineering, and logistics.
The industry also plays a major role in international trade. Machinery ranks as one of the top exporting industries in the United States. In 2024, the United States exported machinery valued at $297 billion, accounting for about 9 percent of total U.S. exports.
The U.S. semiconductor industry, which is part of the computer and electronic products subsector, has dominated the global market since 1997. In 2024, the U.S. semiconductor industry accounted for 50 percent of global semiconductor sales revenue.
The U.S. semiconductor manufacturing industry is experiencing significant growth and investment driven by government policies and increasing demand for advanced technology. In recent years, companies in the semiconductor ecosystem have announced over a half-trillion dollars in private sector investments to revitalize the U.S. semiconductor manufacturing ecosystem.
According to SelectUSA’s Cluster Mapping dashboard, SelectUSA’s interactive, and data-driven tool designed for investors, companies, and economic development organizations to identify industry concentrations across the United States at the state and county level, the semiconductors industry subcluster, which belong to the information technology and analytical instruments industry cluster, employs more than 145,000 individuals. Arizona, California, Idaho, Oregon, and Texas have a high employment share and a high concentration of employees compared to the nation as a whole in the semiconductor industry subcluster.
The United States also leads in semiconductor design, research and development (R&D), and process technology. In 2024, the U.S. semiconductor industry invested 18 percent of revenue on R&D, more than any other country’s semiconductor industry.
The industry also continues to be one of America’s top and growing exports. In 2024, exports of semiconductors totaled $57 billion, a 13 percent increase compared to the previous year.
Explore the impact of foreign direct investment on U.S. jobs, exports, and innovation in the machinery and equipment industry.
The Investor Guide is a high-level view of everything from taxes to immigration and workforce to business structures.
SelectUSA has created several dashboards to help analyze key FDI data from a variety of sources.
