Fortunes in Capital Goods Industry Are Tied to Economic Growth, According to a New Report by Global Industry Analysts, Inc.

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Capital goods industry is heavily reliant on general business cycles, economic conditions, interest rates, technology upgrades, government laws and policies and consumer purchasing power. The rising demand for new machinery in agriculture, construction, food processing and packaging, particularly in developed nations such as Asia has increased the demand for capital goods as a whole.

Capital Goods: A Global Outlook

Capital goods include buildings, factories, machinery, tools, and equipment, which are used in producing goods and services. Demand for capital goods is generally tied to general economic development, evolving industry standards, technological change and changing customer requirements. The rapid pace of industrialization and economic success of the developing nations such as Asia has inspired growth in global capital goods market.

Capital goods industry derives substantial sales from cyclical industries including construction and mining machinery, agriculture/farm implements machinery, packaging machinery, printing machinery, textile machinery and welding machinery. Construction equipment sector is highly cyclical and capital-intensive where the demand for construction equipment is directly proportional to the need for construction and building activity. Economy, highway funding, housing starts, steel & energy costs are among the vital factors influencing construction equipment business. As developing economies such as Latin America, Asia and eastern/central Europe are investing heavily in infrastructure development there is significant increase in the demand for construction machinery to construct highways, oil refineries, power plants, office buildings, and other infrastructure projects.

Growth in farm size and increased mechanization are driving the agricultural equipment sector in sophisticated and mature markets worldwide, such as the US, Canada, Europe, and Australia. The total number of farms and unit sales of agricultural machinery are declining concurrently with increased acreage on farms, with larger size and capacity of machinery fueling this trend. As a result, these markets mostly tend to promote replacement sales rather than new ones, with the new machinery replacing the less powerful and less productive older models.

Globally, capital goods industry is subject to numerous stringent environmental laws and regulations concerning emission and disposal of waste materials. The Clean Air Act of 1990 forced corporations and governments at all levels to make substantial investments for undertaking waste management and pollution control measures.

The report titled "Capital Goods: A Global Outlook" provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. Richly laden with 62 quantitative analytical tables, the report provides a rudimentary statistical prelude to the global, and, in particular, the US Capital Goods industry. The summarized global market discussion offers a recapitulation of all recent mergers and acquisitions. Regional markets briefly summarized and abstracted include the US, Europe, France, Germany, United Kingdom, Spain, China, India, New Zealand, South Africa, and Argentina, among others. The abstracted regional market discussions provide a prelude to these markets. The report also includes an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 1,331 companies worldwide.

For more details about this research report, please visit
http://www.strategyr.com/Capital_Goods_Industry_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs more than 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of more than 60,000 smaller research products including company reports, market trend reports and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
Telephone 408-528-9966
Fax 408-528-9977
Email press @ StrategyR.com
Web Site http://www.StrategyR.com

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