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Is capital goods a good career path? If you’re considering working in the capital goods industry, then it’s understandable why you want to know if it’s a good career path.

The good news is capital goods manufacturers are always on the lookout for qualified employees. And guess what? These companies typically offer competitive salaries, benefits, and packages.

To drive the point home, we will explore in detail why capital goods is a good career path for graduates. So if you are interested in learning more, keep reading!

What are Capital Goods?

Capital goods are referred to as fixed or tangible assets that are purchased by a business to produce finished products or consumer goods.

In other words, Capital goods are the items companies use to create both durable goods and consumer none durable finished goods and services that they, in turn, offer to their customers.

Examples of Capital Goods

Capital goods come in different types. If you’re looking for a career path in this field, carefully go through its types, as it would help you understand what capital goods are all about.

Machinery
Steel
Textile- that includes cotton, wool, and nylon.
Chemicals- include oils, minerals, natural gases, and so on.
Automotive includes components for bikes, cars, trucks, and other vehicles.
Electronics- semiconductors, industrial, telecommunications, and consumer electronic components.

Is Capital Goods a Good Career Path?: Determining Productive Capacity

Capital goods contribute to the production capacity of companies and the economy. As a result, businesses often spend a lot of money buying them. How much is spent? That’s capital expenditure (CAPEX).

When a firm buys capital goods, it is, therefore, expected of the company to produce more output, which in turn, brings in more income in the future.

Gross investment – the amount of money the company spends on purchasing capital goods. It is another name for capital expenditure.

Net investment – gross investment minus depreciation.

Also, Production capacity increases as long as the net investment is positive. It shows new assets are increasing faster than obsolete assets (depreciating).

Read: What Companies are in the Miscellaneous Field?

What is Capital Goods Industry?

The capital goods industry comprises companies whose revenue comes from manufacturing or distributing industrial equipment and goods for productive purposes.

For example, they manufacture heavy and light equipment, machinery, industrial components, and construction equipment.

Likewise, automobiles, aircraft, and engine manufacturers fall into this category. Their products are then sold and used by other companies to make, deliver and provide goods and services.

The capital goods industry includes various businesses. For example, they may produce items such as:

Cables, electrical wires, components or equipment, electric turbines, and heavy electrical machinery.
Heavy trucks, rolling machines, construction equipment, earthmoving equipment, and agricultural machinery, such as tractors and planting and fertilizing machines.
Industrial machinery and components include presses, machine tools, compressors, elevators, and escalators.
Civil aerospace and military products such as aircraft.

List of Industries in Capital Goods

Chemicals Industry
Electronics Industry
Textile Industry
Machinery Industry
Steel Industry
Automotive Industry
Construction Industry
Energy, Mining, and Utility industry
Aerospace and Defense Industry

Is Capital Goods a Good Career Path?

Certainly, yes! Capital goods offer many opportunities for professionals interested in engineering, design, production, and good pay. If that describes you, this could be a good career path!

In addition, there are several other factors to consider when deciding if capital goods is a good career path.

At the forefront are job availability, high pay, and job satisfaction.

In terms of job availability, capital goods is a field that revolves around the design, production, and distribution of equipment and machinery used in businesses and industries.

So, there’s a massive demand for workers in this field.

Jobs in capital goods also pay pretty well. Depending on your educational qualifications, skills, and experience, you can earn an average of $50,000 – $90,000 per year.

In addition, capital goods is a good career path for those who are passionate about a career in the engineering and production field and who are willing to learn new things and embrace change!

What are the Benefits of Capital Goods?

Capital goods are high-investment products, so they play a significant role in the economy.

The following are the Benefits of Capital Goods namely :

Salary: Most of the jobs in capital goods offer high salaries, which are higher than normal wages. Also, individuals without a degree are sure to find a job with a bit of a higher hourly rate when compared with 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 great training and sometimes even mentorships to help you be the best employee you can be.
Locations: With many of these companies having locations all over the world, there is an opportunity for you to move wherever you would like.

What Degree Do You Need in Capital Goods?

If you are considering a Career in Capital Goods, you require a degree in a certain field.

For example, a college degree in industrial design and some years of experience are required to succeed in a role in capital goods.

Also, you can find degree programs in capital goods at all degree levels, including associate’s, bachelor’s, and master’s degrees. In most cases, you can earn a bachelor’s degree in capital goods in about four years.

However, you’ll need good grades and strong test scores to get into an accredited college or university.

You’ll likely have to take the GRE or GMAT to apply to graduate programs in capital goods. Taking relevant extracurricular activities, volunteer experiences, and internships is also a good idea to boost your portfolio.

Below are sets of degrees you can pursue:

Engineering degree
Chemistry degree
Fashion

Finally, if you want to get high-paying jobs in this industry, getting a bachelor’s degree – or even a master’s – is a smart move.

What Do Capital Goods Jobs Pay in 2023? – (Updated)

Skills Required for Capital Goods

Having Skill sets on a career path is necessary for improvement and enhances positive career results at a later end.

Below are good skill sets that can help you in the Capital Goods sector.

Mathematical Knowledge. Capital markets are completely mathematical.
Knowledge of Economics.
Bottom-Up Analytical skills.
Top-Down Inferential skills.
Programming Knowledge.
Communication Skills.
Discipline.
Good design skills.

What are the Job Prospects for Capital Goods?

The capital goods industry has a lot of career opportunities.

For instance, capital goods jobs are a source of income for thousands of people. Therefore, it is no surprise that a large number of people move to urban regions in search of work in capital goods.

According to statistics, the jobs in the capital goods industry range from 1 million to 2 million.

However, only 200,000 workers are employed as laborers in capital goods. This means a huge demand for workers to fill those other 2.3 million positions.

The capital goods industry has many job opportunities for those working in the fields listed below:

Utility System Installers
Engineering
Advertising and marketing
Product Designers and Designers
Manufacturing
Technology

How Much Can You Make as a Capital Goods Professional?

On average, you can make between $50,000 and $90,000 per year, depending on your education, skills, and experience.

Salary.com statistics show, for example, that an Engineering Manager in the US makes between $123,330 and $155,054 per year.

7 Highly Paid Capital Goods Career Paths for Graduates

Several jobs are available in the capital goods sector, such as sales, manufacturing, distribution, and logistics. These positions require strong communication skills, analytical thinking, and problem-solving abilities.

Here is a list of some jobs available in the capital goods sector.

#1. Assembler

Assemblers assemble products from raw materials into finished goods. They may also perform quality control checks on parts before they are assembled.

15 Best-Paying Jobs in Capital Goods | 2023 – (Updated)

#2. Warehouse Worker

A warehouse worker is responsible for receiving products from manufacturers, storing them, and shipping them out to customers. This job requires physical strength, stamina, and excellent organizational skills.

#3. Quality Control Inspector

A quality control inspector ensures that products meet specifications before they reach customers. They equally test materials, equipment, processes, or finished products.

#4. Industrial Designers

Industrial Designers are a group of designers who work in industrial design. The term was coined by American industrial designer Raymond Loewy and is used to describe people who create products or services with an aesthetic appeal, which can make them appealing to consumers.

How Many Jobs Are Available in Capital Goods in 2023?

#5. Logistics Manager

A logistics manager oversees the flow of products through a company’s supply chain.

Their responsibilities include planning, organizing, directing, coordinating, controlling, and monitoring activities.

#6. Manufacturing Technician

A manufacturing technician works closely with engineers to design products and processes.

They also may test prototypes to ensure they meet quality standards before production begins.

In addition, they may oversee the assembly process flow and check that each product meets specifications.

#7. Manufacturing Engineer

A manufacturing engineer has a wide variety of responsibilities. They may also design new products, oversee production processes, manage inventory, and ensure quality control.

Conclusion

Capital goods is an excellent career choice for some people.

They offer much flexibility since you can work from home and travel when needed.

If you’re looking for a job that will allow you to build wealth over time, this is an ideal choice for a long-lasting career.

Frequently Asked Questions on Is Capital Goods a Good Career Path for Graduates | 2023

What is the Difference Between Capital Goods vs. Consumer Goods

Capital goods are used to create an end product or provide a service.

Consumer goods are finished goods — what a business produces with its capital goods.

How Do Capital Goods Contribute to Economic Growth?

Capital goods is intended to increase labor productivity by making companies more productive and efficient. Newer equipment or factories lead to more products being produced faster.

What Does the Acquisition of Capital Mean?

Acquisition Capital is the capital used to acquire other assets. You use this capital to purchase assets like equipment, inventory, software, or even a business itself.

What are Capital Equipment Companies?

The capital industrial sector is a collection of companies that manufacture or distribute goods. The group of companies includes firms in the aerospace and defense, construction, and engineering sectors.

How Do You Buy Capital Equipment?

Considerations When Purchasing Capital Equipment

Verify that the equipment has a normal life expectancy of more than one year and is not expendable.
Verify that the capitalized cost will exceed $5,000.
Establish the purchase requirements, e.g., installation, warranty, accessories, special training, start-up kit, etc.

FAQs

What is the Difference Between Capital Goods vs. Consumer Goods

Capital goods are used to create an end product or provide a service.

Consumer goods are finished goods — what a business produces with its capital goods.

How Capital Goods Contribute to Economic Growth?

Capital goods is intended to increase labor productivity by making companies more productive and efficient. Newer equipment or factories leads to more products being produced, and at a faster rate.

What does Acquisition of Capital Mean

Acquisition Capital is the capital used to acquire other assets. You use this capital to purchase assets like equipment, inventory, software, or even a business itself.

What are Capital Equipment Companies?

How do you Buy Capital Equipment?

Considerations When Purchasing Capital Equipment

Verify that the equipment has a normal life expectancy of more than one year and is not expendable.
Verify that the capitalized cost will exceed $5,000.
Establish the purchase requirements, e.g., installation, warranty, accessories, special training, start-up kit, etc.