Is Capital Goods A Good Career Path?
Is capital goods a good career path? Yes it is, but you might need a couple of facts and a lot of information to make this more convincing for you. So let's look into what capital goods are before moving down to why it is a good career path for anyone and everyone.
What Is Capital Goods
Capital goods can be simply referred to as primary goods. They are goods that are being used in the production or manufacture of other goods that will be later used by consumers.
Capital goods can be referred to as physical resources or assets that a company utilizes in the development of goods and services that consumers will eventually use.
Capital goods include structures, machinery, equipment, vehicles, and tools.Capital goods are used to create finished goods rather than being finished goods themselves.
Note that capital goods aren't the needs of the consumer but instead are used to either produce consumer needs or offer consumer services. Lastly, capital goods are durable and don't wear out quickly.
Capital goods is vast and has numerous sectors; it is important to know and understand all of its sectors before choosing it as a career path, but first, here are some capital goods examples.
What Is The Capital Goods Industry
The capital goods industry can be referred to as an industry that deals with the manufacturing or retail sale of products that are used to create other goods or offer services.
Examples of capital goods
If you've been reading carefully, you should have understood what capital goods are, and if not, these examples will help explain more.
Note that examples of capital goods vary depending on the sector you're looking into.
1. Production Technology
Machines such as farm equipment, robots, or even kitchen appliances are all used in the production and preparation of consumer products.
Take, for example, kitchen appliances. A consumer who wants a cheese sandwich will only walk into a restaurant and get it after payment has been made.
The chef who prepared the cheese sandwich didn't just recite some spells for it to be done, but instead it took some procedure to get it done.
Whatever was part of the preparation can be classified as capital goods.
This is indeed a very simple example of a capital good. Now let's make it a little bit more complicated.
Electronics such as cameras used by film crews are a good example of capital goods. Firstly, it's durable. Secondly, it's primary aim is to produce pictures and movies for consumers who want to be entertained.
A consumer who wants to watch a movie will not go to the store to buy a camera and film his or her desired movie, but will instead look up the desired movies on Netflix or other movie platforms to be entertained.
Now, the primary good here, which is the camera, has been used to produce the desired movies the consumer is searching for.
Here are some other short examples.
Software is used by banks and accounting departments to offer services to their customers.
Instruments are used in the production of sounds and songs.
20 Examples Of Capital Goods Companies Companies
- China State Construction Engineering Corporation
- Raytheon Company
- General Electric Company
- China Railway Group Limited
- Paccar Inc
- BAE Systems PLC
- Mitsubishi Corporation
- Komatsu Limited
- Shanghai Construction Co. Ltd.
- Marubeni Corporation
- Rolls Royce Holdings Plc
- Daikin Industries Limited
- Cummins Inc.
- Airbus SE
- Siemens AG
- Valeo SA
- China Railway Construction Corporation
- China Communications Construction Co Ltd
- ITOCHU Corporation
What Are the Jobs Available in the Capital Goods Sector?
Jobs in the capital goods sector can help answer the question, "Is capital goods a good career path?"
There are a lot of mouth-watering, good-paying jobs in this sector, which might interest anyone.
This team of engineers works in the manufacturing sector, and their major duty is to guarantee that all processes and operations involved in the production of the goods go well.
According to Payscale, manufacturing engineers have an estimated salary of $71980 annually.
A Quality Control Inspector
Manufacturing's guiding principle is quality. Assuring that various quality standards are met is the responsibility of the quality control inspector.
These quality standards are examined in terms of procedures, requirements, materials used, and other factors.
A quality control inspector should be able to focus on even the smallest of details. On average, a quality control inspector makes over $40,000 annually.
Senior Mechanical Engineer at
In the capital goods sector, this is one of the highest-paying positions. However, a candidate needs to have roughly 10 years of experience to gain employment and work in this position.
A senior mechanical engineer is in charge of creating, manufacturing, testing, and inspecting mechanical systems and devices, including machines, tools, and engines.
Senior mechanical engineers in the capital goods sector typically earn $110,000 annually.
An assembler's main responsibility is to understand how various components combine to produce the finished result. He ought to be able to measure and connect different parts.
A high level of formal education or certification is not necessary, but technical expertise is essential. An assembler's yearly salary is typically $32,592 on average.
It is the role of electrical engineers to design, develop, test, and oversee the production of electrical equipment, such as electric motors, radar and communications systems, navigation systems, or equipment used to generate electricity.
They also work on designing the electrical systems for cars and airplanes. The typical annual income for electrical engineers is $78,016. However, the highest limit might be as much as $200k annually.
The capital goods sector is one area where you can obtain such a great offer because electrical engineering positions are among the most paid ones available.
For capital goods organizations, marketing managers are in charge of creating, planning, and carrying out strategic marketing programs that will draw in new customers and keep existing ones loyal.
They often have several years of expertise in the industry, in addition to a degree in marketing or a related field. As of February 2022, the US average income for a marketing manager was $109,831 annually.
For companies in the capital goods sector, sales engineers are experts in advanced technological and scientific items. Sales engineers utilize their technical expertise to highlight the advantages of their goods and services over those of their rivals and to explain the advantages of those goods and services to potential clients. The typical yearly income for sales engineers is $74,250.
Is Capital Goods a Good Career Path?
Yes, capital goods is a good career path for anyone with or without skills. This field is considered one of the most vast sectors in the manufacturing industry, with a lot of jobs being made available.
When engaged in the capital goods sector, one can be exposed to other fields of work. There are various positions in this sector that require no experience at entry level.
The Difference Between Capital Goods And Consumers Goods
1. Capital goods are not final goods; they are made to aid the production of customer goods. Customer goods are finally used by consumers.
2. Capital goods are bought with the aim of generating other products, while customer goods are bought with the aim of consumption.
3. Capital goods satisfy the needs of customers indirectly, while consumer goods satisfy customer needs directly.
Note that a particular item can be classified as both capital goods and consumer goods at the same time. What differentiates them is who uses them. Here's a quick example:
A blender used at home is a consumer good, while a blender used in a restaurant is a capital good.
When a person orders a laptop, it is a consumer good; however, when a company orders 100 of the same laptop, it becomes a capital good because the company will use these laptops to provide services to customers.