1. Machine industry Classification

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1. Machine industry

2. Classification

The machine industry or machinery industry is a subsector of the industry, that produces and maintains machines for consumers, the industry, and most other companies in the economy.

This machine industry traditionally belongs to the heavy industry. Nowadays, many smaller companies in this branch are considered part of the light industry. Most manufacturers in the machinery industry are called machine factories.
The machine industry is a subsector of the industry that produces a range of products from power tools, different types of machines, and domestic technology to factory equipment etc. On the one hand the machine industry provides:

  • The means of production for businesses in the agriculture, mining, industry and construction.

  • The means of production for public utility, such as equipment for the production and distribution of gas, electricity and water.

  • A range of supporting equipment for all sectors of the economy, such as equipment for heating, ventilation, and air conditioning of buildings.

These means of production are called capital goods, because a certain amount of capital is invested. Much of those production machines require regular maintenance, which becomes supplied specialized companies in the machine industry.
On the other end the machinery industry supplies consumer goods, including kitchen appliances, refrigerators, washers, dryers and a like. Production of radio and television, however, is generally considered belonging to the electrical equipment industry. The machinery industry itself is a major customer of the steel industry.
The machinery industry came into existence during the Industrial Revolution. Companies in this emerging field grew out of iron foundriesshipyardsforges and repair shops.[2] Often companies were a combination of machine factory and shipyard. Early in the 20th century several motorcycle and automobile manufacturers began their own machine factories.
The production of the machinery industry varies widely from single-unit production and series production to mass production.[1] Single-unit production is about constructing unique products, which are specified in specific customer requirements. Due to modular design such devices and machines can often be manufactured in small series, which significantly reduces the costs. From a certain stage in the production, the specific customer requirements are built-in, and the unique product is created.
The machinery industry produces different kind of products, for example, engines, pumps, logistics equipment; for different kind of markets from the agriculture industry, food & beverage industry, manufacturing industry, health industry, and amusement industry till different branches of the consumer market. As such companies in the machine industry can be classified by product of market.
In the world of today, all kinds of Industry classifications exists. Some classifications recognize the machine industry as a specific class, and offer a subdivision for this field. For example, the Dutch Standard Industrial Classification of 1993, developed by the Statistics Netherlands, give the following breakdown of the machinery industry:
This composition of the machinery industry has been significantly altered with the latest revision of the Dutch Standard Industrial Classification of 1993. The Standard Industrial Classification of 1974 broke down the machinery industry into nine sectors:

  • Agricultural machine industry

  • Metalworking Machine - Industry and machine tool factories

  • Manufacturers of machinery and equipment for the food, chemical and allied industries

  • Manufacturers of machinery and equipment for the rubber and plastics

  • Manufacturers of gears, gearing and driving elements

  • Manufacturers of machinery and equipment and wood furniture etc.

  • Manufacturers of steam boiler, and power tools industry

  • Office machinery industry

  • Other machinery and equipment industry

It may be clear that classification is by markets, and the more recent classification is by product.
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