How Many Jobs Are Available in Capital Goods?
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Summary:
Capital goods are the goods used in manufacturing processes and industrial output. Buildings, machinery, equipment, vehicles, and tools are all examples of capital goods, and many jobs are available in the capital goods industry. Most of the best-paying jobs available in capital goods require technical skills associated with white-collar jobs, but there are also many well-paying jobs for blue-collar workers.
The term “capital goods” refers to anything that is used in production outside of land, labor, and raw materials. Tools, machinery, and vehicles are some examples of what would be considered capital goods.
Due to the broad definition of the term, there is a wide variety of jobs available in capital goods. For example, if you have a computing background, you can get a capital goods job modeling production processes and programming software for a factory. If you have a finance background, a high-demand position for you could be producing financial models and inputs related to capital goods expenditures. If you’re better suited to manual labor, you could find work as a truck driver or factory worker in the capital goods sector.
Overall, the capital goods industry varies in terms of employment opportunities, but whatever jobs are available, the average salary may be higher than you expect.
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What are capital goods?
To elaborate on the above definition, a capital good is a type of economic good that economists use to define an input in production outside of land, labor, and raw materials. In classical economics, capital goods are one part of the triumvirate of production: land (including raw materials), labor, and capital goods. Capital goods are almost always tangible property, and they are usually considered static resources meant to produce functional goods, such as consumer goods.
Some examples of what can be defined as a capital good include a factory, the machinery in that factory, the software needed to run that machinery, and the warehouse where the goods produced in the factory are stored. Outside of labor costs, even the transportation of goods can be considered a capital good.
How many jobs are available in capital goods?
Due to the immense variety of capital goods in the market, there are numerous job opportunities available in the capital goods industry. By 2022, the U.S. Bureau of Labor Statistics estimated there would be about 1.3 million job openings in the industry of producing goods.
Most of the jobs available in capital goods are white-collar jobs that require specialized skills, such as a manufacturing engineer or a computer programmer, but there are plenty of blue-collar jobs as well, such as vehicle drivers and manufacturing technicians. Basically, capital goods workers can find plenty of opportunities for a good career path regardless of their job. As long as you have the necessary skills, finding and excelling at a job in capital goods should be relatively easy.
White-collar jobs in the capital goods industry
Typically, white-collar jobs in capital goods, such as computer engineers and manufacturing engineers, require a bachelor’s degree or an advanced degree. Because the term “capital goods” encompasses a broad swath of goods related to production, there are all sorts of different white-collar jobs you can find in the capital goods sector.
Need a side hustle for extra income while you search for your ideal career path in the capital goods industry? Here are some side jobs to tide you over until you find your dream job!
Financial controller
Employees who are familiar with Excel modeling and general finance are not obligated to work in a bank or the finance industry. In fact, financial modeling and cost control are incredibly important to production.
Financial controllers are essentially the lead accountants of capital goods companies. They can help map out a business’s financial structure, and whenever there are increases in raw materials or machinery, they can crunch the numbers to help keep production on track.
Industrial architect
If you are going to build a house on a piece of barren land, you’ll need an architect to design the building first. Similarly, if you are going to build a factory or some other building that is essential to production, then you are going to need an architect that specializes in industrial design. There is high demand for industrial architects, as they’re essential to making factories as efficient as possible through smart design and spacing.
Computer programmer
In the modern age of automation, supply chain logistics and production processes rely heavily on computers and by extension, computer programs. Computer programmers are essential to the capital goods industry, as they design integrated systems that can manage all the capital goods involved in production. If you have a degree or special certification in computer programming, you’ll find that many jobs are available to you in the capital goods sector.
Marketing
Toward the end of the production cycle lie marketing and sales, which are also essential in capital goods industries. Capital goods like machinery and construction equipment are sold to factories and production facilities that need them, so sales skills and a background in marketing are highly useful in this space.
Pro Tip
Even if your focus is manual labor, such as operating heavy machinery or maintenance in the production process, marketing is a valuable skill. If you’re seeking job opportunities in the capital goods industry, you need to know how to sell your skills to potential employers!
Blue-collar jobs in the capital goods industry
Just as there are many jobs for white-collar workers, there are also plenty of blue-collar jobs available in capital goods. After all, the logistics of production are only one side of the capital goods industry; the other side is the production process itself! When it comes to production, there are a variety of blue-collar skills that are in high demand.
Production worker
Among the most important capital goods workers are production workers, as without them, there would be no production. A production worker works in a factory to produce goods and ensure production moves along smoothly. These workers are integral to manufacturing, ensuring that goods move seamlessly from one part of the production process to the next.
Quality control manager
Quality control is of the utmost importance, as it ensures that capital goods translate into functional goods, such as consumer goods. There are several different programs and trade organizations that offer certification in quality control. The British Standards Institute and the American Society for Quality are two standards bodies that will issue certificates for quality control.
Vehicle drivers
In the production cycle, vehicles used in the transportation of goods are considered capital goods. Thus, drivers that can operate vehicles necessary to production are in high demand. If you have experience driving trucks or forklifts, then chances are you can get a job driving these types of vehicles for a manufacturer. Any specialized license, such as trucker’s license, will be a valuable asset in your search for capital goods jobs.
Capital goods vs. consumer goods
The fundamental difference between consumer or capital goods is that capital goods are used to produce other goods while consumer goods are the finished product, intended for personal consumption. When you walk into your local Target or Best Buy, for example, every product in the store is considered a consumer good. Meanwhile, all of the goods that were involved in making these end products are considered capital goods.
Capital goods are often used to measure the health of an economy. Many economists use the term “core capital goods” to measure this statistic on a macro scale. Core capital goods are a class of capital goods that includes most capital goods, with the exception of aircraft and defense equipment.
FAQ
What companies are in the capital goods field?
Any company producing goods other than raw materials is involved in the capital goods industry.
What is a capital goods job?
Capital goods jobs are white-collar or blue-collar jobs in capital goods industries. Financial controllers and truck drivers are examples of capital goods jobs.
What kind of capital will be used to produce goods?
Capital goods, as well as raw materials, land, and labor, are used to produce goods. In the capital sphere, debt and equity are used to produce goods.
What are the types of capital?
The four main types of capital are working capital, debt, equity, and trading capital.
What are the three main factors of production?
The three main factors of production are land, labor, and capital goods.
Key Takeaways
- Capital goods are goods used in the manufacturing of functional products, with the exception of land, raw materials, and labor.
- There are an estimated 1.3 million job openings in capital goods industries as of 2022.
- Capital goods jobs include both white-collar jobs, such as industrial architects, and blue-collar jobs, such as truck drivers.
- If you have a bachelor’s degree or special certificate, you have a better chance of landing a capital goods job with a higher average annual salary.
- Capital goods are different from consumer goods in that capital goods are used to make other goods, while consumer goods are the finished products.
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