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The Importance of Service to the Manufacturing Sector

Industrial Machinery and Equipment (IM&E) manufacturers form an integral part of the manufacturing supply chain as their equipment plays a critical role in the automation of production processes such as shaping, extruding, molding, crimping, cutting, folding, etc. If these machines are not working properly then the entire manufacturing process may grind to a halt. In addition, every manufacturing process has its own set of specialized machinery. For example, manufacturing equipment in the food processing industry is different from equipment found in the apparel manufacturing industry.

The market for such equipment is large and diverse but also fragmented. For example, the US Census Bureau’s North American Industrial Classification System (NAICS) indicates there are over 26,700 suppliers of Industrial Machinery and Manufacturing Equipment in the United States alone. These companies distribute, install, and service equipment found in over 300,000 manufacturing establishments across the U.S. Furthermore, there are dozens of different sub-segments and market niches of manufacturing found around the globe. Indeed, every manufactured product you can think of can be classified into a sub-segment or niche.

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