These industries are increasing capital investment the most
Despite ongoing concerns about economic uncertainty, businesses continue to invest in equipment.
According to Census Bureau data, businesses will spend about $1.2 trillion on capital equipment in 2022, up about $126.5 billion from 2021. A variety of industries, from air transportation to industrial machinery to food service, are seeing billions of dollars in increases in annual capital spending over the course of the year, signaling some confidence in business’s continued success.
Machinery Partner used data from the Census Bureau’s annual Capital Investment Survey to examine which industries are investing the most in equipment. The analysis ranked the top 25 industries with the largest increases in capital spending in 2022 compared to 2021.
Companies typically purchase new equipment to manufacture consumer products more efficiently. Although the initial cost is high, investing in advanced tools and equipment upgrades makes production easier, reducing costs in the long run and ultimately increasing profits for the company. For American consumers, this can translate into lower product costs.
Some of the biggest spending industries were in the computer technology sector. Publishers, search engines, software companies, telecommunications providers and other electronics manufacturers all added large amounts of new equipment to their arsenals. In an economy focused on services over goods, demand for technology remains strong as devices and web connections become increasingly important…
