The electrical equipment manufacturing industry is a large sector consisting of four different areas: electrical lighting equipment manufacturing, household appliance manufacturing, electrical equipment manufacturing, and other electrical equipment and component manufacturing. The manufacture of motors, generators, pumps, and compressors comprises a $20 billion industry in the United States, with over 1,000 companies working to generate such components. Almost 80% of this market is dominated by the fifty largest manufacturers.
Of the products manufactured annually, about $7 billion are pumps, $9 billion are electrical motors, and $4 billion are air and gas compressors. Most motors and generators are bought and put to use in industrial sectors, where they can serve as industrial power sources or commercial electrical back-up sources.
Pumps and compressors have three general categories: rotary gear, centrifuges, and pistons. Close to half of these products sold find their way into industrial processes, whereas only 15 percent of products sold are put to use in household applications, and an even smaller 10 percent are found in oilfield applications. Almost 60 percent of compressors end up in refrigeration systems and industrial process systems, while only 20 percent find their way into industrial spraying processes.
Because there is such a wide variety of motors and generators and a high-demand for specialty parts, there are few dominant competing companies. Although there are some popular standard kinds of motors and generators, the specialty demand and the mere range of product type and size keeps the sale of products evenly spread throughout the industry. However, production varies with demand, and as the economy fluctuates and demands for certain products wanes, the drive behind production also decreases.