Industrials

Industrial is more than factories. Every market has its own gates.

Manufacturers, energy and utility operators, miners, builders and logistics networks, and the OEMs, distributors, integrators, EPC firms and service providers around them. See how each market qualifies new technology.

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By sector

Where industrial work happens.

Manufacturing, energy and utilities, oil and gas, mining, construction and infrastructure, transportation and logistics.

Manufacturing
Mining and oil and gas
Utilities
Construction
Transportation and warehousing

Where industrial capital goes.

Manufacturing: $314.3 billion, 76% equipment.
Utilities: $188.4 billion, 49% equipment.
Transportation and warehousing: $118.3 billion, 66% equipment.
Mining, including oil and gas extraction: $112.5 billion, 25% equipment.
Construction: $53.7 billion, 84% equipment.

US Census Bureau, Annual Capital Expenditures Survey 2022, Table 4a, companies with employees. Census counts wells, pipelines, track, power lines and buildings as structures, and machinery, vehicles, ships, robots and software as equipment. It is all capital spending, not technology alone.

Five sectors spent about $787 billion in 2022. How much of it was equipment, rather than buildings, wells, track and line, differs by sector.

Inside manufacturing

Manufacturing is many markets.

NAICS counts 21 manufacturing subsectors. Each has its own rules, supply chain and way of qualifying new technology.

Food and beverage

NAICS 311, 312

Value shows up as: Traceability, fast recall response and equipment that is easy to clean.
The gate (Verified): FDA rules on preventive controls, traceability records and sanitary equipment design.
Carried in by: Processing and packaging machine builders.

Where the capital goes: Food manufacturing, 26% structures and 74% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Pharma and life sciences

NAICS 325

Value shows up as: A validated state that survives change, with data integrity and audit trails.
The gate (Verified): Qualification of equipment and systems before use, and controlled change after.
Carried in by: Equipment, software and integration suppliers working to GAMP 5.

Where the capital goes: Pharmaceutical and medicine, 39% structures and 61% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Automotive

NAICS 336

Value shows up as: Consistent quality part after part, shown in process data.
The gate (Verified): IATF 16949 certification and PPAP, as each OEM's own requirements set.
Carried in by: Suppliers at every tier, from the OEM down.

Where the capital goes: Motor vehicle and parts, 15% structures and 85% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Aerospace and defense

NAICS 336

Value shows up as: Controlled special processes and full traceability.
The gate (Verified): AS9100, and Nadcap accreditation where the customer requires it.
Carried in by: Primes and suppliers several levels deep.

Where the capital goes: Aerospace products and parts, 24% structures and 76% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Chemicals and refining

NAICS 324, 325

Value shows up as: Repeatable batches from a controlled recipe, with a hazard review behind every change.
The gate (Verified): Process safety rules for hazardous chemicals, including management of change before a technology change.
Carried in by: Process automation integrators and the EPC firms that build the plant.

Where the capital goes: Basic chemicals, 24% structures and 76% equipment; Petroleum and coal products, 48% structures and 52% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Machinery, electronics and fabricated parts

NAICS 332, 333, 334

Value shows up as: Most capital goes to equipment, so line upgrades carry the budget.
The gate (Verified): Product conformity before sale: CE marking for machinery in the EU, FCC authorization for electronics in the US.
Carried in by: Control system integrators and distributors.

Where the capital goes: Fabricated metal, 16% structures and 84% equipment; Industrial and general machinery, 17% structures and 83% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Gates are cited to the regulator or standards body. Capital mix is the US Census Bureau Annual Capital Expenditures Survey, 2022, Table 4a: structures against equipment, for companies with employees. It is all capital spending, not technology alone. The FDA says it will not enforce its food traceability rule before July 20, 2028. The EU Machinery Regulation applies from January 20, 2027. Who signs, and which budget pays, differ by subsector and are not published anywhere we found, so a Sprint tests them with the people at the plant.

Inside mining and oil and gas

Mining and oil and gas answer to different regulators.

NAICS sector 21 covers oil and gas extraction, the services around it, and coal, metal and quarry mining. Offshore wells answer to the Bureau of Safety and Environmental Enforcement. Mines answer to the Mine Safety and Health Administration.

Oil and gas extraction

NAICS 2111

Value shows up as: Real-time well data and proof of well control, where the rules already ask for them.
The gate (Verified): Offshore, blowout preventer systems must be designed, installed, maintained, inspected, tested and used properly to ensure well control (30 CFR 250.730).
Carried in by: Operators and the service and supply firms around them. API has approximately 600 members.

Where the capital goes: Oil and gas extraction, 87% structures and 13% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022. Census counts drilling and offshore platforms as structures.

Support activities for oil and gas

NAICS 213111, 213112

Value shows up as: Well-control equipment that can show it was tested and is in the state the rule requires.
The gate (Verified): New blowout preventer stacks must come from a quality system under ANSI/API Specification Q1, certified by an ISO/IEC 17021-1 body (30 CFR 250.730).
Carried in by: Drilling contractors and service companies. IADC lists 750 plus member companies.

Where the capital goes: Support activities for oil and gas operations, 19% structures and 81% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Coal mining

NAICS 2121

Value shows up as: Machines that keep people out of the path of moving equipment.
The gate (Verified): Electric equipment inby the last open crosscut must be permissible (30 CFR 75.500), and MSHA approves such machines under 30 CFR part 18.
Carried in by: Equipment makers, whose machines MSHA approves under part 18.

Where the capital goes: Coal mining, 31% structures and 69% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Metal ore mining and quarrying

NAICS 2122, 2123

Value shows up as: Equipment that records its pre-shift inspection and the repair of safety defects, both already required.
The gate (Verified): The operator inspects self-propelled equipment before each shift, and defects that affect safety are corrected in a timely manner (30 CFR 56.14100, 57.14100).
Carried in by: Quarry and aggregate producers. NSSGA members produce more than 90 percent of the crushed stone and 70 percent of the sand and gravel consumed in the US each year.

Where the capital goes: Metal ore mining, 56% structures and 44% equipment; Nonmetallic mineral mining and quarrying, 25% structures and 75% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Gates are cited to the regulation text. The value lines are our reading of what each rule makes measurable, not a sourced statement. 30 CFR 250 covers offshore operations only. Onshore wells answer to state regulators, and we have not cited one. Capital mix is the US Census Bureau Annual Capital Expenditures Survey, 2022, Table 4a: structures against equipment, for companies with employees. It is all capital spending, not technology alone. Census counts drilling gas wells, offshore platforms and mine shafts as structures, and machinery, vehicles and software as equipment. Who signs, and which budget pays, are not published anywhere we found, so a Sprint tests them with the people on site.

Inside utilities

Utilities answer to three different rulebooks.

NAICS sector 22 covers electric power, natural gas distribution, and water and sewage systems. Each is regulated by a different body, and the rules differ in what they ask of new technology.

Electric power generation, transmission and distribution

NAICS 2211

Value shows up as: Control systems on the bulk-power system, protected to a federal standard.
The gate (Verified): Owners and operators of the bulk-power system must comply with Commission-approved Reliability Standards from the Electric Reliability Organization, NERC (18 CFR 40.2).
Carried in by: Electric companies. EEI represents all US investor-owned electric companies, whose members provide electricity for nearly 250 million Americans.

Where the capital goes: Electric power generation, transmission and distribution, 51% structures and 49% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Natural gas distribution

NAICS 2212

Value shows up as: Fewer excavation damages and leaks, the counts an operator must track as performance measures.
The gate (Verified): Operators must keep a written integrity management program for each distribution pipeline that identifies threats, ranks risk and sets measures (49 CFR 192.1007).
Carried in by: Gas distribution operators, the parties the rule names.

Where the capital goes: Natural gas distribution, 50% structures and 50% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Water, sewage and other systems

NAICS 2213

Value shows up as: Resilience and cybersecurity of automated systems, which the law makes part of the required assessment.
The gate (Verified): A community water system serving more than 3,300 people must assess its risk and resilience, including automated systems (42 U.S.C. 300i-2).
Carried in by: Water utilities. AWWA's membership includes more than 4,300 utilities that supply roughly 80 percent of North America's drinking water.

Where the capital goes: Water, sewage and other systems, 40% structures and 60% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Gates are cited to the regulation or statute text. The value lines are our reading of what each rule makes measurable, not a sourced statement. NERC standards apply to bulk-power system users, owners and operators, not to every utility. The water gate covers drinking water only. Subpart P of 49 CFR 192 is a program rule: it does not approve equipment. Capital mix is the US Census Bureau Annual Capital Expenditures Survey, 2022, Table 4a: structures against equipment, for companies with employees. It is all capital spending, not technology alone. Census counts power lines, pipelines and water supply lines as structures, and machinery, vehicles and software as equipment. Who signs, and which budget pays, are not published anywhere we found, so a Sprint tests them with the people on site.

Inside construction

Construction is three markets.

NAICS sector 23 covers building construction, heavy and civil engineering, and the specialty trades. The rules that bind the work site are federal. The rules that bind what gets specified depend on who is paying.

Construction of buildings

NAICS 236

Value shows up as: Fewer people working at an unprotected edge, where the fall rule starts at six feet.
The gate (Verified): Employees on a surface with an unprotected side or edge 6 feet or more above a lower level must be protected from falling (29 CFR 1926.501(b)(1)).
Carried in by: General contractors. AGC has nearly 27,000 member firms.

Where the capital goes: Construction of buildings, 40% structures and 60% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Heavy and civil engineering construction

NAICS 237

Value shows up as: Product origin shapes what can be specified on federally funded work.
The gate (Verified): Federal infrastructure awards may be obligated only if the iron, steel, manufactured products and construction materials are produced in the United States (2 CFR 184.1).
Carried in by: Equipment makers and dealers, across several industries. AEM has 1,000 plus members. AED dealers report 145,000 plus employees.

Where the capital goes: Heavy and civil engineering construction, 13% structures and 87% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Specialty trade contractors

NAICS 238

Value shows up as: Approved electrical equipment and protected work at height set which tools a crew can use.
The gate (Verified): All electrical conductors and equipment must be approved (29 CFR 1926.403(a)), and edge protection applies at 6 feet (29 CFR 1926.501(b)(1)).
Carried in by: Specialty contractors. AGC counts close to 9,000 specialty contractor firms among its nearly 27,000 members.

Where the capital goes: Specialty trade contractors, 9% structures and 91% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Gates are cited to the regulation text. The value lines are our reading of what each rule makes measurable, not a sourced statement. Building codes are adopted by states and localities and vary, so none is cited. Federal Buy America applies to federal awards, not to private work. Capital mix is the US Census Bureau Annual Capital Expenditures Survey, 2022, Table 4a: structures against equipment, for companies with employees. It is all capital spending, not technology alone. Census counts buildings, site preparation and utility connections as structures, and machinery, vehicles and software as equipment. Who signs, and which budget pays, are not published anywhere we found, so a Sprint tests them with the people on site.

Inside transportation and warehousing

Transportation and warehousing answers to five agencies.

NAICS sectors 48 and 49 cover rail, trucking, vessels, pipelines and warehouses. Five federal agencies set the gates: the Federal Railroad Administration, the Federal Motor Carrier Safety Administration, the Coast Guard, the Pipeline and Hazardous Materials Safety Administration, and OSHA.

Rail transportation

NAICS 482

Value shows up as: The safety case for train control is part of the product.
The gate (Verified): Before a required positive train control system goes into service, the host railroad must submit a PTC Safety Plan to FRA and receive System Certification (49 CFR 236.1015).
Carried in by: Freight railroads. AAR is a trade association representing major freight railroads across North America, including Amtrak.

Where the capital goes: Rail transportation, 74% structures and 26% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Truck transportation

NAICS 484

Value shows up as: Duty-status data already exists in digital form.
The gate (Verified): A motor carrier must install an electronic logging device and require each driver to use it to record duty status (49 CFR 395.8).
Carried in by: Motor carriers. ATA says more than 37,000 members represent America's trucking industry.

Where the capital goes: Truck transportation, 7% structures and 93% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Water transportation

NAICS 483

Value shows up as: Network and control-system inventory becomes a compliance task.
The gate (Verified): Owners and operators of U.S.-flagged vessels and regulated facilities must submit a cybersecurity plan to the Coast Guard by July 16, 2027 (33 CFR 101.655).
Carried in by: Vessel and facility owners and operators, the parties the rule names.

Where the capital goes: Water transportation, 6% structures and 94% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Pipeline transportation

NAICS 4861, 4862, 4869

Value shows up as: Alarm and control-room data sit inside a written federal program.
The gate (Verified): An operator whose controllers work through a SCADA system must follow control room management rules (49 CFR 195.446 for hazardous liquids, 192.631 for gas).
Carried in by: Pipeline operators, the parties the rules name.

Where the capital goes: Crude oil and refined products pipelines, 80% structures and 20% equipment; Natural gas pipelines, 72% structures and 28% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022. Census counts pipelines as structures.

Warehousing and storage

NAICS 493

Value shows up as: Powered truck changes carry a design, approval and training cost that a rule already sets.
The gate (Verified): New powered industrial trucks must meet ANSI B56.1 design requirements, and modifications need the manufacturer's written approval (29 CFR 1910.178).
Carried in by: Employers and truck makers, the parties the rule names.

Where the capital goes: Warehousing and storage, 46% structures and 54% equipment. US Census Bureau, Annual Capital Expenditures Survey, 2022.

Gates are cited to the regulation text. The value lines are our reading of what each rule makes measurable, not a sourced statement. Air transportation is in the Census table and has no tile: we found no rule that ties new technology to value. 33 CFR 101 subpart F applies to vessels and facilities that must have a Coast Guard security plan. 49 CFR 192.631 exempts some small operators. 29 CFR 1910.178 covers forklifts, not mobile robots. Capital mix is the US Census Bureau Annual Capital Expenditures Survey, 2022, Table 4a: structures against equipment, for companies with employees. It is all capital spending, not technology alone. Census counts railroad tracks, pipelines, piers and docks as structures, and trucks, ships, railroad cars, robots and software as equipment. Who signs, and which budget pays, are not published anywhere we found, so a Sprint tests them with the people on site.

Who buys, builds and carries it

The whole chain, not just the site.

Operators

Own and run the assets.

Manufacturers, utilities, mines and oil and gas producers, and the rail, pipeline, trucking and warehouse operators.

For operators
EPCs, contractors and service providers

Build it, then keep it running.

EPC firms engineer, procure and build the facility. Contractors build the structures and the trades fit them out. Contract service providers maintain it and support operations.

Test your route
OEMs

Make the equipment.

Equipment makers adding software, services and outcome pricing to a hardware business.

For OEMs
Distributors and dealers

Carry it to the site.

Distributors and equipment dealers are a main route to the operator. One automation vendor reports about 65% of its global sales through independent distributors.

For technology companies
Integrators

Connect it to what is there.

They design and implement control systems and tie plant equipment together, from the plant floor to the enterprise.

For technology companies

Who carries it in

A technology rarely reaches a site on its own. Which of these parties a route depends on changes who has to agree before a plant buys, so a route is a claim to test, not a given. → How to test a partner route

Questions about industries

What counts as industrial?

The US classification system, NAICS, lists mining and oil and gas extraction, utilities, construction, manufacturing, and transportation and warehousing as separate sectors. Thing Company works across them, and with the OEMs, distributors, integrators, EPC firms and service providers around them.

Do buyers and budgets differ across manufacturing subsectors?

The gates and the capital mix do. In the US Census Bureau's 2022 survey, petroleum and coal products put 48% of capital spending into structures and motor vehicle parts 15%. Who signs and which budget pays is not published anywhere we found, so a Sprint asks the people at the plant.

Why does a pilot in one subsector not carry over to another?

Because the gate changes. A food plant answers to FDA preventive controls and traceability rules. A pharma plant qualifies equipment and controls change. An automotive supplier answers to its OEM's requirements and PPAP. A technology that cleared one of those has cleared one of those.

What do EPC firms, contractors and service providers have to do with it?

They are part of how technology reaches an operator. An EPC contract has one contractor take engineering, procurement and construction and deliver a facility ready for operation. Construction contractors build the buildings, the civil works and the trades that fit them out. Contract service providers maintain equipment and support operations, work operators often also do in-house. Each can carry a technology in, or block it.

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