These industries are increasing their equipment investments the most

Despite ongoing concerns in an uncertain economy, companies continue investing in equipment.

In 2022, companies spent about $1.2 trillion on equipment—about $126.5 billion more than in 2021, Census Bureau data shows. Industries ranging from air transportation to industrial machinery to food services increased their annual equipment spending by billions of dollars in a year, indicating some level of confidence in the continued success of their businesses.

Machinery Partner used data from the Census Bureau's Annual Capital Expenditures Survey to examine the industries investing the most in equipment. This analysis ranked the top 25 industries that increased their equipment spending the most in 2022 compared to 2021.

Companies typically purchase new equipment to make consumer-facing products more efficiently. Despite high upfront costs, investing in advanced tools and equipment upgrades can ease production, lower costs over time, and eventually result in higher company profits. For American consumers, this creates the potential for lower product costs.

Several top-spending industries were in the computer technology sector. Publishers, search engines, software companies, telecommunications providers, and other electric manufacturing companies all added high volumes of new equipment to their arsenals. In an economy otherwise focused more on services than goods, the demand for technology remains strong as devices and web connections become an increasingly integral part of American society.

The 2022 surge in equipment spending among digital industries came in the wake of the COVID-19 pandemic, which increased demand for stronger home internet connectivity and better personal technologies as companies and schools shifted to remote. The pandemic also forced companies to create or improve their web presence and urged some off of local servers and onto cloud databases. This increased memory equipment needs among the tech companies offering digitization services. More recently, the rise of artificial intelligence is sustaining the demand for computing equipment like specialized, more powerful servers.

The air transportation industry was another leading purchaser of equipment in 2022. A mass return to travel after COVID-19—including projections for record-high passengers this year—put pressure on plane manufacturers and airlines to increase production and services. What's more, recent incidents, such as the January door blowout on a Boeing 737 Max 9 aircraft, have heightened public concern for safety. In a high-profile industry already subject to ever-evolving safety and carbon emissions regulations, more stringent requirements may entail even more machinery needs for aviation companies.

Construction, manufacturing, and engineering also ranked high on equipment spending increases. These industries are tasked with building essential infrastructure while contending with labor shortages, supply chain disruptions, and strict codes and regulations. Advancements in related equipment, automation, AI, electrification, and other innovations are helping these industries adapt to their current economic challenges.

Since the release of the 2022 data, record inflation and the subsequent interest rate hikes have affected manufacturing across industries, upping the cost of new tools and the credit typically needed for those capital expenses. Despite the impact on cash flows, businesses were continuing to grow equipment investments as recently as March. For a closer look, read on to see which industries have increased their equipment spending most.

#25. Amusement, gambling, and recreation industries

- Growth in equipment spending, 2021-22: $1.72 billion (+29%)
- Total expenditures for equipment: $7.74 billion
- Share of total industry expenses put toward equipment: 40.6%

#24. Industrial, metalworking, and general-purpose machinery manufacturing

- Growth in equipment spending, 2021-22: $1.73 billion (+39%)
- Total expenditures for equipment: $6.13 billion
- Share of total industry expenses put toward equipment: 83.0%

#23. Oil and gas extraction

- Growth in equipment spending, 2021-22: $1.86 billion (+20%)
- Total expenditures for equipment: $11.13 billion
- Share of total industry expenses put toward equipment: 12.5%

#22. Office administrative, facilities, employment, and other support services

- Growth in equipment spending, 2021-22: $1.89 billion (+32%)
- Total expenditures for equipment: $7.80 billion
- Share of total industry expenses put toward equipment: 70.4%

#21. Merchant wholesalers, nondurable goods

- Growth in equipment spending, 2021-22: $2.14 billion (+22%)
- Total expenditures for equipment: $12.03 billion
- Share of total industry expenses put toward equipment: 65.8%

#20. Motor vehicle and parts dealers

- Growth in equipment spending, 2021-22: $2.18 billion (+55%)
- Total expenditures for equipment: $6.11 billion
- Share of total industry expenses put toward equipment: 52.8%

#19. General merchandise stores

- Growth in equipment spending, 2021-22: $2.27 billion (+18%)
- Total expenditures for equipment: $14.85 billion
- Share of total industry expenses put toward equipment: 48.5%

#18. Food services and drinking places

- Growth in equipment spending, 2021-22: $2.43 billion (+21%)
- Total expenditures for equipment: $14.16 billion
- Share of total industry expenses put toward equipment: 47.2%

#17. Motor vehicle, body, trailer, and parts manufacturing

- Growth in equipment spending, 2021-22: $2.60 billion (+9%)
- Total expenditures for equipment: $32.47 billion
- Share of total industry expenses put toward equipment: 84.7%

#16. Investigation, security, and services to buildings and dwellings

- Growth in equipment spending, 2021-22: $2.73 billion (+42%)
- Total expenditures for equipment: $9.25 billion
- Share of total industry expenses put toward equipment: 96.7%

#15. Heavy and civil engineering construction

- Growth in equipment spending, 2021-22: $3.11 billion (+29%)
- Total expenditures for equipment: $13.67 billion
- Share of total industry expenses put toward equipment: 86.7%

#14. Other retail trade stores, including gasoline stations

- Growth in equipment spending, 2021-22: $3.34 billion (+19%)
- Total expenditures for equipment: $21.32 billion
- Share of total industry expenses put toward equipment: 62.8%

#13. Food manufacturing

- Growth in equipment spending, 2021-22: $3.55 billion (+18%)
- Total expenditures for equipment: $23.54 billion
- Share of total industry expenses put toward equipment: 74.1%

#12. Support activities for oil and gas operations

- Growth in equipment spending, 2021-22: $3.62 billion (+77%)
- Total expenditures for equipment: $8.31 billion
- Share of total industry expenses put toward equipment: 80.8%

#11. Merchant wholesalers, durable goods

- Growth in equipment spending, 2021-22: $4.31 billion (+24%)
- Total expenditures for equipment: $22.27 billion
- Share of total industry expenses put toward equipment: 73.6%

#10. Truck transportation

- Growth in equipment spending, 2021-22: $5.06 billion (+33%)
- Total expenditures for equipment: $20.48 billion
- Share of total industry expenses put toward equipment: 93.4%

#9. Data processing, hosting, and related services

- Growth in equipment spending, 2021-22: $5.27 billion (+20%)
- Total expenditures for equipment: $31.26 billion
- Share of total industry expenses put toward equipment: 62.6%

#8. Securities, commodity contracts, and other financial investments and related activities

- Growth in equipment spending, 2021-22: $5.54 billion (+42%)
- Total expenditures for equipment: $18.79 billion
- Share of total industry expenses put toward equipment: 70.7%

#7. Depository credit intermediation

- Growth in equipment spending, 2021-22: $6.25 billion (+24%)
- Total expenditures for equipment: $32.60 billion
- Share of total industry expenses put toward equipment: 67.8%

#6. Commercial and industrial machinery and equipment rental and leasing

- Growth in equipment spending, 2021-22: $7.70 billion (+31%)
- Total expenditures for equipment: $32.61 billion
- Share of total industry expenses put toward equipment: 98.0%

#5. Wired and wireless telecommunications carriers, cable and other program distribution, broadband internet services providers

- Growth in equipment spending, 2021-22: $8.73 billion (+13%)
- Total expenditures for equipment: $77.15 billion
- Share of total industry expenses put toward equipment: 76.3%

#4. Software publishers (except internet)

- Growth in equipment spending, 2021-22: $10.17 billion (+130%)
- Total expenditures for equipment: $18.00 billion
- Share of total industry expenses put toward equipment: 90.1%

#3. Semiconductor and other electronic component manufacturing

- Growth in equipment spending, 2021-22: $11.63 billion (+62%)
- Total expenditures for equipment: $30.31 billion
- Share of total industry expenses put toward equipment: 74.9%

#2. Air transportation

- Growth in equipment spending, 2021-22: $11.92 billion (+107%)
- Total expenditures for equipment: $23.02 billion
- Share of total industry expenses put toward equipment: 89.4%

#1. Other information services*

- Growth in equipment spending, 2021-22: $14.00 billion (+49%)
- Total expenditures for equipment: $42.82 billion
- Share of total industry expenses put toward equipment: 62.7%

*This broad industry includes web search portals, news syndicates, libraries, archives, and internet publishing and broadcasting sites.

Story editing by Alizah Salario. Copy editing by Paris Close. Photo selection by Ania Antecka.

This story originally appeared on Machinery Partner and was produced and distributed in partnership with Stacker Studio.