Farm Machinery and Equipment Manufacturing Revenue Benchmarks
The average farm machinery and equipment manufacturing business in the United States generates $19.1M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 1,022 farm machinery and equipment manufacturing businesses in the U.S., employing 61,859 workers with an average profit margin of 10.0%. The average employee in this industry earns $76K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Farm Machinery and Equipment Manufacturing Business Actually Do?
Farm Machinery and Equipment Manufacturing: Businesses that transform raw materials or components into finished products.
Who buys: Wholesalers, retailers, other manufacturers, and government.
Sector-level description — a more specific write-up is available for high-traffic industries.
Average Revenue
$19.1M
per year
Profit Margin
10.0%
industry average
Revenue / Employee
$315K
per year
Total Businesses
1,022
in the US
Est. Owner Income
$1.9M
small business avg
Labor Cost
22.0%
of revenue
Avg Employee Wage
$76K
per year (BLS)
Market Saturation
0.3
firms per 100K people
How Much Do Farm Machinery and Equipment Manufacturing Charge?
Farm Machinery and Equipment Manufacturing: Manufacturers sell in bulk to wholesalers, distributors, or direct to businesses. Pricing is negotiated by SKU volume. The specifics vary within the farm machinery and equipment manufacturing category — the ranges below are typical for the sector.
| Service | Typical range |
|---|---|
Contract manufacturing markup | 15–35% over materials + labor |
Own-brand product margin | 25–60% gross margin |
Custom / low-volume run | 40–150% over direct costs |
Sector-typical ranges — individual services within this industry may fall higher or lower.
Complete farm machinery and equipment manufacturing business plan
A 12-section data-backed business plan for a farm machinery and equipment manufacturing business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the farm machinery and equipment manufacturing industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Raw materials & components | $48 | $9.1M | Steel, chemicals, electronics, packaging — the physical inputs that become the product. |
Wages & benefits | $22 | $4.2M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $5 | $1.0M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $648K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $12 | $2.2M | Depreciation on equipment, energy, R&D, quality control, freight. |
Net profit | $10 | $1.9M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
5.75%
openings/year
Closure Rate
6.01%
closings/year
Net Job Growth
+3.35%
annual
Businesses Closed
122
in 2023
Firm Count Trend
Should You Start a Farm Machinery and Equipment Manufacturing Business?
Startup Cost
$50K – $250K
Break-Even
1 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a farm machinery and equipment manufacturing business do?
- Farm Machinery and Equipment Manufacturing: Businesses that transform raw materials or components into finished products. Wholesalers, retailers, other manufacturers, and government.
- How much do farm machinery and equipment manufacturing charge?
- Farm Machinery and Equipment Manufacturing: Manufacturers sell in bulk to wholesalers, distributors, or direct to businesses. Pricing is negotiated by SKU volume. The specifics vary within the farm machinery and equipment manufacturing category — the ranges below are typical for the sector. See the pricing table above for typical rates by service type.
- How much does the average farm machinery and equipment manufacturing make per year?
- The average farm machinery and equipment manufacturing business generates $19.1M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $1.9M per year at a 10.0% profit margin.
- How many farm machinery and equipment manufacturing businesses are there in the US?
- There are 1,022 farm machinery and equipment manufacturing businesses operating in the United States, employing a total of 61,859 workers.
- How much does it cost to start a farm machinery and equipment manufacturing business?
- Startup costs for a farm machinery and equipment manufacturing business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the farm machinery and equipment manufacturing industry?
- The average employee in the farm machinery and equipment manufacturing industry earns $76K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The farm machinery and equipment manufacturing industry is actively growing — adding jobs at a net rate of 3.4% per year. New establishments are opening faster than existing ones close (5.7% entry vs 6.0% exit), indicating healthy demand.
Approximately 73% of farm machinery and equipment manufacturing businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 122 firms in this industry closed permanently.
Employment & Wages
The average employee in the farm machinery and equipment manufacturing industry earns $76,383/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 1,629 establishments employing 68,761 people, the typical business has about 42 employees.
Industry Trend (2000–2023)
The farm machinery and equipment manufacturing industry has declined 11% since 2000 (from 2,555 to 2,277 firms).
See full historical statistics →Compare Farm Machinery and Equipment Manufacturing revenue with other industries: