Equipment Manufacturing

Actor Type: Manufacturer Breaks When: Capex Busts Capital Intensity: High Cash Flow Stability: Cyclical Economic Nature: Manufacturing Margin Driver: Volume Notes / Insights: Industrial leverage to oil Performs Best When: Capex Booms Pricing Power: Limited Primary Function: Produce drilling and processing equipment Primary Risk Transfer Mechanism: Contracts Public / Private Mix: Mostly Public Representative Firms: Caterpillar, NOV Residual Risk After Transfer: Moderate Revenue Model: Equipment Sales Typical Margin Profile: Medium Value Chain Segment: Industrial Support Who Ultimately Bears the Risk?: Shareholders