This study covers two related industries in which Negro employment has historical roots, the farm machinery and construction machinery industries. As in several other studies in this series, emphasis is on the major companies in the industries. This emphasis may reflect a more favorable picture of black employment progress than the average, due to the large firms' higher visibility, more frequent inspection, and greater resources. The nature and structure of the machinery industry, the impact of company, union, and government policies on Negro employment, and the determinants of industry policy are examined. The report concludes that the job structure of the machinery industries studied is favorable for black employment but that an expanding general labor demand is the fundamental factor in bringing blacks into the work force in greater numbers and at higher levels. (MF)