Abstract: Equipment manufacturing industry in Beijing, Tianjin and Hebei need to achieve industrial transformation and upgrading as the coordinated development of Beijing Tianjin Hebei, and “Manufacturing Industry 2025” has risen to the national strategy. Under the perspective of factor endowment, this paper builds a Heckscher Ohlin Model of three product and two stage; according to the relationship between factor endowment and industry output, divides sub industries into two parts; further divides industries into labor intensive industry, transitional industry and capital intensive industry. By using unrelated regression model, the empirical analysis of the eight sub industries of equipment manufacturing industry is carried out in Beijing Tianjin Hebei areas. The results suggest that 3 sub industries are transitional industry, 5 sub industries are capital intensive industry but there is no labor intensive industry. Finally, we put forward the strategies of industrial upgrading of equipment manufacturing industry from perfecting the structure of factor endowment, realizing the fusion of “Three Chains”, and promoting the fusion of equipment manufacturing industry and productive service industry.

Key words: factor endowment, equipment manufacturing industry, industrial upgrading, the collaborative development of Beijing Tianjin Hebei areas