Equipment manufacturing industry is a pillar and advanced industry in Guanzhong-Tianshui Economic Region. This report analyzes the development of the equipment manufacturing industry in Guanzhong-Tianshui Economic Region，based on theories on regional economics.At first，we describe situations of its current development. Secondly，we analyze its major constraint and challenges at the perspectivse of institutional structure，capital structure，human resources environment，technology innovation，industry clusters，and support industry. Thirdly，we give advice on strategy for its furthers development. At last，we present several suggestions to promote its competitiveness.