The Liaoning equipment manufacturing industry has been evolving in terms of agglomeration, diffusion, and agglomeration again. Despite increasing agglomeration, it still lags behind more developed regions like the Yangtze River Delta and Pearl River Delta. The industry's growth is driven by factors like scale economy, external influences, trade costs, and local demand. However, Liaoning faces challenges in these areas, leading to lower industrial agglomeration compared to coastal provinces. The paper suggests specific policy recommendations to address these issues.