Equipment is produced by Production Lines, and is used by military units such as Army Divisions, Navies or Air Wings. For an example, a fighter Air Wing would use fighter aircraft, e.g the F-16 Fighting Falcon. Equipments are based on types, e.g fighter, bomber, or for the land units you have infantry, artillery, motorized and so on.
Equipment Type Edit
The equipment types basically define the type of equipment in question, meaning that if a unit uses infantry equipment, then a unit can use any type of infantry equipment they have avaiable. More in depth, they can use any level of equipment unlocked via Technology to fulfill their needs.