Industrial Machinery Manufacturers

The 2,700 industrial machinery manufacturers in the US produce the machines required to make other products. These can range from simple mechanical modules that perform a single function to complex computer-controlled machines that perform multiple processing functions. Key customer markets are woodworking, metals, plastics, paper, textiles, bookbinding, printing, food, and semiconductor production.

Pressure to Innovate

Manufacturing processes are becoming increasingly automated and computer-driven.

Dependence On Exports

Exports account for nearly two-thirds of US industrial machinery manufacturers’ revenue and create additional risks for manufacturers.

Jul 30, 2026 - US Manufacturing Output Accelerated in Q2

• US factory output was unchanged in June from May but grew at a 4.7% annualized rate in the second quarter, the fastest pace in five years, Reuters reported in July citing Federal Reserve data. Production growth, a demand driver for industrial machinery, was driven by heavy investment in artificial intelligence infrastructure and businesses building inventories ahead of expected shortages and higher prices tied to the Middle East conflict. Production increased for motor vehicles, communications equipment, and semiconductors, while computer output remained well above year-earlier levels despite a monthly decline. For industrial machinery manufacturers, the strong second-quarter performance points to healthy demand for production equipment used in key customer industries. However, manufacturing capacity utilization remained below its long-term average, suggesting producers still have room to expand output before capacity constraints become a significant issue.
• Sales of heavy equipment are falling amid high interest rates, fewer infrastructure projects, and tariff pressures that have slowed growth and decreased jobs in the sector, The New York Times reports citing a new report from the Association of Equipment Manufacturers (AEM). The heavy equipment manufacturing sector is producing less and employing fewer people than it did in 2022. Total sales and indirect economic output from the heavy equipment sector was $902 billion in 2025, a slight contraction from $905 billion in 2022, per the AEM report. Tariffs play a major role in the downturn. While the Supreme Court in February struck down some of the Trump administration’s tariffs, tariffs on steel and aluminum remain in place and are increasing the cost of imported components and finished equipment, making machinery more expensive for buyers and reducing sales volumes.
• The complex web of tariffs imposed by the Trump administration has infiltrated most segments of the US manufacturing technology supply chain, impacting everything from pricing and sourcing to investment timelines, a recent Association For Manufacturing Technology’s (AMT) survey of 80 manufacturing technology executives found. Reciprocal tariffs, Section 301 tariffs, 50% levies on steel and aluminum, and a pending Section 232 investigation of robotics and industrial machinery imports have added layers of complexity to pricing, sourcing, and production planning for US manufacturers across most of the supply chain, per AMT. The survey found 91% of respondents reported increased landed costs (the total cost of getting a product from the factory to a customer’s door) due to tariffs; 85% raised customer prices to offset those costs; and 85% experienced margin compression on imported machinery or components. Notably, only 9% of those surveyed reported switching suppliers.
• Producer prices for industrial machinery manufacturers rose 4.6% in June compared to a year ago, after rising 2.5% in the previous June-to-June annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices are at record highs amid rising input costs driven by tariffs and rising energy and labor costs. Employment by the industry shrank 3.7% year over year in May, while the average wage at industrial machinery manufacturers climbed 9.5% over the same period to a new high of $35.13 per hour, BLS data show. Wage growth at industrial machinery manufacturers over the past three years was 21.3%, much higher than overall private wage growth of 12.1%, per the BLS.

Industry size & Structure

The average industrial machinery manufacturer has 49 employees and produces about $15.7 million in annual revenue.

• About 2,700 companies employ 133,000 workers and generate $42.6 billion in annual revenue.
• 63% of firms have fewer than 20 employees.
• About 145 facilities are very large, employing 500 or more workers.
• Large companies include Siemens AG, ABB, Honeywell, Ingersoll Rand, and Lam Research Corp.