Machine Shops NAICS 332710

Jan 18, 2026 - Buying Used

• Buying used CNC machines can be a smart way to expand capacity without the cost of new equipment, but only if the evaluation process is disciplined, warns a recent article in American Machinist. The article emphasizes a structured inspection approach to avoid inheriting hidden problems that undermine accuracy, uptime, and profitability. Shops should start with a detailed physical inspection to identify wear, damage, or missing components, then review maintenance logs to understand how well the machine was cared for. Accuracy must be verified through test cuts to ensure the machine can hold tolerances and repeatability required for production work. Electrical systems, lubrication, and coolant circuits also need thorough checks, as failures in these areas can lead to expensive repairs and extended downtime. For machine shops operating under tight margins, these steps help ensure a used CNC machine becomes a reliable asset rather than a costly liability.
• US machine shops enter 2026 facing volatile material costs, persistent tariffs, and chronic labor shortages, forcing shops to scale cautiously rather than through major capital spending, CPA Mike Sibley tells Modern Machine Shop. Sibley argues that the most competitive shops are those maximizing the technology they already own by tightly linking shop‑floor operations with financial data to understand true margins, spindle utilization, and quoting accuracy. Instead of splurging on expensive automation, shops are gaining capacity through smarter workholding, standardized setups, modular cells, and improved workflows that slash setup time and eliminate redundant operations. Tools like AI Servo Tuning help existing machines perform more consistently, while better tooling strategies boost productivity in difficult materials without new equipment. Strategic acquisitions and integrated quoting systems offer another path to growth without starting from scratch. Overall, the future for machine shops hinges on leveraging existing assets, disciplined investment, and operational intelligence to scale under constraint.

• US factory activity slowed to a four‑month low in November as tariffs pushed input prices higher and softened demand, leading to a buildup of unsold goods, the Institute for Supply Management reports. For machine shops, this environment signals tightening conditions. Slower new orders mean reduced demand for machined components, especially from OEMs facing their own inventory backlogs. Rising input costs driven by tariffs further squeeze margins for shops already dealing with elevated materials and labor costs. The University of Michigan’s Surveys of Consumers also showed a sharp drop in consumer buying conditions for durable goods, a key downstream sector for many machine shops. This suggests weaker order pipelines heading into 2026. While services activity strengthened, manufacturing remains pressured, limiting near‑term recovery prospects. Overall, machine shops should expect slower order flow, longer sales cycles, and continued cost pressures, making operational efficiency and customer diversification increasingly important.
• Producer prices for machine shops rose 1.9% in September compared to a year ago, after rising 2.1% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices, which have been rising steadily since mid-2021, were near an all-time high in September. By comparison, employment by machine shops continued on its downward trend, shrinking 1.3% year over year in August, while the average industry wage rose by 1.4% over the same period to $28.07 per hour, easing from its high in July, BLS data show. Machine shops have been hiking wages to attract and retain skilled workers amid the skilled labor shortage in the US manufacturing sector.