Machine Shops NAICS 332710

        Machine Shops

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Industry Summary

The 17,100 machine shops in the US process various materials, such as metal, plastic, or composites, to produce custom parts. Companies may specialize in a particular process (such as lathing) or an industry (such as automotive). Most projects are low-volume and require high precision. The industry consists of small- to medium-sized businesses – no large companies dominate.

Dependence on Manufacturing Sector

Demand for goods produced by machine shops is cyclical and highly dependent on the state of the manufacturing industry.

Dependence on Skilled Labor

Operating machine shop equipment requires a blend of technical knowledge and experience.


Recent Developments

Oct 18, 2025 - US to Investigate Industrial Machinery Imports
  • The Commerce Department in September launched an investigation to determine the effects on national security of imports of robotics and industrial machinery, according to a notice in the Federal Register. The probe, opened under Section 232 of the Trade Expansion Act, will examine the national security implications of imports of a wide array of industrial equipment, including robots and programmable, computer-controlled mechanical systems, turning and milling machines, grinding and deburring equipment, and industrial stamping and pressing machines. Other items included are automatic tool changers, jigs and fixtures, and machine tools for cutting and welding. The department is seeking information on domestic production and demand, the role and risks of major foreign exporters, and the impact of foreign government subsidies and trade practices on the robotics and industrial machinery markets.
  • Should the Commerce Department’s investigation of imports of robotics and industrial machinery result in the imposition of new tariffs, it would saddle machine shops with additional costs for imported CNC machining centers, turning and milling machines, grinding and deburring equipment, and industrial stamping and pressing machines, American Machinist reports. The department’s investigation also includes automatic tool changers, jigs and fixtures, and machine tools for cutting, welding, and handling work pieces. Many other products also could be subject to tariffs, including equipment used to treat, form, or cut metal, metal finishing and treatment equipment, electric discharge machinery (EDM), and laser and water-cutting tools and machinery. The public comment period, which closed on October 17, gathered input on topics including US supply and demand, global supply chains and risks, and economic and trade impacts, in addition to US national security.
  • How do you grow a company, hire skilled workers, and pay off debt all at the same time? That question is on the minds of many small business owners today, including the CEO and co-founder of a family-owned prototype machines shop in New Mexico with 11 employees that brings in a little more than $2 million annually and is carrying over $1.6 million in debt. In an environment where it's becoming increasingly difficult to find, hire, and retain skilled workers, owners have no choice but to pay them what they’re worth or lose them to other shops. Personal finance expert Dave Ramsey told the shop owner who called his EntreLeadership podcast that paying fair, competitive wages is a non-negotiable part of business, even for companies burdened with debt. “If the new hire can bring in more value than they cost,” Ramsey said, “then they’re worth it.”
  • Producer prices for machine shops rose 2.8% in August compared to a year ago after rising 1.3% in the previous August-versus-August 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 their all-time high in August. Employment by machine shops shrank 2.3% year over year in July, while the average industry wage rose by 3% over the same period to a new high of $28.28 per hour, BLS data show. Machine shops have been raising wages to attract and retain skilled workers amid the skilled labor shortage in the US manufacturing sector.

Industry Revenue

Machine Shops


Industry Structure

Industry size & Structure

A typical machine shop operates out of a single location, employs about 15 workers, and generates about $2.6 million annually.

    • The machine shop industry comprises about 17,100 companies that employ 259,000 workers and generate $44.7 billion annually.
    • Customer industries include aerospace, automotive, transportation, consumer electronics, and various equipment manufacturers (farm, medical, recreational).
    • The industry consists of small- to medium-sized businesses - no large companies dominate.
    • Nearly a third (32%) of US machine shops are in California, Texas, Ohio, and Michigan.

                            Industry Forecast

                            Industry Forecast
                            Machine Shops Industry Growth
                            Source: Vertical IQ and Inforum

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