Machine Shops NAICS 332710
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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
Mar 18, 2026 - Workforce Development
- With many experienced machinists nearing retirement and new skilled candidates difficult to find through traditional recruiting channels, US machine shops are looking for opportunities to boost the CNC machining workforce, Modern Machine Shops reports. Educational programs to address the machining workforce shortage include: Machining AdvantEdge, a provider of free training and bootcamps that teach modeling-based machining strategies to improve productivity and programming efficiency; TechAM develops technician-engineer “technologists” who can lead advanced manufacturing initiatives, helping shops adopt automation, robotics, and digital manufacturing; MSC Collaboratory connects schools with industry tools, training, and technology to better prepare students for real shop-floor work; and lastly, Laborup, which uses AI to match employers with skilled machinists by focusing on practical shop-floor skills rather than resumes. Together, these programs help machine shops address labor shortages, build stronger training pipelines, and improve hiring and retention of CNC talent, per MMS.
- The Labor Department is investing $81 million in workforce training grants aimed at helping formerly incarcerated individuals gain skills and employment in high-demand industries, including advanced manufacturing, Manufacturing Dive reports. The funding will support the Restart initiative, which will finance up to 20 nationwide training projects that include pre-apprenticeships, registered apprenticeships, work-based learning, credential programs, and digital literacy training. For the US manufacturing sector, the program is designed to help address the ongoing labor shortage by expanding the available talent pool. Training will target areas such as advanced manufacturing, AI infrastructure, shipbuilding, nuclear energy, transportation, and domestic mineral production. The initiative also prioritizes partnerships with apprenticeship sponsors and workforce organizations to improve job placement and long-term employment outcomes. By preparing participants for skilled trades and manufacturing roles, the program aims to strengthen workforce pipelines, support production capacity, and help manufacturers recruit workers for critical positions.
- 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.
- Producer prices for machine shops rose 1.8% in November compared to a year ago, after rising 2.1% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices, which have been rising steadily since mid-2021, have retreated slightly from their peak in June. Employment by machine shops continued on its downward trend, shrinking 1.5% year over year in November, while the average industry wage rose 1.6% over the same period to a new high of $28.45 per hour, BLS data show. Machine shops have been hiking wages to attract and retain 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
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