Machine Shops NAICS 332710

Nov 18, 2025 - Manufacturing Contracts Again in October

• US factory activity, a demand driver for custom machine parts, shrank in October for an eighth straight month, driven by a pullback in production and tepid demand, The Wall Street Journal reported in November citing the latest data from the Institute for Supply Management (ISM). In October, ISM’s Purchasing Managers’ Index (PMI) fell to 48.7 from 49.1 in September (a reading under 50 indicated contraction), with production, new orders, and employment all contracting, reversing short-lived gains seen in previous months. Six manufacturing industries reported growth in October with Primary Metals, Food, Beverage & Tobacco Product,; and Transportation Equipment topping the list. A dozen industries reported contraction in October including Textile Mills, Apparel, Leather & Allied Products, Furniture & Related Products, and Machinery. WSJ noted that tariffs and their impact on prices and demand featured highly in respondents’ answers to ISM’s survey.
• US machine shops and other manufacturers ordered $493.1 million in new capital equipment during September, down 7.2% from August, but up 11% compared to a year ago, according to the latest data from the Association for Manufacturing Technology (AMT). Through nine months of ordering activity, demand for manufacturing technology was 17.3% higher than the comparable figure for 2024, totaling $3.93 billion. September’s order total was the highest in three years, driven by strong growth in order values, while the number of units ordered grew at a slower pace. Indeed, September 2025 had the second-lowest number of units ordered during a September since 2009, per AMT. The association observed the rise in order value amid falling unit sales could be caused by the growing significance of automation in machine tool design, though AMT pointed to a lack of current BLS data to confirm that observation for September.

• 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.
• 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.