Machine Shops NAICS 332710

        Machine Shops

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Purchase Report

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

Feb 18, 2026 - Autonomous Robot Grinding Speeds Throughput
  • Autonomous grinding offers machine shops and other metal fabricators a scalable path to higher throughput, safer workflows, and more predictable quality, American Machinist reports. Autonomous grinding systems like the Teqram EasyGrinder help shops address labor shortages, rising demand for precision, and pressure to shorten lead times. By automating heavy deburring and edge‑prep work, traditionally a labor‑intensive bottleneck, shops can reassign skilled workers to higher‑value machining and fabrication tasks. AI‑driven 3D vision enables EasyGrinder to identify part geometries without programming, delivering consistent radiusing, slag removal, and heat‑affected‑zone cleanup that improve downstream weldability and coating performance. For machine shops, this level of repeatability reduces rework, enhances part quality, and strengthens competitiveness with OEMs demanding tighter tolerances. Lights‑out operation effectively adds capacity without new hires, cutting lead times dramatically. Moreover, reliable remote support and minimal hardware changes also lower adoption barriers.
  • 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.
  • 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
                            Source: Vertical IQ and Inforum

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