Machine Shops NAICS 332710

Apr 18, 2026 - Manufacturing Activity Expands Again

• Economic activity in the manufacturing sector, a driver of demand for machine parts, expanded in March for the third straight month, following a 10-month period of contraction, according to the nation's supply executives in the latest ISM Manufacturing PMI Report. In March, the Manufacturing PMI registered 52.7%, a 0.3-percentage point increase compared to February’s reading of 52.4%. Of the five subindexes that make up the PMI, the New Orders Index indicated slower growth compared to February, the Production Index grew at a faster rate, and the Employment and Inventories indexes remained in contraction. March was the first report with supply executives citing the Iran war as a new impact to their business, along with ongoing uncertainty with US economic policy, despite the recent Supreme Court ruling striking down International Emergency Economic Powers Act (IEEPA) tariffs.
• 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.
• Producer prices for machine shops rose 1.7% in February compared to a year ago, after rising 2.6% in the previous February-versus-February annual comparison, according to the latest US Bureau of Labor Statistics data. Machine shop producer prices, which have been rising steadily since mid-2021, are at a record high level due to a combination of strong demand and sharply increasing input costs. Employment by machine shops continued its downward trend in January, dipping by 1% year over year, while the average industry wage rose 0.8% over the same period to $28.18 per hour, easing from its peak in November 2025, BLS data show. Machine shops are taking a cautious approach to hiring amid inflationary pressures.