Machine Shops

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.

Aug 18, 2026 - Metalworking Machinery Orders Hit First-Half Record

• Amid strong industrial demand, machine shops continue to order new equipment. According to the Association for Manufacturing Technology, US metalworking machinery orders totaled $672.7 million in June 2026, up 15.6% from May and 56.8% from June 2025. First-half orders reached a record $3.44 billion, up 36% from a year earlier, even as machine unit orders declined from the second half of 2025. Aerospace manufacturers led demand, posting record first-half orders in both value and units, while contract machine shops also recorded their highest first-half order value since tracking began in 1998. Orders from engine, turbine, and power transmission equipment manufacturers surged in June as AI infrastructure increased energy demand. Despite inflation, trade and tariff uncertainty, and geopolitical risks, manufacturing remained resilient. Oxford Economics expects orders to rise 1.5% in the second half, bringing 2026 orders to nearly $7 billion.
• The Pentagon is pressing defense contractors to accelerate weapons production and rebuild depleted US munitions stockpiles, including Patriot and THAAD interceptors used in the war with Iran, according to the Associated Press. Deputy Defense Secretary Steve Feinberg has given industry leaders 21 days to propose faster delivery schedules and increased output for critical weapons, while Pentagon officials say the effort is part of a broader push to strengthen the defense industrial base. Higher defense production could increase demand for machine shop work, including precision-machined components, specialized metals, tooling, and contract manufacturing capacity, while also tightening labor and supply availability. A Center for Strategic and International Studies analysis estimates Patriot inventories have fallen at least 65% since before the conflict, while THAAD stocks remain at least 38% below prewar levels. Funding remains uncertain as Congress debates a proposed increase in Pentagon spending.
• The speed at which a machine shop can provide a prospective customer with a quote can be the difference between winning and losing the job, Modern Machine Shops reports. Despite having the equipment, expertise, and capacity to perform the work, slow quoting is causing many US machine shops to lose business to overseas competitors, according to MMS. Uptool, an AI platform optimized to accelerate the quoting process by automating administrative tasks and organizing RFQ information, can significantly reduce quote turnaround times. By accelerating the quoting process from as much as 15-20 minutes per part to just a few minutes, shops can respond faster to customers, improve win rates, and compete more effectively with suppliers in Asia. Faster quoting can help shops secure more work, improve customer service, and strengthen the competitiveness of domestic manufacturing by reducing a key bottleneck between customers and suppliers, per MMS.
• 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.

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.