Metalworking Machinery Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 5,800 metalworking machinery manufacturers in the US produce metal cutting and forming machinery, dies, machine tools, jigs, and industrial molds. Major customers are machine shops, industrial machinery wholesalers, industrial supplies distributors, construction firms, oil and gas firms, mining companies, power companies, defense contractors, and manufacturers of vehicles, aircraft and aerospace components, ships, and a wide range of products that require the machining or molding of metal, glass, rubber, or plastic.
Competition from Used Equipment
Metalworking machinery manufacturers not only compete with one another but also the used equipment market.
Historically Weak Pricing Growth
Strong competition from domestic competitors and imports has historically prevented metalworking machinery manufacturers from significantly raising their prices.
Industry size & Structure
A typical metalworking machinery manufacturer operates out of a single location, employs 28 workers, and generates about $5-6 million annually.
- The metalworking machinery manufacturing industry comprises about 5,800 companies, which employ about 162,000 workers and generate about $32.4 billion annually.
- Most companies are small, independent operators - about 72% of establishments employ less than 20 workers.
- Customer industries include machine shops, industrial machinery wholesalers, industrial supplies distributors, construction firms, and manufacturers of metal, glass, rubber, and plastic products.
- Large companies include Baileigh Industrial, Mazak, Kennametal, and Amada.
Industry Forecast
Metalworking Machinery Manufacturers Industry Growth
Recent Developments
Nov 20, 2024 - New High for Prices
- Producer prices for metalworking machinery manufacturers increased 3.6% in September compared to a year ago after rising 5.8% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices, which have been rising steadily since early 2021, reached another new high in September, amid a rise in shipments, which jumped 7.2% year over year in July. Employment by metalworking machinery manufacturers shrank 2% YoY in September, while average industry wages rose 1.6% over the same period at $26.94 per hour, BLS data show. Employment by US factories has been relatively flat for over a year due to a combination of factors, including high interest rates, a slowing economy, and the end of the pandemic-induced surge for many manufactured goods.
- Shop floor injuries needn’t be serious to be costly. In its 2024 Injury Impact Report, the insurer The Travelers Companies found the most common workplace accidents accounted for the majority of claim costs. The most frequent causes of injury identified in the report included overexertion (29% of claims analyzed); slips, trips, and falls (23%); being struck by an object (12%). Those injuries were also the top drivers of severe claims, defined as $250,000 or more. Slips, trips, and falls, which include falls from height, topped that list. Injuries related to overexertion can result in extended absences with injuries like dislocations having the highest number of average lost-time days at 142 days, followed by fractures (92 days), and inflammation (85 days). Improving shop floor ergonomics, eliminating trip/fall hazards, and material handling mishaps are three areas manufacturers can focus on to reduce injuries and time lost.
- Metalworking activity contracted again in October but at a slightly slower rate, according to the Gardner Business Index (GBI), which tracks month-to-month changes in activity. The index closed at 43.9 in October, down from 48 in April 2023. According to Modern Machine Shop (MMS), while the index was still in contraction in October, the future business outlook improved more than a full point over last month, although most indicators either improved or remained flat, other than employment, which contracted by two full points.
- China's monthly trade surplus reached a record $99 billion in June, prompting concern among its trading partners that a glut of Chinese manufactured goods would harm their own industrial output and economies, The New York Times reports. China’s trade surplus with the US rose to nearly $32 billion in June, up from $29 billion a year earlier, as China exported more and imported less, according to NYT. China’s imports shrank as companies and households there took a more cautious approach to spending. As Chinese consumers buy less, China is looking to international markets to keep its factories humming. Governments in the US, the EU, Brazil, India, Turkey, and elsewhere are responding by raising tariffs or imposing new ones on manufactured goods from China. According to the United Nations COMTRADE database, the US imported $13.85 million in metalworking machinery from China in 2023.
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