Metalworking Machinery Manufacturers NAICS 3335

Mar 20, 2026 - Orders Drop

• US orders for metal-cutting and metal-forming machinery totaled $441.4 million in January 2026, down sharply from December’s unusually high levels, but still 24.4% higher compared to a year ago, signaling a return to more typical demand levels, American Machinist reports. Machine unit orders also fell significantly, reflecting slower purchasing activity across most regions. For metalworking machinery manufacturers, this indicates a near-term slowdown in order volume following a year-end surge, with more cautious buying behavior from machine shops. However, the YoY growth suggests underlying demand remains healthy, supported by ongoing investments in automation and higher-value equipment, according to AM. Notably, automotive-related demand is strengthening, with manufacturers of transmission and powertrain parts significantly increasing orders, driven by a shift back toward internal combustion and hybrid vehicles. This presents a key growth opportunity for machinery suppliers serving automotive customers.
• US factory activity, a demand driver for metalworking machinery, 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 Products, and Transportation Equipment topping the list. Twelve industries reported contraction for the month 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.

• Tariffs on steel and aluminum imports to the US have a direct impact on small fabricators’ cost structures, bidding strategies, and overall competitiveness, according to Exiil, a provider of software to metal manufacturers. In March, President Trump raised steel and aluminum import tariffs to the US by 25% (since doubled to 50%), ending all country exemptions, in addition to hiking tariffs on China, according to Reuters. Russian aluminum imports carry a tariff of 200%. Beyond raw metal, the US has increasingly added “downstream” or “derivative” products – such as stamped parts, fasteners, tubing, wire, or other items with high steel/aluminum content – to existing Section 232 tariffs. As a result, metal fabricators face higher materials costs. Even businesses that source metals domestically are likely to pay more for metal as US mills often raise their prices when foreign competitors’ costs go up – because the “floor” of the market shifts.
• Producer prices for metalworking machinery manufacturers rose 4.1% in November compared to a year ago, after rising 3.8% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices hit another record high in November, extending a steep and steady climb that began in 2021. Employment by metalworking machinery manufacturers shrank 3% year over year in November, while the average industry wage jumped 10.7% over the same period to $30.31 per hour, easing slightly from its high in September, BLS data show. Employment by the industry is contracting amid rising wages and declining new orders and shipments earlier in 2025, Census Bureau data shows.