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
Sep 20, 2024 - Prices Continue to Climb
- Producer prices for metalworking machinery manufacturers rose 4.5% in July compared to a year ago after climbing 7.2% in the previous July-versus-July annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices, which have been rising steadily since early 2021, reached a new high in July, despite declining shipments, which fell 4.5% year over year in June. Employment by metalworking machinery manufacturers shrank 2.6% YoY in July, while average industry wages stayed flat over the same period at $26.73 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.
- 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 ccompanies 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.
- Metalworking activity contracted at a slightly faster rate in April after an upward trend stalled in March, according to the Gardner Business Index (GBI), which tracks month-to-month changes in activity. The index closed at 47.1 in April, almost a full point lower than a year ago (48.0) and down 0.8 points relative to March’s 47.9. According to Modern Machine Shop (MMS), April’s accelerated contraction is worth monitoring because it may signal growing conservatism as high interest rates and inflation persist in the economy. New orders, production, and backlog all continued to contract in April but at slightly slower rates, with production still within striking distance of 50 (the border between expansion and contraction). Expectations regarding future business remained positive despite a slight downturn for the first time since last October.
- More than two-thirds of manufacturers have a positive economic outlook for 2024. Still, opinions are mixed about whether there will be a recession, according to the Q4 2023 Manufacturers Outlook Survey of member companies by the National Association of Manufacturers (NAM). Large manufacturers are the most optimistic, with 77.5% positive about their company’s outlook, while medium-sized manufacturers are the least optimistic with 63% feeling positive. While fewer respondents expect a recession in 2024 than they did three months ago, nearly 41% said they feel uncertain. Just over 34% of manufacturers believed the US economy would experience a recession in 2024. The top challenge for the manufacturing sector this year will be the workforce, with the labor market cooling substantially but remaining tight. Notably, NAM reported manufacturing construction spending is at a record high of $210 billion thanks to the production of semiconductors, electric vehicles and batteries, and general reshoring.
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