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 6,200 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.

Weak Pricing Growth

Strong competition from domestic competitors and foreign imports have prevented metalworking machinery manufacturers from significantly raising their prices.

Industry size & Structure

A typical metalworking machinery manufacturer operates out of a single location, employs 26-27 workers, and generates about $4-5 million annually.

    • The metalworking machinery manufacturing industry consists of about 6,200 companies which employ about 164,000 workers and generate about $30 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
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Nov 15, 2022 - Metalworking Activity Stabilizes
                                • Metalworking activity – an indicator of demand for metalworking machinery – was stable in October, reversing the trend toward contraction in recent months, Modern Machine Shop (MMS) reported in November. The Gardner Business Index (GBI) for Metalworking hovered around 50 (signaling no change from the prior month) for the second month in a row, reflecting stability of most of the six index components that had been losing ground in the three months prior. New orders and exports contracted again, but at slower rates than in September, while employment and production stayed flat. Backlog also was essentially unchanged, while supplier deliveries continued to lengthen at slower rates, entering levels in line with more typical, pre-pandemic readings, according to MMS. Employment was the only metric in growth mode in October.
                                • The US International Trade Commission (USITC) in October 2022 decided to maintain the existing countervailing duty order on imports of hot-rolled steel from South Korea and the antidumping duty orders on imports of hot-rolled steel from Australia, Japan, Netherlands, Russia, South Korea, Turkey, and the United Kingdom. Those decisions were based on a five-year sunset review of the tariffs and found that US steel manufacturers would be hurt if the tariffs were removed. While good news for US steel makers, keeping the tariffs is bad news for metal customers. In a bit of good news for metal consumers, the USITC agreed to remove the existing antidumping duty and countervailing duty orders on imports of hot-rolled steel from Brazil, The Fabricator reported.
                                • The strong value of the US dollar relative to the euro, Japanese yen, British pound, and other currencies is giving foreign producers a price advantage in the US market while making US exports more expensive, The Wall Street Journal reported in October 2022. The unfavorable exchange rates threaten to derail the rebound in US manufacturing, especially for companies with large overseas sales and operations. Industry analysts cited by WSJ said unfavorable exchange rates will likely crimp industrial manufacturers’ revenue. But exchange rates cut both ways: The currency shift is helping some domestic manufacturers that import foreign-made components for use in their US factories.
                                • Collaborative robots (aka cobots) are rescuing manufacturers of all sizes from the grip of a crippling labor shortage. With the manufacturing sector facing a potential shortage of 2.1 million skilled jobs by 2030, according to Deloitte, cobots have an important role to play in maintaining growth and productivity. “Companies that had never before considered robotic automation are now adopting cobots in their operations because today’s cobots are simple to operate and can handle a wide variety of previously impossible tasks,” the Association of Manufacturing Technology’s Tim Shinbara wrote in May 2022. Technological advances in ease of use and application flexibility have contributed to their growing popularity. Applications include inspection, palletizing, welding, and machine tending, among others. A cobot is a robot intended for direct human robot interaction within a shared space and a fast growing segment in factory automation.
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