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 5,850 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 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 25-26 workers, and generates about $5-6 million annually.

    • The metalworking machinery manufacturing industry consists of about 5,850 companies which employ about 161,900 workers and generate about $33.7 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

                                Jan 20, 2024 - Metalworking Machinery Prices Rise
                                • Producer prices for metalworking machinery manufacturers rose in December compared to a year ago extending a long climb that began in early 2021. Rising prices for metalworking machinery are helping to offset the steady rise in industry wages, which reached a new high of $26.92 per hour in November. By comparison, industry employment fell in November year over year and remains well below pre-pandemic levels. Shipments and new orders for metalworking machinery declined in September year over year while manufacturers' inventories rose.
                                • Shop class is making a comeback in US high schools, Modern Machine Shop (MMS) reports. A recent MMS article links the current skilled labor shortage in metalworking and CNC machine shops to the near disappearance of shop class from middle and high schools from the 1990s through the 2010s. It largely blames the “No Child Left Behind Act” of 2002, which increased accountability by requiring all schools to help all of their students meet State-set standards. Pressure to meet federal guidelines left little time for career and technical education (CTE) programs and deprived students of the opportunity to learn technical skills and employers of a pipeline of qualified applicants. Per the Michigan Dept. of Education, 95% of high school students enrolled in a CTE program graduated in 2022 versus an overall graduation rate of 81%. Moreover, CTE graduates are out-earning graduates who didn’t focus on CTE.
                                • Declining demand for new CNC machines and other machine tools reflects hesitancy among machine shops to invest amid high-interest rates and economic uncertainty, American Machinist reports. According to the Association of Manufacturing Technology’s (AMT) US Manufacturing Technology Orders (USMTO) report demand fell to $353.9 million during July, down 12.4% from June and a decline of 10.5% year over year. The July USMTO report brought the year-to-date order total to $2.83 billion, a 12.7% decrease over the seven-month total for 2022. Commenting on the report AMT president Douglas K. Woods noted that while job shops continued to decrease orders, industries that have benefited from recent reshoring or government investment have been filling the gap in year-to-date orders. The AMT report also called out stronger order activity by metal valve manufacturers and manufacturers of motor vehicle transmissions.
                                • Companies are resisting laying off workers despite recession signals, The Wall Street Journal reports. Instead, employees are working fewer hours. The average number of hours worked a week by private-sector employees declined to 34.3 in May, below the 2019 average and down from a peak of 35 hours in January 2021, according to the Labor Department. Historically, reducing hours worked has been a reliable signal of layoffs to come. However, that signal might be a false alarm due to unusual post-pandemic factors, WSJ reports. In an apparent contradiction, even as employers cut hours, they’re also adding workers. Payrolls rose by 339,000 in May and layoffs were nearly 13% lower in April than in the average month in 2019, according to the Labor Department. In May, the average factory worker clocked 3.6 overtime hours, down from 4.1 a year earlier.
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