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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                                Coronavirus Update

                                May 14, 2022 - Rise of the Cobots
                                • 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.
                                • Metalworking machinery manufacturers are poised to benefit from increasing investment and production at US factories. Total private investment in new industrial equipment and machinery peaked in the fourth quarter of 2021 and remains at a decades-long high, according to data from the US Bureau of Economic Analysis. Supply chain woes resulting from the COVID-19 pandemic are behind the energized efforts to bring manufacturing back from overseas, a move referred to as reshoring, after decades of outsourcing, in particular to China. New commitments by manufacturers to sustainability are also playing a role, with the opportunity to reduce pollution and fossil fuel consumption in transportation across oceans emerging as a selling point, reports The New York Times.
                                • The global metalworking machinery market is forecast to grow 8% annually through 2025, according to Reporter Link. This growth is largely attributed to firms in the industry “rearranging their operations and recovering from the Covid-19 impact.” Stable economic growth and higher commodity prices are expected to aid in an expanded market for metalworking machinery.
                                • The industry may be entering new programming territory via the creation of human-machine interfaces (HMI) using HTML5, instead of an API, that allows users to more easily customize their machine controls. Fagor Automation is leading the charge – reportedly the first to use HTML5 for this application, according to Modern Machine Shop. Traditional API systems require a great deal of programming expertise and cooperation from the original equipment manufacturer (OEM) and any peripheral suppliers. HTML5 is a simpler, more intuitive programming language that also adds security, which is of growing importance as machines are interconnected. Third-party software for machine monitoring, management, and breakage detection is also easier to integrate into HTML systems.
                                • Prices charged by metalworking machinery manufacturers for their finished products have been on a steady rise and reached a record high in April 2022. However, the cost of metal, a major raw material used in machinery production, has also been on the rise and also reached a record high in April. The industry appears to be passing higher material cost to customers in the form of higher machinery prices to manage profit margins.
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