Companies in this industry use machine tools to modify metal, plastic, and composite materials to produce finished products. No major companies dominate the industry.
Worldwide, revenue for machine shops varies with manufacturing output. Because machine shops play a manufacturing support role, often operating as de facto subsidiaries of their customers, their work tends to be local.
The US machine shop industry includes about 19,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $36 billion.
Demand depends on manufacturing activity. The profitability of individual companies is linked to engineering expertise and operating efficiency. Larger shops have the ability to invest in advanced production machinery. Smaller shops can compete effectively by serving specialized customers, or by providing engineering services. The US industry is highly fragmented: the 50 largest companies generate about 10% of revenue.
Products, Operations & Technology
Machine shops are intermediaries in industrial production: generally, they receive unfinished parts or raw materials from a manufacturer, perform various
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms