Sparks fly: Steady downstream demand will continue to sustain revenue growth

Over the five years to 2017, Machine Shop Services industry revenue has been increasing. Revenue growth during the period has largely been a result of increasing demand from downstream markets. Primarily, growth in nonresidential construction in Illinois has driven demand for industry services. Construction operations frequently use products manufactured with machined inputs, or use machined products as building materials. Manufacturing is also a key downstream industry for machine shops, as manufacturers frequently contract machine shops to produce inputs. Over the five years to 2022, revenue growth is expected to continue to be supported by growth in construction activity, specifically, nonresidential construction...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 12-17
3.7%
Forecast Growth 17-22
Profit
Employment
15,461
Businesses
1,052
What Our Customers Say

Industry Threats & Opportunities

  • Revenue growth during the period has largely been a result of increasing demand from downstream markets
  • Manufacturers in Illinois have migrated out of state to operate in less expensive regions in order to reduce operating costs
  • Construction activity is anticipated to remain a strong driver of demand for machine shop services
  • Industry Report - Industry Analysis Chapter

    Machining is the process of removing material from metal, plastics or composites using a range of machines. Machine shops frequently use computer numerical control (CNC) machines, in which the process is largely automated once the desired product is designed using software and input into the machine’s controls. The advent of CNC machinery has enabled industry players to achieve high levels of precision and extremely tight tolerances. The Machine Shop Services industry in Illinois has grown over the past five years. Revenue has increased due to rising demand from downstream industries; however, opposing forces in key demand drivers has restricted revenue growth to some degree. Over the five years to 2017, industry revenue is estimated to have risen at an annualized rate of 3.7% w...purchase to read more.

    Additional Insights for the Machine Shop Services in Illinois Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Machine Shop Services in Illinois Industry are

  • Ability to quickly adopt new technology
  • Effective quality control
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Manufacturing GDP for Illinois and Value of private nonresidential construction in Illinois in the Machine Shop Services in Illinois industry impact industry performance..

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    What is the Machine Shop Services in Illinois Industry?

    The Machine Shop Services industry in Illinois cuts raw materials into specified shapes and sizes using a variety of tools, such as lathes, milling machines, grinders and drill presses. Almost all forms of metal product fabrication involve machining, and industry operators may also machine plastic and composite materials.

    Industry Products
  • Milling
  • Turning
  • Grinding
  • EDM and ECM
  • Industry Activities
  • Turning services to produce cylindrical components
  • Drilling and boring services
  • Manual and computer numerical control (CNC) milling services
  • Sawing services
  • Broaching services to enlarge existing holes
  • Fastening services using automatic screw machines
  • Grinding and planing services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Manufacturing GDP for Illinois
  • Value of private nonresidential construction in Illinois
  • Industrial production index
  • Private investment in metalworking machinery

  • Current Performance
  • Demand growth generates revenue
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand continues to support revenue growth
  • Industry landscape
  • Table: Machine Shop Services in Illinois Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Machine Shop Services in Illinois Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Metal Stamping & Forging
  • Screw, Nut & Bolt Manufacturing
  • Tractors & Agricultural Machinery Manufacturing
  • Construction Machinery Manufacturing
  • Mining, Oil & Gas Machinery Manufacturing
  • Engine & Turbine Manufacturing
  • Wind Turbine Manufacturing
  • Power Tools & Other General Purpose Machinery Manufacturing
  • Aircraft, Engine & Parts Manufacturing
  • Tank & Armored Vehicle Manufacturing

  • Key Selling Industries
  • Aluminum Manufacturing
  • Copper Rolling, Drawing & Extruding
  • Ferrous Metal Foundry Products
  • Metal Pipe & Tube Manufacturing
  • Metal Stamping & Forging
  • Metalworking Machinery Manufacturing
  • Screw, Nut & Bolt Manufacturing
  • Tool & Hardware Wholesaling

  • Products & Services
  • Milling
  • Turning
  • Other
  • Grinding
  • EDM and ECM
  • Chart: Machine Shop Services in Illinois Industry Products and Services Segmentation

  • Major Markets
  • Fabricated metal products markets
  • Automotive, transportation and off-highway vehicle manufacturers
  • Industrial machinery and equipment manufacturers
  • Airline markets
  • Other
  • Chart: Major Market Segmentation for the Machine Shop Services in Illinois Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Machine Shop Services in Illinois

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Machine Shop Services in Illinois Industry

  • GCMIllinois Valley MachineStanley Machining & Tool CorporationTechnox Machine & Manufacturing Inc.
  • Table: GCM - financial performance
  • Table: Illinois Valley Machine - financial performance
  • Table: Stanley Machining & Tool Corporation - financial performance
  • Table: Technox Machine & Manufacturing Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Machine Shop Services in Illinois Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Machine Shop Services in Illinois Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Industrial production index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Billet
  • A semi-finished piece of metal or other material shaped by machinists; this can also be called a workpiece.
  • Boring
  • The process where a predrilled hole is enlarged with a tool.
  • Computer Numeric Control (Cnc)
  • The automation of machine tools operated by abstractly programmed commands encoded in a computer, as opposed to manually controlled via handwheels or levers, or mechanically automated via cams alone.
  • Electrical Discharge Machining (Edm)
  • A manufacturing process that involves making intricate cuts into metals that have already undergone tempering.
  • Electrochemical Machining (Ecm)
  • A manufacturing process that uses a form of electrolysis to remove metal from an object.
  • Industrial Production Index
  • An economic indicator that measures real production output including manufacturing, mining, and utilities.
  • Machine Shop
  • An establishment where machining takes place.
  • Milling
  • The process where a rotating cutting tool is used to carve or shape a stationary object.
  • Turning
  • An industry process that uses an edged cutting tool to remove material from a rotating object to create or improve the object's cylindrical shape.
  • Why buy this report?

    The Machine Shop Services in Illinois industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    This report on Machine Shop Services in Illinois:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Machine Shop Services in Illinois market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Machine Shop Services in Illinois, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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