Drill down: Despite low demand from downstream markets, rebounding metal prices may improve revenue

The Machine Shop Services industry slowly contracted in the five years to 2017 after posting revenue declines in three of the past five years. A further decline was mitigated by a robust rebound in the industry's major markets, specifically commercial aerospace and transportation manufacturing, which picked up in 2012. In fact, nearly all of this industry's downstream markets have expanded over the past five years and are currently operating with improved market conditions. However, as a result of falling metals prices from 2013 to 2015, the industry was not able to expand during the five-year period; industry revenue is expected to decrease over the five years to 2017...purchase to read more.

Industry Statistics & Market Size
Revenue
$41bn
Annual Growth 12-17
-0.3%
Forecast Growth 17-22
Profit
Employment
257,029
Businesses
18,884
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has declined due to lower defense spending and decreased downstream demand
  • A progressively aging US population has bolstered demand for medical devices
  • The industry will benefit from growth in demand from aircraft engine and parts manufacturing
  • Industry Report - Starting a New Business Chapter

    The majority of industry revenue is attributable to established services such as basic milling and turning. The associated manufacturing technologies for these services are standardized and widely accessible. Milling and turning computer numerical control (CNC) machines are present in almost every machine shop. Their high market penetration has caused the prices for these machines to become more affordable. Entry is relatively easy for a new company wishing to provide these services and requires only a modest capital outlay. The costs for cutting-edge CNC machinery can be far greater. More complicated and expensive services, however, contribute a lesser amount to total industry revenue...purchase to read more.

    Additional Insights for the Machine Shop Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Machine Shop Services 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 Industrial production index and Demand from metal stamping and forging in the Machine Shop Services industry impact industry performance..

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    What's in this report

    What is the Machine Shop Services Industry?

    The Machine Shop Services industry 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 planning services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial production index
  • Demand from metal stamping and forging
  • Demand from car and automobile manufacturing
  • World price of steel
  • Aggregate private investment
  • Prime rate
  • Federal funding for defense

  • Current Performance
  • Manufacturing bolsters the industry
  • Other downstream markets
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Manufacturing growth to drive revenue
  • Demand for medical devices, satellites and sporting goods
  • Profit and employment growth
  • Table: Machine Shop Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Machine Shop Services 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 Industry Products and Services Segmentation

  • Demand Determinants
  • Consumer spending
  • Defense spending
  • Metal forging activity
  • Demand for medical devices
  • Technology and substitutes

  • Major Markets
  • Fabricated metal product markets
  • Industrial machinery and equipment markets (including components)
  • Automotive, transportation and off-highway vehicle markets
  • Airline markets
  • Other markets
  • Electronics and telecommunications markets
  • Medical markets
  • Chart: Major Market Segmentation for the Machine Shop Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Machine Shop Services

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Machine Shop Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Machine Shop Services 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 Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (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
    Table: Industry Financial Ratios
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Machine Shop Services Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Machine Shop Services industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Machine Shop Services:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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