Overview

Broken wheel: Lower demand from key downstream markets will decrease demand for industry services

IBISWorld’s Machine Shop Services market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$41bn
Annual Growth
11-16
0.6%
Annual Growth
16-21
Profit
Employment
246,901
Business
18,685

Industry Threats & Opportunities

  • Productivity improvements driven by high-tech markets have aided industry operations
  • A progressively aging US population has bolstered demand for medical devices
  • Demand from heavy machinery manufacturers is expected to increase over the next five years

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    Industry Analysis & Industry Trends

    The Machine Shop Services industry steadily expanded in the five years to 2016, posting revenue growth in each of the past five years. Much of this growth was driven by a robust rebound in the industry's major markets, including commercial aerospace and transportation manufacturing, which picked up in 2011. Over the five years to 2021, operators will devote further resources to satisfying growing demand from manufacturers in markets like automobile manufacturing, commercial aircraft manufacturing and metal forging. Demand from medical device manufacturers is also expected to increase due to a progressively aging US population with an increasing need for medical care. This will heighten the need for micromachined products...

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    Industry Report - Industry Locations Chapter

    The location of manufacturing establishments is generally determined by proximity to downstream manufacturing markets, as well as upstream suppliers of forged metals and other input materials. Machine shop locations are also highly correlated with population density. Regions with larger populations tend to have greater concentrations of machine shops. For these reasons, the majority of industry establishments are located in the Great Lakes, Southeast and West regions.

    The concentration of industry establishments in the Great Lakes region is largely attributable to the states of Ohio and Michigan. The high number of business locations in Ohio is due to the state's status as a leading manufacturer; manufacturing has been concentrated there since the mid-1800s. Ohi..

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    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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    Look under the hood?

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    Industry Products

    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 planing services

    Table of Contents

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

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

  • Industry Outlook
  • Manufacturing growth helps drive revenue gains
  • Demand for medical devices, satellites and sporting goods aids industry
  • 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

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

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

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Machine Shop Services Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Industrial production index (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    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?

    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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