Steel cut: Despite volatile steel costs, the industry has continued to grow, albeit slowly

The Machine Shop Services industry in Michigan comprises companies that cut raw materials into specified shapes and sizes. Over the five years to 2018, the industry has grown slightly, at an annualized rate of 0.4%, though this includes a 0.4% decrease in 2018 to $2.8 billion. Even as the industry has slowly expanded, the number of participants has declined; over the past five years, companies have exited the industry at an annualized rate of 1.3%, totaling an estimated 959 enterprises in 2018. Employment has followed suit, though at a slightly slower annualized rate of 0.6% to 15,582 workers. As a result, the average company is larger in 2018 than it was in 2013.During the current period, two years of growth have been offset by three years of decline...purchase to read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
0.4%
Forecast Growth 18-23
Profit
Employment
15,582
Businesses
982

Industry Threats & Opportunities

  • Growth from the industrial market is expected to be offset by a decrease in the world price of steel
  • Additional Insights for the Machine Shop Services in Michigan Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Machine Shop Services in Michigan 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 in Michigan industry impact industry performance..

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    What's in this report

    What is the Machine Shop Services in Michigan 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

    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
  • Aggregate private investment
  • Federal funding for defense
  • World price of steel
  • Unemployment rate in Michigan
  • Prime rate

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Machine Shop Services in Michigan 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
  • Other
  • Milling
  • Turning
  • EDM and ECM
  • Grinding
  • Chart: Machine Shop Services in Michigan Industry Products and Services Segmentation

  • Major Markets
  • Automotive, transportation and off-highway vehicle markets
  • Fabricated metal product manufacturers
  • Industrial machinery and equipment manufacturing
  • Medical markets
  • Airline markets
  • Electronic/telecommunications markets
  • Military
  • Oil, gas and mining machinery and equipment
  • Chart: Major Market Segmentation for the Machine Shop Services in Michigan Industry

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

  • Basis of Competition
    Barriers to Entry
    BTM Company LLC, K&M Machine-Fabricating Inc., Master Automatic, The Paslin Company,
  • Table: BTM Company LLC - financial performance
  • Table: K&M Machine-Fabricating Inc. - financial performance
  • Table: Master Automatic - financial performance
  • Table: The Paslin Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Machine Shop Services in Michigan 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 Michigan Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Industrial production index (2009-2023)

  • 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.
  • What Our Customers Say

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    The Machine Shop Services in Michigan 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.

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    This report on Machine Shop Services in Michigan:
    • 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 Michigan 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

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