Jammed rotor: Revenue has declined as pressure exerted by low commodity prices has limited demand

The Machine Shop Services industry in Texas fabricates raw materials to be used by customers in their respective industries. Over the five years to 2017, industry revenue is expected to decline slowly. Compared with the national industry, which is expected to increase over the period, the Texas industry has a higher exposure to the energy sector. The pressure exerted by low commodity prices, especially oil and natural gas, has limited demand from key markets in the state. Manufacturing slowed over the period, which limited demand from other customer markets. In 2017 alone, improvements in oil and gas prices are expected to boost revenue growth, which will continue over the five years to 2022...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
-0.4%
Forecast Growth 17-22
Profit
Employment
19,122
Businesses
1,550
What Our Customers Say

Industry Threats & Opportunities

  • Several factors are expected to stimulate revenue growth over the next five years, especially oil and natural gas prices
  • The Texas industry is primarily made up of single-location operators
  • Downstream demand is expected to support the strong revenue outlook
  • Industry Report - Industry Key Buyers Chapter

    The Machine Shop Services industry in Texas exhibits a low level of market share concentration. IBISWorld estimates that no operator accounts for more than 5.0% of total state-industry revenue. Moreover, even the largest operators in the state are only expected to account for between 1.0% and 2.0% of revenue. Based on US Census reporting, 44.0% of industry establishments employ fewer than five employees. The nature of the industry lends itself to fragmentation. Most of the customers are regional manufacturers, which need custom fabrication for projects that are too expensive to do in-house. Therefore, most customers are relatively small, which limits the size of the contracts that any single machine shop can achieve...purchase to read more.

    Additional Insights for the Machine Shop Services in Texas Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Machine Shop Services in Texas 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 Oil and natural gas price index and Manufacturing GDP for Texas in the Machine Shop Services in Texas industry impact industry performance..

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    What is the Machine Shop Services in Texas 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, grinding, turning and drilling
  • CAD/CAM, EDM and laser machining
  • High-speed, micro, titanium and robotics machining
  • 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
  • Oil and natural gas price index
  • Manufacturing GDP for Texas
  • Price of steel
  • Federal funding for defense
  • Trade-weighted index

  • Current Performance
  • Faltering commodity prices
  • Texas industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Price reversal and state markets
  • Industry structure
  • Table: Machine Shop Services in Texas Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Machine Shop Services in Texas 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, grinding, turning and drilling
  • High-speed, micro, titanium and robotics machining
  • CAD/CAM, EDM and laser machining
  • Other
  • Chart: Machine Shop Services in Texas Industry Products and Services Segmentation

  • Major Markets
  • Oil, gas and energy
  • Military and defense
  • Construction and agriculture
  • Aerospace and aviation
  • Automotive and transportation
  • Medical and dental
  • Chart: Major Market Segmentation for the Machine Shop Services in Texas 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 Texas

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Karlee CompanyKnust-Godwin SBO LLCMcGill Maintenance Partnership Ltd.MIC Group
  • Table: Karlee Company - financial performance
  • Table: Knust-Godwin SBO LLC - financial performance
  • Table: McGill Maintenance Partnership Ltd. - financial performance
  • Table: MIC Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Machine Shop Services in Texas 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 Texas Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Oil and natural gas price 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.
  • Cad/Cam
  • Computer-aided design/manufacturing is a process of specifying and machining products with a software 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 Texas industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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 in Texas:
    • 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 Texas 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 Texas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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