Metalworking Machinery Manufacturing
Description
Companies in this industry manufacture metalworking machinery, including molds, dies, cutting tools, and machining centers. Major companies include Hurco and Kennametal (both based in the US), along with Amada and DMG Mori (both located in Japan), Fives (France), Shenyang Machine Tool (China), and TRUMPF (Germany).
The global machine tools market is expected to reach about $155 billion by 2032, with a compound annual growth rate (CAGR) of 6.3% over 2025 to 2032 period, according to Sky Quest. The Asia-Pacific region continues to be the largest importer of machine tools due to the growing manufacturing sector in the region and the rising demand for goods and services.
The US metalworking machinery industry consists of about 6,400 establishments (single-location companies and units of multi-location companies) with combined annual revenue of more than $30 billion.
COMPETITIVE LANDSCAPE
Demand is closely linked to US industrial activity. The profitability of individual companies depends on the complexity of their product designs and their manufacturing efficiency. Large companies have the resources to make complex, automated machinery. Small companies can compete successfully by making specialty products, replacement parts, or accessories. The US industry is fragmented: the 50 largest firms generate 30% of revenue.
International trade in metalworking machinery is substantial because of the high value of the products, mainly for machining centers and cutting tools. Many US manufacturers have foreign sales of operations, and some have foreign manufacturing sources. Imports, largely from Japan, Germany, China, Canada, and South Korea, account for 35% of the US market. Exports account for 20% of US production; leading destinations include Mexico, Canada, China, Germany, and Belgium.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include cutting tools, account for 10% of industry revenue, jigs and fixtures (about 10%), and punches, die parts, and other special tooling (about 10%). The industry itself relies on metalworking machinery to make products. The primary manufacturing facilities are specialized foundry and machine shops.
Dies and molds are used to make products by taking on the outside shape of the product. Dies are used to stamp shapes into metals, plastics, and other materials, often with the aid of a hydraulic press. Molds hold a shape while a molten substance like metal, glass, or plastic is poured or blown inside. Dies and molds are typically cast from metal into rough form and finished with machine tooling. Because dies and molds must be specially made for each product, there are few economies of scale in their production. They are often made by small companies that specialize in a particular type of application and who work in close cooperation with the customer.
Machining centers are used to cut away material from a semi-finished product by drilling, cutting, milling, grinding, and other operations. Two major types are vertical machining centers (VMC) and horizontal machining centers (HMC). "Multi-tasking" machining centers can perform several operations in sequence on a "workpiece." Many machining centers are operated with computer numerical controls (CNC). To improve precision, machining centers are heavy and consist of a stage that holds the workpiece, and one or several high speed power devices that apply various cutting tools. In addition to large amounts of steel, major components used in production are electric motors and computer controls.
Cutting tools are made from hard materials like high-speed steel (HSS) or tungsten carbide, but are worn down in the manufacturing process and must frequently be replaced. Manufacturers of machining centers supply cutting tools for their machines, but independent manufacturers also produce a large variety of cutting tools that can be used in machining centers. Cutting tools like drill bits and saw blades are also used in other types of machines besides machining centers. Because of the very high melting point of carbides, the manufacture of carbide tools requires special manufacturing techniques such as liquid phase sintering and chemical vapor deposition (CVD).
Finished products typically are heavily used and therefore wear out rapidly. Cutting tools, especially, must regularly be replaced, but dies and molds also wear out or are replaced by new designs. Machining centers have a typical useful life of three to five years.
The global machine tools market is expected to reach about $155 billion by 2032, with a compound annual growth rate (CAGR) of 6.3% over 2025 to 2032 period, according to Sky Quest. The Asia-Pacific region continues to be the largest importer of machine tools due to the growing manufacturing sector in the region and the rising demand for goods and services.
The US metalworking machinery industry consists of about 6,400 establishments (single-location companies and units of multi-location companies) with combined annual revenue of more than $30 billion.
COMPETITIVE LANDSCAPE
Demand is closely linked to US industrial activity. The profitability of individual companies depends on the complexity of their product designs and their manufacturing efficiency. Large companies have the resources to make complex, automated machinery. Small companies can compete successfully by making specialty products, replacement parts, or accessories. The US industry is fragmented: the 50 largest firms generate 30% of revenue.
International trade in metalworking machinery is substantial because of the high value of the products, mainly for machining centers and cutting tools. Many US manufacturers have foreign sales of operations, and some have foreign manufacturing sources. Imports, largely from Japan, Germany, China, Canada, and South Korea, account for 35% of the US market. Exports account for 20% of US production; leading destinations include Mexico, Canada, China, Germany, and Belgium.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include cutting tools, account for 10% of industry revenue, jigs and fixtures (about 10%), and punches, die parts, and other special tooling (about 10%). The industry itself relies on metalworking machinery to make products. The primary manufacturing facilities are specialized foundry and machine shops.
Dies and molds are used to make products by taking on the outside shape of the product. Dies are used to stamp shapes into metals, plastics, and other materials, often with the aid of a hydraulic press. Molds hold a shape while a molten substance like metal, glass, or plastic is poured or blown inside. Dies and molds are typically cast from metal into rough form and finished with machine tooling. Because dies and molds must be specially made for each product, there are few economies of scale in their production. They are often made by small companies that specialize in a particular type of application and who work in close cooperation with the customer.
Machining centers are used to cut away material from a semi-finished product by drilling, cutting, milling, grinding, and other operations. Two major types are vertical machining centers (VMC) and horizontal machining centers (HMC). "Multi-tasking" machining centers can perform several operations in sequence on a "workpiece." Many machining centers are operated with computer numerical controls (CNC). To improve precision, machining centers are heavy and consist of a stage that holds the workpiece, and one or several high speed power devices that apply various cutting tools. In addition to large amounts of steel, major components used in production are electric motors and computer controls.
Cutting tools are made from hard materials like high-speed steel (HSS) or tungsten carbide, but are worn down in the manufacturing process and must frequently be replaced. Manufacturers of machining centers supply cutting tools for their machines, but independent manufacturers also produce a large variety of cutting tools that can be used in machining centers. Cutting tools like drill bits and saw blades are also used in other types of machines besides machining centers. Because of the very high melting point of carbides, the manufacture of carbide tools requires special manufacturing techniques such as liquid phase sintering and chemical vapor deposition (CVD).
Finished products typically are heavily used and therefore wear out rapidly. Cutting tools, especially, must regularly be replaced, but dies and molds also wear out or are replaced by new designs. Machining centers have a typical useful life of three to five years.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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