Machine Shops Industry Profile

Report Page Length: 10-12
Last Quarterly Update: 3/10/2014
SIC Codes: 3599
NAICS Codes: 33271
Chapters Include:
Industry Overview Trends & Challenges Industry Forecast
Quarterly Industry Update Call Prep Questions Website & Media Links
Business Challenges Financial Information Glossary & Acronyms
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Excerpt from Machine Shops Industry Profile

Companies in this industry use machine tools to modify metal, plastic, and composite materials to produce finished products. No major companies dominate the industry.

The global machine shop industry is dependent on the level of international manufacturing activity. However, because machine shops play a manufacturing support role, often operating as de facto subsidiaries of their customers, machine shop work tends to be local, and is less prone to crossing international boundaries than many other types of manufacturing.

The US machine shop industry includes about 20,000 companies with combined annual revenue of about $40 billion.

COMPETITIVE LANDSCAPE

Demand depends on US manufacturing activity. The profitability of individual companies is linked to engineering expertise and operating efficiency. Larger shops have the ability to invest in advanced production machinery. Smaller shops can compete effectively by serving specialized customers, or by providing engineering services. The US industry is highly fragmented: the 50 largest companies generate about 10 percent of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Machine shops are intermediaries in industrial production. They work on a job basis: generally, they receive unfinished parts or raw materials from a manufacturer, perform various operations, and return the parts to the manufacturer for further processing. They own and operate special machine tools that can perform a variety of operations, including drilling; boring (enlarging an existing hole); tapping (cutting threads inside a drilled hole); threading (cutting threads on a bolt); cutting; milling (removing material from a surface); ...

 
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