Metalworking Machinery Manufacturing Industry Profile

The US metalworking machinery industry consists of about 7,500 companies with combined annual revenue of about $25 billion. Major companies include Kennametal, Hardinge, Hurco, and MAG Giddings & Lewis. The industry is fragmented: the largest 50 companies generate about 30 percent of revenue.

The global metalworking machinery manufacturing industry generates about $65 billion in annual revenue. Top metalworking machinery producing countries include China, Japan, Germany, Italy, South Korea, and Taiwan. The leading exporters of metalworking machinery are Japan, Germany, Italy, and Taiwan. Major companies include GILDEMEISTER AG (Germany), Okuma Holdings (Japan), and Dalian Machine Tool Group (China).

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 industry is labor-intensive: average annual revenue per employee is $130,000.

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 operations and some have foreign manufacturing sources. Imports account for about 45 percent of the US market, largely from Japan, Germany, and Canada. Exports account for more than 30 percent of US production, of which half goes to Mexico, Canada, and China.