Metalworking Machinery Manufacturing Industry Profile

Companies in this industry manufacture metalworking machinery, including molds, dies, cutting tools, and machining centers. Major companies include Hardinge, Hurco, Kennametal, and MAG Giddings & Lewis (all based in the US), along with Dalian Machine Tool Group (China), Gildemeister (Germany), and Okuma Holdings (Japan).

The global machine tool manufacturing industry generates about $80 billion in annual revenue, according to the German Machine Tool Builders' Association. 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.

The US metalworking machinery industry consists of about 7,500 companies with combined annual revenue of about $28 billion and is forecast to grow at a moderate rate in the next two years. Key growth drivers are new technology and increasing industrialization in emerging markets.

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 fragmented: the largest 50 companies generate about 30 percent 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 operations and some have foreign manufacturing sources. ...