The United States (US) machine shops industry includes about 21,000 companies with combined annual revenue of about $30 billion. No major companies dominate the industry, which is highly fragmented: the 50 largest companies generate about 10 percent of revenue.
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. Despite continuing automation, the industry is labor-intensive: average annual revenue per worker is about $140,000.