Metalworking Machinery, NEC

According to industry statistics, 897 establishments operated in this category for part or all of 2010. Industry-wide employment totaled approximately 7,168 workers, down from 9,686 the prior year, receiving a payroll of less than $449 million. Of that number, more than 82 percent employed fewer than 25 workers, an industry situation consistent with previous years. The Annual Survey of Manufactures reported that overall shipments for the industry were valued at nearly $1.6 billion in 2009, down from $2.4 billion in 2008, $2.3 billion in 2007, and $2.6 billion in 2006. Additionally, for the industry, a total of 4,141 employees worked in production in 2009, earning wages of more than $216 million--representing a significant decline from just three years prior when there were 6,033 production workers who earned $343 million in salary.

This industry includes special purpose machinery such as robotics machinery, which alone encompassed a growing trend in manufacturing. As the industry continues to automate repetitive and often dangerous tasks, the use of assembly machines is expected to increase. This industry generally followed the trends set by the steel and manufacturing industry at large, which suffered significant losses in the late years of the first decade of the 2000s due to an economic recession. Much of this industry�s customer base was either directly or indirectly negatively affected by the recession, causing the industry to contract significantly during the late years of the decade. As the U.S. economy began to recover during the early 2010s, the auto industry began to once again trend upward, and the steel industry was retooling to attempt to rebuild some of its lost revenue. At issue was the high cost of materials and just how much production that was taken off line during the recession would come back on line once demand returned to the marketplace.

In 2010, Hardinge Inc. of Elmira, New York, led the industry with $257 million in sales (down from $345 million in 2007) and 1,189 employees. Park Corp., in Cleveland, Ohio, was second with $205 million in revenues in 2010 (down from $271 million in 2007) and 2,260 employees. Formtek Metal Forming, also of Cleveland, Ohio, ranked third with $28.5 million in revenues in 2010.

According to industry statistics, in the early 2010s, about 55 percent of the industry�s firms were classified under the general category of metalworking machinery. Forty-two percent of the establishments were involved with manufacturing cutting and slitting machinery, cutting-up lines, or rotary slitters (metalworking machines). Nearly 23 percent of firms made assembly machines (including robotic), and about another 13 percent of firms were engaged in coiling machinery, coil winding machines for springs, and coilers (metalworking machines). Smaller industry categories included marking machines for metal working, drawing machinery, and screw driving machines.

The "other metalworking machinery manufacturing" industry reached nearly $3.2 billion in total shipment values in 1997, but by 2002 this number dropped to about $2.7 billion, or nearly 16 percent. Between 2002 and 2004, the industry leveled off, with only a slight drop to $2.6 billion in shipment values. However, the economic downturn late in the decade resulted in shipments dropping to approximately $2.58 billion in 2006 and declining further to less than $2.29 billion in 2007. Following the fortunes of the U.S. steel industry, this industry saw a slight uptick in 2008 to $2.4 billion in revenues before plummeting to $1.6 billion in 2009 as the United States entered a recession that shut down the growth of the economy.

In 2010, Michigan had the highest number of establishments involved in this industry (100), with shipment values of nearly $581 million--down from nearly $1 billion in the early 2000s. Ohio was ranked second in terms of shipments (nearly $348 million) and third in establishments (60). California had the second-most establishments with 90, but only had revenues of $104 million.

Employment levels dipped considerably in 2004, following a high of almost 21,000 workers in 2000, and was accompanied by a loss of overall wages of 22 percent. Employment declined drastically in the mid to late years of the first decade of the 2000s, cutting nearly 50 percent of the workforce to a total of 10,672 in 2006 and declining further to 9,993 the following year. The job base continued to erode during the late 2000s, with 9,868 and 7,168 jobs reported in 2008 and 2009, respectively.

The U.S. Bureau of Labor Statistics forecast that the job market for machine operators, tenders, and setters would continue to decline rapidly--by as much as 13 percent between 2008 and 2018. However, machinist jobs were expected to decline slowly, and, even so, job prospects for those with machinist skills would likely remain relatively positive. Machinist positions within the industry maintained an average hourly wage of $17.41 in May 2008. The middle 50 percent of machinists earned between $13.66 and $21.85 per hour. Similarly, forecasts for tool and die making positions were expected to decline. However, the number of qualified workers was also declining, making job prospects positive despite a lower number of available jobs. Medium hourly earnings for that profession were $22.32 in May 2008.