United States Machine Tools Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

United States Machine Tools Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The US machine tools market is expected to witness a CAGR of 2.6% during the forecast period. The overall machine tool production has been following a pattern similar to consumption. In 2018, the overall machine tool production increased by 4.7%. The increase was more than the median increase since 1961, which was 3.4%, but less than the increase in 2017, which was 7.7%.

• The aerospace, automobile, and defense sectors in United States have been the major driving factors of the demand for metal forming machine tools, as the requirement for fabricated metal products is high in these sectors.
• As the Industry 4.0 trend has been gaining momentum across the manufacturing sector, it is also affecting the machine tools market, in order to become a part of the smart systems. Industry 4.0 has the ability to improve the utilization of machine tools in manufacturing operations by cutting idle time.

The US-China trade deal, which may significantly increase Chinese imports of US agricultural products, may lead to increased investment for agricultural equipment. Anticipated approval of the USMCA is likely to increase trade throughout North America and lead to new investment in the key capital-intensive industries.

The 2020 Capital Spending Survey projects the next year’s machine tool consumption to decline by 5% compared to 2019, to USD 6.993 billion. However, this level of machine tool buying is still above the historical average for the country’s annual machine tool purchases.

The current spending projection versus its previous five-year average gives a clear idea of the parts of the market that are projected to see higher than usual spending. One of these is job shops.

As there are more than 20,000 job shops in United States, they are always the largest spending industry. In the coming year, job shops plan to spend more than twice as much on machine tools as any other end market, and the projection for job shops is approximately 10% above its five-year average. Out of the top seven projected industry categories for 2020, six plan to spend anywhere from 3% to 15% more than their five-year average. Aerospace is the only one of the top seven industries with projected spending below its five-year average.

Machinery manufacturing is one of the largest and most competitive sectors of the US manufacturing economy. Exports of capital equipment totaled USD 141 billion in 2018, indicating that the US machinery manufacturing industry is one of the largest in the world.

Leading markets for the US machinery exports include Canada, Mexico, China, Germany, and Australia. United Kingdom, Brazil, Japan, Singapore, and Belgium round out the top 10 export markets.

The European Union was the US machinery manufacturers’ third-largest market in 2018, after Canada and Mexico. Among the wide range of machinery manufactured in United States, construction machinery, engine equipment, industrial process controls, agricultural equipment, and turbines and turbine generator sets led the US exports in 2018. Major competitors in the worldwide machinery market include China, Germany, Japan, and Italy. The majority of the agricultural and food machinery and equipment is used to grow, process, package, transport, and distribute food and beverages. The agricultural and food machinery and equipment include agricultural equipment, food processing and packaging machinery, commercial and industrial refrigeration equipment, and commercial food service equipment.

Aerospace machinery includes machine tools, material handling equipment, welding equipment, and process control technology.

In automotive machinery and related systems, machine tools, material handling equipment, welding equipment, and process control technology make up the subsector.

Construction and mining equipment and related systems include self-propelled equipment, implements, accessories, and components for use in construction, forestry, mining, and utilities. Off-road diesel engines and fluid power technology are also important components of off-road equipment.

The market for machine tools in United States is moderately fragmented, with the presence of many domestic and international players.

Foreign players have a good presence in the country, such as Trumpf and Amada, with their manufacturing facilities. Moreover, there are some major domestic players, such as Haas and Lincoln Electric, which are small and medium in size and are involved in the manufacturing of parts and components for machine tools. Thus, these factors make the industry highly competitive.

The industry is also witnessing the trend of consolidation with mergers and acquisitions. These strategies help the companies enter new market areas and gain new customers.

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