NAICS 332811 Quarterly Industry Report
Metal Heat Treating
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 332811Sector: 33Updated: Q1 2026
About This Report
This report covers Metal Heat Treating (NAICS 332811), a specialized contract manufacturing industry serving automotive, aerospace, and industrial sectors. Fair Market Value compiles data from the U.S. Census Bureau[6] NAICS classifications and Bureau of Labor Statistics[5] employment data specific to heat treating occupations. Industry structure data reflects official government statistical sources verified for accuracy. Additional data is drawn from SBA[7].. This report is updated quarterly to reflect changes in employment, wage, and establishment counts.
Industry Snapshot
Key metrics for the metal heat treating industry.
Industry Definition & Overview
Metal Heat Treating (NAICS 332811) encompasses establishments that specialize in heat treating and cryogenic treatment of metals and metal products for commercial purposes. These facilities operate heat-treating furnaces, flame-hardening machines, induction equipment, soaking pits, and vacuum systems to temper, harden, anneal, or heat treat metal objects. Heat treating operations are contract manufacturing services provided on customer-owned materials, making them essential support services to automotive, aerospace, tool manufacturing, and other industrial sectors.
Within the broader Fabricated Metal Product Manufacturing sector (NAICS 332), metal heat treating represents one of three major coating, engraving, and finishing activities alongside metal coating services (NAICS 332812) and electroplating operations (NAICS 332813). Per Bureau of Labor Statistics data[5], the coating, engraving, heat treating, and allied activities industry group collectively supports manufacturing across diverse end markets. Average hourly wages for heat treating equipment operators reach $21.48 as of recent BLS surveys.
The metal heat treating industry operates approximately 583 businesses with 745 establishments across the country. Employment totals approximately 18,335 workers. Heat treating operations concentrate in regions with strong automotive, aerospace, and manufacturing bases, particularly in the Midwest where proximity to parts manufacturers reduces turnaround times. Capital investment in furnace equipment, atmosphere controls, and quality testing systems represents a major barrier to entry.
What's Included in This Industry
- Annealing and thermal processing of metal materials
- Tempering and hardening through controlled heating and cooling cycles
- Cryogenic treatment of metal products for commercial applications
- Flame-hardening and induction hardening operations
- Vacuum heat treating and specialty thermal processing
- Brazing operations on customer-owned metal components
- Contract heat treating services provided on a job basis
- Soaking pit operations for large metal treatment
- Carburizing, nitriding, and case hardening processes
- Quality testing including Rockwell and Brinell hardness verification
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Fabricated Metal Product Manufacturing | 332 |
| Industry Group | Coating, Engraving, Heat Treating, and Allied Activities | 3328 |
| NAICS Industry | Coating, Engraving, Heat Treating, and Allied Activities | 33281 |
| National Industry | Metal Heat Treating | 332811 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 332812 | Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers | Metal Coating, Engraving, and Allied Services provides complementary surface finishing services including painting, powder coating, and galvanizing that often follow heat treating in the manufacturing sequence. |
| 332813 | Electroplating, Plating, Polishing, Anodizing, and Coloring | Electroplating, Plating, Polishing, Anodizing, and Coloring encompasses electrochemical surface treatments that are distinct from thermal processing but frequently performed on heat-treated components as a subsequent finishing step. |
| 332119 | Metal Crown, Closure, and Other Metal Stamping (except Automotive) | Metal Crown, Closure, and Other Metal Stamping produces forged and stamped components that frequently require heat treating services for hardness and durability before assembly into finished products. |
| 332710 | Machine Shops | Machine Shops provide precision machining services and frequently partner with heat treating facilities to deliver complete manufacturing solutions, with machining often occurring before or after thermal processing. |
| 332722 | Bolt, Nut, Screw, Rivet, and Washer Manufacturing | Bolt, Nut, Screw, Rivet, and Washer Manufacturing requires heat treating to achieve specified hardness and tensile strength properties in fastener products, representing a significant customer base. |
| 331110 | Iron and Steel Mills and Ferroalloy Manufacturing | Iron and Steel Mills and Ferroalloy Manufacturing provides raw steel and alloy materials that undergo heat treating as part of the value chain from primary metals to finished components. |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Michigan | 14.4% | 103 |
| 2 | Ohio | 12.3% | 88 |
| 3 | California | 9.1% | 65 |
| 4 | Texas | 8.0% | 57 |
| 5 | Pennsylvania | 6.3% | 45 |
| 6 | Illinois | 6.0% | 43 |
| 7 | Indiana | 5.9% | 42 |
| 8 | Wisconsin | 4.7% | 34 |
| 9 | Connecticut | 2.8% | 20 |
| 10 | New York | 2.8% | 20 |
% Of Establishments
0%
14%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
48
Total SBA Loans
$98.9M
Total Loan Volume
$2.1M
Average Loan Size
13 yrs
Average Loan Term
8.47%
Average Interest Rate
1,048
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Metal Heat Treating (NAICS 332811) has an SBA size standard of 500 employees[8], making most heat treating shops eligible as small businesses under federal programs. Small businesses in this sector can access SBA 7(a) loans[9] for equipment, working capital, and facility improvements. Heat treating operations that serve defense contractors may also pursue government contracting opportunities through set-aside programs. The SBA provides additional certification pathways including 8(a), HUBZone, and WOSB designations. Additionally, 504/CDC loans[10] provide long-term, fixed-rate financing for major fixed assets such as real estate and equipment.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Live Oak Banking Company | 8 | $40.0M | $5.0M |
| 2 | Zions Bank, A Division of | 8 | $25.2M | $3.1M |
| 3 | U.S. Bank, National Association | 8 | $18.4M | $2.3M |
| 4 | The Huntington National Bank | 16 | $12.9M | $806K |
| 5 | First Commonwealth Bank | 8 | $2.4M | $300K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 332811?
NAICS 332811 includes contract heat treating shops that perform thermal processing services on customer-owned metals and metal products. Business types range from small single-furnace operations to mid-sized facilities with multiple furnace lines and atmosphere controls. These establishments serve automotive parts suppliers, aerospace component manufacturers, tool and die makers, and industrial equipment producers.
How is metal heat treating structured within the manufacturing sector?
NAICS 332811 is part of Industry Group 3328 (Coating, Engraving, Heat Treating, and Allied Activities), within Subsector 332 (Fabricated Metal Product Manufacturing). Per the Census Bureau[6], heat treating is classified alongside metal coating (332812) and electroplating (332813) as specialized finishing services rather than primary manufacturing operations.
What is the SBA size standard for NAICS 332811?
The SBA size standard for Metal Heat Treating (NAICS 332811) is 500 employees[8]. Businesses with 500 or fewer average employees over the preceding 24 months qualify as small businesses for SBA loan programs and federal contracting purposes.
How does NAICS 332811 differ from metal coating and electroplating codes?
NAICS 332811 focuses on thermal processes (annealing, tempering, hardening, brazing, cryogenic treatment) that alter the metallurgical properties of components. NAICS 332812 covers surface coating and engraving (painting, galvanizing, powder coating). Several 332813 covers electrochemical processes (electroplating, anodizing, polishing). All three serve as contract finishing services but apply fundamentally different physical and chemical processes.
What industries are the primary customers for heat treating services?
Primary customers include automotive parts manufacturers (gears, shafts, bearings), aerospace component producers (landing gear, turbine parts), tool and die makers, fastener manufacturers, and industrial equipment producers. Per BLS occupational data[11], heat treating equipment operators work across fabricated metal products, transportation equipment, and machinery manufacturing sectors.
What specific processes are included in metal heat treating?
Included processes are annealing (softening), tempering (balancing hardness and toughness), hardening (increasing hardness through quenching), brazing (joining metals with filler), carburizing (adding carbon to surface), nitriding (adding nitrogen to surface), cryogenic treatment (sub-zero processing), flame hardening, induction hardening, and vacuum heat treating. Each process uses controlled temperature cycles to achieve specified metallurgical properties.
Are metal heat treating businesses eligible for SBA loans?
Yes, heat treating businesses meeting the 500-employee threshold qualify for SBA 7(a) loans[9] for working capital, equipment purchases, and facility expansion. SBA 504 loans provide fixed-rate financing for major capital investments such as furnace equipment and building improvements. Businesses may also access SBA contracting assistance and certification programs.
Where are metal heat treating operations geographically concentrated?
Heat treating operations concentrate in states with strong automotive and manufacturing bases. Per BLS regional data[12], the Midwest maintains the highest concentration of production occupations, with Michigan, Ohio, Indiana, and Illinois hosting major clusters of heat treating facilities. Proximity to automotive and industrial customers reduces turnaround times for time-sensitive production schedules.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]Bureau of Labor Statistics data bls.gov
- [6]U.S. Census Bureau census.gov
- [7]SBA sba.gov
- [8]SBA size standard of 500 employees sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504/CDC loans sba.gov
- [11]BLS occupational data bls.gov
- [12]BLS regional data bls.gov
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