NAICS 333517 Quarterly Industry Report
Machine Tool Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 333517Sector: 33Updated: Q1 2026
About This Report
This Fair Market Value industry report covers NAICS 333517 (Machine Tool Manufacturing) using the 2022 North American Industry Classification System. Data sources include the U.S. Census Bureau[5] NAICS classification, Bureau of Labor Statistics[6] manufacturing employment data, and SBA size standard tables. Content addresses industry structure, product scope, and market dynamics for establishments primarily engaged in manufacturing metal cutting and metal forming machine tools.
Industry Snapshot
Key metrics for the machine tool manufacturing industry.
Industry Definition & Overview
Machine Tool Manufacturing (NAICS 333517) encompasses establishments primarily engaged in manufacturing metal cutting machine tools and metal forming machine tools, excluding hand tools. Products include CNC lathes, milling machines, drilling machines, grinding machines, boring machines, stamping presses, forging machines, bending equipment, and shearing machines. Per the Census Bureau[5], this classification covers both conventional manually operated equipment and computer numerically controlled systems with multiple axes and automated tool changing capabilities.
Manufacturing processes require precision assembly of cast iron or welded steel bases, spindle systems, ball screws, linear guideways, and servo motor drive systems. CNC machine tools integrate electronic controllers, encoders, and software that coordinate multi-axis motion with sub-micron positioning accuracy. Quality standards govern geometric accuracy, thermal stability, and vibration characteristics of finished machines. Workforce requirements include mechanical engineers, electrical engineers, CNC specialists, precision assemblers, and field service technicians who install and commission equipment at customer facilities.
Geographic distribution follows the industrial Midwest manufacturing base. Facilities concentrate in Ohio, Michigan, Illinois, and Wisconsin near major metalworking customers in automotive and aerospace sectors. According to BLS data[6], manufacturing employment distributes across states with established precision engineering infrastructure. Machine tools represent long-life capital investments, with equipment lifespans commonly exceeding twenty years and purchase decisions driven by production requirements, tolerance capabilities, and total cost of ownership.
What's Included in This Industry
- CNC and conventional lathes and turning centers
- Milling machines and machining centers
- Drilling machines and boring equipment
- Grinding, honing, and lapping machines
- Stamping presses and punch presses
- Forging machines and upset forging equipment
- Bending and forming machines
- Shearing and cutting machines
- Electrical discharge machines (EDM)
- Machine tool rebuilding and retrofitting services
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Machinery Manufacturing | 333 |
| Industry Group | Metalworking Machinery Manufacturing | 3335 |
| NAICS Industry | Metalworking Machinery Manufacturing | 33351 |
| National Industry | Machine Tool Manufacturing | 333517 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 333511 | Industrial Mold Manufacturing | Manufactures industrial molds for casting and forming operations, producing precision tooling that machine tools manufactured under NAICS 333517 are used to create through CNC machining |
| 333514 | Special Die and Tool, Die Set, Jig, and Fixture Manufacturing | Produces special dies, die sets, jigs, and fixtures that work in conjunction with stamping presses and forming machines classified under NAICS 333517 machine tool manufacturing |
| 333515 | Cutting Tool and Machine Tool Accessory Manufacturing | Manufactures cutting tools and machine tool accessories including drill bits, end mills, and tool holders that machine tools require for metal cutting operations |
| 333519 | Rolling Mill and Other Metalworking Machinery Manufacturing | Produces rolling mills and other metalworking machinery covering metal processing equipment not classified as machine tools, sharing precision engineering and metalworking expertise |
| 333612 | Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing | Manufactures speed changers, industrial drives, and gear systems integrated into machine tool spindle drives and axis feed mechanisms as power transmission components |
| 332215 | Metal Kitchen Cookware, Utensil, Cutlery, and Flatware (except Precious) Manufacturing | Operates metal stamping facilities that purchase stamping presses and forming machines from NAICS 333517 manufacturers as primary production equipment for metal component manufacturing |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Michigan | 16.5% | 196 |
| 2 | California | 11.6% | 138 |
| 3 | Ohio | 8.2% | 97 |
| 4 | Illinois | 7.4% | 88 |
| 5 | Texas | 6.6% | 78 |
| 6 | Pennsylvania | 4.3% | 51 |
| 7 | Wisconsin | 4.0% | 47 |
| 8 | New York | 3.1% | 37 |
| 9 | Florida | 2.5% | 30 |
| 10 | Minnesota | 2.5% | 30 |
% Of Establishments
0%
16%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
144
Total SBA Loans
$76.6M
Total Loan Volume
$532K
Average Loan Size
11 yrs
Average Loan Term
9.80%
Average Interest Rate
904
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The Small Business Administration[7] sets the size standard for NAICS 333517 at 500 employees. Firms averaging 500 or fewer employees over the preceding 12 months qualify as small businesses for SBA loan programs, federal contracting set-asides, and small business certifications. This threshold applies to establishments where machine tool production represents the primary business activity. Eligible businesses can access SBA 7(a) loans[8] for working capital, equipment, and acquisition financing, while 504 loans[9] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | FinWise Bank | 8 | $27.2M | $3.4M |
| 2 | Central Bank | 16 | $14.5M | $904K |
| 3 | First Internet Bank of Indiana | 16 | $12.5M | $780K |
| 4 | Bank of America, National Association | 8 | $5.6M | $701K |
| 5 | Pinnacle Bank | 8 | $4.0M | $500K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 333517?
NAICS 333517 classifies establishments primarily engaged in manufacturing metal cutting and metal forming machine tools. Products include CNC lathes, milling machines, grinding machines, stamping presses, and forging equipment. The Census Bureau[5] distinguishes this from cutting tools (NAICS 333515), industrial molds (NAICS 333511), and other metalworking machinery (NAICS 333519).
How is the machine tool manufacturing industry structured?
A small number of large international manufacturers dominate standard CNC machine tool markets through extensive product lines and global service networks. Mid-size domestic builders specialize in specific machine types such as precision grinders, large boring mills, or specialty forming equipment. Smaller firms produce niche machines, rebuild used equipment, and retrofit older machines with modern CNC controls.
What is the SBA size standard for machine tool manufacturers?
The SBA sets the size standard at 500 employees for NAICS 333517. Firms at or below this threshold qualify as small businesses for federal contracting preferences and SBA lending programs. Details appear in the SBA size standards table[7].
What NAICS codes are closely related to machine tool manufacturing?
NAICS 333515 covers cutting tools consumed by machine tools. NAICS 333514 covers dies and fixtures used with forming machines. Smaller 333511 covers molds produced on machine tools. These adjacent codes reflect the interconnected metalworking machinery supply chain where machine tools, tooling, and workholding equipment operate together.
What industries depend on machine tool manufacturers?
Automotive manufacturers purchase stamping presses, machining centers, and grinding machines for engine and component production. Aerospace companies invest in five-axis machining centers for turbine blade and structural part machining. Per BLS data[6], manufacturing employment spans sectors that depend on machine tools as essential capital equipment for precision metalworking.
What activities does NAICS 333517 include?
Covered products include CNC lathes, milling machines, drilling machines, grinding machines, stamping presses, forging machines, bending equipment, shearing machines, and EDM equipment. Manufacturing activities span precision assembly, spindle balancing, geometric testing, and CNC system integration. Excluded items include cutting tools (NAICS 333515), hand tools (NAICS 332216), and rolling mills (NAICS 333519).
Are machine tool manufacturers eligible for SBA loans?
Yes, manufacturers meeting the 500-employee threshold qualify for SBA 7(a) loans, 504 loans, and federal contracting set-asides. The SBA funding programs[10] page details eligibility for manufacturing businesses seeking capital for production equipment, assembly facilities, and working capital.
Where is machine tool manufacturing concentrated in the United States?
Ohio hosts a major concentration of machine tool builders, with additional clusters in Michigan, Illinois, and Wisconsin positioned near automotive and industrial metalworking customers. According to BLS employment data[6], metalworking machinery manufacturing employment concentrates in Midwest states with established precision engineering infrastructure and skilled machinist workforce pools.
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]Census Bureau census.gov
- [6]BLS data bls.gov
- [7]Small Business Administration sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]504 loans sba.gov
- [10]SBA funding programs sba.gov
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