Machine Tool Manufacturing Revenue Benchmarks
The average machine tool manufacturing business in the United States generates $7.3M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 1,180 machine tool manufacturing businesses in the U.S., employing 27,819 workers with an average profit margin of 10.0%. The average employee in this industry earns $75K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Machine Tool Manufacturing Business Actually Do?
Machine Tool Manufacturing: Businesses that transform raw materials or components into finished products.
Who buys: Wholesalers, retailers, other manufacturers, and government.
Sector-level description — a more specific write-up is available for high-traffic industries.
Average Revenue
$7.3M
per year
Profit Margin
10.0%
industry average
Revenue / Employee
$310K
per year
Total Businesses
1,180
in the US
Est. Owner Income
$732K
small business avg
Labor Cost
22.0%
of revenue
Avg Employee Wage
$75K
per year (BLS)
Market Saturation
0.4
firms per 100K people
How Much Do Machine Tool Manufacturing Charge?
Machine Tool Manufacturing: Manufacturers sell in bulk to wholesalers, distributors, or direct to businesses. Pricing is negotiated by SKU volume. The specifics vary within the machine tool manufacturing category — the ranges below are typical for the sector.
| Service | Typical range |
|---|---|
Contract manufacturing markup | 15–35% over materials + labor |
Own-brand product margin | 25–60% gross margin |
Custom / low-volume run | 40–150% over direct costs |
Sector-typical ranges — individual services within this industry may fall higher or lower.
Complete machine tool manufacturing business plan
A 12-section data-backed business plan for a machine tool manufacturing business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the machine tool manufacturing industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Raw materials & components | $48 | $3.5M | Steel, chemicals, electronics, packaging — the physical inputs that become the product. |
Wages & benefits | $22 | $1.6M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $5 | $398K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $249K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $12 | $846K | Depreciation on equipment, energy, R&D, quality control, freight. |
Net profit | $10 | $732K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
3.4%
openings/year
Closure Rate
5.76%
closings/year
Net Job Growth
-0.19%
annual
Businesses Closed
276
in 2023
Firm Count Trend
Should You Start a Machine Tool Manufacturing Business?
Startup Cost
$50K – $250K
Break-Even
2 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a machine tool manufacturing business do?
- Machine Tool Manufacturing: Businesses that transform raw materials or components into finished products. Wholesalers, retailers, other manufacturers, and government.
- How much do machine tool manufacturing charge?
- Machine Tool Manufacturing: Manufacturers sell in bulk to wholesalers, distributors, or direct to businesses. Pricing is negotiated by SKU volume. The specifics vary within the machine tool manufacturing category — the ranges below are typical for the sector. See the pricing table above for typical rates by service type.
- How much does the average machine tool manufacturing make per year?
- The average machine tool manufacturing business generates $7.3M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $732K per year at a 10.0% profit margin.
- How many machine tool manufacturing businesses are there in the US?
- There are 1,180 machine tool manufacturing businesses operating in the United States, employing a total of 27,819 workers.
- How much does it cost to start a machine tool manufacturing business?
- Startup costs for a machine tool manufacturing business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the machine tool manufacturing industry?
- The average employee in the machine tool manufacturing industry earns $75K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The machine tool manufacturing industry is relatively stable — with a net job growth rate of -0.2%. Entry and exit rates are balanced at 3.4% and 5.8% respectively.
Approximately 74% of machine tool manufacturing businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 276 firms in this industry closed permanently.
Employment & Wages
The average employee in the machine tool manufacturing industry earns $74,624/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 2,091 establishments employing 42,572 people, the typical business has about 20 employees.
Industry Trend (2000–2023)
The machine tool manufacturing industry has declined 43% since 2000 (from 9,180 to 5,234 firms).
See full historical statistics →Compare Machine Tool Manufacturing revenue with other industries: