Cutting Tool and Machine Tool Accessory Manufacturing — Business Survival Rate

An estimated 74% of cutting tool and machine tool accessory manufacturing businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 5.8%.

74%
5-Year Survival Rate
-0.2%
Net Growth Rate
5,234
Total Firms
276
Annual Firm Deaths

Is Cutting Tool and Machine Tool Accessory Manufacturing a Good Business to Start?

With a 74% five-year survival rate, cutting tool and machine tool accessory manufacturing has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.

The annual exit rate of 5.8% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)3.4%
Exit Rate (closures)5.8%

Net negative: more businesses closing than opening (-2.4 pp spread).

Job Creation & Destruction

8.0%
Job Creation Rate
8.2%
Job Destruction Rate
-0.2%
Net Job Growth

The industry is losing jobs faster than creating them — which may indicate automation, consolidation, or declining demand. Total employment: 136,234 workers across 5,234 firms.

Want to know how much cutting tool and machine tool accessory manufacturing businesses actually make?

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Frequently Asked Questions

What percentage of cutting tool and machine tool accessory manufacturing businesses fail?
Approximately 26% of cutting tool and machine tool accessory manufacturing businesses fail within their first 5 years. The annual closure rate is 5.8%, with 276 firms closing permanently in 2023.
Is the cutting tool and machine tool accessory manufacturing industry growing or shrinking?
The cutting tool and machine tool accessory manufacturing industry is currently stable with a net job creation rate of -0.2% per year. New businesses are entering at 3.4% while 5.8% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.