Machine Shops — Average Employee Salary

The average employee in the machine shops industry earns $65,818 per year ($31.64/hour), according to Bureau of Labor Statistics QCEW data.

$65,818
Avg Annual Pay
263,674
Total Employees
19,115
Total Establishments
14
Avg Employees/Business

What Do Machine Shops Workers Earn?

At $65,818/year (equivalent to $31.64/hour for a full-time worker), machine shops wages are near the national average of ~$65,000.

The typical machine shops business employs 14 people. These are mid-sized operations where payroll is a significant but manageable expense.

Wages as a Percentage of Revenue

28.4%

For the average machine shops business generating $3.2M/year with 14 employees at $65,818 each, total payroll represents roughly 28.4% of revenue. Labor costs are relatively low compared to revenue — other costs (materials, equipment, overhead) dominate.

What This Means for Business Owners

If you're starting or running a machine shopsbusiness, here's what the wage data means for your bottom line:

  • Per-employee cost: Budget approximately $85,563/year per employee (salary + ~30% for benefits, taxes, and insurance).
  • Typical team size: 14 employees = ~$921,452/year in base payroll.
  • Hourly equivalent: $31.64/hour base — factor this into pricing and project estimates.
  • Revenue needed: With average revenue of $3.2M/business, you need strong utilization rates to maintain healthy margins after payroll.

See how these wages compare to total revenue and profit margins.

View full Machine Shops revenue benchmarks →

Frequently Asked Questions

How much do machine shops employees make?
The average machine shops employee earns $65,818 per year, which is equivalent to $31.64/hour for a full-time worker (2,080 hours/year). This is above the national average of approximately $65,000.
How many people work in the machine shops industry?
The machine shops industry employs 263,674 workers across 19,115 establishments in the United States. The average business in this industry has approximately 14 employees.

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW 2023).