Private investment in metalworking machinery

Private investment in metalworking machinery is estimated to reach $31.8 billion in 2025, reflecting a 2.1% increase from the previous year. Recent trends have been marked by persistent economic headwinds, notably elevated interest rates and ongoing uncertainty in the manufacturing sector. Despite these challenges, business investment in upgrading and modernizing metalworking equipment has remained resilient. A key driver has been the movement toward reshoring manufacturing operations, which has prompted greater demand for technologically advanced machinery. Additionally, the proliferation of Equipment-as-a-Service models has enabled companies to access the latest equipment while managing upfront capital expenditures and financial exposures, helping support investment activity even as financing costs have risen.

From 2020 to 2025, the landscape of private investment in metalworking machinery has been shaped by several macroeconomic and structural trends. Automation has been a prominent force, as manufacturers invested in advanced machinery to boost productivity, lower long-term labor costs, and meet rising quality standards. The COVID-19 pandemic accelerated automation adoption, as companies sought to future-proof operations against disruptions and labor shortages, and highlighted the importance of more flexible and resilient production systems. Simultaneously, sustainability pressures have become increasingly influential, resulting in capital expenditure on energy-efficient and environmentally conscious technologies. Despite some volatility, in particular, a brief investment rebound in 2021 of 6.7% following a significant contraction in 2020 of 8.3%, growth has been modest overall. The investment value fluctuated slightly year-to-year, as companies weighed major upgrades against lingering economic uncertainties and fluctuating demand conditions.

Macroeconomic developments have also played a role. Changes in interest rates, shifting domestic and global supply chains, and policy incentives for capital investment have all affected purchasing decisions. Notably, the reshoring of manufacturing operations and concerns over supply chain reliability have spurred demand for domestic capacity expansion, often requiring updated and more automated metalworking capabilities. The emergence of flexible acquisition methods, such as Equipment-as-a-Service, has provided businesses with new options for maintaining a competitive edge without large, upfront investments, especially as inflation and financing costs have remained volatile.

Over the five years to 2025, private investment in metalworking machinery has experienced marginal growth, with annual value increasing just 1.3% on average. Automation, efforts to enhance supply chain resilience, and sustainability initiatives have become entrenched factors shaping investment priorities. Although the sector has faced periods of subdued growth due to economic volatility, the need for innovation and modernization continues to underpin long-term trends in the sector.