5.8.11Segment

Metal Fabrication & Machining

Metal fabricators, machinists, foundries, and forges producing precision parts, stampings, castings, and structural assemblies.

5
Verticals

Overview

Metal Fabrication & Machining covers the fabricated-metal-products industry — forging, stamping, structural and architectural metals, machine shops, precision-turned products, fasteners, valves and fittings, coating and plating, and miscellaneous fabricated metal. At ~$412B across ~52,700 establishments, it is the largest and most fragmented manufacturing segment, a vast base of job shops and contract fabricators serving every industry.

Demand tracks industrial production, construction, and OEM build rates, with reshoring and automation as tailwinds. It is the archetypal private-equity roll-up arena — thousands of owner-operated machine shops and fabricators facing generational ownership transition, consolidating into precision-machining and metal-fabrication platforms.

Market snapshot

Market size
~$381B
Growth
~7.0%CAGR (2017–22, nominal)
Companies
~44,336 firms
Firms by employee count

72.3% of firms have fewer than 20 employees: 32,042 micro-businesses, below most mandates.

The investable universe12,292 firms with 20+ employees
20–99
8,88572%
100–499
2,24918%
500+
1,1589%

The deepest acquisition pool in the sector: over 44,000 firms, most of them job shops and machine shops holding a handful of customer relationships. Growth outran the sector on steel pricing rather than volume. Buyer diligence turns on customer concentration and whether the owner IS the sales function — both are the usual reason a good shop cannot be sold at a good price.

NAICS 331210, 331221, 331222, 331511, 331512, 331513, 331523, 331524, 331529, 332111, 332112, 332114, 332117, 332119, 332216, 332312, 332313, 332321, 332322, 332323, 332420, 332613, 332618, 332710, 332721, 332996, 332999, 333511. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.

Business model & economics

Revenue model

Custom fabrication and contract-machining work

Key economics

Revenue per firm
$8,600,266
Revenue per employee
$321,078
Employees per firm
26.4
Recurring revenue
Moderate

recurring OEM and contract supply

EBITDA margin
Job-shop economics; richer for precision/specialty
Capex intensity
Moderate

Characteristics

  • Scale-driven — payroll is only 19% of revenue; the cost base is assets, not headcount
  • Deep strategic-buyer pool — 1,158 firms exceed 500 employees, so a scaled asset has trade buyers
  • Largest, most fragmented manufacturing segment.
  • Vast base of job shops and contract fabricators.
  • The archetypal PE roll-up arena.

NAICS 331210, 331221, 331222, 331511, 331512, 331513, 331523, 331524, 331529, 332111, 332112, 332114, 332117, 332119, 332216, 332312, 332313, 332321, 332322, 332323, 332420, 332613, 332618, 332710, 332721, 332996, 332999, 333511. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.

Geographic concentration

AlabamaAlaskaArizonaColoradoFloridaGeorgiaIndianaKansasMaineMassachusettsMinnesotaNew JerseyNorth CarolinaNorth DakotaOklahomaPennsylvaniaSouth DakotaTexasWyomingConnecticutMissouriWest VirginiaIllinoisNew MexicoArkansasCaliforniaDelawareDistrict of ColumbiaHawaiiIowaKentuckyMarylandMississippiMontanaNew HampshireNew YorkOregonTennesseeUtahVirginiaWashingtonNebraskaSouth CarolinaIdahoNevadaVermontLouisianaRhode IslandMichiganOhioWisconsin

The fabrication belt: Ohio alone holds nearly 2,900 firms at more than twice the national concentration, with Wisconsin and Michigan alongside it — job shops that grew up around automotive and heavy equipment and stayed.

OhioWisconsinMichigan

U.S. Census Bureau — 2022 Statistics of U.S. Businesses (firms by state), NAICS 331210/331221/331222/331511/331512/331513/331523/331524/331529/332111/332112/332114/332117/332119/332216/332312/332313/332321/332322/332323/332420/332613/332618/332710/332721/332996/332999/333511. Concentration shown by location quotient.

M&A deal context

Deal activityHigh

Who’s acquiring

  • PE-backed precision-machining platforms
  • Metal-fabrication strategics
  • Specialty & component consolidators

What’s driving deals

  • Roll-up amid generational ownership transition.
  • Reshoring and manufacturing-capex demand.
  • Automation and precision-machining capability.

Verticals in this segment

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