The Rise and Fall (and Possible Rise Again?) of the US Machine Tool Industry
2025-04-08
The US machine tool industry, once a global leader, experienced a dramatic decline in the early 1980s due to a confluence of factors: plummeting domestic demand, slow response to market volatility, Japanese dominance in CNC technology and manufacturing processes, and a strong dollar. The industry's failure to rebound stemmed from deeper issues: insufficient large firms, difficulty securing capital, a skills gap, and weak technology transfer. A RAND study suggests a three-pronged government approach—fostering cooperative networks, investing in manufacturing infrastructure, and streamlining export processes—to potentially revive the sector.