New survey data from the National Tooling and Machining Association (NTMA) indicates that U.S. precision manufacturers maintained stable business conditions through the first half of 2026, with continued capital investment and optimism for the second half of the year.

According to NTMA’s semi-annual Business Conditions Report, 82 percent of respondents rated current business conditions as excellent, very good, or good, while only 18 percent reported fair or poor conditions.

“This survey reflects an industry that continues to demonstrate resilience and long-term confidence,” said Roger Atkins, president of NTMA. “Even amid workforce shortages and broader economic pressures, our members are investing in their operations and positioning themselves for future growth.”

This resilience is evident in financial performance and investment activity. 80 percent of respondents reported that current profits were higher or unchanged compared to the first quarter of 2026, while 87 percent reported that capital expenditures were up or holding steady.

This strong performance may reflect ongoing efforts regarding reshoring. In the past six months, 20 percent of respondents experienced an increase in work that was previously sourced offshore, and 15 percent expect their reshoring work to increase over the next six months.

Respondents continue to maintain optimism about near-term conditions. 55 percent expect business conditions to improve during the remainder of 2026, while 14 percent expect a substantial increase. A quarter expect conditions will stay the same. Only six percent expect a decline, pointing to broad expectations for continued stability throughout 2026.

This positive outlook is reflected in ongoing equipment investment. 56 percent of respondents reported making at least one equipment purchase in the first six months of 2026, and 63 percent of respondents plan to make at least one equipment purchase in the last six months of 2026.

However, purchase of automation equipment remains measured. 22 percent of respondents reported making an automation equipment purchase in the first half of 2026, and 34 percent plan to make such a purchase before the year’s end.

Despite the overall stable conditions, workforce concerns remain the industry’s most cited challenge. Employee recruitment was ranked as the top concern among every single respondent, followed by inflation, workforce training, future workforce availability, and employee retention. “Manufacturers remain committed to investing in people, technology, and capacity,” Atkins added. “The continued focus on workforce development demonstrates the industry’s determination to strengthen competitiveness for the long-term.”

NTMA’s semi-annual Business Conditions Report is based on a survey of over 150 NTMA member companies. Learn more about NTMA online at NTMA.org.

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