Machine tool builder

A machine tool builder is a corporation or person that builds machine tools, usually for sale to manufacturers, who use them to manufacture products. A machine tool builder runs a machine factory, which is part of the machine industry.

The machine tools often make interchangeable parts, which are assembled into subassemblies or finished assemblies, ending up sold to consumers, either directly or through other businesses at intermediate links of a value-adding chain. Alternatively, the machine tools may help make molds or dies, which then make the parts for the assemblies.

The term "machine tool builder" implies a company that builds machine tools for sale to other companies, who then use them to manufacture subsequent products. Macroeconomically, machine tools are only means to ends (with the ends being the manufactured products); they are not the ends themselves. Thus it is in the nature of machine tools that there is a spectrum of relationships between their builders, their users, and the end users of the products that they make.

There is always natural potential for the machine tool users to be the same people as the builders, or to be different people who occupy an intermediate position in the value stream. Markets often have some proclivity for circumventing such a position, although the proclivity is often not absolute. Every variant on the spectrum of relationships has found some instances of empirical embodiment; and over the centuries, trends can be seen for which variants predominated in each era, as described below.

Machine tool builders tend not to be in the business of using the machine tools to manufacture the subsequent products (although exceptions, including chaebol and keiretsu, do exist); and product manufacturers tend not to be in the business of building machine tools. In fact, many machine tool builders are not even in the business of building the control system (typically CNC) that animates the machine; and makers of controls tend not to be in the machine building business (or to inhabit only specialized niches within it).

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