In 2025, the sheet metal manufacturing industry is heavily influenced by trends in reshoring and automation, with local fabricators serving an international OEM client base. However, labor shortages, fluctuating raw material costs, and supply chain disruptions are important challenges to navigate. This report provides a comprehensive analysis of current sheet metal trends shaping this critical industry.
Employment in the Industry
As a whole, the sheet metal manufacturing industry faces high labor demand and offers various incentives for workers. However, changes in local demographics have led to a constrained labor supply.
- Labor Shortage in the Fabrication Industry
According to the US Bureau of Labor Statistics, “despite limited employment growth, about 209,800 openings for assemblers and fabricators are projected each year, on average, over the decade. Most of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.” This highlights the need to encourage younger workers toward skilled trades and to develop and promote strong training programs.
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- Average Hourly Wages for Fabricators and Assemblers
As of mid-2024, the mean hourly wage for US fabricators and assemblers was $21.38. The full range of hourly wages ranges from just over $16 to over $28, though different geographic regions and fabrication sub-specialties vary. Highly skilled master fabricators may earn more in some places.
Learn More - Training and Educational Opportunities
Most training and education for skilled trades happens at a local level through community colleges, technical and trade schools. Many high schools also offer career-based curricula to help students gain valuable skills that can be put to use as soon as they graduate, or get a head start in a trade program.
Trade associations like the Fabricators and Manufacturers Association or the Precision Metalforming Association also offer beginner and continuing education events and resources. Some also facilitate on-the-job training programs at individual companies, which are excellent ways to ensure training includes state-of-the-art skills and industry best practices. - Demographics: Skilled Trades Aging Workforce vs. New Entrants
The Baby Boom generation (born from 1946-1964) makes up a large portion of the US population, and about 45% have already retired, though many continue to work past age 65 or 70. In fact, OECD research cited by McKinsey indicates, “between 1984 and 2027, the ratio of post-working-age individuals to working-age individuals is projected to rise by about 75 percent, from 2:10 to 3.5:10.” The bottom line is, there are fewer younger workers to fill in the jobs being vacated by the older generation. In the skilled trades, there are hundreds of thousands of job openings currently, many of which remain unfilled for long periods of time.
- The Impact of Reshoring and Automation on Labor Demand
Ongoing global supply chain disruptions have led to a rising trend in reshoring. Many companies have been bringing manufacturing back to the United States to mitigate the effects of rising transportation costs, shipping delays, and other challenges. At the same time, local manufacturers are investing in automation technology, raising the skill levels required for many of these jobs.
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Production Costs and Challenges
Across the US, inflation, supply chain disruptions, and economic uncertainty have an ongoing impact on sheet metal manufacturing.
Dominant Manufacturing Sectors
An extensive range of industries make products and goods from sheet metal, including agriculture, oil and gas, transportation, and energy are key players driving demand.
Defense, Aerospace, and Emerging Tech Segments
Aerospace, defense, and technology organizations maintain operations around the country, and need access to reliable, expert sheet metal fabrication. As these industries grow, they will continue to develop more specialized equipment and expand fleets and facilities. These growing industries are creating an increased demand for sheet metal fabrication services.
Electronics and Telecommunications
Sheet metal components are widely used to fabricate enclosures, casings, racks, shelving, mounting brackets, trays, cabinets, heat sinks and thermal management components, chassis and frame structures used in electronic devices, telecommunications equipment, and data centers. As the global demand for reliable connectivity, AI-driven applications, and infrastructure continues to grow, so will the need for a workforce to support this type of manufacturing.
Appliances and HVAC
These established industries rely on well-built and readily available sheet metal fabrication services. Materials including steel, aluminum, and copper are used to manufacture panels, enclosures, and cabinets that house and protect machinery, cooling system equipment for commercial, industrial, and data center use, commercial and consumer appliance housings.
The Strategic Benefits of Domestic Sheet Metal Fabrication
Choosing to operate in the US or Canada can be a smart move for sheet metal fabricators, and the OEMs who count on them.
Proximity to Key OEMs in Agriculture, Oil and Gas, and Freight
Fabricators are smart to locate facilities near major OEMs, or target the ability to set up secondary operations in these regions. This provides access to a concentrated customer base with less complicated logistics.
Infrastructure: Rail Connectivity, Interstate Access, and Logistics
Location can be critical to a fabricator’s long-term success and growth. Choosing a location that’s close to major highway and rail trade routes, or ports in some areas, means faster turnaround times, alternative route options for contingency planning, faster receipt of raw materials, and swift shipping of finished goods. All of these can improve operating costs and prices for customers. Reliable logistics are often as critical as a fabricator’s capabilities and quality control.
Access to Skilled Labor Through Vocational Training Partners
While some people are willing to relocate for work, many more hope to find a career closer to home. Fabricators located in proximity to community and local colleges, trade schools, and high schools with large trade programs have an advantage when it comes to finding and attracting younger workers.
Strong Alignment With Buy America and ITB-Compliant Production
The Build America, Buy America Act (BABA) requires federally funded infrastructure programs to prioritize American materials and be manufactured in the US, with at least 55% of the cost coming from American-made components. This encourages US businesses to invest in sheet metal fabrication and manufacturing technology and training to support government projects. In northern regions of the US, some fabricators may even be able to offer services that comply with Canada’s Industrial and Technological Benefits (ITB) policy.
Risks and Barriers to Growth
Despite the growing demand for sheet metal fabrication operations, there are several risks currently facing the industry.