Perspectives from Machine Tool Makers

The survey paints in broad strokes. To understand the finer grain—where the debates lie, where the opportunities hide—we turned to executives at eight gear machine tool companies: Gleason, GMTA, Helios Gear Products, Kapp Niles, Klingelnberg, Liebherr, Machine Tool Builders, and Nidec Machine Tool America.

The Weight of Uncertainty
Prasad Kizhakel, chief sales officer of the Klingelnberg Group, frames the current moment starkly: “The current environment rewards ‘preservation’ over ‘growth and innovation.’” When visibility disappears, so does the appetite for the capital investments that drive both equipment sales and the R&D that produces better machines.

John Perrotti, chairman and CEO of Gleason Corporation, observes that geopolitical tensions are “causing our global customers to pause/slow investment.” Felix Scholz, managing director of Liebherr Gear and Automation Technologies, notes that reshoring momentum remains strong, but companies are delaying purchases “because they’re waiting for clarity on tariffs and industrial policy.”

Shane Hollingsworth, vice president of sales at Kapp Niles, saw the effect in real time: “We had strong bookings each month until the tariff announcements. It was a very clear impact to our business and activity.” When the EU-U.S. trade agreement was announced in August, opportunities began increasing again—evidence that clarity, even imperfect clarity, unlocks decisions that uncertainty freezes.

For distributors of imported equipment, the math is particularly punishing. Claudia Hambleton, corporate treasurer at GMTA, points out a common misconception: “Many believe foreign exporters are paying for these tariffs, but in our case, these tariffs are being paid for by the importer as we try to supply and service U.S. manufacturers.”

Nidec Machine Tool America offers a different angle. Now that tariffs have largely stabilized, says the company, “the real hurdle is the cost of money.” High interest rates hit hardest where it matters most—the small and medium-sized shops that form the industry’s backbone.

The result: elongated sales cycles and last-minute decisions. Ross Wegryn-Jones, director of sales and marketing at Machine Tool Builders, describes customers as a “fickle mistress”—delays and holds on purchase orders have become routine. Nidec reports that orders now arrive “down to the wire,” compressing not just shipping timelines but the process development and testing that complex gear work requires.