The role of location in a mature manufacturing sector: An examination of the United States machine tool industry

This dissertation provides an analysis of the role of location in the characteristics of US machine tool (MT) producers. A related aim is to assess the contribution of locational factors to the issues that these manufacturers face and the strategies that they use to compete. Further examination is given to the performance and the geographical ranges of sourcing and sales for these producers. Much of the research is framed in a core-periphery perspective, comparing the characteristics of firms in the traditional MT production region against those of producers located elsewhere.; Overall, the US MT industry experienced a precipitous fall from international leadership due to numerous internal and external factors, but recently showed signs of a surprising turnaround and relative stabilization. Evidence for this dissertation comes from an industry-wide postal survey and a series of producer-based interviews. A brief background of the industry and a review of the pertinent literature on industrial agglomeration and location-innovation links provide further context for this study.; The results suggest that firms located in the core of domestic MT production have different competitive problems and use different strategies than firms located elsewhere, and also show a tendency to derive a larger share of sales from local markets. Moreover, being located within the core MT manufacturing region does not provide firms with any advantages with respect to competitive performance. Beyond the core-periphery duality, other location-based findings emerged, such as the importance of utilizing a geographically wide range of input sources. This dissertation also finds that the US MT industry is still confronted with a number of salient problems such as increasing import pressure, demand cyclicality, and a continued shortage of skilled labor. However, there are also indications that manufacturers are adjusting through the creation of innovative products and via increased attention to end-users. The recent order slowdown within this sector provides more challenges for producers and there are signs of a new round of industry consolidation. The dissertation concludes with a discussion of the main industry issues and avenues for future research.