Building on previous research on the future skill needs of workers in southeastern Wisconsin, a study was conducted at Milwaukee Area Technical College (MATC) to gather information on the machine tool industry in the Milwaukee area. Interviews were conducted by MATC Machine Shop and Tool and Die faculty with representatives from 135 machine shops, ranging in size from those employing less than 10 operators to those employing over 100 operators. The interviews focused on the nature of the machine tools currently used and projected to be used in 5 years, current and projected employment figures, and the skills that MATC students should have to prepare them for work in machine shops in l989. Study findings included the following: (1) machine shops of all sizes were evolving toward greater use of computer-controlled machines, with the larger shops currently using more of these machines and projecting greater needs for employees with skills in operating this equipment; (2) the smaller shops appeared to be more optimistic about growth, projecting an increase of 43% in the number of machine tool operators on conventional machines in the next 5 years and an increase of 363% in operators on computer-controlled machines; and (3) respondents indicated a need for employees who could operate multiple machine tools and who had some exposure to computerized operations. Recommendations for program development and information on specific skill needs of employers are included in the report. (HB)