I am sure there are still a lot of machine shops around, I suspect no where near what there was per capita in the 1940-50s (mostly war effort)
But one story I was told by a guy in california who made a hobby lathe years back, called the Taig Micro Lathe which was for the hobby market. I was fascinated with how he built these things - the small base (a flat bed) was made from a hollow aluminium extrusion & filled with a special concrete mix that gave them the needed rigitiy. But on to his story ...
He had formerly (in the early 1970s, run a machine shop producing precision components for the govt for use in missiles. The tolerances were incredibly tight & the polished finish was a critical part of the job. In his small machine shop he had a reputation for producing polshed surfaces that defied the statistics & the govt kept sending teams to look at why his shop was consistently better at the job that the larger and important volume producers.
He had one big lathe that was supposed to be used for the finishing off. It was specially approved by the govt for the job & he would not get contracts if he didn't have that required machine. But what he could never tell them was that he and his staff actually did the finishing off on an older unapproved (& never likely to be) lathe out the back & that their perfect finishes were achieved by using cigar ash as the finishing compound.
I really enjoy that story as a kind of 'John Henry' up yer nose at 'officialdom' when it comes to machinery. The fact that he never told the govt is a nice twist to the story.
Cheers - Doug Marker