McNally Brothers Machine Company was established in 1942 by James, Donald and Miles McNally. It was founded to support the need for spare parts for the WWII war effort. Some of the first contracts were for the manufacture of mechanical fuses and later, a wide variety of defense related and component products.

In 1972 the company was sold to Al Sorenson and the name was changed to McNally Industries, Inc. During this era, efforts were made to diversify McNally with the addition of commercial customers to complement the military business. In 1982, Sorenson made a strategic decision to purchase the rights to the Northern Pump® product line from FMC (now BAE Systems). The industrial pump product line was not only an entrée into new markets, it also brought engineering and assembly skills into the company. In 1983 the entire enterprise was sold to Albert Scheideler.

During the Scheideler era, McNally Industries undertook important new programs. The company evolved from a component manufacturer to a systems manufacturer with robust product lines. The company leveraged its expertise in industrial pumps to enter the military pumping market. In the late 1980s McNally Industries began manufacturing nuclear reactor cooling pumps for submarines and aircraft carriers. Expanding on its new ability to manufacture sub-systems, in 1987 the company became the sole source supplier to the United States Navy for the Mk6 ammunition handling system that supplies the Mk45 gun. The company later marketed and sold the system to allied navies.

Al Scheideler owned and operated the company until February 2003 when he sold the assets to a subsidiary of Treval Holdings, Inc. (now McNally Industries, LLC). Since 2003, the company has continued its evolution to a full-service manufacturer emphasizing engineering-driven manufacturing services and increasing the value it delivers to its customers.  McNally Industries now has the ability to provide “concept–to-production” services to its growing customer base.