The ability of lasers to produce very high power densities is the key characteristic which has led to the recent emergence of the laser as an important manufacturing tool. The general areas of industrial material processing which are discussed here are 1) welding, 2) cutting and drilling, and 3) surface hardening. The basic mechanisms involved in these processes are discussed and both theoretical and experimental results are described. In each case specific examples are discussed to further demonstrate the nature of the process, as well as to give an indication of the wide variety of successful industrial applications.