A vertical spindle numerically controlled machining center includes a stationary bed or base on which a workpiece holding table is slidably mounted for movement along a first axis. A vertically extending upright or column, having a vertically reciprocal spindlehead slidably mounted thereon, is slidably mounted on the bed for movement along a second axis perpendicular to the first axis so that the spindlehead overlies a portion of the table. Within the upright is a recess adjacent to the bed. A tool storage magazine is located in the recess and is slidably mounted on the bed for movement through the recess along an axis parallel to the second axis. During a tool change cycle, the toolholder then held in the spindle is returned to the tool storage magazine by first moving the spindlehead to the ready position and then moving the tool storage drum toward the spindlehead to engage the tool then held in the spindle. To provide the spindle with a new tool, the spindlehead is first moved upwardly to clear the toolholder shank and then the tool storage drum is indexed to position a new tool directly beneath the spindle so that the spindle can engage the tool when the spindlehead is moved downwardly to the ready position.