Spindle assemblies with inline direct drive feed are disclosed. In one embodiment, a manufacturing system includes a support structure configured to be positioned proximate a workpiece, a carriage moveably coupled to the support structure, and a head assembly coupled to the carriage. The head assembly includes a spindle assembly, comprising a feed unit and a spindle unit. The feed unit includes a feed motor coupled to a drive mechanism, the feed motor and the drive mechanism being disposed along a longitudinal axis of the spindle assembly. The spindle unit has an aft end operatively coupled to the drive mechanism of the feed unit, the spindle unit including a fluid-driven motor coupled to a tool collet chuck, the spindle unit being configured to translate along the longitudinal axis by actuation of the feed motor.