A few years ago Zbrojovka Brno announced they were going to produce guns with damascus barrels. A few proto types were produced, but they never went into full production.

By the end of the 19th century, much of the process had already been mechanized.
http://damascus-barrels.com/files/GB_189...s_and_Tubes.pdf

In 1916 Warner developed a process that used a fluid inner tube with a damascus outer shell.
http://damascus-barrels.com/files/USA_11..._AND_RIFLES.pdf

You have to understand that it was not just the barrel makers. The rolling mills and smelters were working together with the barrel makers to produce these barrels. The smelters used charcoal instead of coke. The rolling mills produced the rods that formed the patterns.

It would not be possible to automate the process and produce the old patterns we are accustomed to seeing. These relied too much on the barrel maker's skill and expertise. They used sight and feel while twisting the rods. However, a reasonable pattern could be, indeed has been produced using modern methods.

Pete

http://www.damascus-barrels.com/Movie.html