How To Grow Your CNC Machining Business

A lot of CNC machine shops complain that business in 2019 is really difficult to operate due to the tariffs between China and USA,because the main market for them is focus on USA.Meanwhile small CNC machine shops face hurdles similar to those of other small businesses, and, like their non-industrial counterparts, have the same potential for securing contracts and growing within the industry despite these obstacles.

Here are some suggestions that may help in establishing or expanding your small CNC shop. 

1. Develop Partnerships

For many start-up machine shop owners, the early days can be an uncertain time in which numerous concerns, such as volume expectations, client lists, or even floor plans, have yet to be resolved. In these circumstances, existing friendships and business connections can be valuable assets.

Whether having friends steer clients in your direction, enter into partnerships, or simply provide advice on business practices, relying on your current connections can give you a useful leg-up.

2. Target Your Segment of the Marketplace

It is generally a good practice to focus on the specific types of purchasers that will buy your products at the best volume rate. For example, if your shop specializes in producing gear shafts with a diameter under five inches, try to establish relationships with companies that purchase this product at a rate favorable to your production cycle and turnover.  

3. Don’t Rush to Expand

Purchasing machines that are not yet cost-efficient or enlarging facilities without the staff needed to maintain them can slowdown business growth and actually hinder long-term expansion. In many cases, it may be better to concentrate on making steady gains rather than giant leaps forward, as even a small shop with fewer than a dozen machines or employees can still meet or exceed the national productivity average.For Worthy Hardware, currently we have more than 30 sets cnc machining centers,we have the enough money to purchase more and more new machines.However we are not willing to risk ourself.Then we have to expand step by step.

4. Diversify According to Demand

While it’s usually a bad idea to take on a job outside the capabilities of your shop, new projects that seem within reach and will provide a cost-efficient result can be a helpful way to diversify your operations. If, for example, a lathing shop has the training and funds to undertake a profitable cnc milling parts or plastic fabrication contract, then the resulting diversity can help provide sustainable growth even during periods when one sector of the market is on a downswing. 

5. Step-by-Step Value Addition

CNC machining is essentially a multi-staged process in which there is the potential for value-added work at each stage. Consequently, a shop’s potential for expanding its business largely depends on how many of those value-added steps it is able to perform. A small business seeking to expand can evaluate its manufacturing strengths and take advantage of any opportunity to insert itself into a value-added production stage. This approach, coupled with gradual service integration and streamlining, can be a valuable way to expand your small CNC business. It's not rare to see a job shop fail — check out real advice from real job shop owners on the biggest mistakes to avoid. 


 

Worthy Hardware is a CNC manufacturing and sheet metal fabrication company,including CNC machining services,CNC milling services, CNC turning services, laser cutting services and stamping services.Call us +86-76989919645 or email us info@worthyhardware.com for more discounts for your projects.