Machine shops are a small but vital part of a complex manufacturing and supply chain ecosystem. According to First Research, there are 20,000 U.S. based machine shops with a combined annual revenue of about $40 billion. These small to large shops can provide a variety of precision machining services, ranging from drilling; boring (enlarging an existing hole); tapping (cutting threads inside a drilled hole); threading (cutting threads on a bolt); cutting; milling (removing material from a surface); and grinding (usually a finishing operation).Read More
Your company needs to have a lot of parts machined. Your in-house machine shop is already overbooked and, in any event, couldn’t meet the tight tolerances required for these parts. You’ll need to outsource the work, but the work also requires a specialized supplier.
Sorting through contract machining shops can be extremely challenging, particularly when there are limited procurement resources to sort through thousands of potential suppliers. For example, if procurement googled “precision machining shops”, they will get over 2 billion results back. Obviously, no one can’t afford to explore all these companies, even clicking through the first page of results will take too much time.
Many companies have benefited by outsourcing manufacturing of custom parts to precision machine shops in China. The most common reason to outsource manufacturing is to save money. Entrepreneurs and small businesses need to consider outsourcing some or all of this work to China because lower labor costs can significantly impact product margins. For businesses to remain competitive, maintaining healthy business margins is a must.Read More