Do you run a small to a medium-sized machine shop and want to increase or expand your business? If so, you may have crunched the numbers on your expansion project and decided there wasn’t enough in the budget this year. However, there is an easier and more efficient way to earn more customers and increase profits. The concept is called contract machining or manufacturing services, and they come with many benefits to your company.
What is Contract Manufacturing?
If you contract or hire another shop to do business for you, that’s contract manufacturing, and it’s an excellent way to outsource some of your business. Here is an example. Suppose you don’t have the equipment, experience, or expertise to machine aluminum parts. You may have to turn down a lot of business from customers that need parts for the aerospace or automotive industries. However, when you have a contract machining service as a business partner, they become an extension of your business.
Seasonal and Overflow Work
Is your shop very busy during certain times of the year? Maybe there’s more work than you can handle at times? If so, you can hire the services of a large machine shop to take care of your overflow work during those busy seasons. This increases your profits and ensures that your customers get their orders on time.
Add More Services
Would you like to perform services that require 5-axis machining? You could buy some expensive equipment for your shop, but it’s easier to take advantage of a contract machining service that does 5-axis machining.
No Investment Needed
Wouldn’t it be great if you expand your shop without a large investment? You can offer new and better services and not increase your payroll. When you find the right machine shop to do business with, all this and more is possible.
