Do you run a small machine shop but have dreams of a bigger operation? If you could expand your business, you may attract more customers and make more profits each month. There are a number of pitfalls to consider with expansion, but most of them are overcome with the right business strategy. Here are some ways to increase metal machining services without putting your company far into the “red.”
Increased Production
There are four effective ways to raise your production:
1. 24/7 – you could run your shop 24 hours a day and 7 days a week. However, you need to pay out a lot of overtime pay or hire more machinists or workers. This may cost you a lot of money in employee benefits or additional pay, and you may need to raise prices.
2. Automate – do you have manual machines in your shop? You may want to consider buying or leasing some CNC machines. However, this can add to your operating expenses, and you may not have the room in your shop.
3. Expand the shop – if you add on or move to a larger shop you have room for more machines. However, expansion is expensive and is not always possible for a small business.
4. Outsourcing – hiring a trusted metal machining service is a viable option for just about every machine shop. It costs you nothing extra, and you pass this cost on to the customer.
Why Outsource?
When you hire a trusted shop, you can instantly increase your production. Also, there is no obligation to order a specific amount of materials. You can buy what you need and take your time expanding your metal machining service. You do not have to hire more employees nor do you need to pay out overtime money. You do not need to come up with additional working capital either.
