Dainsta CNC Guide III – How to expand your CNC Machining Business


As we continue with the Dainsta Guide series, it has become increasingly important to understand that starting a business can be a challenging endeavour especially for entrepreneurs entering a crowded market with large, well-established competitors already in place. As manufacturing industry experts, we wish to guide you on how can CNC machining businesses secure deals and grow within the industry despite today’s severe obstacles.

In this article, we will take a look at 7 practical tips for growing your CNC Machining Business:

1. Build Partnership

For several new machine shop owners, the early days can be an indeterminate time in which numerous concerns, such as volume prospects, client lists, or even floor designs, are yet to be resolved. In such circumstances, existing friendships and business connections can be valuable assets.

Whether having associates steer clients in your direction, enter into partnerships, or simply provide advice on business practices, relying on your current connections can give a significant boost to your business. Many also build their connections through manufacturing events and webinars.


2. Be Patient with Business Expansion

Buying machines that are not yet cost-efficient or expanding facilities without the staff required to support them can slow down business growth and hinder long-term expansion.

It’s better to concentrate on making uniform 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. It’s essential to also demonstrate your growth plans to your entire team.


3. Stay Open to Emerging Technologies

Even though a new technological innovation can be costly in terms of training and initial set-up, recently-developed equipment may have a long-term effect by simplifying production methods or providing plans to accomplish tasks that were once considered unrealistic. Modern technology can sometimes help a business remain competitive, especially if the innovation gains widespread notice.

If investing in new machinery isn’t possible, see if you can modify and update your current equipment. This needs a much lower investment than buying new items, but it can still help promote your production capacity and cycle speeds.


4. Mind your Competitors

Staying aware of your main competitors is a valuable practice under most circumstances, particularly in times of economic levity. For example, market variations can cause a slowdown in industrial manufacturing, while leaving military production relatively unchanged (and vice-versa).

In this case, players from one side of the arena may bring their operating standards to the other, pushing companies to accelerate their production rates or lower prices to maintain market share.


5. Integrate your Operations

While vertical or horizontal integration is difficult for many small CNC businesses, it may still be helpful to bring as much of the manufacturing process in-house as you can.

Streamlining measures, such as establishing a production schedule around a machine shop’s in-house capabilities or prioritizing jobs based on your production centre rather than an external supplier’s availability, can ease workflow and ultimately improve output.


6. Focus on Scalable Growth

In several cases, successful business growth is independent of the size of the products being manufactured but stays reliant on the depth of the fabricating process. It can be beneficial to estimate the services or products you provide to your customers and see if you can extend the reach of those services.

For example, if you are producing steel tubing for your purchasers, you could also provide them with the fasteners used to join these components together. Securing more expansive contracts from existing relationships can be a reliable and scalable method of growth.


7. Progressive Value Addition

CNC machining is truly a multi-level process in which there is the potential for value-added work at each stage. Consequently, a shop’s potential for expanding its business principally depends on how many of those value-added steps it can perform.

A humble business seeking to grow can evaluate its manufacturing strengths and take advantage of any possibility to insert itself into a value-added production stage. This approach, along with gradual service integration and streamlining, can be a valuable way to expand your small CNC business.


No matter how small your industrial business, partnering with industrial marketing specialists can assist you to grow with customized marketing solutions. If you are interested to read more on similar manufacturing topics, you can check out our other fascinating blogs here.

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