As your CNC shop grows, there are many factors to consider besides overhead, such as whether to add more machining given your building space or outsourcing projects to another shop. Each situation will have its own specific advantages
If you have a need for outsourcing CNC, below is a list of some of the advantages to outsourcing your projects:
Space: First, ask yourself do you have the square footage to add machines and tool storage in your current facility? If the answer is yes, additional costs for the new machinery may mean you will have to give up another form of profitable manufacturing. To avoid this type of challenge, outsourcing may be your best option.
Investment: CNC equipment can be costly ranging from a few thousand to a few hundred thousand dollars. After the initial investment, maintenance, repair, and tooling costs are ongoing expenses. Outsourcing CNC parts can often be less expensive than producing them as you can take advantage of economies of scale and lower labor costs.
Access to specialized expertise: If you don’t have any understanding of CNC machines, there is a huge learning curve to comprehend even programming. This is an added expense with labor and overhead costs. By outsourcing, you will have access to specialized expertise and technology that you did not have in-house.
Flexibility: Outsourcing CNC parts allows you to adjust your production levels as needed without having to make long-term commitments to staff or additional equipment. Thus, allowing you to focus on your core competencies and leave non-core activities to specialized suppliers.
Is it right for you?
Costs, quality, and especially customer satisfaction are considerations in determining if outsourcing CNC machining is right for you. You may decide to outsource for one project or it may be a permanent solution so that you may focus on your niche market. In either case, remember to do your research to find the best company for you.
Choose PRIMO Corporations to Make Your Custom CNC Parts
Primo Corporations offers a number of comprehensive engineering services and large scale manufacturing of products, including custom CNC parts. To learn how we can apply our expertise to your next project, contact us today.
