My own business

[spottiepop]

I would like to start my own machine shop, just a one man show, what are the pit falls? Is it too late with Manufacturing leaving the US at such a rapid rate? I have worked in the pump industry for about 20 yrs. and would like to broaden my horizons on my own. What are your thoughts on this venture?

spottiepop

[pminmo]

I can't speek to starting a machine shop. I do think I can speek to business and jobs leaving the US as I do work for a Big Bone manufacturer and my company does send jobs out of the US. We do businesses with small companies in the US also. A significant amount of the work the company did with it's own employees now goes to small businesses. That work goes outside because they can do it better and at less cost. Big companies get slow and terribly inefficient. Benifits packages that were not costly 30 years ago, now are costly and are like government entitlements. They can't fire people easily and without strong cause. The employee just needs to be productive enough to stay out of serious trouble.
A small business that produces a quality product at a good value with great customer focus has the potential for success. It also takes the understanding that you are in business to make money, what things cost, and what has value. It needs to understand it has to constantly be willing to change. Look at how much of our economy revolves around computers vs. 50 years ago, how many blacksmiths we need today vs 130 years ago.

Basically my point is you can't manufacture horseshoes and expect to stay in business. But in my experience, there is a need for small companies that do prototypes and small volume high tech materials.

[spottiepop]

I understand where you are coming from on the slow and terribly inefficient part as I also work for a international company. What you are saying about how employees just have to stay ahead of the axe and the lack of pride I see in workmanship is one of the reasons I want to get out on my own . I also see alot of stepping over a dollar to save a dime by bean counters only worried about the bottom line . I would love to hook up with a company like you speak of that is vending out small volume & prototype work.

spottiepop

[Splint]

I have a friend who started with a lathe and mill in his garage about 15 years ago, he now has about twenty opperators working in his machine shop. He has about four or five machining centres and pretty much all of his other gear is manually opperated. He has in the last few years become quiet disgruntled with his business as it is, particularly an overly militant union and all the other issues which go along with employing people. If a buyer for his business made him a reasonable offer he would sell everything and and start up again in a small building and only do production runs. He says there just isn't enough profit to be made paying someone to do manual machining or even to a lesser extent one off cnc work.
China is obviuosly the biggest threat to manufaturing to the western world at this point in time but that cannot continue for ever. China at the moment provides 25% of the worlds products (I beleive 25% is the figure but that may not be correct) but my point is their imports are much less than their exports and as China becomes a more and more wealthy country they will become less and less able to under cut manufacturing in the western world due to foriegn exchange rates and increasing cost of running businesses. Years ago Japan was a doing what china is doing now but the japs didn't ruin the rest of the worlds manufacturing industry, there was without doubt many western opperations which ended up bankrupt but many also prospered. There will always be poor countries undercutting wealthier countries, perhaps Russia may be the next China, they are financially struggling and have the technology to do pretty much what ever they want. If things really start to get out of hand I suspect the western governments may have to increase import tarrifs and change other tax rules to entice local manufacturing.
That's just my take on the situation for what its worth, hope it helps.

Splint

[ViperTX]

Well it's never too late for most any venture....you need to figure out what service you wish to sell and then you need to identify customers who need and are willing to buy that service from you.

You need to find that first customer.....

[InspirationTool]

Also, I think you should have a plan to make sure you really impress your customers. A good price will get my business if I don't know anything else about you (and I don't have someone I already like doing that process), but my repeat business goes to the people who deliver when they say they will, package the product carefully, and you know, actually run some QA on the part.

When your customer opens the package you sent them, the first words should be "Wow! These are great!" not "What the f*ck!".

I've had too many of the latter ones lately.

-Jeff

[Cruiser]

I've talked to some of the purchasing agents at my work and they are saying they can't bid on jobs because we don't have the machine time ! So, where is the work going ? One co-worker mortgaged his home and bought a mill and other support equipment and paid the big bucks to get 440 x3 into his shop, and in the last 8 mo's or so is now swamped and kicking work out because no machine time ! I just bought an IH mill in fact it is the very mill used for his v3 photo shoot and is pic'd on his front page. I can't wait till i don't have any machine time available. granted my machine will be smaller and less powerfull than the big buck stuff, but the bank is not going to be at my heals either. Humm gotta remember to send off the busyness licsence papers !