WHY MACHINE SHOPS MAKE SO MUCH MONEY TODAY

More people have become millionaires thanks to machine shops than to other industry production area today. In fact, five out of the top twenty largest money making companies in the country today are machine shops. This year, www.cutterinnovations.com, a local machining shop, received industry awards for the large-scale creation of jobs in their community, something which is very common among machine shops all over the country. In the following article we have taken an in-depth look a one major machine shop in order to try and determine the major factors for why machine shops are able to make so much money these days.

The first reason why machine shops are able to draw in such massive profits is thanks to the fact that they have very low operational costs. Since the late 80’s, machine shops have relied almost entirely on mechanic labor to power their production. The machine shop we looked at for the purpose of creating this article produces almost fifty million dollars of machining products each year, and they do so with a staff of only thirty people. In fact, the majority of a machine shops staff doesn’t even work in the operation of the machines, but rather in accounting and sales. Once a company is able to purchase a large machine for machining production, they will only need a few people to operate the machine which will produce huge number of products each year. Precision machining is an area which is actually better run when there are few people involved in the process. In fact, the engineers that design precision machining devices do so in a way that is aimed at keeping human interaction with the machine down to a minimum. Machines in machining shops are designed to be run by other machines in order to heighten production, as well as limit possible human injuries.

Another reason why machine shops are able to make so much money is because they manufacture items which we all use and need. Nobody living in this country today can go 24 hours without relying on some item which was made using machining technology. Machine shops make everything from car axels, all the way to children’s toys. As handmade products continue to become less and less common, the use of machining processes for the manufacturing of everyday products will only continue to grow. In countries such as China, where the switch to industrial production has only started in the last fifty years, the demand for machining processes will be growing very fast. Since there are always more and more countries starting to take part in industrial machining production, the demand never goes down. Major machining technology companies have not had a serious drop in their stock prices in nearly fifty years, something which can’t be said about any other major industry. As long as the world needs cars and skyscrapers, the need for industrial machining will not only hold steady, but indeed it will increase to new levels which few people are even able to imagine.