Business Overview

Many products that businesses use and sell are made through a highly precise process called computer numerical control (CNC) machining. CNC machining businesses specialize in this type of manufacturing, which uses computer-controlled machines to produce products with a high degree of accuracy.

Who is this business right for?

Anyone who likes building things and working with their hands may enjoy running a CNC machining business. Although machined parts are made by computerized equipment, there still is a substantial amount of hands-on work involved in the manufacturing process.

What happens during a typical day at a CNC Machining Business?

CNC machining involves loading materials into machines, programming machines, and letting the machines run. Depending on the work being done and type of machine, it may be necessary to manually operate the machine or manipulate the parts at certain times.

When not working directly with machines, business owners and employees take customer orders, order additional supplies and ship completed orders. Additionally, there is usually a designated person who schedules the machining work to maximize efficiency. This person may be the business owner or an employee.

What is the target market?

Most CNC machining businesses serve other businesses, although a few make products that are directly marketed to individuals.

Business-to-business machine shops can be divided into two categories: job shops and product shops. Job shops take orders from clients and then make items that are built to their client’s specifications. Product shops design and create their own products, then sell those products to businesses.

How does a CNC Machining Business make money?

A CNC machining business makes money by selling machined parts. Prototypes may be sold as single items, but most orders are for large quantities of the same part.

What is the growth potential for a CNC Machining Business?

A CNC machining business can remain a small operation that’s run by one or two people, or it can grow to be a large company that completes orders for clients throughout North America. Arsenal Products is a relatively small CNC machining business in Austin, Texas, and Plethora is an example of a larger company.