Consider the costs of growth

Expansion, acquisitions, upgrades. The sounds of a growing business are certainly appealing and something most shops strive to attain. The thought of your shop becoming a powerhouse manufacturing enterprise sounds great, but along the path will be a minefield of obstacles and unexpected costs that any manager or owner should be ready to control.

Obviously, an investment should yield a return. Without a profit to show for your efforts, there isn’t a good reason to go through the motions. If, however, you have the stamina to wade through the hazards of growth, the fruits of your labor can be sweet.

Any growing machine shop will normally invest in new equipment, particularly CNC machine tools. The first hidden cost in equipment acquisitions is the time you spend to shop around and meet with dealers. With so many brands and options, this can become time-consuming and overwhelming.

Attending trade shows for a concentrated shopping experience can be effective, or you may require numerous meetings at your office. However the process is accomplished, think of questions, concerns and needs ahead of time, compose lists, and make dealers use your time efficiently.

While a sales presentation may increase your excitement level, get clarification—in writing—on any previously overlooked requirements, including power and wiring, software, networks and cabling, additional insurance, employee training, metalworking fluids, and freight and rigging costs. When these are factored into the total cost, you may have to adjust your plan.