Overcome barriers to shop growth

While CNC machine shops have experienced significant growth in recent years, a number of challenges could impact future growth. Here are eight potential barriers to growth for machine shops:

1. Skilled workforce shortage. The most obvious challenge is finding and retaining skilled machinists and CNC operators. The overall manufacturing industry, including machining, faces a shortage of qualified workers with the necessary technical skills and experience.

2. Failure to automate. CNC machine tending technology is evolving at a rapid pace. Staying up to date with the latest automation advancements by acquiring robotic machine tending solutions and training employees in these technologies requires a decent amount of investment in time and resources. Failure to deploy automation could lead to a competitive disadvantage.

CNC machines and robotics are capital-intensive investments. Image courtesy of C. Zoberis

3. Capital investment. CNC machines and robotics are capital-intensive investments. Expanding and upgrading the capabilities of a shop may take substantial capital investment, which can be a barrier for small and medium-sized shops lacking the necessary financial resources. Alternatives to a large capital outlay to consider are equipment-as-a-service or robots-as-a-service subscription models.

4. Intense competition. The CNC machining industry is highly competitive, with numerous shops competing for the same clients and programs. Differentiating oneself from competitors and maintaining a strong customer base require continuous improvement, best-in-class technologies, automation, exceptional quality, competitive pricing, workforce sustainability and strong customer relationships.