Manufacturing new products often means relying on an entire series of specialized fabrication steps that each require their own equipment, but not always. As CNC machines become more sophisticated, each new generation is capable of doing more, simplifying the overall process of building your part. So should you outsource or invest in your own CNC lines?
Startup Costs for Parts
New CNC machines are a large investment, and many companies concerned with bringing new products to market find the capital costs are very high for startup. Instead of investing most of your working capital in the equipment for one step in your process or leasing it and adding to your monthly overhead, consider hiring a local shop that provides CNC machining Ontario. You only have the cost of each part order then, and you can focus your in-house efforts on assembly and final product quality control.
Establishing Supply Lines
Outsourcing your machining to a local provider or two is usually best because new products frequently need dozens if not scores of parts, making investment in an in-house line for each almost impossible until your company has grown into the market. Even simpler products are simply less expensive to get off the ground this way. After you’ve begun to see profits, you can think about which products you want to bring in-house for improved quality control and long-term cost reductions, but in the beginning, things run a lot more smoothly when you have supply lines for your parts.
Why Work With Local Businesses?
Even when a local CNC shop isn’t the lowest bid for services, it’s often the least expensive option because of the reduced costs of transportation and development. When your project engineers only have to go a town or two over for a meeting, you save on airfare, lodging, meals per diem, and more. Often, the local shop is actually the lowest bid when you add in shipping, and these additional savings are a bonus for your business.
