Machine Shops – How to Make the Small Shop Profitable

According to the US Census there are over 25,000 machine shops with less than 4 employees, not counting thousands of 1-man operations scattered across the country. Making a profit while owning a small machine shop can be tough in these economically depressed times. Here are some tips on making a profit.

Hire family or close friends and classify them as officers not employees. This will help with insurance charges. Check with your insurance agent and state for particular requirements.

Down size – Do you really need that 10,000 sf building? If possible run out of your shed, garage or barn. If not many self-storage facilities now offer storefronts.

Upgrade to CNC Milling – If you have all manual machines consider upgrading to a CNC.

Offer reduced rate services to local manufacturers. Locale manufacturers will have contracted large shops many miles away to machine their product. There are times when they need to rework, modify or make changes on the fly. They will turn to the closest, cheapest ship in the area.

Offer reduced rate services to local Hobby Clubs – Many hobby clubs including RC Model Clubs, Model Building Clubs, and Engineering Clubs require prototypes and custom parts and accessories built. Offering a group discount hourly rate to these clubs will insure all machining requirements come to your shop.

Quote on government work – The United States Government is the largest spending customer in the world for goods and services. There are hundreds of machining opportunities everyday.

Overflow Work – Find the largest shops in town and offer overflow work. Many large machine shops love working with small shops, the reason is they can instantly expand their workforce and machining capability at a lower rate then there own. This assists them in their tight deadline critical projects.

Raw Material – Group orders together as much as possible. Never order cut lengths instead of full lengths. Full lengths of material are always cheaper then cut pieces. If small pieces are absolutely necessary ask your vendor to quote you “Randoms” These are the pieces that are left over from a previous cut order and are usually offered at a substantial discount.

Cutting tools – never order the made in china cutting tools. A $25.00 Made in USA end mill will out perform the $10.00 Import any day of the week. Expect to go through 3 import Endmills to every one domestic end mill. This will add to your cutting tool overhead, lower your per piece volume and add to tool change cycle times. Also don’t be afraid to shop around for your cutting tools. Many tool vendors are in the same boat you are in and will sell you tools at a very low mark up. If at all possible talk to someone at your vendors inside sales department. Many tools can be offered at great quantity discounts if you pool your order and just ask for a discount.

Recycle your chips – Scrap your Stainless and Aluminum chips. Also don’t forget …

Reasons Why Mikhail Gorbachev Made the Glasnost Policy

The Glasnost was one of the most influential policies implemented during the reign of the Soviet Union in the eighties. Mikhail Gorbachev was the Soviet Union’s head at that time. He was the one who implemented the Glasnost. He did this so he would be able to see an improvement in the Soviet Union’s way of leading their territory. The years when Glasnost was implemented gave more freedom to the people to express their opinions, particularly for the media. Many people want to know the answers to the question why did Gorbachev implement Glasnost?

1. The first answer to the question why did Gorbachev implement Glasnost is because Mikhail Gorbachev wanted to implement transparency in their governance. He wanted to have an open flow of information from the citizens to the leaders. This was prompted since the tragedy in Chernobyl happened. A nuclear plant was being built in the area and the people did not report about this because they were not allowed to do so.

2. The second answer to the question why did Gorbachev implement Glasnost is because Gorbachev knew that this was an effective way to stop corruption that was very rampant at that time.

3. The third answer to the question why did Gorbachev implement Glasnost is because Gorbachev had learned that the other leaders were abusing their power. He did not know all of it because people were not allowed to express what they know.

4. The fourth answer to the question why did Gorbachev implement Glasnost is because he wanted to have a free avenue for debates. The debates would allow the citizens to ask things they wanted to verify and voice out their opinions.

5. The fifth answer to the question why did Gorbachev implement Glasnost is because he wanted to give the Soviet Union citizens the freedom to go the libraries to read books that were not open to the people before. The censorship on the media got less. The Soviet Union’s governance became more scrutinized as the media’s power became stronger. There were several problems in the society that were discovered. One of the problems that was shown in several media reports was the status of the females in the country. They were regarded as low class citizens. The exposes made the people became aware of the different atrocities happening around them.

The Glasnost policy was actually a failed move made by Gorbachev because it did not fulfill the real goals that he set. The policy led to the weakening of the sovereignty of the Soviet Union. The policy also helped free many people who were imprisoned due to political reasons.…