In this article, we will be discussing three of the most common reasons why you should consider outsourcing work to smaller machine shops. Small machine shops can take on lower-value projects that larger businesses would decline and produce great quality work without the overhead that comes with being a large company. By doing so, you will have more time to focus on higher value work and increase your capacity without having to spend any additional money on machinery or staff.
1) Outsource Low Value Work: Small machine shops are able to handle projects that might not generate enough revenue for your business by taking advantage of the low overhead that comes with being a smaller business. This means they can offer competitive prices that you can pass along to keep your customers coming to you.
2) Additional Capacity: By outsourcing work to a smaller business, you are able to open up capacity for your company. This will allow you to increase your throughput without having to add any additional employees or equipment. All you do is add a small markup and pass it through. Whenever you get an influx of work, this can be a game changer when keeping up with tight deadlines when your shop is at capacity.
3) No More No Bids: By partnering with another machine shop, you also can open up the scope of work you accept. If there is work you typically no bid because it is too small or the turnaround times are too fast, an avenue to send this work to can help you keep your customers from seeking other vendors. Your customers come to you because they trust the work you provide. By pairing up with a smaller business that helps widen the scope of work you can accept, you can build deeper relationships with your customer and truly become the Go-To shop for them.
There are a lot of advantages to outsourcing low value work and partnering with another machine shop. If you’re looking for an edge in your industry, this is it! When you partner with BetterCNC (or any other company) your time and resources will be freed up so that you can focus on higher priority jobs; like bidding on more projects or meeting customer demands. We would love to help make the most out of our partnership by supplying quotes, proposals, technical support and anything else we can do to ensure success. What type of project do you need assistance with? Request a Quote today!