Machinists have a lot to worry about when running their shop. Meeting project deadlines, reducing scrap and rework percentages, hiring new talent – these matters are imperative to your success. However, what if your results have been subpar?
Despite your efforts, the business is struggling, and the last few quarters have shown a steady decline in sales. Every company goes through rough periods, but you need to analyze why this is happening. The bottom line is the most important metric, after all.
If you want to improve your profit margins, perhaps these measures would help:
1. Develop your niche – The biggest problem of many smaller machinists is that nothing separates them from the crowd. Who are your biggest customers? What do you excel at? Targeting a specific part of the market is far more effective than trying to sell to everyone.
2. Upgrade your equipment – As Berkness-Swiss.com reiterates, stubbornly using old, outdated lathes will cost your business a staggering amount of money. New precision Swiss machines are faster, more powerful, easier to use, and are just superior in every way. In most cases, the machines pay for themselves shortly.
3. Diversify your projects – Another benefit of utilizing new technology is that it lets you take on a wider variety of projects. This helps you keep up with market trends, and can earn you expansive contracts from your most valuable customers.
4. Be careful with expansion – Hiring new employees or opening a second facility are both important business decisions that should not be rushed. Does the demand warrant it? The last thing you want is to spend your way into a corner.
5. Continuously improve – Employee training is especially crucial in this industry, so don’t skimp on your workers. If human error is costing you, retraining employees is a worthwhile investment.
Growing your machining business is a constant challenge. Make sure that you don’t waste any opportunities.