CNC Machining & Custom Parts Production

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Startup Cost
$80,000-$400,000
Difficulty
Advanced
Time to Profit
12-24 months
Profit Potential
$100,000-$500,000/year

Overview

CNC machining shops produce custom metal and plastic parts and components for manufacturers, inventors, and businesses using computer-controlled machining equipment.

With manufacturing requiring precision parts and businesses outsourcing machining, CNC shops generate revenue of $200,000-$650,000 annually with profit margins of 30-45% through custom orders and production runs.

The business requires CNC mills and lathes, CAD/CAM software, tooling, and raw materials.

Services include prototyping, small production runs, custom parts manufacturing, and reverse engineering.

Pricing typically $50-$150+ per hour for machine time plus materials.

Success factors include precision quality, fast turnaround, CAD design support, and material expertise.

Common clients include product developers, manufacturers, automotive and aerospace industries, and inventors.

Many shops specialize in materials (aluminum, steel, plastics) or industries.

Marketing focuses on demonstrating precision capabilities, quick quotes, and industry networking.

With manufacturing remaining strong in 2025 and businesses requiring custom components, CNC machining offers opportunities for skilled machinists willing to invest in equipment.

Required Skills

  • CNC programming and operation
  • CAD/CAM software proficiency
  • Blueprint reading and GD&T
  • Materials knowledge and selection
  • Quality control and precision measurement
  • Tooling and setup optimization

Pros and Cons

Pros

  • Recurring production customers
  • Premium pricing for precision work
  • Diverse industry applications
  • Prototyping to production opportunities
  • Growing manufacturing needs

Cons

  • Expensive CNC equipment investment
  • Technical skill requirements
  • Tooling and maintenance costs
  • Competition from offshore machining
  • Material waste and cost management

How to Get Started

  1. Acquire CNC machining skills and training
  2. Purchase or lease CNC equipment
  3. Set up shop with safety and quality systems
  4. Market to manufacturers and product developers
  5. Start with prototyping and small runs
  6. Build reputation for precision and turnaround
  7. Scale with additional machines and capabilities

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