How Can CNC Machining Factories Get High Profits?

People who are outsiders may think that CNC machining factories can definitely make a lot of profits, but as everyone knows, this is just an illusion. Many bosses who operate machining processing factories lament the low order profits, especially since the epidemic has made business more difficult. Today we are going to discuss the reasons for the low profits of CNC machining factories and how to get more profits.

1. Reasons for the low profit of machining factories?

Through various data, we found a very cruel reality. Due to the low technology content of turning milling planing and grinding and the rise of the Internet, the price of CNC machining has become increasingly transparent. In addition, the CNC machining industry is a labor-intensive industry, and competition among peers is serious. Coupled with rising material costs and environmental protection rectification, the profitability of the CNC machining industry is getting lower and lower.

2. How can we get more profits?

A. High-tech content can create high profits

According to what has been said above, only when machining factories get rid of the dependence on turning, milling, planing and grinding processing technology and learning more high-tech processing technologies can it be possible to create greater profit margins. For example, although the processing of automotive parts is inseparable from turning, milling, planing, and grinding, it is mainly based on a large number of riveting, welding, laser cutting, and a combination of tooling with a certain technical content. Turning, milling, and grinding are only a small part of it. Undertaking such processing business, you can get a profit of about 10%.

B. Only innovation can find a living space

Faced with the current competitive situation, if the previous business philosophy and business model are retained, I think most processing factories will be eliminated by the times. In order for the factory to obtain higher profits, only by constantly advancing with the times and constantly innovating can we have our own production space.

C. Have unique characteristics of the factory

To make profits, it is also important to have the unique characteristics of the factory. For example, leading processing technology, resource saving, process streamlining and merging, automatic or semi-automatic processing process, or using small machines to do large jobs to reduce costs, etc., can gain from these aspects. Although the benefits of each item are not too high, they add up to a considerable amount.

D. Iterate on product upgrades

In addition, you can also try to find some products with low processing level. By understanding the processing flow of the product and the existing processing technology and cost, you can find room for development. At the same time, the product can be upgraded and iterated. This is also a good space for profit development.

To sum up, only by constantly understanding the situation of CNC machining competitors, continuously deepening the machining market, strengthening one’s own strength, and finding business opportunities that the peers do not have, can we stand out from the fierce market competition and become the final winner.