What is the Profit of Machining?
Harsh reality: Turning and milling makes almost no money!
What is the profit of machining? Many of my peers speak of this subject with only a sigh. With the enthusiasm of entrepreneurship, they established their own processing plants, limited by capital and technology, mainly ordinary machine tools, mainly those with the lowest technical content of the turning, milling, planing, grinding processing work. After working for a few years, I found that instead of making money, I had been contributing to it. As a result, their entrepreneurial passion suffered a serious setback.
If the business situation in recent years to calculate a account, they will find a cruel reality - their main turning milling processing is almost no money, can pay the wages of workers is good, sometimes even to stick. The reason is simply that the technical content is too low. Since everyone can do it, you are not indispensable, and if you don't do it, some people will grab it, so naturally lose the bargaining chip, and the momentum is always crushed by others. It is not surprising that such enterprises cannot make money, or even lose money.
High technology content can create high profits
Only those who get rid of the simple dependence on turning, milling, planing and grinding, and can undertake higher technical processing tasks, can have a larger profit space. For example, although the processing of automobile product parts can not be separated from turning, milling and planing, it is mainly based on a large number of riveting and welding processing, laser cutting processing, and a certain technical content of tooling combination, turning, milling and planing is only a small part of it. Undertake such processing business, can get about 10% of the profit.
Take sheet metal processing as an example, at this stage, relying on the traditional processing method has no competitiveness. Only those who improve the technical content of the equipment, the application of modern processing equipment, and the order batch can also go to the enterprise, to get more than 10% of the profit. If the processing is a complete set of equipment, a comprehensive phosphating, painting, spraying, painting and other processes, you can obtain higher earnings. If you have a certain design ability, the profit margin may be larger. Only innovation can find living space.
Many factory owners still have the business philosophy of five or even 10 years ago, that if you work hard, you will get rich. Today's competitive situation has been different, only know how to continuously develop innovation, in order to have their own production space. Cookie-cutter products are certainly not profitable and will eventually be eliminated.
If you want to make profits, you must have your own unique characteristics: such as leading processing technology, resource saving, streamlining and merging of processes, automatic or semi-automatic processing processes, or using small machines to do big work to reduce costs, etc., from these aspects can be gained. Each of these gains may not be huge, but they add up.
You can also try to find some low level of processing products in the market, through a full understanding of the product's processing process and existing processing technology and cost, from which to find the opportunity to play. If you have the ability, you can upgrade the product, which is a very good profit growth point. It can not only obtain a large profit, but also is not easy to be caught up by rivals.
