It’s been said the only difference between men and boys is the size of their toys. An addendum to that should be: and how much they cost.

Much the same can be said of machine shops. As they get “older,” they usually need bigger and better equipment, and more of it. That usually means more money.

Many machine shops start from humble beginnings. Some average Joe has a few pieces of equipment – say a manual lathe and an old knee mill – crammed into his garage so he can make the odd what'sit for his latest hobby. Inevitably, a friend needs something machined for his latest hobby and offers to pay Joe to do the work. Satisfied with the work, the friend tells another. Before long, friends, relatives, and acquaintances are lining up to take advantage of Joe’s machines and expertise.

As demand grows, so does the need for more equipment. At this point Joe must weigh the cost of new machinery against subsequent potential gains in business. For many shop owners this often poses a dilemma: They need the new machines to get the contract, but sometimes they can’t buy the equipment unless they already have the work. 

Advances in machine tools over the past decade, however, combined with an increasingly competitive market, have made it much easier for the average Joe to expand his shop and keep it successful. No longer is a million-dollar outlay necessary to get high-quality, reliable machine tools that are accurate and loaded with options. Today, it’s possible to get into the biz and equip a substantial shop for less than $200,000.

JUST WHAT WILL THAT TWO HUNDRED GRAND BUY?

Well, nearly every machine tool manufacturer today offers some sort of “low-cost” machine aimed at the small job shop. Some of these are just stripped-down versions of the company’s more expensive machines, with few or no options or features. Others are manufactured offshore using low-cost labor and inexpensive materials. But low cost doesn’t necessarily mean low quality. Some manufacturers, like Haas Automation, Inc., keep their prices low by relying on volume sales rather than per-unit profits, and employing the latest technology and automated processes to keep manufacturing costs low. 

In the short run, the result is the same: the customer gets an affordable machine tool. In the long run, however, there are other factors to consider when determining the actual value of the “low-cost” machine. 

For example, a stripped-down machine may require the purchase of expensive options and accessories before it can adequately meet the needs of the shop; and the offshore machine may not live up to expected quality standards, or produce the re q u i red accuracy. Other important considerations are the cost and availability of repair parts, the availability of service, and the history and reputation of the manufacturer. Saving money up front is pointless if the machine is unreliable, expensive to repair, can’t be repaired in a timely manner, or can’t be repaired at all. 

Obviously, price is an important consideration when making any major purchase. But the overall value of the product being purchased relative to the price, the “bang for the buck,” if you will, is much more important.

It’s also important to look closely at the manufacturer of the machines you a re purchasing. How long have they been in business? How long have they been selling in the United States? Do they offer a complete range of products – VMCs, HMCs, lathes, rotary tables, bar feeders, tool holders? Will they be around to service the machine in the future? Do they have a local service/sales network? Will the company keep up with changing technology? Will they continue to grow as your shop grows? These are just some of the questions you might want to ask before signing on the dotted line for those “low cost” machines. 

Another consideration, especially for shops just getting into CNC, is ease of use. Ideally, an operator should be able to learn the new equipment quickly and easily. Job setup and changeover should be easy, as well. This is especially important in light of the current shortage of qualified machinists and machine operators in the industry. The expense of hiring an experienced CNC machinist may not be in the budget for a start-up shop. 

In order to survive, most job shops serve a variety of different customers and take on a wide assortment of work. Reliance on a single customer or a n a r row scope of work can often be disastrous. Flexibility is key, and a successful shop must be able to roll with the economic ebb and flow. Keeping profits up means keeping the price-per-part as low as possible, which means reducing setup times and increasing throughput. User-friendly controls and high-productivity options like pallet changers, rotary tables, and bar feeders can help here.

All that said, here’s an example of what you can get for $200,000:

First, let’s decide what equipment you need. A mid-size vertical machining center and a mid-size lathe will more than fit the bill, and will provide the capacity and capability to handle a wide array of jobs. For more versatility on the VMC, let’s add an automatic pallet changer; to boost output on the lathe, let’s throw in a short bar feeder. Both of these items will boost throughput and reduce setup time, while at the same time allowing unattended machining for further productivity gains. To make programming easier, a good mill/turn CAM package is probably also in order. 

The next decision is which brand of equipment to buy. Obviously, this is a very personal choice, usually based on a lot of different variables. Most shop owners do quite a bit of research before making their final decision; but, in essence, there are two basic approaches: buy everything from a single manufacturer, or mix and match different brands.

Mixing and matching can allow you to get exactly the specs and features you want in each machine, but it may cause headaches down the line. Each machine most likely will have a different control, making operator training more difficult. Plus, sales and especially service also may be more complicated, as you are dealing with different builders, and possibly even different distributors.
 

On the other hand, going with a single manufacturer for all your machines has definite advantages. For example, the operator only has to learn one CNC system. Having the same user interface for every machine, be it lathe or mill, frees the operator to move from machine to machine with ease, rather than being tethered to the one machine he knows how to run.

Sales and service are also simplified, as the same manufacturer is responsible for all machines. Staying with the same brand as you add more machines in the future also gives you more clout than if every machine is from a different builder. Obviously, every customer is important to a manufacturer, but it’s a simple fact that a shop with a stable full of machines from the same builder is likely to get better service than a shop with a single machine. 

NOW IT’S TIME TO SPEND MONEY! 

Let’s start with the mill. Since you’ll be running a variety of jobs, the ability to machine different types of materials is important. A gearbox or transmission will give you the versatility to machine at high speeds for aluminum, graphite, and plastics, while also providing the low-speed torque necessary for harder materials like steel, stainless, and titanium.

A Haas VF-3APC VMC (40"x20" x25" travels) with automatic pallet changer, 20-hp vector-drive spindle and two- speed geared head retails for less than $95,000. Add another $6,000 for a package of options that includes a chip auger, programmable coolant nozzle, 1 megabyte of program memory, Quick Code programming system, floppy disk drive, rigid tapping, 4th-axis drive, coordinate rotation, scaling, custom macros and a remote jog handle, and you’re looking at lightening your wallet by about $101,000. 

Now let’s look at the lathe. Again, you’ll be cutting a variety of materials, so versatility and simplicity are key. 

A Haas SL-30 CNC lathe (30" swing and 14.5" x 34" turning capacity) with 30-hp vector-drive spindle, wye/delta switching and programmable hydraulic tailstock retails for less than $66,000. Add around $8,000 for an option package that includes a tool presetter, an automatic parts catcher, Quick Code programming, a floppy disk drive, a chip auger system, rigid tapping, 1 megabyte of program memory, and custom macros, and your shop fund is down by another $74,000. Throw in the Haas Servo Bar 300 bar feeder, which runs directly from the lathe’s control, for around $10,000, and you’ve got a high-productivity turning package for less than $84,000. 

But, wait! There’s more. You still have $15,000 left to spend. How about a CAM system to speed programming and keep your machines pumping out parts? A good mill/turn system will set you back anywhere from about $1,000 to the-sky’s-the-limit. For our purposes here, something in the middle should suffice. Companies such as Mastercam, Surfcam, Teksoft, and others, all offer versatile mill/turn systems for about $7,500. Before making your choice, however, be sure the software is compatible with your choice of machine tools. Here, again, is an area where sticking with a single brand could be advantageous, as the post-processing would be the same for all machines. 

The remaining $7,500 should just about cover shipping to most parts of the United States, as well as rigging and any electrical and air modifications necessary to set up the machines. 

Keep in mind, these are all retail prices. With the market getting more and more competitive, many manufacturers are offering customer rebates, low-cost lease programs, free option packages, and more as further incentive to buy their product . Obviously, prices for shipping, rigging, and state and local taxes will vary depending on your location.

Now that you have the equipment, what do you do with it? If your $200,000 expenditure is intended to move you out of the manual age and into the world of CNC, you’ll probably need some training. Most machine tool manufacturers, or their distributors, provide some sort of basic operator training, as well as initial setup of the machine, free of charge. Most CAM manufacturers, as well, offer training for a nominal fee. They want you to be happy with your purchase, so they are going to show you how to use the equipment and software. 

There you have it. You’ve just taken Joe’s Precision Machining to a whole new level of productivity and versatility for right around $200,000, something that would have been unheard of a decade ago. This is no low-end shop, either. It’s a versatile machine shop with the capacity and capability to service any industry, from aerospace to automotive to medical. After all, that’s what success is all about. ~~