What is the Cost of CNC Machines for Small Businesses?(what is face milling Ward)
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Acquisition Costs
The initial purchase price of a new CNC machine represents a significant capital expenditure for a small business. Entry-level CNC mills and lathes can range from $10,000 to $50,000 depending on size, capabilities and options. More advanced 5-axis machines commonly cost between $75,000 to well over $100,000. Small businesses should consider both new and used machinery, which can help lower the initial acquisition costs. When purchasing used, it's important to factor in potential repair and upgrade costs. Leasing options are also available to spread out payments over time rather than a large lump sum purchase.
Setup and Installation
Once a CNC machine has been acquired, additional expenses will be required for delivery, setup and installation. Most CNC equipment will need to be installed on a concrete foundation or vibration-dampening pads. Electrical power and air lines may need to be routed to the machine location. Fixtures for securing workpieces will need to be fabricated and installed. Programming and simulation software is another cost consideration, which can range from a few thousand dollars up to $20,000+ for more advanced CAD/CAM packages. Small shops should budget several thousand dollars for setting up a basic CNC machining operation.
Tooling and Accessories
Cutting tools and tool holders are a routine consumable cost for CNC machining. Small parts like end mills, drills and inserts will need to be purchased on a regular basis. For production jobs, tooling costs can be spread over the number of parts being machined. Certain workpieces may also require custom jigs, vises or fixtures to properly and accurately hold parts during machining operations. These add to the overall tooling expenses. Budgeting at least $2,000-$5,000 for initial tooling and accessories is advisable.
Maintenance and Repairs
All machines require regular maintenance and occasional repairs, especially those that operate in a 24/7 production environment. Simple tasks like lubricating, cleaning and tightening components should be performed based on recommended upkeep schedules. More involved repairs due to normal wear-and-tear of components should also be anticipated and budgeted for. Having both preventative and emergency maintenance funds available will minimize unexpected downtime. Setting aside $2,000-$5,000 annually is reasonable for most small CNC shops.
Labor Costs
For small businesses that are new to CNC machining, there will be costs associated with training or hiring qualified staff. Existing employees will need to learn how to properly run, program and setup CNC equipment. Alternatively, hiring experienced CNC machinists, programmers or engineers represents an added labor expense. However, having properly trained employees is essential for maximizing productivity and return on investment of CNC machines. For staffing, small businesses should determine if training existing workers or recruiting new talent makes the most financial sense.
Overhead Expenses
Standard overhead costs like shop rent, utilities, insurance and property taxes will continue and likely increase with the addition of CNC equipment. Consumable materials like cutting fluids and lubricants will also be used in larger quantities. And administrative costs like payroll, accounting and shipping/receiving duties may grow as well. Planning for a 10-15% boost in overhead costs is prudent when factoring in CNC systems.
In summary, the costs associated with acquiring CNC machining equipment and capabilities for a small business include:
- Machine purchase or leasing costs
- Setup and installation
- Cutting tools and accessories
- Maintenance and repairs
- Software and training
- Shop overhead and administrative expenses
Properly forecasting these expenses ahead of time and having an adequate budget is key to effectively implementing CNC technology in a small business or startup environment. With careful planning and cost analysis, almost any small shop can benefit from automated CNC machining. The improved consistency, productivity and profitability that CNC machines offer make the upfront costs well worth the long-term investment for many small manufacturing businesses. CNC Milling CNC Machining