The Value of a Niche Market CNC Machine Shop
Machine shop marketing approaches tend to revolve around three things: quality, price, or speed. What about the value of a niche market CNC shop? Competing on price is one of the toughest markets because it’s the easiest one to step into. To save costs quality may have to suffer, and for a professional machinist, that is typically not an easy choice to make. A garage shop with no overhead or a fully automated operation can compete on the same proposal, and the winning price is often determined by who needs the business more. Further, CNC machining offers functionality through intelligent systems to shave production time down. But everyone has access to it. Only measures like lean manufacturing will give you an edge when competing for speed of production. On the other end of the spectrum producing high-quality parts is every machinist’s dream, but quality takes time and those clients will start to demand faster delivery and lower prices, too. There is competition in every market, but a niche offers a better chance at providing what you do best for the best profit.
Aside from the obvious competition, let’s review some strategic benefits of niche marketing, and then look at a few theories for developing your niche.
Overhead — You may focus on only one or two raw materials in your niche or work on only one type of machine. This reduces the inventory of raw materials, cutting tools, and replacement parts. The investment in machinery may also be considerably less meaning you don’t carry as much debt drawing on your profits.
Production — Production planning without a high degree of variables on different machines and processes streamlines operations. This provides client satisfaction with consistent lead times and minimizes conflicts on the floor.
Labour — Running similar parts means less diversification is required in employee skill sets. Niche markets often rework the same type of part with adjustments to the size, finish, or small details for a variety of clients. Operators need only be trained on one machine with minor variables in their work.
