I have a small machine shop that I oversee in the investment casting foundry that I am at. I do the estimating and the process design and I try to get $60.00/hr base rate plus markup for G&A/scrap/profit. It was easier to get that number a couple of years ago but today we are more often looking at $40~$45/hr total. We have a full battery of Bridgeports and engine lathes and also have 2 Haas VMC's with 4th axis drives as well as a Haas SL30 lathe.
Guy next door has a great looking shop with a VMC, CNC lathe, water jet cutting, bending and fabircation, as well as argon glove box welding for exotic alloys. His accountant is telling him he needs to get over $100.00/hr and he is now talking about giving up in 3 months because of no work. I gave him a job last week that will generate $57.00/hr on his lathe (he eats insert costs) and he's super happy to get it. He should fire his accountant and find a way to stay alive.
West Michigan is saturated with great capability that is going to waste as well.
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Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
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