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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