Small machine shop for custom parts

Turn metal and plastic into one-off and short-run parts on lathes and mills for local businesses.

A worker operating a lathe to shape a metal part in a machine shop.
Startup costA$25k to A$120k
Monthly revenueA$4k to A$20k
Time needed30+ h/week
First incomeMonths

Estimates for a small start in Australia, not guarantees.

What it is

A small workshop with a manual or CNC lathe and mill, making custom parts, repairs and short production runs from drawings or worn samples.

Your first three steps

  1. Visit local fabricators, mechanics and farms to find out what parts they struggle to get made quickly
  2. Price up a second-hand lathe and mill and check rental terms for a small industrial unit
  3. Line up two or three trade customers who would send you trial jobs before you commit to premises
Who pays

Local farms, mechanics, fabricators, mining and marine suppliers, manufacturers and hobbyists who need parts made or replaced.

How it makes money

Charge an hourly machine rate or a fixed price per job, plus materials. Repeat work from a few regular trade customers helps keep the machines busy.

Skills that help
  • Machining on lathes and mills
  • Reading engineering drawings
  • Accurate measuring and quoting
Watch out for
  • Public liability and product liability insurance, especially for parts used in machinery
  • Council zoning and noise rules for an industrial unit, check with your local council
  • Workplace health and safety duties, including machine guarding and training, check your state's WHS regulator
  • Workers compensation insurance once you hire staff
  • Machines and tooling can be costly, and quiet months still mean rent to pay

🔒 Full research report for Australia

Real cost breakdown with current prices, licences and registration checklist, local competition, pricing, break-even and a 30-day launch plan, with sources.

Coming soon

Questions people ask

How much does it cost to start a small machine shop in Australia?

Startup costs are typically estimated at around $25,000 to $120,000, depending on whether you buy manual or CNC machines, your tooling, and the unit's fit-out. Machines and tooling can be costly, and quiet months still mean rent to pay.

How much can a small machine shop earn?

Monthly revenue is typically estimated at around $4,000 to $20,000, depending on your customer base, machine capacity and the mix of one-off and short-run work. Plan for quiet months, as rent still needs paying.

What rules and insurance should I check for a machine shop?

Check public liability and product liability insurance, especially for parts used in machinery. Also check council zoning and noise rules for an industrial unit, your state's WHS regulator duties such as machine guarding, and workers compensation once you hire staff.

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