Small Machine Shop for Custom and Repair Parts

Rent a small unit and make or repair machined parts for local farms, garages, manufacturers and hobbyists.

A machinist checking a machined metal component at a workbench in a workshop.
Startup costC$20k to C$90k
Monthly revenueC$4k to C$18k
Time needed30+ h/week
First incomeMonths

Estimates for a small start in Canada, not guarantees.

What it is

A small workshop with a manual or CNC lathe and mill that makes one-off and short-run parts, and repairs worn or broken components such as shafts, bushings, brackets and fittings.

Your first three steps

  1. Visit local farms, repair garages and manufacturers to find out what parts they struggle to get made quickly
  2. Price used lathes, mills and measuring tools, and find an industrial unit with three-phase power if you need it
  3. Get insurance quotes and set up your hourly rate and a simple quote template
Who pays

Local farms, auto and equipment repair shops, small manufacturers, contractors, and individuals with machinery or vehicles to fix.

How it makes money

Hourly shop rate or a quote per job, plus material costs. Repeat customers and rush repairs usually bring in steadier work than one-off jobs.

Skills that help
  • Machining on a lathe and mill
  • Reading engineering drawings
  • Measuring to tight tolerances
  • Quoting jobs accurately
Watch out for
  • Commercial general liability insurance, and check whether you need product liability cover for parts you make
  • Zoning for industrial use, noise and fire rules, check with your municipality
  • WCB or WSIB coverage once you hire, rules differ by province
  • Machinery safety training and guarding, check your provincial workplace safety rules
  • Quoting too low for setup time and scrap, and the risk of a part failing in use

🔒 Full research report for Canada

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 Canada?

Startup costs are typically estimated at around $20,000 to $90,000 CAD, depending on your machines, unit rent and tooling. Also check insurance, including commercial general liability and whether you need product liability cover for parts you make.

How much can a small machine shop earn?

Monthly revenue is typically estimated at around $4,000 to $18,000 CAD, depending on your machines, customers and how well you quote jobs. Quoting too low for setup time and scrap is a risk to watch.

What rules should I check before opening a machine shop in Canada?

Check zoning for industrial use, noise and fire rules with your municipality. Also check machinery safety training and guarding under your provincial workplace safety rules, and WCB or WSIB coverage once you hire.

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