Start a small CNC shop for replacement machinery parts

Rent a small industrial unit and machine replacement and custom parts for local factories, farms and repair shops.

Rows of finished metal machine components on a production line in a factory.
Startup costC$50k to C$250k
Monthly revenueC$8k to C$40k
Time needed30+ h/week
First incomeMonths
  • C$50k-250k
  • Full-time
  • Own premises

Estimates for a small start in Canada, not guarantees.

What it is

A small machine shop with a CNC mill or lathe, and often manual machines too. You make replacement parts for worn or obsolete equipment, plus custom one-offs and short production runs, from drawings or from worn samples you measure and copy.

Your first three steps

  1. Visit local plants and repair shops to learn what parts they struggle to source quickly, and note the materials and tolerances involved
  2. Price a used CNC machine, tooling and measuring tools, and compare renting a small industrial unit with leasing equipment
  3. Line up two or three trial customers and write a simple quote template covering setup, material and lead time
Who pays

Local manufacturers, maintenance departments, farms, sawmills, food plants, equipment dealers and repair shops that need parts fast.

How it makes money

You quote per job or per part, based on machine time, material and setup. Rush jobs earn a premium. Repeat supply for the same customers gives steadier income.

Skills that help
  • Machining or CNC programming
  • Reading engineering drawings
  • Precise measuring and quality checking
  • Quoting and job scheduling
Watch out for
  • Check zoning and the business licence for an industrial unit with your municipality
  • Commercial general liability insurance, and product liability cover for parts that go into other people's machinery
  • WCB/WSIB coverage rules by province once you hire anyone
  • Check whether customers need quality documents such as material certificates or inspection reports
  • Check heavy-load power needs for the unit and machine safety rules
  • Large startup spending before you have steady customers

Deep research report · Canada

Everything you need to start: small CNC shop for replacement machinery parts

Researched with live web search for Canada: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.

  • Startup costs with real prices
  • Licences, registration and rules
  • Pricing: what others charge
  • Break-even example
  • Finding your first customers
  • 30-day launch plan
  • Risks and how to reduce them
Ready in about 2 minutes · one-off payment, tax included

See a full sample report

Questions people ask

How much does it cost to start a CNC machine shop in Canada?

Startup costs are typically estimated at around $50,000 to $250,000 CAD, depending on machines, premises, tooling, power needs and insurance. It is a large outlay before steady customers, so plan your funding carefully.

How much can a small CNC job shop earn?

Monthly revenue is typically estimated at around $8,000 to $40,000, depending on machine capacity, the mix of jobs and how steadily customers order. Revenue is before rent, materials, tooling and wages.

What should I check before opening a CNC job shop?

Check zoning and business licence rules for an industrial unit with your municipality. Also check liability and product liability insurance, WCB/WSIB rules if you hire, customer quality documents, and the unit's power needs and machine safety rules.

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Photo: Anyusha on Pixabay

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