Small toolroom for local manufacturers

Local manufacturers, fabricators, plastics and packaging firms, and product developers who need tooling made or repaired quickly.

You quote each job by machine hours, material and finishing. Repeat customers who send repairs and new tooling regularly are what keep the shop busy.

• Machining and tool and die trade experience
• Reading engineering drawings and CAD/CAM
• Precise measuring and inspection
• Quoting and meeting deadlines

• Check zoning and building use rules with the municipality for a machining unit, plus fire and noise requirements
• Commercial general liability and property insurance, and WCB/WSIB coverage once you hire (rules differ by province)
• Check whether your province requires or recommends Red Seal certification (Tool and Die Maker or Machinist) to use the trade title
• Some customers ask for quality standards such as ISO 9001 or inspection reports, and for confidentiality agreements on their designs
• Used machines can hide costly repairs, so have them inspected before buying
• Work can be lumpy, so a few large customers can leave you exposed if one leaves
• Check how to handle and dispose of coolant and metal swarf under local environmental rules

Estimates suggest startup costs are typically around $60,000 to $250,000, depending on the machines you buy and the unit you rent. Used machines can hide costly repairs, so have them inspected before buying.

Monthly revenue is typically estimated around $8,000 to $40,000, depending on your machine capacity and customers. Work can be lumpy, so relying on a few large customers can leave you exposed if one leaves.

Check zoning and building use rules with your municipality, plus fire and noise requirements. Also check insurance, WCB/WSIB once you hire, whether your province requires or recommends Red Seal certification, and local environmental rules for coolant and metal swarf.