Start a small machine shop for custom and replacement parts
Machine one-off and short-run replacement parts for local factories, farms and repair shops from a rented unit.
- $25k-120k
- Full-time
- Own premises
Estimates for a small start in the US, not guarantees.
Official data
1,516 US businesses with employees in this field, -4.7% in a year
NAICS 333249 “Other industrial machinery manufacturing”. Source: U.S. Census Bureau, County Business Patterns 2023.
What it is
A small machine shop with a CNC mill or lathe that makes replacement and custom parts such as shafts, bushings, brackets and fittings, often from a worn sample or a drawing.
Your first three steps
- Visit local plants and repair shops to learn which parts they struggle to source, and ask to quote on a few
- Price a used manual or CNC mill or lathe and a small unit in an industrial park, and work out your hourly shop rate
- Form an LLC, get an EIN and quote your first jobs for local maintenance managers
Who pays
Local factories, maintenance departments, farms, equipment repair shops and contractors who need parts that are discontinued, slow to ship or expensive.
How it makes money
Quote per job or per part based on material, machine time and setup, with repeat orders and rush jobs priced higher.
Skills that help
- Machining or CNC operation
- Reading drawings and measuring with calipers and micrometers
- Quoting jobs accurately
- Reliable delivery to deadlines
Watch out for
- General liability and product liability insurance, since a failed part can cause damage or injury
- Zoning, local business license and sales tax or resale certificate rules, check with your city, county and state
- Three-phase power, coolant and metal waste disposal rules in your area
- Some customers require quality records or certifications such as ISO 9001, so check what your target buyers ask for
- Heavy reliance on one or two customers can make income uneven
Deep research report · US
Everything you need to start: small shop making custom and replacement machine parts
Researched with live web search for United States: 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
Questions people ask
How much does it cost to start a small machine shop?
Startup costs are typically around $25,000 to $120,000, depending on the machines you buy, your rented unit and your tooling and materials. These figures are estimates and vary with the size of shop you set up.
How much can a small machine shop earn?
Monthly revenue is typically around $4,000 to $20,000, depending on your machines, the jobs you win and your quoting. Relying heavily on one or two customers can make income uneven.
What rules and insurance should I check for a machine shop?
Get general liability and product liability insurance, since a failed part can cause damage or injury. Check zoning, local business license and sales tax or resale certificate rules, plus power, coolant and metal waste disposal rules. Some customers also ask for quality certifications such as ISO 9001.
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