I have a small machine shop that I oversee in the investment casting foundry that I am at. I do the estimating and the process design and I try to get $60.00/hr base rate plus markup for G&A/scrap/profit. It was easier to get that number a couple of years ago but today we are more often looking at $40~$45/hr total. We have a full battery of Bridgeports and engine lathes and also have 2 Haas VMC's with 4th axis drives as well as a Haas SL30 lathe.
Guy next door has a great looking shop with a VMC, CNC lathe, water jet cutting, bending and fabircation, as well as argon glove box welding for exotic alloys. His accountant is telling him he needs to get over $100.00/hr and he is now talking about giving up in 3 months because of no work. I gave him a job last week that will generate $57.00/hr on his lathe (he eats insert costs) and he's super happy to get it. He should fire his accountant and find a way to stay alive.
West Michigan is saturated with great capability that is going to waste as well.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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