AdvancedMfg
New Member
I just wanted to ask a question if anyone has seen a pick up in Manufacturing yet.
I currently work at a machine shop that caters to Aerospace and we were hit hard last year with bankrupt companies and major slow downs.
In my companies attempt to seek out new customers, they have spent the last year quoting, quoting, & more quoting. The doors seem to be all open for customers now, but landing work seems to be harder then before and price is the largest factor.
What little bit of feed back we get and with target prices disclosed, it seems to me that alot of companies are looking for prices that are unrealistic. Is anyone else seeing this trend?
We do have large overhead with a big burden shop rate, which the company I work for is unwilling to cut down. But that aside, with the numbers I see coming back from potential customers in the form of their target numbers, I could not see in some situations to cover material costs, let alone direct labor, nor do I see it possible for even small shops to make it on this current trend.
I keep hearing that the economy has bottomed and things are turning around, but I am wondering if manufacturing, specifically precision machining may take another year or two to fully recover.
My biggest fear that going forward, companies that buy precision parts and supplies will pay closer attention to price and be tightening their belts, where quality and supplier loyalty will take a back seat to the lowest price. For the future going forward, I hope this will not negatively affect this trade with wages and benefits, since it has already been eroding away.
Mike in MN
I currently work at a machine shop that caters to Aerospace and we were hit hard last year with bankrupt companies and major slow downs.
In my companies attempt to seek out new customers, they have spent the last year quoting, quoting, & more quoting. The doors seem to be all open for customers now, but landing work seems to be harder then before and price is the largest factor.
What little bit of feed back we get and with target prices disclosed, it seems to me that alot of companies are looking for prices that are unrealistic. Is anyone else seeing this trend?
We do have large overhead with a big burden shop rate, which the company I work for is unwilling to cut down. But that aside, with the numbers I see coming back from potential customers in the form of their target numbers, I could not see in some situations to cover material costs, let alone direct labor, nor do I see it possible for even small shops to make it on this current trend.
I keep hearing that the economy has bottomed and things are turning around, but I am wondering if manufacturing, specifically precision machining may take another year or two to fully recover.
My biggest fear that going forward, companies that buy precision parts and supplies will pay closer attention to price and be tightening their belts, where quality and supplier loyalty will take a back seat to the lowest price. For the future going forward, I hope this will not negatively affect this trade with wages and benefits, since it has already been eroding away.
Mike in MN