MFG https://www.mfg.com/ Making It Easy for Buyers and Manufacturers to Discover Each Other and Build Relationships Wed, 24 May 2023 13:27:30 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.1 https://mfgproductionimages.s3.us-west-1.amazonaws.com/wp-content/uploads/20230510101908/cropped-favicon-32x32.png MFG https://www.mfg.com/ 32 32 Design for Manufacturability: The Basics https://www.mfg.com/blog/design-for-manufacturability/ https://www.mfg.com/blog/design-for-manufacturability/#respond Wed, 24 May 2023 13:04:24 +0000 https://www.mfg.com/?p=736474 Are you trying to discover cost efficiencies for your manufacturing process? Not only can Design for Manufacturability (DFM) aid in product development, it can help simplify manufacturing processes.

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Design for Manufacturability

Design is the cornerstone of successful product development, serving as the foundation for creating products that meet customer needs, stand out in the marketplace, and are optimized for efficient and cost-effective manufacturing.

Design for Manufacturability (DFM) represents a critical thought process that should be incorporated during the early stages of product development (before the tooling and assembly processes). DFM principles help manufacturers achieve the following during product development:

  • Simplifying design by reducing complexity of products and avoiding unnecessary features. This helps minimize cost and maximize efficiency.
  • Making products easy to assemble with features such as self-aligning components or connectors that ensure correct positioning and orientation. This can decrease the potential for errors and defects, and reduce the number of operations required for production.
  • Standardizing materials and components, and reducing the number of required or unique parts, helps to cut costs and simplify manufacturing.

History of Design for Manufacturability

Design for Manufacturability provides an analytical approach to modern product development, standing in stark contrast to previous methods.
In the past, designers and manufacturers relied on their experience, and comparable projects, as their sources of data for manufacturability. Limited capabilities for modeling production meant trial and error was the method of choice. Obviously, this approach is no longer adequate in the face of today’s rapidly evolving manufacturing landscape–leading to the advent of innovative prototyping solutions like 3D printing.

Designers are no longer confined to relying on off-the-cuff calculations without mechanisms to accurately analyze the final connection between design, manufacturing, sustainability, and cost. They now have access to robust software tools for analyzing and optimizing product design—reducing errors and costs.

What are the Details of the Principles of DFM?

Design for Manufacturability involves several principles that should be considered during the early stages of product development to ensure efficient production.

Pick the appropriate process

First, you must choose the proper manufacturing process for the part or product. Selecting injection molding for a low-volume part may result in high upfront costs due to molds and tooling, while thermoforming could be a more cost-effective option as it requires less-expensive tooling. Factoring in production volume, part complexity, and the desired features for a part is critical to optimizing product development and manufacturing. MFG manufacturers cover a broad spectrum of manufacturing processes.

Design for Efficiency

Part drawing and design must conform to sound manufacturing principles to ensure efficient, high-quality production. The following example list applies to the plastic injection molding manufacturing process:

  • Consistent wall thickness, allowing even and quick part cooling
  • Proper draft angles of 1 or 2 degrees
  • No thin walls increasing injection pressure
  • No undercuts or features requiring side action
  • Texture should be one degree for every 0.001” of texture depth
  • Ribs should typically be 60 percent of the nominal wall
  • Application of the loosest tolerances, still allowing a good product
  • Discussion on design with the contract manufacturer to ensure conformity to sound manufacturing principles

Applying the appropriate guidelines should help you avoid potential issues in production.

Select the material carefully

Consider the following material properties during DFM:

  • Mechanical properties: How strong must the material be?
  • Thermal properties: Should the material be heat-resistant?
  • Color: Must the part be a specific color?
  • Optical properties: Should the material be reflective or transparent?
  • Electrical properties: Will the material act as an insulator rather than a conductor?
  • Flammability: Does the material need to be flame-resistant?

Incorporating these material properties will help guarantee peak performance and functionality in parts.

Assess the operating environment

Design your part or product to withstand the conditions of its intended use. Even the best design is irrelevant if a part fails to perform under normal operating conditions.

Prioritize compliance and testing

Ensure that your product complies with safety and quality standards, whether they are industry-wide, third-party, or company-specific.

Why is Design for Manufacturing Important?

DFM is crucial for companies hoping to produce their products efficiently and profitably, and allows them to make critical product development decisions early on.

Designing with DFM in mind can also significantly reduce final production costs, helping identify and quantify inefficiencies or waste at various points throughout the manufacturing and production process.

What Benefits Can Buyers of Manufacturing Services Expect from Effective DFM?

Products developed with DFM principles typically have lower production costs, which can help you:

  • Discover and eliminate costly mistakes or design flaws before manufacturing
  • Reduce steps in assembly by combining parts
  • Shorten time-to-market by increasing product development speed
  • Produce higher quality products, components, and parts
  • Create a safer working environment by identifying and eliminating potential hazards

How Long Does DFM Take?

The duration of the DFM process varies, depending on the type of product and the manufacturing process involved. On average, DFM takes about two weeks, but more intricate projects might need an additional week or even longer. A well-defined product design that aligns with all parties’ criteria can expedite the process; however, the overall production timeline might be extended depending on factors such as the quality and complexity of questions that arise, as well as responsiveness and attention to detail in addressing them.

Your contract manufacturer can give you a better idea regarding how long they think the process will take. Keep in mind that a quality product is always the goal, with speed as a secondary consideration.

A thorough DFM will end up reducing the complexity of the design and satisfying the customer’s requirements for price, specification, material, and scheduling.

In Summary

Incorporating Design for Manufacturing principles can lead to quantifiable reductions in the complexity and cost of manufactured products. It’s essential to continue improving your product even after the initial design stage. When you identify avenues for improvement, you should return to the drawing board to incorporate the enhancements. Continuous improvement is a core tenet of designing and manufacturing a product.

DFM is also critical to reducing a product’s final cost without compromising on its durability, quality, and performance. The principles of DFM may seem simple at first, but their positive effect on enhancing the manufacturing process is invaluable. The significant savings achieved through DFM make it crucial to consider incorporating its principles while designing or improving your product!

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How to Evaluate Potential Manufacturers https://www.mfg.com/blog/finding-right-manufacturer-supplier-database/ https://www.mfg.com/blog/finding-right-manufacturer-supplier-database/#respond Thu, 18 May 2023 16:42:09 +0000 https://www.mfg.com/?p=736405 With the MFG platform, you can find a manufacturer that fits your needs, either through submitting a Request for Quote (RFQ) or searching the manufacturer database. Learn how to best evaluate potential manufacturers, including reviewing certifications and licenses.

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The Ultimate Guide to Selecting an MFG Manufacturer: Strategies & Tips

Finding the right manufacturer to fulfill your production needs can be a daunting task. The sheer number of manufacturers to choose from can be overwhelming, leaving you to identify who is experienced, reliable, and able to offer you the best quality. Inquiring about pricing, lead times, and quality control can be time-consuming too.

MFG is the solution to meeting your production needs, granting access to a vast supplier database and network of trusted and verified manufacturers worldwide, providing you with powerful tools to make informed decisions and find manufacturers that match your standards.

The goal of this blog is to make it easy for you to partner with a manufacturer that aligns with your production values and requirements, and needs in terms of capacity, materials and technology, and sustainability.

Defining Your Product Needs First

Before outsourcing production to a manufacturer at MFG, outline your product specifications and develop a clear understanding of what you need in quantity, customization, and production method.

It’s also helpful to know what type of manufacturing process you prefer, although not a requirement as manufacturers can discuss different options with you and explain the pros and cons of each. MFG categorizes manufacturers by specialty though, so knowing whether you require 3D printing or injection molding helps you narrow down your search and optimize the quality of your end part—as well as helping you estimate costs, turnaround time, and anticipate any other typical concerns like supply chain issues. Please note that MFG manufacturers do not work in textiles, jewelry, or clothing.

Getting Started: Submit a Request for Quote

A Request for Quote, or RFQ, allows you to clearly communicate your project requirements. Once an RFQ is released, you will begin to receive quotes on your project from manufacturers, clearly outlining what they have to offer in terms of production and prices. Not only do you have access to the most competitive pricing via the RFQ process–allowing you to remain on point in terms of budget–but you eliminate the time-consuming process of conducting one negotiation after another with individual manufacturers. While our full RFQ process requires you to choose a specific manufacturing process and upload full designs, you can also submit a Partial RFQ and an MFG team member can help you decide what is best for your project.

Once you review quotes and select a supplier/manufacturer, you can send them a purchase order and continue to communicate through MFG.

Evaluating Potential Manufacturers

The objective is to find a supplier who can meet your standards of production within the designated timeframe and budget. With MFG’s tools, you can easily compare price, read reviews, and get details on the shop’s machines and capabilities. Here are some of the ways you can evaluate manufacturers, through MFG and conversations with your potential suppliers.

Reading Reviews

Read customer reviews from buyers just like yourself. Manufacturer profiles also often include relevant information like:

  • The number of years they have been in business
  • Pictures of their shop floors
  • Links to their business website

Research necessary certifications, licenses, and insurance too. While not all manufacturer profiles on MFG have their credentials listed, many do. You can actually search by certification to find the best fit for you; for example, we have many ITAR-compliant shops and ISO-certified manufacturers.

Considering Location and Logistics

Even though a manufacturer may check off all the boxes in terms of capability and production, if their facility is too far away, your own business could be negatively impacted.

Working with a manufacturer closer to you can be more cost-effective, especially as transportation is affected by fuel prices, shipping methods, and distance. If a manufacturer site is too far away for your purposes, additional shipping costs could add up quickly–especially if product volume is large.

Closer proximity improves supply chain efficiency, reducing lead times, helping you meet customer demand (and preserving your company’s reputation). The other perk of being nearby is that you can communicate with the manufacturer more easily, or even in-person, rather than dealing with different time zones or possible language barriers if they are in another country. In some cases, a manufacturer may be so close that you are able to visit their facility too.

But what if you really have your heart set on working with a manufacturer far away? It would be wise to do your best in confirming whether they have a proven track record in meeting deadlines and delivering on time, despite distance.

Tip: Find out more about using and providing manufacturing services close to home, as well as offshore, in our MFG ebook, Onshoring, Offshoring, and Nearshoring.

Inquiring About Production Processes and Capacity

Although you may have found a manufacturer who seems to be a great match in terms of cost and turnaround time, production processes and capacity-level can have significant impact on end products and delivery times.

Here are several key issues to explore before making a decision:

  • Quality control – Quality is always expected. If you are producing parts for use in critical applications like aerospace or automotive though, it is especially important to review the manufacturer’s quality control methods to ensure they can deliver parts up to your standards. Ask about inspection processes, procedures for dealing with defects, and what corrective actions the manufacturer takes to ensure quality in end products.
  • Volume and capacity – Ask the manufacturer about their equipment, manufacturing techniques, and capability to make the volume of products you need, on time. Get up to speed on any potential bottlenecks or ongoing projects at their site that could delay production. Be aware of supply chain disruptions, and ask about contingency plans for keeping your project on track.
  • Hidden costs – While making sure that any manufacturer’s production costs are within your bottom line, don’t forget to ask about the possibility of hidden fees or charges that could sink your budget.

Effective communication is crucial when working with any manufacturer. Tip: It’s important to establish whether they will be open to consistent check-ins and progress updates to ensure a successful outcome.

Measuring Customer-Service Skills

Good customer service can help you resolve any issues that may arise, and ensure you receive the support you need.

You can usually learn a great deal about a manufacturer’s level of customer service by reading online reviews included on their MFG Manufacturing Profile. Looking at how many jobs they have accomplished on MFG and the review of the work given to them by another MFG user can give you a peace of mind when searching for the right manufacturer.

Tip: Using MFG to research your chosen manufacturer will give you the ability to evaluate based on previous work accomplished with other MFG users.

Assessing Innovation and Technology

Manufacturers that embrace innovation and offer the latest technology are better equipped to meet the demands of their customers. Ask about their R&D efforts and investment in new equipment and software to determine if their capabilities align with your goals.

Does the manufacturer you are interested in working with have experience in producing the parts you need? Seek out manufacturers that have been in business long enough to establish a proven track record in making quality products.

Tip: In the MFG directory, manufacturers list the machines that they have onsite. If you know or have researched which machines are best for your job, this might be a good way to find a fit.

Asking About Their Approach to Sustainability

When looking for a manufacturer, it is important to learn about their sustainability practices. An increasing number of customers are more environmentally-conscious these days, and your products should align with their values and expectations too.

Following are some topics you may want to ask about:

  • Material sustainability
  • Reduced/recyclable packaging waste
  • Energy efficiency
  • Carbon footprint reduction

Ultimately, asking for and promoting sustainability is not only good for our planet—it’s good for business too.

Choosing the right manufacturer is a critical decision that can have a significant impact on the success of your business. With careful research and consideration, you should be able to establish a partnership with a manufacturer that helps you achieve your own business goals and deliver high-quality products to your customers.

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Press Release: MFG Momentum https://www.mfg.com/blog/shapeways-announces-transformative-manufacturing-software-tool-releases/ https://www.mfg.com/blog/shapeways-announces-transformative-manufacturing-software-tool-releases/#respond Thu, 04 May 2023 19:25:51 +0000 https://www.mfg.com/?p=735894 Shapeways, a leader in the digital manufacturing industry, announces the release of a powerful set of manufacturing software tools.

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Shapeways Announces Transformative Software Releases
Realizing record-breaking customer acquisition growth in Q1 202

New York, NY – May 3, 2023 Shapeways, Inc. (NYSE: SHPW), a global leader in the large and fast growing digital manufacturing industry, announced today a significant milestone that accelerates the growth of its software tools and services offering with the release of their Orders and Transactions functionality via its MFG.com brand. The release of this suite of powerful new features enables Shapeways to increase customer acquisition, improve customer retention, and enhance customer lifetime value. These releases have led to record breaking SaaS sales growth in Q1 2023 which will convert to recognized revenue over the next 12 months.

MFG, acquired by Shapeways in 2022, has historically focused on connecting small and medium-sized manufacturers with custom-part buyers through its global Manufacturer Database and Request for Quote (RFQ) process. The new features expand MFG customers’ ability to not only facilitate relationships with prospective new opportunities, but also win more of these opportunities and manage them through the manufacturing process, end-to-end.

“We will continue to commercialize and grow our software tools and service offerings through MFG,” said Greg Kress, CEO of Shapeways. “We had an incredible starting point when we acquired MFG, and adding the new features allows us to expand our offerings to those customers. The latest feature releases are just the start of how MFG will grow to be a comprehensive software platform for manufacturers to unlock new revenue opportunities that grow their businesses, find operational efficiencies to improve profitability, increase customer satisfaction, and expand their manufacturing capabilities.” 

Creating a Manufacturing Software Platform

The primary new feature is MFG Transactions, allowing manufacturers to send invoices–and buyers to pay for their services–within the MFG platform. After a recent survey found that 92% of MFG’s buyers wanted this feature, the MFG team made it a priority. 

“MFG Transactions streamlines the process of invoicing for both buyers and manufacturers,” says Greg Rothman, GM of Software for Shapeways. “It conveniently integrates with ERPs like Quickbooks, and is powered by Stripe. This instills trust in the buyer that their payment is secure, and will increase customer retention for manufacturers using MFG.”

MFG Orders was also announced today as a feature that bolsters the potency of the entire software offering. MFG Orders was rolled out to further deepen the platform’s ability to help manage all parts of the manufacturing process. It includes tools such as Parts Tracking and the ability to create purchase orders (POs). Parts Tracking was built so buyers can be automatically notified about the status of their custom part order through a simple update from manufacturers, thus ensuring higher customer engagement and satisfaction. The ability to create POs through the platform helps to eliminate the back-and-forth of creating POs in other programs and sending them outside of MFG.

Highest Quarter on Record for Both Manufacturer Registrations, Live Projects for Quoting, and SaaS Contract Commitments

In addition to growth through new features and functionality, MFG also experienced a record-breaking Q1 for customer acquisition. “We are excited at the momentum we’re seeing from the market. We welcomed a record number of new manufacturers to the platform, and saw our highest-ever number of open projects from buyers,” says Rothman. “We’re committed to continue supporting these new customers so they can be successful, and to see more join as we expand our functionality.”

Both manufacturers and custom-part buyers can join MFG.com at no cost. Upgraded accounts are available for manufacturers to gain the ability to respond to RFQs and use new Transactions and Orders features.   

About Shapeways

Shapeways is a leader in the large and fast-growing digital manufacturing industry combining high quality, flexible on-demand manufacturing powered by purpose-built proprietary software which enables customers to rapidly transform digital designs into physical products, globally. Shapeways makes industrial-grade additive manufacturing accessible by fully digitizing the end-to-end manufacturing process, and by providing a broad range of solutions utilizing 12 additive manufacturing technologies and more than 120 materials and finishes, with the ability to easily scale new innovation. To date, Shapeways has delivered over 24 million parts to over one million customers in over 180 countries. To learn more, please visit https://www.shapeways.com.

MFG connects quality custom part suppliers to quality buyers, enabling both parties to streamline their work and build strong relationships.

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Best Ways to Market your Manufacturing Business with Digital Marketing https://www.mfg.com/blog/digital-marketing-seo-social-media-manufacturing/ https://www.mfg.com/blog/digital-marketing-seo-social-media-manufacturing/#respond Thu, 27 Apr 2023 13:47:17 +0000 https://www.mfg.com/?p=735797 If you’re interested in optimizing your manufacturing profile so that it reaches the largest audience possible, it’s important you have a high-quality website and invest in social media and SEO.

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The manufacturing sector plays an integral role in the global economy, with the ability to power–and affect–multiple other industries. Manufacturing is highly competitive, with businesses competing fiercely to draw the attention of potential customers. Effective digital marketing for manufacturing is critical for any business striving to remain profitable and competitive in the industry.

We will discuss the best ways to market your manufacturing business, including how to expand and optimize your MFG Manufacturing Profile, improve your search engine optimization (SEO), present a sophisticated, cohesive website that offers interest and value to your customers, and use social media effectively for your target audience.

Creating an MFG Manufacturing Profile

Creating and managing an engaging MFG Manufacturing Profile within the MFG Marketplace will make all the difference in connecting with potential buyers. Being listed in the MFG Marketplace is free to any manufacturing business after creating an account. Distinguish your business from competitors with compelling information that will stand out, helping you establish a strong online presence.

MFG is the perfect platform to showcase your manufacturing capabilities, the quality of your products, and your company’s story.

A full MFG Manufacturing Profile makes it possible for you to:

  • Provide information about your team and the number of employees working on site, as well as the size of your manufacturing facility. Adding these details will improve your placement in directory search results, and help buyers understand more about your capabilities.
  • Include your manufacturing location and website URL to increase your visibility in directory search results.
  • Showcase machinery and services, and highlight your capabilities with images and videos if possible. List relevant industry certifications, also boosting your profile’s directory placement, and catching the attention of buyers who seek the promise of quality and experience– especially for projects requiring adherence to specific standards.

Completing your profile fully and maintaining it with up-to-date information can significantly increase your chances of being discovered by potential customers. Prospects who enter the MFG Marketplace are able to search by location, machinery, certifications, and more, so by having a full and updated profile, you are ensuring that buyers are able to find you when you match their specific criteria.

Offering a comprehensive profile also leads to more serious prospects who are likely to engage with your business because they already have a clear picture of what your shop offers.

Optimizing Your MFG Profile

MFG places value on various parts of a manufacturer’s profile, and adjusts rankings based on their completion. Here are some elements you can add to your Manufacturing Profile that will influence how high your profile is placed in the search results.

  • Cage Code: A CAGE code provides a standardized method of identifying a given facility at a specific location. This is especially important to government buyers who must adhere to strict supplier protocols. Adding this provides a small boost to your placement in the directory search results.
  • DUNS: Some buyers like to do their own research, and adding a DUNS number allows them to reference the Dun & Bradstreet database. Adding this to your profile will slightly improve your placement in the directory search results.
  • Equipment Summary: The equipment you have on your shop floor can be valuable for a buyer to know, so adding this to your profile boosts your search results placement significantly.
  • Photo Gallery: A picture is worth a thousand words, but a video is worth even more. Buyers love to see visuals of your work, of your shop, and anything that gives them a sense of who they are dealing with. Adding this to your profile boosts your search results placement significantly.
  • Languages Spoken: Let the buyer know which languages you are able to work with and you will gain a moderate boost for your profile’s placement in directory search results.

The optimizations above are available to all customers, but you can unlock even more with a Premium account. Upgrade your free account today to receive other valuable features that can increase your placement even further! These features include:

  • MFG Verified: All Premium manufacturers on the MFG platform are verified by MFG, internally. This gives your profile a significant boost in the Manufacturer Directory search results.
  • 3D Shopview: Give buyers a virtual tour of your facility right from your profile. Adding this element to your profile will significantly move up your placement in the search results on the Manufacturer Directory.

Search Engine Optimization for Manufacturers

Creating your MFG profile is only the beginning in maximizing your company’s digital footprint. As you add more information to your public manufacturer profile, it provides Google with more information to index— giving your profile a boost in Google Search results and increasing your visibility. This strategy is called Search Engine Optimization (SEO), and is an essential component of digital marketing.

Much of your success with SEO will depend on the quality of your website’s content and the effectiveness of keywords related to your manufacturing processes and services. The goal is to approach SEO with a strategy centered around accessibility and usability, quality and quantity of backlinks (directing users to your website), and excellence in the user experience. Just by understanding the basics and prioritizing SEO, you have the potential to bring in more traffic and grow your business.

Manufacturing Website Tips

Creating a website can be challenging– but extremely rewarding. To get started, try breaking the process down into the following organized steps:

  • Determine your goals: Before designing your website, it’s important to determine what you want to achieve. Do you want to generate leads, increase sales, or simply provide information to potential customers? Having a clear idea of your goals will help you design an effective website.
  • Design an attractive and user-friendly website: Your website should be visually appealing, easy to navigate, and provide a positive user experience. Use a professional design that is consistent with your brand identity, and ensure your website is optimized for users on all devices.
  • Provide valuable content: Your website should provide valuable content that helps potential customers understand your products and services. This can include product descriptions, customer testimonials, case studies, and other types of content that demonstrate your expertise.
  • Analyze and optimize your website: Use tools like Google Analytics to track your website’s performance and identify areas for improvement. Continuously analyze and optimize your website to ensure that it meets your goals and provides a positive user experience.

Beyond maintaining a website and/or your profile on MFG, there are many other ways to advertise your manufacturing business. This next section will go into how social media marketing assists with advertising your business and services.

Social Media for Manufacturers

Social media is a powerful tool that can help you connect with potential customers searching for a business solution. Platforms like LinkedIn, Twitter, and Facebook are ideal for promoting your business and gathering leads on prospective customers.

Advertising your MFG Manufacturing Profile and/or website through social media will allow you to get your business in front of an even larger audience!

Here are some tips for manufacturers looking to improve their social media marketing strategy:

  • Identify your target audience: Before you start creating social media content, it’s essential to know who you’re targeting. Determine your target audience’s demographics, interests, and pain points to create content that resonates with them.
  • Showcase your products: One of the primary goals of social media marketing is to showcase your products and their unique features.
  • Engage with your followers: Social media is all about building relationships with your audience. Be to the point, but authentic and genuine in your social media posts and content. Show the human side of your brand and connect with your audience on a personal level. Respond to comments, questions, and messages in a timely and professional manner. Encourage user-generated content (UGC) by running contests, giveaways, or asking for feedback.
  • Be consistent: Avoid being erratic, and get used to engaging at recommended hours; for instance, posts on Twitter are found to be more effective between 9 a.m. and noon, or from 3 p.m. to 6 p.m. Choose your words–and your times–wisely!

Social Media Marketing can be a powerful tool for manufacturers to expand their target audience and drive higher sales. By following these tips and continuously improving your social media strategy, you can build a strong brand presence, and achieve your business goals. To learn more about getting started on other social media platforms like Facebook, check out our blog, “How to Grow Your Manufacturing Business with Facebook.

MFG.com is a powerful platform for manufacturers to market their capabilities and generate leads. By following our digital marketing tips for manufacturers and continuously improving your profile, you can increase your visibility, attract more business, and build long-term relationships with buyers on MFG and beyond.

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Feature Release: MFG Orders https://www.mfg.com/blog/mfg-orders-purchase-part-tracking/ https://www.mfg.com/blog/mfg-orders-purchase-part-tracking/#respond Mon, 03 Apr 2023 18:00:15 +0000 https://www.mfg.com/?p=735141 MFG is happy to announce the release of our new Orders functionality!

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MFG is happy to announce the release of our new Orders functionality! Available now, buyers and suppliers can both benefit from increased transparency during the custom part ordering process.

In a recent survey of MFG buyers, the two key components of Orders were in high demand, with over 95% of users selecting that they were interested in the functionality. The main features of MFG Orders are:

  • Purchase Orders: After choosing a manufacturer on MFG for their product, buyers can now upload a purchase order or create one within MFG using a standard template. With either decision, more of the interaction between buyers and suppliers stays within the platform, streamlining overall processes.
  • Part Tracking: Once a purchase order is accepted, the chosen supplier can start using Part Tracking to provide the buyer with real-time status updates. Suppliers can create unique tracking stages for their specific manufacturing process, and proactively update them to keep buyers informed. This feature is designed to reduce the amount of questions and manual updates between buyers and suppliers, cutting the time spent on order administration.

MFG Orders is a step toward the future of the MFG platform, and we look forward to sharing more updates with you soon.

Want to see MFG Orders in action? Register to attend our webinar: Finding and Working with a New Manufacturer

Register for MFG

MFG connects quality custom part suppliers to quality buyers, enabling both parties to streamline their work and build strong relationships.

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P&W Foundry Increases Quoting Volume & Sales through MFG https://www.mfg.com/blog/pw-foundry-increases-quoting-volume-parts-sales/ https://www.mfg.com/blog/pw-foundry-increases-quoting-volume-parts-sales/#respond Tue, 28 Mar 2023 17:51:59 +0000 https://www.mfg.com/?p=735029 Learn how P&W Foundry leverages the MFG platform to rapidly expand their client base - by 15%.

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P&W Foundry has seen a lot of changes in manufacturing and business trends since their beginnings in 1927. Today, with online services like MFG, they can add to their client base quickly, while also continually expanding–and highlighting–their manufacturing services.

P&W Spotlights Foundry Capabilities Through MFG Platform

Bill Laiacono, P&W’s Casting Design and Sales Manager, has been involved with MFG for over 15 years. Four years ago, he suggested that the foundry also join MFG in an effort to increase their quoting volume and number of jobs. Since then, P&W has increased their customer base by 15%, and they expect to keep growing.

Located in Plano, Illinois, the foundry provides the following services:

  • Investment casting – Specializing in low-volume and short run casting orders, P&W is also extensively involved in prototype casting development. They offer CAD design, solid modeling, and mold making.
  • Machining and inspecting – High-volume machining is available for both non-ferrous and ferrous castings, with advanced Mazak CNC machining services offered in-house.
  • Metal fabrication – Custom brazing, welding, and assembly services are available for projects with special metal fabrication requirements.
  • Non-ferrous metals – Competitive, high-volume machining is available for non-ferrous castings, featuring a large variety of metals, including brass, bronze, and aluminum.
  • Pattern making – Sand foundry patterns can be created in varying degrees of complexity.
  • Sand casting – Pouring a variety of non-ferrous metals, typical casting weights range from ounces to over 100 pounds.

Typical casting applications – A wide range of castings are offered, including pump and impeller castings, valve bodies and plumbing fittings, general industrial components, and ornamental castings.

Leveraging the MFG platform, P&W is able to display their foundry’s capabilities, certifications, and site capacity. In turn, potential buyers can search the detailed MFG database for custom parts and submit requests for quotes (RFQs). Registering and creating an account is easy for both manufacturers and buyers.

Connecting with Buyers is Fast, Easy, and Productive

In working with customers from MFG, Bill is responsible for making sales connections with buyers. He begins by examining the details of each RFQ and then either responding through MFG with pricing information–or contacting the potential customer directly via email with questions about designs or other project requirements.

Because P&W operates as a dual foundry, Bill then narrows down which processes will work best for each buyer, usually beginning with sand casting or investment casting. After that, he also assesses tooling requirements and sends drawings out for quotes. P&W works with MFG buyers engaged in many different industrial applications:

“We’re a commercial shop, producing commercial-grade castings,” says Bill. “Sometimes we also get involved in making specialized parts for industries like aerospace and defense.”

Fast Responses to RFQs Leads to More Business

Their strength is in fast response time to business leads and RFQs, complementing the MFG service in terms of providing an excellent customer experience from quoting to production and delivery.

“We pride ourselves on quick turnaround for quotes, but more so we pride ourselves on efficiency and speed in production of the castings,” says Bill.

Through MFG, the foundry has ended up working with customers from all over the US and Canada. Sometimes they are surprised, however, answering quotes for customers who may end up being quite close by. After answering a recent RFQ from MFG, the P&W team was pleasantly surprised to find out their new customer was less than ten miles away. They also ended up ordering around $85,000 in parts just in the last few months, with the potential for the account to end up yielding up to $200,000.

While the goal at MFG is to create a seamless process for buyers to find manufacturers, Bill reports that their user experience with the platform has been very positive too as they receive prompt help and communications as needed.

“I’ve really enjoyed working with MFG through the years,” says Bill. “Just last year we brought in six or seven new customers, and we expect the same or more for this year.”

About MFG

Are you interested in joining MFG as a manufacturer? Begin by registering on the MFG platform to create your account. This allows you to:

  • Build profile pages optimized for SEO, highlighting your facility and unique manufacturing capabilities.
  • Answer RFQs for real job opportunities, allowing you to grow your business.
  • Minimize manufacturing down time and maximize marketing.
  • Increase exposure, expand your customer audience, and generate more leads.

If you are a buyer seeking a custom manufactured part, register on the MFG platform here to access thousands of manufacturers and create an RFQ.

MFG connects quality custom part suppliers to quality buyers, enabling both parties to streamline their work and build strong relationships.

Join MFG as a Buyer or Manufacturer.

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6 Ways Manufacturers Can Build Trust With Their Customers https://www.mfg.com/blog/manufacturing-success-build-trust-customers/ https://www.mfg.com/blog/manufacturing-success-build-trust-customers/#respond Wed, 15 Mar 2023 19:14:49 +0000 https://www.mfg.com/?p=734864 MFG is a marketplace that makes it easy for buyers of custom parts to easily discover manufacturers. For manufacturers to succeed in today’s competitive market, building trust and delivering quality customer service is vital.

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In today’s competitive market, building trust with customers is critical for the success of manufacturing companies. It is the foundation of any successful business relationship, and without it, customers are less likely to do business with you. Think about the companies you believe in – your trust likely comes from clear communication, quality products, and excellent customer service. You need to make sure that your customers understand your business practices as fair, transparent, and honest.

Research from Salesforce, a sales management software company, reports that if “a company’s customer service is excellent, 78% of consumers will do business with them again after a mistake.” Retaining customers is very important to your bottom line, as investing in new customers is “between 5 and 25 times more expensive” than retaining existing ones.

Building trust between your customers and your business is key to your business growth! In this blog, we will explore some strategies that manufacturers can use to build trust with their customers.

1. Quality Products

The first step to building trust with customers is to deliver quality products consistently. Customers expect their products to meet their needs, perform as advertised, and last a reasonable amount of time. Manufacturers that prioritize quality will build a reputation for reliability and dependability, which is essential for building trust.

To ensure quality products, manufacturers can use quality control processes, perform regular testing, and seek feedback from customers. They can also invest in advanced technologies, such as automation and robotics, to improve manufacturing processes and reduce errors.

Bottom line: The quality of your products will speak volumes louder than any conversation you can/will have about your products. Ensuring your customers understand your end products will allow for better expectations when they are awaiting the products.

2. Transparent Communication

Effective communication is another key component of building trust with customers. Manufacturers must communicate openly and honestly with their customers about their products, services, and policies. This includes providing clear and accurate product information, responding promptly to customer inquiries and concerns, and being transparent about any changes or issues that may arise.

Manufacturers can use various channels to communicate with their customers, such as email, social media, and live chat. Another great solution for communication is the MFG platform. In addition to matching buyers and manufacturers, it also features a chat communication system. Parts Tracking is another helpful transparency tool within the platform. Manufacturers have the ability to simply communicate the statuses of their ongoing jobs to their customers. Parts Tracking on MFG allows for proactive communication, which can reduce buyer questions and streamline the process.

Bottom line: It’s very important to communicate effectively with your customers. Carving out time in your schedule to give a customer a call or meet face-to-face can mean the difference between a one-time customer or a repeat customer. Once again, maintaining a healthy customer relationship management flow in your company is key!

3. Customer Service

Providing exceptional customer service is another critical strategy for building trust with customers. When customers have a positive experience with a manufacturer’s customer service team, they are more likely to trust the company and continue doing business with them.

To provide excellent customer service, manufacturers must focus on being knowledgeable, responsive, and empathetic. To be successful, manufacturing businesses should provide multiple channels for customers to contact them, such as phone, email, or live chat. Additionally, manufacturers should be proactive in addressing customer concerns, resolving issues quickly and effectively, and following up to ensure customer satisfaction.

By consistently communicating with customers via chat within MFG, and by updating Parts Tracking statuses during ongoing jobs, manufacturers have the ability to address ongoing concerns with their customers faster.

Bottom line: Addressing customer concerns by crafting a customer-service plan will be a game-changer for your business. Customers need to know they have a way to communicate with you as they build trust in your company.

4. Social Responsibility

In today’s world, customers are more focused than ever on how they can make responsible purchasing decisions. This means they seek to understand the operational choices of the businesses they are supporting from the very beginning, and want to know how supporting that business will impact society.

Manufacturers that demonstrate a commitment to social responsibility can build trust with customers who share the same values as themselves. We are not talking about all values, but rather the key values of the business.

Manufacturers can demonstrate social responsibility in several ways, such as using sustainable materials, reducing waste, and supporting their local communities. Manufacturers can also be transparent about their efforts and communicate their values to customers through marketing and branding. On MFG, manufacturers have the ability to update their profile with any related certifications.

Bottom line: Businesses today have the added duty of focusing on social responsibility. Be sure to make your business’s beliefs visible to potential customers.

5. Reviews and Testimonials

Customer reviews and testimonials can be powerful tools for building trust with potential customers. When existing customers share their positive experiences about a manufacturer’s products and services, they provide social proof that can help build trust with new customers.

Think of your own experiences when looking for a company to work with, buy from, or simply recommend to someone else. Looking at reviews and testimonials is a great way to feel assured when choosing a company to work with.

Manufacturers can encourage customers to leave reviews and testimonials by providing instructions and incentives. For example, a manufacturer can offer a small discount to a customer for their next purchase if they leave a review on MFG.com. You can also showcase positive reviews and testimonials on your website, social media, and in other marketing materials.

Bottom line: MFG is the only manufacturer database that allows buyers to leave reviews for each other. Encouraging customers to leave reviews and give feedback on their experience with your business adds social proof to your services/products.

6. Data Privacy and Security

In today’s digital age, data privacy and security are paramount concerns for customers. Manufacturers that prioritize data privacy and security can build trust with customers who are concerned about the safety of their personal and financial information.

To keep up with this ever changing customer demand, manufacturers can implement robust data privacy and security policies, such as using encryption, limiting access to sensitive data, and monitoring for security breaches. They can also be transparent about their policies and communicate their commitment to data privacy and security to customers.

On MFG, manufacturers have the ability to communicate on a secured platform during the job and after. MFG also offers a standard non-disclosure agreement for all projects.

Bottom line: Be sure to regularly review your company’s data privacy and security policies to stay ahead of any gaps in your coverage.

MFG Community | Virtual Meetup

Building trust with customers is critical for manufacturers who want to succeed in today’s competitive market. A simple change that companies can make is to focus more on customer service. Businesses can “grow revenues between 4% and 8% above their market when prioritizing better customer service experiences.” How can that be? Well, “68% of consumers say they are willing to pay more for products and services from a brand known to offer good customer service experiences.

How amazing is that? By providing good customer service with clear communication and feedback, customers are more likely to pay more for your products and services, AND continue to work with you.

After prioritizing customer service, manufacturers can build trust by delivering quality products, communicating transparently, demonstrating social responsibility, leveraging customer reviews, and prioritizing data privacy and security.

While each of these strategies is important on its own, manufacturers should also consider the broader impact of their actions on building trust. For example, a manufacturer that prioritizes social responsibility but delivers low-quality products is unlikely to build trust with customers in the long run. Similarly, a manufacturer that provides excellent customer service but fails to prioritize data privacy and security risks losing the trust of customers who are concerned about these issues.

In summation, building trust with customers requires a holistic approach that incorporates all aspects of a manufacturer’s operations, from product development to customer service to data privacy and security. By prioritizing trust and investing in the strategies outlined above, manufacturers can build long-term relationships with their customers, improve customer loyalty, and ultimately drive growth and success in their businesses.

MFG connects quality custom part suppliers to quality buyers, enabling both parties to streamline their work and build strong relationships.

Join MFG as a Buyer or Manufacturer.

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How to Grow Your Manufacturing Business with Facebook https://www.mfg.com/blog/grow-your-manufacturing-business-facebook/ https://www.mfg.com/blog/grow-your-manufacturing-business-facebook/#respond Wed, 08 Mar 2023 17:41:33 +0000 https://www.mfg.com/?p=734647 Learn how you can start growing your manufacturing business today with one of the top social media tools out there, Facebook. Market on Facebook to gain new customers and stay connected with existing ones.

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Facebook is a wonderful tool for businesses to reach out to their target audiences and drive sales. For manufacturing businesses, Facebook can be an especially effective marketing tool because it allows you to connect with a large and diverse group of potential customers. In this blog, we will discuss some of the ways you can use Facebook marketing to grow your manufacturing business.

2.96 billion people use Facebook every month. Let that sink in! With billions of people regularly coming to Facebook, your chances of connecting with customers are made easier. By marketing your business on Facebook you have the ability to gain more than 2X the amount of leads gathered from your website page alone.

The best part? It is fast and easy to begin growing your business with Facebook.

After setting up your Facebook business page, you will have access to a variety of free marketing tools. Tools used to monitor and respond to customers’ questions, gather leads to connect your business to possible customers, and understand your overall market strategy to a greater degree with powerful analytics.

Moving your marketing strategy forward with Facebook can set your business apart from other manufacturers and grow your book of business.

How to Create a Facebook Business Profile for your Manufacturing Company

Creating a Facebook business page is a straightforward process. You probably already have a Facebook account that you use regularly. However, if you do not, you have the opportunity to create a personal profile that you can connect to your business page. Creating a Facebook profile is done by navigating to Facebook.com and signing up with your personal information or using your business information.

Once you have set up your Facebook account, you can connect your chosen account to a Facebook business page. Let’s get into how you can create a Facebook business page:

  1. Log in to the account you would like to connect to your Facebook business account.
  2. Find the Menu to the right side of the page.
  1. Select the “Pages” section.
  2. Click “Create new Page.”
  3. Add your page name and category. This category is the type of business your Facebook business page is associated with. If you need more information on which category to choose, try looking into your competition’s Facebook category.
  4. Add your business page’s bio (the more succinct the better) and click “Create Page.”

On the same screen, you will have the option to add in any banner or profile images that you wish to use for your business page. Make sure that you are using high-resolution images to fully showcase your business. Facebook provides a guide on image sizes to use here in case you run into any issues. They do not need to be expert quality, but should be clear and focused. Your smartphone can likely do the job!

Free Facebook Marketing Tools

After creating your page, you can use different marketing tools to start gaining leads for your business, such as:

Messaging

Messaging is very important when it comes to connecting to your customers. Facebook business messaging tools are fantastic for small to midsize businesses, as they allow you to communicate with customers and prospects instantly through the platform. By directing customers and prospects to utilize messaging on your business page, you may not even need to monitor separate email inboxes – saving you time and money!

  • Lead your customers to your website with automatic responses through Messenger.
  • Include common FAQ responses within your business page.
  • Gather lead information to accelerate the sales process with forms held on your page.

Business Tools

Facebook includes a number of marketing tools that are beneficial when it comes to showcasing content and gathering leads in an automated way:

  • Host video content from YouTube on your page to showcase your business.
  • Create a “Jobs” page to show your work to possible customers.
  • Advertise reviews from previous customers to win more jobs.

Scheduled Posting

Once your business page is created and includes all the necessary information for your business, you can begin posting content, and start connecting with customers within your market:

  • Schedule your content to automate posts and properly track engagement.
  • Bulk upload video content to reach across Facebook and connect your business to other profiles.
  • Connect your scheduled posts to other social media platforms, such as Instagram, LinkedIn, or other Facebook groups that you own.

Creating Content that Drives Customers

Now that you’ve set up your Facebook business page, let’s get into what content will help drive more traffic to your page to convert prospects into customers. How can social media help a business grow? By using your Facebook business page, you are able to directly connect with valuable prospects and advertise your business offerings for free.

Listed below are some tips and tricks when it comes to creating content:

  • Use eye-catching visuals: Posts with images or videos tend to get more engagement than text-only posts. Make sure to use high-quality, relevant visuals that grab the attention of your audience.
  • Keep it short and sweet: Attention spans are short on social media, so keep your posts concise and to the point.
  • Use a call-to-action: Encourage your followers to take a specific action, such as visiting your website or the MFG page to learn more.
  • Share valuable content: Offer your followers something of value, whether it’s a helpful tip, an informative article, or industry updates.
  • Ask for engagement: Encourage your followers to like, comment, and share your posts. This helps increase visibility and reach across Facebook to connect your business to other customers.
  • Be consistent: Consistency is key when it comes to building a strong social media presence. Aim to post regularly and consistently (there are automated tools that you can use on Facebook.com).
  • Monitor and respond to comments: Engage with your followers by responding to comments and messages in a timely manner. This helps build a sense of community and strengthens relationships with your audience. Engagement like this creates a warmer lead for your business.

Creating a content strategy is not rocket science. You can start small and build from there. Think about who your audience is and why you want to communicate with them. In the case of marketing for manufacturing, you are speaking to customers who need to manufacture certain products/parts, and you want to communicate that you are a trustworthy partner in order to gain their business. Breaking down your strategy from there will make the process of building content easier.

MFG Community | Virtual Meetup

Staying Connected with Customers

Now that you’ve set up your Facebook business account, you may be asking yourself the important question of how you will manage your page moving forward. This is a pitfall for most businesses – the inability to keep up with their social media accounts. However, don’t let this discourage you. Keep these key pointers in mind when using Facebook as a business tool for your business, and you’ll see success.

In summary, growing your business by using social media marketing such as Facebook can be a fast and effective add-on to your overall marketing strategy.

Follow MFG on Facebook

MFG connects quality custom part suppliers to quality buyers, enabling both parties to streamline their work and build strong relationships.

Join MFG as a Buyer or Manufacturer.

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12 Tips for Growing Your CNC Machining Business https://www.mfg.com/blog/12-tips-growing-cnc-machining-business/ https://www.mfg.com/blog/12-tips-growing-cnc-machining-business/#respond Fri, 17 Feb 2023 19:37:43 +0000 https://www.mfg.com/?p=734381 Once you have started your CNC business, it’s time to prioritize growth. Read our tips, including embracing technology and finding your niche.

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Starting your own CNC machining business can be challenging; however, if you take all the steps necessary for success during the startup phase–including establishing professional partnerships and creating a company website–you’ve set yourself up to begin growing and establishing a solid new enterprise.

As a small business, you have an inherent advantage over many of your large, well-established competitors. You are approaching your machining business with a fresh vision, and you have the flexibility to adjust to changing business trends and technologies. With little overhead or payroll to manage in the beginning, you can also charge less for your services and save up to finance future growth.

Entering a manufacturing market dominated by experienced CNC shops that have already cemented their reputations from years of doing quality work and meeting deadlines can be understandably intimidating. You must have a plan to get where they are (and eventually surpass them).

Growing a successful machine shop requires time, patience, and persistence,  whether you’re starting from scratch or hoping to expand an existing business.

Follow these twelve tips, and show up, to ensure your CNC shop’s growth and success.

1. Use Your Existing Network

Are you more likely to do business with a stranger or with someone who was   recommended to you by a trusted friend or colleague? The answer is obvious, and that’s why you need to use established relationships from your network to help you jumpstart your fledgling CNC machining business.

If you haven’t already done so, start building a network by attending industry events or webinars. Reconnect with your existing friendships in person or on social media. The more connections you make or re-establish, the better chance you have for one of them steering customers and CNC work in your direction.

2. Find Your Niche

While you could operate as a CNC shop offering general machining, it’s possible to cut down on the competition by specializing in one area; for example, you could advertise expertise in metal patternmaking and use your CNC equipment to produce long-running cast iron and tool steel patterns for automated foundries. As another option, you could focus on machining the foundry’s castings. In that case, your niche would be high-volume machining, which is ideal for CNC milling machines and lathes. 

Your niche can take up only some of your available machine time, and you can still take on small-volume projects and reserving a portion of your business to serve as a jobbing shop. The more time and effort you devote to your specialty, the better you’ll become at it–and the sooner you’ll see substantial growth.

3. You Might Need to Diversify in the Early Stages of Growth

Although your ultimate goal might be to find your niche, keeping your CNC machine tools running during those first critical months will be your priority. We aren’t recommending that you should book unprofitable work to stay busy, but adding some extra jobs within your shop’s capabilities will help you build your reputation and, more importantly, assist in building  necessary cash flow.

4. Learn Your Market

It pays off to research the market diligently. Your market determines profits which, in turn, affects the net worth of your business. Notice the shifting demand patterns, and develop ways to increase your output to meet them. The result is more significant profits to finance ongoing growth.

5. Don’t Be in a Hurry to Expand

Business growth is a gradual process with some painfully slow stages. During these stages, however, owners learn many lessons that  will serve them well in future growth stages. It’s typically better to resist the temptation expand right away. Stick to the slow, steady growth that your company can adapt to and maintain.

There will be a time for enlarging the facility or purchasing expensive new CNC equipment, but stepping into those moves too quickly can have the opposite effect and instead slow down your company’s long-term growth.

6. Integrate Your Operations

Small CNC machining businesses might need the means for vertical or horizontal integration, but they bring as much work in-house as possible. Most shops can revolve their production schedule around their existing capabilities and prioritize work on their machining centers–rather than sending work to a third-party supplier and being at the mercy of their production schedule and pricing.

7. Let Your Competition Motivate You

Be aware of your primary competitors, and understand them. Knowing the competition allows you to keep up with them and ensures you stay afloat in those fragile early months or years in business. Keeping a close eye on your competitors will act as a motivating factor in growing your enterprise.

8. Embrace Technology

The fact that you started a CNC machining company indicates your comfort level with technology. Manufacturing technology is evolving at a breakneck pace though, with innovations flowing in steadily. Always assume your main competitor is keeping up with the latest and greatest to gain the upper hand.

Keeping up with technology might not require buying an expensive machine tool; it could also mean updating your software to newer versions or improving your equipment to meet your client’s demands.

Technical innovations can be costly when you consider the upfront cost of the machine, training, and initial set-up. New CNC machinery will boost your production capacity though, as well as improving cycle times, and contributing to the company’s long-term growth.

9. Grow Your Business with Digital Marketing

You can’t grow your business by keeping it a secret, so employ digital marketing like emails, social networking, and videos. Build your manufacturing brand and establish stronger connections with customers and potential buyers. Digital marketing is the key to increasing website traffic and attracting new clients.

10. Focus on Scalable Growth

Growing your CNC machining business also means coping with higher demand and a  heavier workload. Managing your company will require flexibility and a focus on the labor and finances to help you through your current stage of development.

Scalable growth can occur when your business finds new ways to grow with existing customers. As an example, the CNC shop mentioned earlier produced metal patterns for foundries to cast plumbing fixtures such as elbows and tees. Those fixtures will require machining, and you have the necessary CNC equipment sitting on your shop floor. Accepting additional contracts from existing business relationships is a less expensive, more secure, and scalable way to grow.

11. Stay Open to New Ideas

New business owners must quickly learn to be open-minded to grow. Taking in and assessing ideas is essential to the development of your company, especially in a manufacturing environment where technology permeates nearly every aspect.

Being open to ideas provides you with an edge as you grow, and it fits well with the risk-taking nature of most entrepreneurs, who embrace any concept relevant to their growth goal. You can look for these ideas by attending seminars and conferences or scrolling through journals and publications.

12. Register Your Shop on the MFG Platform

What is MFG? It’s a marketplace where buyers of custom parts can easily find manufacturers. At the same time, registering your company profile on MFG exposes your CNC shop to thousands of purchasing agents and buyers, providing valuable exposure to major search engines.

Your shop’s growth depends on finding new customers. MFG can help by allowing you to conveniently, efficiently, and economically market your CNC machining business to a large online manufacturing buyer audience.

Start Growing

Whether you have recently started a CNC machining business or are a seasoned veteran looking to expand, these recommendations–with a sprinkling of your ideas thrown in–will provide a GPS for growth.

Keep in mind that not all these tips will work for you (after all, every CNC shop is unique), so some trial and error will be part of the process. However, most of these hints–developing relationships, learning your market, and embracing technology–are universal recommendations that will apply to every CNC shop hoping to grow.

MFG connects quality custom part suppliers to quality buyers, enabling both parties to streamline their work and build strong relationships.

Join MFG as a Buyer or Manufacturer.

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Start a Profitable CNC Machining Business https://www.mfg.com/blog/profitable-cnc-machining-business-projects/ https://www.mfg.com/blog/profitable-cnc-machining-business-projects/#respond Fri, 17 Feb 2023 19:32:16 +0000 https://www.mfg.com/?p=734597 Starting a CNC business can seem overwhelming - here are the top 10 steps you need to take to start on the right foot.

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A successful CNC business is not created in a vacuum. Behind each entity are years of education, training, and experience, preparing their owners to handle the decision-making and manage the stressors of running a day-to-day business. You will have many opportunities to learn as an entrepreneur, but the basics of CNC machining should already be part of your business arsenal.

As a CNC machine business owner, you will be responsible for quoting (bidding) new jobs. How well you master this assignment will play a significant role in the profitability of your venture, and the size of your backlog.

If you have not already done so, begin by registering on the MFG platform to create your account. This allows you to:

  • Build profile pages optimized for SEO, highlighting your facility and unique manufacturing capabilities.
  • Answer RFQ’s for real job opportunities, allowing you to grow your business.
  • Minimize manufacturing down time and maximize marketing.
  • Increase exposure, expand your customer audience, and generate more leads.

You can choose multiple paths when starting a CNC machine shop. You can be a jobbing shop, providing services such as repair work. You can take on larger quantities of parts; for example, providing castings, which require secondary machining operations. You could also create products–yours or someone else’s–supplying labor, materials, and machining in a high-production environment.

Most likely, you will be the face of your company, providing much of the customer service to your manufacturing clients. They will expect you to provide your expertise, offering suggestions on how to improve quality, save money, and decrease the lead times on their products.

In starting a CNC business, you may embark on one of your career’s most exciting and lucrative ventures. Read on to learn more about setting up your CNC machining shop successfully.

1. Hire an Accounting Firm

Most people contemplating starting a CNC business are aware they need an attorney; however, the first professional they should consider bringing on board is an accountant to assist them in all the steps that follow here.

There are also other reasons to find a CPA before starting a business. They will save you time in managing all the start-up requirements, and can also help you in recording expenses and maintaining your accounts along the way. You will appreciate that at tax time!

2. Create a Business Plan

Developing a business plan is essential to launching a new CNC shop, and your newly-hired accountant can help you do so correctly. The business plan serves as a road map (or a GPS), ensuring you start down the right path and don’t veer off-course in those first few critical months. Initially, the business plan helps you and your start-up team determine how to structure, run, and grow the business.

If you need funding for your venture, having a business plan in place gives the lending institution confidence, showing them you are organized and knowledgeable–and not just approaching them for financing based on a wing and a prayer.

3. Decide on a Legal Entity

Once again, your accountant will be an invaluable team member in making decisions like choosing a legal entity. The business structure you choose could determine the amount of taxes you pay, your liability, and how much paperwork you must file.

You must choose a business structure before registering your business, deciding among a sole proprietorship, limited liability company (LLC), partnership, S corp, or C corp.

4. Register for Taxes

You will need to register for various local, state, and federal taxes before you may officially open for business. To register for taxes, apply for an employer identification number (EIN). This is easy to do on your own.

Your business must be in the United States, and you must have a valid taxpayer identification number, which is typically a social security number. Go to the IRS website, filling out and submitting the application online. You can then download, save, and print your EIN confirmation notice.

5. Open Dedicated Business Bank and Credit Card Accounts

You should not mix your personal and business finances in the same accounts. If for no other reason, you’ll create a nightmare for your accountant. However, there are even more significant justifications for keeping them separate.

When you combine your personal and business accounts, all those assets not directly related to the business–home, car, and personal property–could be at risk if your business is sued. Keeping the two accounts segregated protects your personal banking and credit card accounts.

You will also want to start building excellent credit for your CNC business since you’ll likely be borrowing to add new machine tools, or even finance an expansion in the future.

6. Obtain the Necessary Permits and Licenses

The permits and licenses you’ll need will vary, depending on your state or municipality. Since you’re starting a CNC manufacturing business, obtaining an EIN completes your federal requirement, but your state and local government might also require an identification number.

You’ll likely need a general business license from your county or city, and some states also require a ‘doing business as’ (DBA) license, requiring you to register your business name with them.

Check with your accountant or attorney to confirm you have acquired all the necessary permits and licenses.

7. Purchase Business Insurance

You need business insurance to operate safely and within the law. Start by finding a reputable insurance broker through the other members of your professional team. The broker will tailor an insurance program to match your risks, business model, and growth plans.

A business owner’s policy typically includes liability, commercial property, and business interruption coverage. Most states also require businesses to carry workers’ compensation insurance to cover employee injuries, rehabilitation, lost wages, and legal costs related to a workplace injury.

8. Design a Logo and Start Marketing Your Shop

Your logo represents your brand, tells the world what your company stands for, and sets you apart from competitors. The internet is filled with logo makers who will help you design a unique logo.

You can use several methods to market your CNC shop, including connecting through MFG, participating in networking events, joining industry organizations, sending out direct mailings, and cold-calling local manufacturers.

CNC machining businesses can also help themselves stand out by following ISO 9000 standards and becoming ISO 9001-certified as quickly as possible.

9. Create a Business Website

Once you have defined your brand and created a logo, you’re ready to build a business website. If creating a website intimidates you, you can hire a professional to do it for you. These days, many business owners without website-building experience are tackling that job themselves and saving money in the process.

Web technology advancements now make it possible to build an essential website using one of several website builder tools such as Wix, GoDaddy, WordPress, and Squarespace. The process is relatively simple, and it only takes a few hours to get your site up and running.

Developing a website adds credibility and legitimacy to your business without requiring a significant investment in time and money.

10. Set up a Business Phone System

As with keeping your banking and credit card accounts separate, installing a business phone system keeps your personal and business lives separate and private. Taking this step also adds an air of professionalism to your new venture, makes it easier for potential clients to find you, and helps your accountant track your finances.

Compare various phone systems online and choose the one that makes the most sense for your CNC business.

Get Off on the Right Foot

Take nothing for granted. Potential customers will want to see your shop before writing that initial purchase order. Ensure that your shop is clean and well-organized to impress and instill confidence in others, and make it more efficient for your workers.

Dress for success when you visit companies that could turn into customers. Some new shop owners mistakenly believe that their appearance is irrelevant because they own a ‘blue-collar’ business. When you meet a company’s owner or purchasing manager, they could judge you on how seriously you take your new business. Taking the time to change into casual business attire tells them you are pretty serious!

Attract customers immediately by leveraging relationships you developed in the past, as well as discovering manufacturers who need your CNC services now. Knowing how to relate and speak to them using the language of the CNC machining industry will help you convince potential customers that you are the solution to their needs for high-quality parts and fast turnaround in deadlines.

MFG connects quality custom part suppliers to quality buyers, enabling both parties to streamline their work and build strong relationships.

Join MFG as a Buyer or Manufacturer.

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