What is the Profit Margin of cnc auto parts?

In terms of equipment, the company's income is reduced, the production efficiency is not high, the existing automation equipment is expensive and the utilization rate is low, and improving the utilization rate and efficiency of the equipment is essentially reducing the production cost of the enterprise.The same thing and anything that can be produced by any processing factory must have little profit margin. Everyone can only compete on product quality and refinement. Only one has a separate and excellent mechanical design and research and development department, and new products and processing techniques are constantly being developed. The benefits of improvement and innovation are relatively large. So I want to say: Friends who are engaged in machining, don't be passive about the market, but should strive to cater to the market. Only in this way can the profit of machining be added and recovered!

Generally speaking, pure turning, milling, planing, and grinding are almost unprofitable, and in many cases they will lose money. Therefore, turning, milling, planing, and grinding are usually subsidiary processing of some product processing. For example, in the processing of cnc auto parts, there are a large number of riveting and welding, laser cutting, and a certain combination of technical content tooling, and turning, milling, planing, and grinding are only one part of it. In this case, the total can reach about 10%.

For sheet metal processing, traditional processing methods have almost no competitiveness, but in the case of relatively cheap human resources, it can still reach 5% to 10%. And the batch numbers can't come up. For more modern processing equipment, the processing of components can generally reach more than 10%. However, if it is the processing of a complete set of equipment, the comprehensive phosphating, painting, spraying, painting and the aforementioned turning, milling, planing, grinding, riveting and welding can have a higher space. If there is still a certain design ability, then the profit space is even greater.

Profit is on the one hand, and processing capacity is also on the other hand.  If there is a set of modern equipment, it can undertake the processing of large enough batches of products.  Then more than 5% space is acceptable.  However, usually with high-efficiency processing capabilities, improved competitiveness, and good profit margins should be no problem. To be profitable, it must have its own unique characteristics:  including leading processing technology, saving resources, streamlining and merging of processing procedures, self-developed advanced procedures in the entire processing process, and adopting some automatic or semi-automatic processing procedures , or using a small machine to do big work to reduce costs, etc., it is completely possible to squeeze some profits out of it, but it will not be too high, but following this line of thinking, there is a lot of potential to be tapped,  and it is still worth doing. This requires looking for weaknesses in the entire process to improve. Now, the processing of products can be completed completely with general machinery and equipment, and wages are already very good.

To be profitable, it must have its own unique characteristics:  including leading processing technology, saving resources, streamlining and merging of processing procedures, self-developed advanced procedures in the entire processing process, and adopting some automatic or semi-automatic processing procedures , or using a small machine to do big work to reduce costs, etc., it is completely possible to squeeze some profits out of it, but it will not be too high, but following this line of thinking, there is a lot of potential to be tapped,  and it is still worth doing. This requires looking for weaknesses in the entire process to improve.

It is a common way to find some products with low processing level in the market, fully understand the processing flow of the product, the existing processing technology and processing cost, and look for opportunities to succeed. If you have the ability, you can upgrade the product, which is a very good profit growth point. In recent years, we have obtained a competitive advantage by upgrading other products into our own unique products, so that we can obtain greater profits and are not easily caught up by our competitors.

Usually others will do, you will do too. a is about 5% of low quality; b is about 15% of high quality. Most manufacturers can't complete about 80%; most manufacturers can't complete it, but there are about 50% of more than 100k. The second and third items need to be matched with imported high-precision machinery and equipment (large investment), high-efficiency production efficiency (guaranteed delivery time and delivery volume) and high quality. Of course, business and interpersonal relations are also possible!