Just wondering how shop rates have changed over the last say, 5 to 15 years. I've only really been working in this industry about 5 and there hasn't really been any increase at all in shops rates that I could see. While the cost of everything goes up. Except for the few cnc's that seemed to go down in cost. Some customers even somehow expect that the rates would go down. So how has your rate changed since you either started in business, or over time at the place you work(ed). It seems we don't get that 3-5% increase every year...
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Shop rate increase, when was the last one ?
- Thread starter SND
- Start date
- Replies 54
- Views 5,513
Since I started where I work in '96 our shop rate was $50/hr up to $60/hr today.
Possibly the reason the increase in shop rate isn't more apparent is the cutting tool technology and machine tools themselves have enabled us to do the job quicker and more efficiently. Not to mention cam software.
Possibly the reason the increase in shop rate isn't more apparent is the cutting tool technology and machine tools themselves have enabled us to do the job quicker and more efficiently. Not to mention cam software.
dkmc
Diamond
- Joined
- Jan 13, 2002
They've gone down....
Major flaw with this industry.
Davis In SC
Diamond
- Joined
- Sep 14, 2005
- Location
- South Carolina USA
We started our shop in 1992, building and repairing small injection molds. We used 50/hr as our rate and got few complaints about it. Now, 15 years later, customers scream that 50/hr is excessive. Things are all paid for, if they do not want to pay our rates, I just go find something else to do... I refuse to play the game of working for peanuts, just to stay busy..
SurfaceFeet
Aluminum
- Joined
- Jul 16, 2006
- Location
- Arlington,TX
Back in 91' California, a lot of places that I worked at had a $45.00 shop rate.The average now in California is anywhere from $65.00 to $85.00 an hour and quite a few are $100.00.
dkmc
Diamond
- Joined
- Jan 13, 2002
I think it's all relative....
Faster machines, increased overhead........
It all equals out........to less...
Faster machines, increased overhead........
It all equals out........to less...
gar
Stainless
- Joined
- Feb 17, 2005
- Location
- Ann Arbor, Michigan USA
How do faster machines and better tools translate to a lower shop rate per hour?
Shop rate should depend upon cost of equipment, labor, other overhead, taxes, and profit.
Thus, shop rate should go up with inflation.
.
Shop rate should depend upon cost of equipment, labor, other overhead, taxes, and profit.
Thus, shop rate should go up with inflation.
.
Gary E
Diamond
- Joined
- Jan 2, 2006
- Location
- Houston, TX
Last time I had the car inspected the shop rate posted for the guy with a wrench was $45 an hr... and he dont need to know near as much as a cnc machine shop or have any where near the investment in tools... whatz a lift cost anyway?
GET SMART MAKE MORE $$... be a plumber.
GET SMART MAKE MORE $$... be a plumber.
superdave013
Aluminum
- Joined
- Feb 24, 2007
- Location
- Placentia, CA
Gary E, That must have been some time ago when you had a car worked on for only 45.00/hr.
The dealers around here are 90.00.
The dealers around here are 90.00.
I had my diesel die along side the road. It got towed to the dealer, the mecahnic, working ALONE, for 3 hours, had $1,200.00 in labor. The charged a flat rate for replacing the high pressure pump, and a flat rate for changing 8 "O" rings, although it is ALL the same parts in and out for every one of those items.
Their comment? "Do you want to write the check, or walk home?"
That's $400.00 an hour. Basic shop tools, and not even a lift required.
Did I forget to mention that they also marked up the cost of ALL the parts?
Total bill was $2,500.00
Their comment? "Do you want to write the check, or walk home?"
That's $400.00 an hour. Basic shop tools, and not even a lift required.
Did I forget to mention that they also marked up the cost of ALL the parts?
Total bill was $2,500.00
Gary E
Diamond
- Joined
- Jan 2, 2006
- Location
- Houston, TX
Well.. it wan not a dealer if by dealer you mean new car dealer and it wasnt California...
It was a Goodyear Service Store
So for all you guys with hundreds of thousands invested in cnc and cad cam etc... You want to make more $$$$ like the fellers there with the 90 or 400 $ shop rates???
GET SMARTER... open a auto shop or tire store.
and do it before ALL your work goes to CHINA
Inflation SHOULD allow you to increase rates
but so far I see it does not.. that is a formula for disaster...
Your taxes go up
rents go up
utilities go up
food goes up
and how about cloths gas oil,
is any of that stable or going lower?
I dont see it.
So how many of you want to pay a decent wage?..20 25 30/hr?
even the 30 is only 60,000/yr or do you hire wetbacks at CHEEEEP?
Are you all happy in THE RACE TO THE BOTTOM?
Good luck
Joe788
Titanium
- Joined
- Apr 22, 2006
- Location
- Westside of America.
With the changes in technology over the last 10-15 years, you should have a much higher shop rate, and a lower cost per part.
I try to keep everything right between $115-$150/hr. The only jobs I'll bid at less than $115/hr are high volume that can run for several hours unattended.
The funny thing is, even at that shop rate, my parts are consistently lower priced than the other shops in the area bidding at $65/hr using low cost verticals.
I try to keep everything right between $115-$150/hr. The only jobs I'll bid at less than $115/hr are high volume that can run for several hours unattended.
The funny thing is, even at that shop rate, my parts are consistently lower priced than the other shops in the area bidding at $65/hr using low cost verticals.
DobermanDave
Cast Iron
- Joined
- May 11, 2006
- Location
- TX
GET SMART MAKE MORE $$... be a plumber.
Yep, a job even China can't do <G>.
Yep, a job even China can't do <G>.
cnctoolcat
Diamond
- Joined
- Sep 18, 2006
- Location
- Abingdon, VA
It depends on your customer, and what segment is going wide-open. But for most American cnc shops, we have not seen any significant increase in shop rates in years. As a matter of fact, as dkmc pointed out, shop rates have gone down over the years.
Intense competition, down the street and across the world, is a primary factor in shop rates never going up.
The start-ups trying to make payments, or a large cnc shop wanting to keep the spindles turning, have damaged our industry as far as pricing goes. Once buyers get a taste of a whore, they expect everybody else to bend over as well.
Intense competition, down the street and across the world, is a primary factor in shop rates never going up.
The start-ups trying to make payments, or a large cnc shop wanting to keep the spindles turning, have damaged our industry as far as pricing goes. Once buyers get a taste of a whore, they expect everybody else to bend over as well.
dkmc
Diamond
- Joined
- Jan 13, 2002
Also, over the years even if rates have gone up moderately, most shops have bought newer-faster machinery that gets more parts done per hour.
Rates might be higher, but parts cost less since more are made per minute, hour, second?
Meanwhile overhead costs are always creeping (or sometimes leaping) upward.
Race to the bottom is such a fitting expression.
Supposedly the USA manufacturing output is at record levels, even exceeding output during WWII.
CNC machinery and computers make that happen.
Who ever the nitwit was that predicted computers would become a huge benifit to man, and people would be working 20 hour weeks because machines will be doing the work for us....
In a way it's true. I think computers and CNC machine tools are the blame for declining skills, lost jobs, and the elimination of the middle class. I know most people that have manufacturing management or engineering jobs are juggling more responsibility than ever.
And some others just coast.....
Rates might be higher, but parts cost less since more are made per minute, hour, second?
Meanwhile overhead costs are always creeping (or sometimes leaping) upward.
Race to the bottom is such a fitting expression.
Supposedly the USA manufacturing output is at record levels, even exceeding output during WWII.
CNC machinery and computers make that happen.
Who ever the nitwit was that predicted computers would become a huge benifit to man, and people would be working 20 hour weeks because machines will be doing the work for us....
In a way it's true. I think computers and CNC machine tools are the blame for declining skills, lost jobs, and the elimination of the middle class. I know most people that have manufacturing management or engineering jobs are juggling more responsibility than ever.
And some others
just coast.....
smallshop
Diamond
- Joined
- Jun 2, 2005
- Location
- North Central Montana
"I doubled my shop rate last year."
What was it at? If your shop rate was $10 hr you could double every year for a while....
What was it at? If your shop rate was $10 hr you could double every year for a while....
SurfaceFeet
Aluminum
- Joined
- Jul 16, 2006
- Location
- Arlington,TX
Yeah, as for the mechanic rates for cars.Around here they are around $90.0 to $100.00.
Joe788
Titanium
- Joined
- Apr 22, 2006
- Location
- Westside of America.
I've got a question for those of you that haven't raised your shop rate in the last 10 years:
Are you still using the same type of equipment and processes you were using 10 years ago?
Are you still using the same type of equipment and processes you were using 10 years ago?
Seems many shops around here have been at right around $45.00 (+/-$5) per hour on manual work and about $60 for cnc(or less) for quite a few years. I know that a couple places tried to move up their rate just a couple dollars per hour and had a hard time from their customers.
Part costs keeps going down. Things that people at one time would pay $100.00 for, are now done for $5.00 and people say its expensive.
" please buy that new million dollar machine so that we can save another 10cents on our 50cent part "
Part costs keeps going down. Things that people at one time would pay $100.00 for, are now done for $5.00 and people say its expensive.
" please buy that new million dollar machine so that we can save another 10cents on our 50cent part "
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