How Much Does CNC Machining Cost?

 In Blog

The true cost of CNC Machining.

Simply put, the cost of CNC machining is any given hourly rate, about £45/hour on average. The cost of CNC machined parts is the total cost of raw materials, plus the cost of any special fixturing, plus the labour hours taken to machine each part.

It takes many years of experience to be able to accurately quote CNC machined parts. There are many factors that need to be considered, each with the ability to increase or reduce the cost of the machining service.

This ‘easy to read’ article provides a breakdown of the factors involved and gives an overview of a typical quoting process. More importantly, this article explains Parallel Precision’s unique quoting process (and how we could save you money on your parts)!

Generally speaking, hourly rates for 3 axis CNC Milling in the UK range from £40 per hour, to £60 per hour. In most circumstances, suppliers do not disclose their hourly rate with the customer.

As the old saying goes… “you get what you pay for”. The slight increase in price that an ISO 9001 accredited company like Parallel Precision will charge, is a reflection of the additional quality control checks that each machined component must go through before being shipped out the door.

Parallel Precision is proud of its ability to provide accurate quotations, whilst remaining fair and competitive to its customers. Because of our efficient machining strategies, a recent benchmarking exercise positioned us cheaper than 92% of our ISO 9001 accredited competitors!

What major factors influence the price?

The cost of CNC machined parts is really just the sum of the time it takes to manufacture them, multiplied by an hour rate. Having a deeper understanding of all processes that go into manufacture, will result in more accurate pricing. These processes include programming, setting up machine tools, de-burring and inspection.

Partnering with a company that truly cares about quality and has robust quality assurance processes in place, such as Parallel Precision, can be the difference between only 1% of your batch being inspected, vs 100% of the batch. A great illustration of “you get what you pay for”.

Undoubtedly, quality is something that deserves to be paid for. If you’re willing to place orders with the very cheapest supplier you can find, expect the resulting products you receive to be worthy of a cheaper price tag.

As a customer, it’s beneficial to understand what other factors can influence the price you pay, beyond the quality control measures already mentioned. As listed below, many of these factors are within your control:

  • ISO 9001 Accreditation – Is your supplier really committed to their promises of quality?
  • Batch sizes – Do you want 1-off or 1,000-off?
  • Outsourced operations – Do you want parts supplied anodised, or will you source it yourself?
  • Material Selection – Aluminium can be machined at a much lower costs than steel.
  • Geometry – Dimensions, shape, and part complexity can increase machining cycles.
  • Lead time – How urgently do you need the components?
  • Tolerances – Tighter tolerances add higher risk and require additional inspection time.
  • Fixturing – Does your component have a complex profile, that requires bespoke work-holiding solutions to hold it during machining operations?

Parallel Precision can save you significant money on your components, thanks to our clever gains in efficiencies that reduce manufacturing times.

Aluminium CNC Milled Parts from UK Subcontractor
Image Copyright Parallel Precision 2020

How does Parallel Precision calculate their price?

At Parallel Precision, we use a unique quoting process that is very different to our competitors, and gives us a much more accurate price. Our unique process reduces the likelihood of us overcharging for the machining of your parts, and prevents any unforeseen issues or delays during the manufacturing process.

Unlike our competitors that have a ‘blanket’ hourly rate for all laborious operations, Parallel use several more accurate ‘fixed’ and ‘variable’ hourly rates, depending on the operation in progress. Our UK based ISO 9001 Accredited competitors typically charge £45 per hour for 3 Axis CNC Milling.

In contrast, Parallel Precision uses fixed hourly rates starting at £16.98/hr. Our ‘variable’ hourly rates start from as little as £21.33 per hour, ranging to to £42.50 per hour. These variable rates vary depending on operation in hand.

What this really means to our customers is that we charge a reduced hourly rate for non-value added activities such as ‘deburring’ and ‘machine setup’. Passing this saving on to our customers, is how we can achieve significant cost saves, especially for orders with a batch size above 50-off.

Our smarter pricing strategy, along with our increased efficiencies, is how we produce parts at a fairer price, without sacrificing quality.

Because of our efficient machining strategies, a recent benchmarking exercise positioned us cheaper than 92% of our ISO 9001 accredited competitors!

How our pricing compares to the competition.

To better illustrate how competitive our pricing is, we recently undertook a benchmarking exercise. We created a fictitious sample component, and requested pricing from 69 other UK based ISO 9001 accredited CNC Machining subcontractors.

When manufacturing parts in batches of 50-off or above, the results position us cheaper than 92% of our competition!

The contrasting pricing shown in the table below, really illustrate the benefits that Parallel Precision can bring to your business.

1-off 5-off 50-off 200-off
Highest Price £438.85 £95.00 £43.00 £33.25
Average Price £137.62 £45.38 £15.72 £12.91
Parallel Precision £135.09 £37.48 £11.09 £8.08

Ready to buy Quality, British Manufactured parts at a Fair Price?

We specialise in the manufacture of small to medium sized, CNC Milled aluminium components. If your company’s product assemblies contain CNC Milled aluminium components, and you’re ready to reap the benefits of working with a UK based ISO 9001 accredited supplier, let us know!

For examples of our previous work, please feel free to visit our portfolio page, otherwise, please get in touch today so we can delight you with our services.

If you have requirements for CNC Milling and let us know you have read this blog post… we will give you 10% off your first order!

Need to source CNC Machined aluminium components?

To receive our best prices and lead times, submit your technical drawings or 3D CAD data today! Let us know you have read this blog post and we will give you 10% off your first order!

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Craig
Media and Marketing Manager
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