CNC Machine Shop Defense/Aerospace

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December 06, 2024

by a searcher from The University of New Mexico - The Robert O. Anderson School of Management in Salt Lake City, UT, USA

I've come across several CNC Machine shops that look interesting on the surface. One in particular is based in the Southwest and has a long family history with the owner nearing retirement. I've read the IBIS industry report and have an overall understanding of the industry.

This particular machine shop has high customer concentration with 90% of the business from Boeing and lacks CMMC certification. The broker states the company is halfway to CMMC but I realize achieving CMMC certification is an in-depth and time-consuming process. The revenues appear stable at 6mm over the last few years.

Is anyone operating a machine shop in the aerospace and defense sector with this level of customer concentration? Additionally, can anyone shed some color on the CMMC process in terms of timeline, cost, and benefit post-certification?

Thank you.

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Reply by a searcher
in Los Angeles, CA, USA
Few thoughts here:
90% Boeing: are they 1st tier or 2nd/3rd tier. In many cases it's Boeing DWG but they are delivering to a 1st or 2nd tier who will deliver to Boeing.
Are they all Boeing commercial or mix? (commercial, military, and satellite)
What's their quality rating with Boeing? on time delivery and inspection.
Any long term contracts 3-5 years?
How many CNC programmers are there? these folks can make or break it in the aerospace.
Is the owner the chief engineer?
Equipment age and hours are important as ^redacted‌ mentioned.
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Reply by a searcher
from Stevens Institute of Technology in New York Metropolitan Area, USA
Boeing & Aerospace/Defense. Boeing is going through multiple problems which you can find online. Aerospace/Defense (as a government contractor means you are responsible for TONS of compliance, audits, paperwork). The question you should really be asking yourself, is how comfortable are you with dealing with a major defense contractor and the Government. It looks simple - but simple doesn't mean easy. Think hard before moving forward. While the opportunity is lucrative, the time you need to invest is huge and is this the best use of your time?
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