Small shops, big wins: 4 tips for tooling success

According to U.S. Census Bureau data, a whopping 82% of businesses classified as “Machine Shops” are small—with 19 employees or fewer. From a single-man side hustle to a bustling business with several employees on payroll, small shops face exciting opportunities—but not without challenges. Success hinges on everything from access to skilled labor and winning new business to managing cash flow. And to keep the spindles running and the part quality high, tooling is a vital piece of the puzzle.

Tips for tooling success look a little different for small shops—who might not get the same attention from big-name tooling brands as the big shops, and who can’t afford to keep hundreds of thousands of dollars in tooling inventory at the ready. The good news is, there’s a sweet spot when it comes to tooling partnerships and inventory management, and we can help you get there.

Tip 1: Find a supplier that appreciates you

One of the unfortunate challenges of small business ownership (in any industry) is finding partners that give you the same attention and service level as their larger accounts. If you’re a small shop, you’ve likely experienced this in some fashion—whether from equipment or tooling manufacturers or distributors and service technicians. In this case, bigger is not always better for small shops: large, well-known tooling brands may sometimes simply overlook the smaller shops.

You’ll benefit from suppliers who focus on small to medium-sized shops. Not only will they make more of an effort to understand and service your shop, they’ll place higher value on your business. What’s more, tooling manufacturers and suppliers that dedicate themselves to small shops are more likely to act as a true partner—helping troubleshoot new applications, providing samples and working harder to get orders in your hands quickly.

Finally, some small shops may find that bigger brands’ and distributors’ catalogs are overwhelmingly large, which can lead to confusion and frustration. It helps to find a tooling partner that carries the most commonly used tooling types you use, without the need to sift through the excess.

Tip 2: Do a deep dive on value

Cost efficiency is under the microscope these days, for shops of all sizes. But it’s especially important for smaller shops that need to count every penny. You can’t afford to overpay on tooling, but you also can’t afford the cost of insufficient quality. That’s why a focus on tooling price alone isn’t enough; rather, it pays to perform a thorough side-by-side comparison to assess the true value of different tooling suppliers. Checking reviews and customer testimonials is a good start. Then you’ll need to take price into account, of course, but also average tool life; finished part quality; and even delivery lead times.

These criteria are easily measured by simply testing the waters with a similar insert or tool from two or three different brands, then noting the differences. You can also ask if suppliers offer free trials or samples to make the comparison easy and painless.

Tip 3: Achieve “just in time” tool inventory

Some shops feel the need to keep a wide variety of tooling inventory on the floor at all times. When a job arises, time is of the essence, and you can’t wait a week or longer to get the necessary tooling. But on the other hand, consumables inventory for small shops ties up cash in a significant way—capital that could otherwise be used productively.

Small shops should strive for a “just in time” approach to tooling inventory. This approach requires a partner with always-in-stock options and lightning-fast fulfillment, so make sure your tooling provider is up to the task. It also pays to assess (and possibly adjust) your inventory management process. Plan to execute weekly or bi-monthly inventory checks and re-orders, depending on your shop’s needs.

Tip 4: Stay organized

This goes hand-in-hand with more cost-effective inventory management. But fear not: you don’t need a big-name brand’s tool vending machine or other expensive tooling management software to keep things in check. Simple organization tactics—a drawer or bin for each tool type; a clear labeling system; and strategic storage based on proximity to related machines—is enough to get started.

After reading through our tips, are your tooling management strategies and partners up to snuff? If not, take a step back and reevaluate.

TechMet’s Indexable Cutting Tools offer a new option for small shops to consider. Backed by 25 years of experience as the number-one supplier of carbide rod in North America, TechMet delivers over 1,000 of the most commonly used indexable tool types at a superior value, because they’re straight from the source. All in stock and ready for same-day shipping. Best of all—TechMet offers free trials so you can shop with confidence. And with a focus on small and mid-sized shops, it's a perfect fit. Learn more here.

Want more tips for achieving tooling success? Read our post on ways to maximize performance.