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IndustryArena Forum > MetalWorking Machines > Haas Machines > Haas Mills > I'm going to ask a real pointed question
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  1. #1
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    I'm going to ask a real pointed question

    I been hangin round here for a while. Readin this and readin that.
    Now, I own two Haas machines. I know the good stuff and there is a lot, and the bad stuff. And there's a bit of that as well.
    But what I'm curious about is the business thinking that goes into a machine purchase decision.
    Are the majority of buyers making this decision on price alone?
    I get the impression that is the case a lot of the time.
    This may have something to do with years of experience also.
    I was talking to a fellow the other day that was interested in getting a machine in his garage and starting to make money. Said he had some customers lined up. Wanted to go at it.
    I asked him what kind of material he was going to cut. Didn't know. What ever the customer wanted him to cut.
    Asked him if they would be fourth axis parts. Didn't know what one them was...
    So, I asked him what kind of machine he thought he needed. "Oh, I think I'll get one them tool room mills" he tells me. Tool changer? I ask. No, that's be too much money.
    Well, what about holders? Well, he thinks about 5 ought to be plenty.
    Now, about this time, I'm getting curious as to how he's going to pull this off. So I ask him about how much he has to spend and what the ROI would be. He tells me he don't want to spend more then $25k. I ask him about the ROI and get a blank stare....
    I explain about return on investment. Ask him how many hours a day he'd have to run that little tool room mill to pay it off in 18 months.
    I told him to think about the feeds adn speeds on that machine and how fast he could make that part for his customer when the shop just doen the street has a whiz bang really fast one and can undercut his price....
    He started to look a little glum
    Now Haas makes a great machine that enables a lot of guys to open a shop and do ok and grow into a larger shop and buy more machines, hire a couple more guys...You know the picture.
    Now I know what it's like to start a shop. I started one with a little Mini Mill. Been there done that. But what I'm curious about, is the thought process involved in making that machine decision...
    I was told by a good friend a couple years ago, he bought a prototype shop from his boss who was retireing. The guy told him to go buy a five axis Mori. Larry told him he didn't have the money to buy a five axis Mori and didn't know how to run one if he did.
    His boss asked him where he wanted to be in two years. Larry told him. In terms of income, customer base and types of parts. His bos told him, "Then don't waste three years...go buy the Mori"
    You see, we all know that buying the first machine is the hardest. But I'd like your thoughts on why some shop owners refuse to see the advantage in faster machines. We can obviously all get a lease. We are obviously all smart enough to figure out that working for ourselves is better than working for someone else...
    What is it about expanding our business's that we have such a hard time seeing what it is that we need to do.
    I've heard the argument about, why do I need a Ferrari to make parts when a Pinto will do. Well, if you want to do the same parts you're doing now till you retire, you don't need that Ferrari.
    But if you want to grow. If you want to be the shop that your customers allways, ALLWAYS call when it needs to happen and happen right, You might want to think about it.

    So, What are your thoughts. I'm curious
    This was all prompted by my ordering a twin spindle live tooled lathe to replace my SL10. That got me to thinking about moving ahead on a Horizontal...

    So, What are your thoughts.

  2. #2
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    I think this is probably the wrong forum for the question. I don't have a problem with it...just that you're going to get a much smaller audience than you would up in one of the 'general' forums.

    We seem to have a number of people in here:
    1. Employed by others but looking for an edge or help getting ahead in the industry (don't actually own any equipment but work closely with it).
    2. General machine shop owners who happen to own Haas equipment. They may vary in size and capacity.
    3. Manufacturers of their own products.
    4. Hobbyists of one sort or another, trying to turn their passion into a business (manufacturing their own products).
    5. Really eccentric hobbyists who happen to have enough cash to afford a CNC. They might or might not ever make money with them.
    Personally, I'm number 4, hoping to not become number 5.

    A Mori ain't in the budget. I couldn't swing the payments on one unless it hit the ground generating cash.

    While my two Haas machines were pricey by 'hobby standards', I know 'regular people' who have spent more on a fifth-wheel trailer and a decked out pickup truck to tow it. So it's not the 'normal' hobby, but it's not going to depreciate any faster than a boat or motorhome and at least it has the possibility of someday, generating income.

    What the machines meant to me is this: I could generate designs and build prototypes on my schedule, while keeping my 'day job'. When the time comes to turn the switch on the business, I can move the equipment to a real shop and get down to production.

    Many consumer markets can't tolerate another layer of profit (RC boats, RC cars, specialty car parts, etc). So if there were a machine shop between the raw materials and my customers, there would be no money left in them for me. The consumer will only pay so much--unlike markets--like aerospace--that beg to be gouged.

    A salesman at Westec had this discussion with me. It might have been Mori...or Mazak...doesn't matter: he told me that a Haas machine wouldn't last and didn't really have the speed. I told him that I lay awake at night, dreaming of wearing out a Haas. I hope that someday I can't stand their perceived lack of quality--because it means that my business has outgrown that very machine that got it going. If I am forced to come to them for a machine, then the Haas did its job.

    If the more expensive machines were the only thing on the market, I couldn't even afford to get on the train.

    I think the guys who buy a couple of machines and think they're going to hang out a shingle and get to work are wayyy more gutsy than I'll ever be. That's a tough world.

    They can work in their garage and undercut a real shop for only so long. Eventually, they'll need more room and more power than a residence can provide. They'll add a building and a few more machines, and then employees to load them and push the green button. That overhead will put a pinch on them. Then they'll be pissed when they get undercut by 'some guy in his garage.' I'm not saying it can't be done (others here have obviously done it) but it's like a restaurant: you're at the whim of your market.

    I agree with you in that situation: a competitive edge is very important. If you can't beat them on speed, then you'd better beat them on price or quality. If they can't do that with a Haas, maybe they should be looking at something better/faster/more rigid. To not have any idea what they're going to do with the machine is just foolhardy.
    Greg

  3. #3
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    Aw come PBMW, it is Sunday evening and you want deep thinking?

    I have encountered a few of those DHAC types you describe, and the garage-shop undercutters Mr Hotey describes.

    Based on people I have met and what I have read here I think a lot of people have the dream of running their own shop but do not recognize just what is involved when you are setting up for the long haul. Most seem to consider price only, and, never mind thinking about where they might be in three years, they don't even think seriously about the next six months.

    Experience is an important component but I also think that personality (?) comes into it. I put the (?) because I am not sure that is the correct word. I think you have to be able to separate what 'you' (think) want from what the 'business' needs. In the early days of starting a business, you are the business, but this situation is going to develop in two possible ways: You are going to limp along never getting further ahead until you are burnt out and quit to find a job. Or, you are going to grow, and the business becomes something more or less independent of you, you were essential to its genesis and initial growth but somewhere along the way it outgrew you. The funny thing about growing a successful business is that the more successful it is the less necessary you are.

    This is why I say personality comes into it. Right from the get-go you have to be able to differentiate between what you can afford and/or want, and what the business needs; but I think most people cannot split their thinking that way. You also need to recognise that sometimes you are going to become a slave to the business, and put in far more effort than you dream you are capable of, to get it over humps. There is a bit of advice you sometimes read in business magazines about remembering to 'pay number one first' where the number one is you. Wrong, in the early stages of a business, the business is number one. Later on, when the business is successful you don't need the advice about paying yourself as number one; that is a given.

    And I think I may have drifted sideways to the topic. That is what happens with age a couple of glasses of wine.

    Twin spindle live-tooled? Maybe in a year or so I will send you a sample of one or two of my parts and pay you to develop a good time/cost estimate for doing them. I considered going this route a few years back and came to the conclusion that the best approach was separate lathe and mill. Best meaning initial cost, production time, flexibility of machine use, etc. Of course our environment is different, we make our own designed product so we know what is coming up and have control over timing. But is still wonder if I was out-to-lunch on my decision years ago...we are sort of committed now.
    An open mind is a virtue...so long as all the common sense has not leaked out.

  4. #4
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    Most seem to consider price only, and, never mind thinking about where they might be in three years, they don't even think seriously about the next six months.

    Experience is an important component but I also think that personality (?) comes into it. I put the (?) because I am not sure that is the correct word. I think you have to be able to separate what 'you' (think) want from what the 'business' needs.
    Hi everyone,
    I'm brand new to these forums and so I hope you will forgive me for my lack of knowledge and have some patience with any of my stupidity. I have spent the last several days reading your posts and threads trying to bone up and gleam some insight into things I should know about. I'm finding your posts very helpful and so I thank you for taking your time to post in these threads and in doing so sharing your vast amount of knowledge w me.
    So here goes...this will be my first post ...pls be gentle. I am sincerely try to learn from your experiences.

    I was attracted to this thread because we are thinking about buying our first CNC for our manual machine shop and as Geof stated, knowing the difference between what one wants and what the shop needs was very thought provoking to me.

    Just to give you a little background, my husband is a mechanical engineer and worked for the same company for over 25 years, in latter years as the V.P. of R & D. The company sold out the manufacturing to an overseas concern in 2004. After market was all they held on to.
    So we got brave and we moved from California to Florida just in time to arrive the day before the chain of hurricanes arrived. After looking for a year wed bought an existing manual machine shop that had been in business since 1978. The owner who was in his late 70's was somewhat burned out and wanting to retire. (Luckily for us the owner after some long, long awaited time off for him, he came back and is still working w us. He is almost 80, is very knowledgable and is the best employee we've got.)
    With his help we have done well in the transition, by being able to keep all of the existing customer base and additionally by being able to bring in customers from my husbands former job. We were actually were able to double sales within our second year.
    I don't mean to make this sound like a big enterprise because it isn't. We are in a 1500 sq ft shop, with 5 manual mills, 2 lathes, band saw, shear, break press, grinders, notchers, mig and tig welding machines etc...and good customer base.
    We do about 25% of our business for an eye glass manufacturer, 25% for defense products, 25% for industrial filtration applications and about 25% of a multiple assortment of customers from printing presses, to marine retrofitters, fish and wildlife, motor cycle enthusiats, old men with a little to much time on their hands with projects.

    Business has been good, as I mentioned we double the sales, but also unpredictable. Either we have more than we can handle or nothing to do. This is why having a product of our own, really interests me, in addition to what we already have going on. It could really help with the lulls.
    We have also had a problem with one of our 3 employees. Absences when crucially needed, fuzzy headed hangovers and even caught drinking on the job. Bad growly attitude at time, won't follow instructions and most important low productively. Oftern cost us money on a job, not even breaking even.
    We went thru a lull at the beginning of the year and had to lay him off. My husband is now reluctant to bring him back for the above mentioned reasons.
    My husband thinks we could like to purchase a CNC mill instead that would not be so tempormental and would be more accurate. Also we could depreciate it.
    I have read several posts including on which Geof wrote about all the machinery he had bought in order to get to where it was he wanted to be. I know he jumped thru some hoops and I appreciate that he wrote about this. Like another shop said, "we have one chance to get this right" and I'd like to get it right the first time too.
    I also liked this post because, I had to stop and question whether what we are thinking about buying is because it's something we want, opposed to what's really best for the business. While price is certainly a major consideration, I also realize that it might behove us to spend a little more rather than limit our capabliities in the near future.

    I know you will all laugh, but let me tell you how our thinking has progressed. My husband brought up the subject of an CNC about 3 weeks ago when the business started flowing back in, rather than bring this individual back. At first he was talking (probably to convince me the bean counter) about a Tormache w the base price of $6,800. We looked into that. The following week our neighbor who deals in plastics said don't buy a Tormache, that he was considering by a new TM-1 and he would consider selling us his 2002 TM-1 w low hours for around $14,000. So in our minds, we would now be doubling our expenditure, but perhaps it was much more worth while. He was in a big hurry for us to decide with a day, because he wanted to take advantage of the Haas discount sale of 7.5%.
    I don't move that fast, regardless of how good of a deal without doing my homework first. I went home that night and on this site, read a probably little noticed post with a link to depreciation and found out that a tax stimulus had been announced at the end of February that would allow one to write off 70-100% this year in depreciation in order to stimulate business purchases. The only caveat is the equipment must be new. I suddenly realized that I could write off a new TM-1 entirely the first year and save much more than if I bought an used one. So hence another doubling of the price.

    Next in this evolution I read here, about the dishwasher effect with the coolant getting all over the place, and also Geof saying about the chips hitting the sides like rapid gunfire. I Our neighbor just does plastic so not so much of an issue. I also thought a tool changer would be a good idea and so the logical progression in my mind was to go from a TM-1 to a TP-1. So now up into the 30 thousand dollar range.
    When reading about all of Geofs purchases to get to where he wanted to go, and finding the Mini, than SuperMini, I became interested in that, but the learn that the travel is are much smaller and we would be limiting the size of parts we could do.
    Now I learn, here again, that they are offering a new SuperMiniMill 2 with more Z,X and Y but not as much x as the TP-1, 20" verus 30". Here I go up again!
    I emailed this to my hubby, who in turn spoke w our Haas rep here today, and he says it's not for us, because we do a lot to S/S and it's really made more for plastics. Is this true? Are we better off w the TP-1 for our application?
    I have never owned or bought a CNC, am not a machinist, but am really trying to make the very best decision for our business. I'd appreciate your thoughts and help.
    Thank you and sorry for the long story.
    Jennifer

  5. #5
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    Quote Originally Posted by Mermaid View Post
    ......Now I learn, here again, that they are offering a new SuperMiniMill 2 with more Z,X and Y but not as much x as the TP-1, 20" verus 30". Here I go up again!
    I emailed this to my hubby, who in turn spoke w our Haas rep here today, and he says it's not for us, because we do a lot to S/S and it's really made more for plastics. Is this true? Are we better off w the TP-1 for our application?...
    This is a bit puzzling. The new MiniMill, note it appears to be the standard 6000 rpm spindle not the 10,000 rpm Super, has the same spindle as the original MiniMill which is more or less the same as the TP. I think the main difference is the TP is grease lubricated not oil mist. I do not see how there can be much difference between the two in terms of ability to machine SS. Also I think the statement that it, the longer travel MiniMill is made for plastics is a bit silly; of course it is not. The Minis are lacking in power and rigidity for machining steel, stainless or otherwise, but they can do it if you recognize their limitations. But I don't think the TP can be any more rigid, actually I would expect it to be less if anything.

    It is a difficult thing sometimes to discipline yourself to make a decision. For what its worth I would not buy a TP over the new Mini unless I absolutely had to have the longer travel. And, if it is available with a 10,000rpm spindle, I will probably buy the new Mini with the side mount changer as my next mill.
    An open mind is a virtue...so long as all the common sense has not leaked out.

  6. #6
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    Quote Originally Posted by Geof View Post
    I think the main difference is the TP is grease lubricated not oil mist. I do not see how there can be much difference between the two in terms of ability to machine SS.
    Just a quick note to possibly help you make a better decision... I worked for a spindle manufacture for 9 years, I as in charge of assembly and training. We built and rebuilt everything from 3000 RPM belt driven lathe spindles for piston manufactures up to 40,000 RPM mold machine spindles. Very high end machinery for the most part, but as mentioned, a couple of lower cost machines such as the piston manufactures and a company who sells machines for machining granite and marble. Most of our business was high speed mold machines. The company I worked for originally developed some 10K oil-air spindles and they were eventually retrofited or changed over to greased bearing. General rule, greased bearing spindles are generally under 12K RPM and can take a higher chip load, lower RPM spindles will have steel bearing, higher having ceramic, diffrent contact angles ect. Higher RPM spindles need oil-air because greased bearings just won't live with the surface footage of the actual ball bearing rotation which is commonly around 100K for higher speed spindles.

    I can't remember the name of the actual machine manufacture, but I will post if I do remember... They build gantry mills used for manufacturing automotive molds and mostly used by defense manufactures, they actually have 3 spindles for that machine. Same thing as your CAT40 tooling, there were pull knobs on the back of the spindles, the machine would change spindles as well as change tools! They use a 6K greased bearing for heavy roughing, a 10K greased bearing for light roughing and moderate finishing, and a 20K oil-air for finishing. Granted the machine costs millions, there is something to be said about spindle selection.

    What I'm getting at is if you plan on doing heavy cuts at 1000 RPM on SS, I would take the 6K greased bearing spindle any day. I almost garantee the 10k oil-air spindle has ceramic bearings which won't like that kind of cutting force. You would need to take lighter cuts with a ceramic bearing spindle, and I've seen first hand what happens when you confuse the two.

    Working for the spindle manufacture let me see the total opposite end of the manufacturing spectrum. And I honestly can't figure out why people build 10K RPM oil-air spindles, like I said, the company I worked for did it and we ended up changing them back to greased bearings. The engineers decided that you only need oil-air over a certain surface footage of the ball bearing rotation and yes, shaft diameter made a difference, but 15K was generally the deciding point. But I'm also talking about $30-60K just for the spindle, brand new.

    Sorry for the long explanation, point is I would expect the 6k spindle to handle a higher chip load and do MUCH better in a heavy cut. I would expect the 10K spindle to be made for ligher cuts and finish work, i.e. mold work.

  7. #7
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    Thank you Geof for your reply. I apologize for some of my typos in my last post, but the hubbie and our two dogs were pestering me to get cooking the porterhouses sitting on the island as I was trying to type. You can imagine how distracting that was. Me, me, me! Now, now now! Hungry, hungry.
    Anyway, the new Super Mini Mill 2 that they are just releasing, is 10,000 rpm and has more travel than it's the original Super Mini, which was an concern for us as far as larger parts. We are not being told that it not good for SS because of the travel but rather because of the torgue. I can't see any comparison as far as torque in the specs.
    The T1-P only has 6,000 rpm.
    I just feel , knowing all your personal experience with various haas machines, that you would be the best one in this position to advise me.
    I am so happy you responded!
    Thank you so much and will await hopefully for your next reply
    Jennifer

  8. #8
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    I don't own a Haas but have something comparable by Dynamechtronics. I worked for Dyna for a few years and visited the dealers and customers around the country. Also worked the trade shows like Westec, Eastec, and IMTS and spent time talking with folks who worked for other builders.

    Some things I learned during that time:

    1. A lot of older shop owners like to take small steps, especially into the unfamiliar (like way fast CNC). They are not comfortable making what they perceive to be a big jump. That approach has served them successfully so far, thus they see no reason to alter that way of running their busniess. Forcing them to change too fast gets them out of their element and then they don't know how to manage it.

    2. A lot of shops don't make parts where the 5 axis Mori, Makino, or Niigata is of any benefit. The reality is 95% of machine work is done on simple 3 axis machines just as accurately and just as fast from setup to cleanup as can be done on the SuperUber machine because the parts aren't complex enough to need the fancy approach and the quantity is too low to justify trick fixturing.

    3. Buying the machine does not buy the knowledge to take advantage of all the capabilities. Jumping from manual machines to CNC requires a change in approach. Jumping from Haas/Fadal machines to 5 axis Mori, Makino, Niigata requires another leap. Skipping the middle leap is mighty ambitious.

    4. The accessories can really push the entry price out of a budget. A shop acquiring its first typical CNC VMC needs a big investment in tool holders, tool bits, CAD software, coolant. Again, the knowledge does not come with the pieces. Most shop owners recognize there is a learning curve where they are spending more money than they make.

    5. Last but not least is the personnel to run the fancy machines. Guys who are proficient on Super machines don't come cheap. Same with the CAD/CAM fellow who does the programming while Wunderkind is running the machine.

    My worthless rambles.

  9. #9
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    This is why I say personality comes into it. Right from the get-go you have to be able to differentiate between what you can afford and/or want, and what the business needs; but I think most people cannot split their thinking that way.
    Bingo!!!!!!!!!



    This is good stuff. I put this thread here because I have noticed this thinking most among Haas owners. I don't know if that's good or bad, but it's what I've seen


    I think markets may well be different in different areas. Or peoples perceptions of markets are different. Caprirs said that 95% of all machine works is 2d stuff done on a three axis machine with low quality requirements. I have not found that to be the case. I can certain'y find that work. But I don't bid it. 85% of the shops I know in my area have a fourth on the majority of their machines. They are all doing complex work. Granted we are in the Aerospace capital, But most of these guys got burned by Boeign back in 1990 and don't do that work. We have a number of large high volume mfgs here that require a lot of wigets. They don't pay much. Low margin stuff...
    What I've found is that more and more of my work nad RFQ's are for more and more complex parts. That requires me to think about more capable machines if I want to grow.

  10. #10
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    Quote Originally Posted by PBMW View Post
    ..... I have noticed this thinking most among Haas owners. I don't know if that's good or bad, but it's what I've seen....
    Regarding your first comment I have a theory, I am great for theories , but please adopt a flexible mindset because I am generalizing rather broadly.

    Haas pushes machines at the already-experienced-on-manual-machines CNC newcomer. This is explicit in their Toolroom Machines, Quick Code and Intuitive Programming. It is a good business ploy, was a good ploy when they started it almost ten years ago. Back in the late 1990s I was investigating CNC and read several articles in industry magazines; I remember one which had the statistic that only about 10% to 15% of machine shops had CNC. I think that a likely contributing reason for this lack of market penetration was because most CNC machines were ridiculously over-priced. The established manufacturers got away with it because it was possible for some shops to get the machines and once they had them they made lots of money; the initial costs could be tolerated by the high earning capacity.

    Haas was a new kid on the block and took a different marketing approach; somewhat lower capabilities, lower price, and go for volume by aiming at potential customers who did not yet have CNC; not by competing head-on for existing CNC users against the established manufacturers. I think it worked, certainly Haas' sales have grown enormously, and I think there has been a moderation in prices on the part of some of the other manufacturers.

    But I think there was also another factor in the equation which was the US housing market. Now it is certainly going down the tubes, and hurting a lot of people, but when it was soaring a lot of established home owners had a goldmine under their feet that could be turned into a home equity loan to buy a Haas and start their own business out in the garage. I would dearly like to know, just for interest sake, what proportion of Haas purchasers used this type of loan, or put the increased value of their home up as security for a lease.

    In this scenario Haas the manufacturer benefited from the run-up in home values and a lot of people, who otherwise would never have started their own business, did start their own business. Now I am going to ruffle feathers: I think a lot of people who think they can run their own business, but who are wrong, bought Haas machines and they are part of the reason there are so many little basement/garage shops out there driving prices down and beating each other into the ground. This beating into the ground is occurring; there have been entire threads more or less on the topic even if it is not explicitly stated that way. It takes a very different set of abilities and attitude to be self-employed in your own business than those needed to be a successful employee. It also takes another set, different again to the other two, to transform a start-up from a self-employed one-man operation to a long term successful business with employees. Very few people have the combination required, particularly the ability to transform from the self-employed one-man mode to a proper business with employees structure. And is essential that this transformation takes place otherwise the one-man operation will gradually burn out.

    A natural corollary to all this, if my theory has any merit, is that there are a lot of one-man operations out there who are slowly going down the tubes even if they do not recognise it yet. In the case of those who did use home equity, if they have paid off the loan they may be okay; if they haven't a refinancing comes up they may be in real difficulty. A good, if somewhat depressing, indicator for the validity of my theory will be an increase in the next few years in the number of used Haas machines on the market (at distress prices).

    I don't think there is any question about good or bad, if I am not totally out to lunch, it is bad. A lot of times in life circumstances prevent you making a decision or embarking on a path that is ill advised; I think this constraint was removed during the past ten years or so for a lot of people. There is a big difference between looking back with hindsight and saying; "gee, I am glad I did not do such and such back then. It would have been a disaster"; to saying; "Oh ****, why did I do such and such back then, how am I going to get out of this without losing my house, etc."

    Sorry to be so pessimistic, I am not one to sugarcoat things, and I am probably overstating things.
    An open mind is a virtue...so long as all the common sense has not leaked out.

  11. #11
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    Quote Originally Posted by Geof View Post
    Sorry to be so pessimistic, I am not one to sugarcoat things, and I am probably overstating things.
    I don't think you're being pessimistic at all. I think you're being realistic--as much as that might hurt some.

    I'm one of the guys who was given the freedom to buy this equipment due to a surge in home values. But the business actually started coming before the equipment. I made things for my own motorcycles that people wanted to buy. Being hand fabricated, there was no way I could sell them for what they cost me. But the market was there and it was persistent.

    My father and most of my uncles were self-employed at one time or another (different industries). I've seen the ups and downs of both employment and self-employment. I lived through my teen years watching my dad struggle with a business. I know what it's like. But that's also what makes me uniquely suited to survive: I grew up surrounded by it.

    I shared a thought along these lines with my Haas salesman a couple of years ago. He liked it so much that he's been quoting it ever since. I pointed out that (at the time) they were producing about 800 machines a month. If 10% of the businesses buying those machines were failing, there would be 80 machines hitting the 'used' market every month. There would be some lag but it would happen. At the time, I couldn't find a decent used machine to save my life. Since then, there have been a few but not many.

    Yes, I see some low hour machines out there but it's not nearly in the numbers that Haas' production would suggest. Even if 1% were failing: they cracked 10K machines last year. That's a lot of potentially failed businesses. That's a lot of used machines.

    What I think Haas may have done is to open up new markets. They don't just go to Westec and IMTS. They go to the powersports expos now. American Chopper has probably done wonders for their sales.

    Do a search on eBay in Hobbies and use the keyword CNC. Take a look at all of the custom machined parts that small shops are making (props, rudders, engine mounts, other hardware).

    It may not be a multi-million dollar business. But some guy in Iowa with a big steel building and a bunch of time on his hands while he waits for the crops to grow, can now get into a market making extra money and supplying a niche market.

    It's not a huge demand. Real manufacturers aren't going there because the volume doesn't exist. But the niche market will certainly supplement if not sustain a one-man operation.

    My business plan is simple: I want products that I can't buy. When I've made my own, others have wanted them too. In the past five years, I've watched three different products hit the market that I had sketched out long before they were introduced. All of them have been successful. One was voted 'innovation of the year' by one of the motorcycle magazines. But I wasn't the guy making them or selling them. At least it's good to know that the concepts weren't flawed.

    It may be like Xerox panicking about the computer putting them out of business. "People won't need copies anymore!" After it was done, computers contribute to unprecedented levels of paper documents. We're drowning in it. The USPS was worried that email and electronic bill paying would hurt their business. Instead, eBay and other electronic commerce have increased their volume.

    So it may be that the Haas buyer isn't the traditional machine shop. Their buyer may be an emerging market that we're only starting to see.
    Greg

  12. #12
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    Aug 2005
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    578
    Interesting thoughts.
    I've wondered about a couple of these things because I can think of three shops that are owned by "Non machinists" They all have Haas machines. All of them have over twenty machines. All of them are not in the complex parts business. All of them are struggling right now. I've asked all three of the owners why they don't expand into more complex stuff. The answer is a lack of expertise

  13. #13
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    Good points Greg but remember Polaroid, Kodak and Telex.

    PBMW's point about non-machinists owning machining companies and lack of expertise limiting growth is mirrored by machinists owning machining companies and lacking the business knowledge neede to manage growth.

    I have posted in other threads how the start up business owner has to transform from an entrepreneur into a manager to grow. That is difficult, I know, I did it. Even worse is having to go out and market effectively, spending weeks of the year flying all over the world and being sociable when you would dearly love to crown some idiot. The rewards are worth it but it is difficult; and close to essential.
    An open mind is a virtue...so long as all the common sense has not leaked out.

  14. #14
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    Well, since this opinionfest is still going, I'll chip in some more.

    As mentioned by The Mighty Geof, early CNC machines were very pricey. Although he labeled them as overpriced, I kinda disagree. I think a more accurate desciption is they were overkill for a lot of applications. As an analogy, imagine you want to buy a pickup truck and your choices were only the full size rigs from Chevy, Ford, and Dodge. Your application is just to move a couch and bring home some lumber from Home Depot. Thus, the market for mini-trucks is born. Not everyone needs to carry 4,000lbs in the bed while towing a 16,000lb fifth wheel tralier. Same with CNC machines. Why spend more than you have to?

    Boyd Coddington's shop and Jesse James shop will not make better billet wheels on a Mori than they will on the Haas. So why spend the extra money? The Haas gives them the ability to make a part critical to their business on their own timeline. I reference these two because they are easily recognized.

    Fadal (Francis, Adrian, David, and Larry) is actually the company that sorta discovered the market for the cheapo machines. They recognized there were a lot of companies that would like to have their own CNC but could not justify the massive investment required for a full boogie Mori Seiki setup. They were right and sold a lot of machines to companies that needed on demand CNC access.

    Gene Haas recognized the same market along with countless other "commodity" machine builders. The Haas contribution was to make the control easier to operate and use compared to the conventional Fanucs of the time.

    A lot of machine owners are not in the machine shop business. Even if the machine sits idle 75% of the time, it can still be very profitable to own in a lot of applications.

  15. #15
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    Quote Originally Posted by Caprirs View Post
    ..As mentioned by The Mighty Geof, early CNC machines were very pricey. Although he labeled them as overpriced, I kinda disagree. I think a more accurate desciption is they were overkill for a lot of applications. .....
    Being such a "Mighty" guy I can admit when I missed the mark; you are correct. And if I had been half a smart as I think I am I would have taken PBMW's ...I've heard the argument about, why do I need a Ferrari to make parts when a Pinto will do. Well, if you want to do the same parts you're doing now till you retire, you don't need that Ferrari..., and pointed out before Haas all that was available were Ferraris. But I think Haas is somewhat above Pinto. (Gotta say that the Haas guys might be watching )
    An open mind is a virtue...so long as all the common sense has not leaked out.

  16. #16
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    Haas is assuredly above Pinto. I think they are a sorta Camry/Saturn level machine. Nothing fancy, but it works, is reasonably priced and easy to service. It fits the needs of a lot of folks.

    Haas has been so successful there has been a backlash (hah!) against them. Guys with Moris have a tendency to look down their nose at anything less and sometimes fail to recognize that not everyone needs a Mori. In addition, a lot of the Haas owners are not really machinists, yet they can successfully use the machines which further irks the Mori guys. Kinda like the Ferrari guy who gets miffed when the Mustang guy is running nearly as fast but with much less invested.

    PBMW, I think most of the machine work is simple 2.5D stuff because that is the bulk of the machine tool market. There are way more simple 3 axis VMCs sold than mega-trick 5 axis rigs. In fact, the biggest machine tool builder (Haas), sells mostly 3 axis VMCs. Part of that may be due to shop owners apprehension about the 5 axis machines, but I think most shop owners do choose wisely when purchasing equipment and know what kind of machines work best for the parts they make.

  17. #17
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    Apr 2005
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    I've read this post over and over a couple of time trying to digest it all. I also started with one mini mill and found lots of work for it and had to get another within 6 months. Then 6 months later I found myself needing more capacity so I got a VF2 and thought this was it for awhile but now 4 months later I'm max out again and looking for another machine as we speak. So the easy thing to do here is just get another VF2 or VF3 and keep going but this time I looking around more just to make sure I'm going in the correct direction. Maybe I also have the wrong type of mindset because I always come back to the thinking of I can have 2 VF2's or 1 high-end machine. What can the high-end machine really do that the Haas cannot? last longer, take heavy cuts in steel or stainless? but I really just machine aluminum and titanium.
    These are just my thoughts but it easy to see others would not be where they are if they had not started or continued on with their Haas machines.

  18. #18
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    Jul 2006
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    Price and Opportunity is what got me into this game. Am I a seasoned machinest, not by a long shot, but learn more every day. Makes my stuff just fine, but have since out grown the TM-1, in speed that is....thanks Jimmy!!! If another Opportunity comes up, hopefully I can take advantage of it.

    My biggest mistake was/ is not being able to market myself due to the lack of
    Experience and confidence in my skills. I think that is the main reason a lot of one man shops end up in failure.
    Just my thoughts from a 6 foot tool changer!!!!
    Smitty

  19. #19
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    Oct 2005
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    slatern44, you've struck upon an excellent point. When a lot of shops expand, they frequently need more capacity, not necessarily more capability. They need to run more of what they have been running, not something new and different.

    The mindset is usually good on these decisions because the expansion is often some fractional amount instead of a quantum leap. The point that Geof is making (I think) is a lot of small shops get stuck in a rut and just keep increasing capacity until they are surrounded by scads of economical machines. Recognizing when to switch to the Mori (or a HMC for instance) requires someone who can realize the full potential of such a machine to replace several smaller machines.

    Another analogy. You get some work drilling holes in a part on the weekends. So you go to Harbor Freight and buy a drill press to put in your garage. The orders increase so you buy another drill press and pay your kid help out. More orders and you get another drill press. At what point do you stop buying drill presses and go with a new approach? That is the business owners mentality that is separate from the machinists mentality.

    As volumes and part complexity increase, eventually, one SuperTrick HMC will beat the snot out of an army of cheap VMCs. Knowing when to make that switch is key to growing the business. It is something that a lot of small shop owners get stuck on.
    - The switch from manual to CNC.
    - The switch from VMC to HMC or 5 axis.
    - The switch from people to robots.

  20. #20
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    Feb 2008
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    Well since I am one of those that is in the process of looking for a first machine let me offer my thoughs.

    When one is looking to start out in a garage footprint, height and power consumption are important factors. As a result, the Mini's are the logical choice. Also, if one is in the startup phase and has any knowledge of machining they understand what all the ancillary equipment is and how fast it can add up. The low price point of the Haas Mini leaves more left over for all the other things that will be needed.

    Two other considerations also come to mind. One, it this is a first machine and if you out grow it or need to add capability or capacity them so be it. This is called growth and the business owner is accomplishing what he set out to accomplish. Two, if the machine has to be sold for whatever reason (whether to make room for a larger more capable one or because things did not work out as planned) the Haas has pretty good resale value.

    I know that for me I am considering Haas, Sharp and Litz-Hitech at this point. Haas is a high profile name compared to the others. However, If it makes sense to go with the Sharp or Litz I will. One thing that the Haas loses to the other two on is work envelope and that is a huge consideration.

    At this point I am in the investigation stage. I will most likely do my "serious" shopping at IMTS (with checkbook in hand).

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