Re: Equipment Financing - Holy Crap !!!

[JoeRaisin <joeraisin2001@xxxxxxxxx>]

On 8/6/2012 2:20 PM, Bob La Londe wrote:
> "NickMark" <nmarkowitz@xxxxxxxxx> wrote in message
> news:e7e13211-35e0-4e20-b3b3-f326ad0291f7@xxxxxxxxxxxxxxxxxxx
>> On Sunday, August 5, 2012 5:44:19 PM UTC-4, Bob La Londe wrote:
>>> As some of you might be aware I dabble in other fields, but this item
>>> kind
>>>
>>> of overlaps.  I've been doing some CNC machining making parts on the
>>> side
>>>
>>> for the last few years.  All of my saleable work is done with desktop
>>> hobby
>>>
>>> level machines.  My big holdup has really been that I just can't make
>>> many
>>>
>>> parts on the desktop machines before I have to tear them down and
>>> rebuild
>>>
>>> them.  I do have some repeat customers though, and I do make a few
>>> dollars
>>>
>>> on it.
>>>
>>>
>>>
>>> I recently decided to try and step up a little bit and see if I could
>>>
>>> finance a couple slightly larger more robust machines.  Most outfits
>>>
>>> wouldn't even talk to me since I have not been in the CNC machine
>>> business
>>>
>>> full time for atleast 2 years.  (I don't intend to stop being a
>>> contractor
>>>
>>> anytime soon.)  I did have a few though that said they would be glad to
>>>
>>> finance new equipment purchases...  at interest rates from 45% to
>>> 60%. Wow!
>>>
>>> Well, I am glad to see that every industry has its opportunistic sharks.
>>>
>>> Not just the alarm industry.
>>>
>>>
>>>
>>> I decided it would be better to just sell some equipment and pay
>>> cash. Even
>>>
>>> at a loss on the equipment its cheaper than paying 45% or more on
>>> financing.
>>
>> I take care of electrical issues at several machine shops and they all
>> scream about price of new machines thats why there's such a big used
>> market I have seen relays and starters and transformers etc i replace
>> on machines go triple fold in price in last 10 years. It is out of hand
>
> Machine parts from machine manufacturers have really gone nuts for
> price, but if one knows where to look and what to look for there are
> other alternative sources.  Often something like a position sensor from
> Hurco will be 15-25 times more expensive than the exact same part from
> somebody like Digi-Key.
>
> I have some demand which is why I need to just buy a machine or two to
> take over for my hobby level machines, but I can retrofit and build
> machines myself.  Its just a matter of time verses money.  That, and I
> am still working on the retrofit on my big machine that I planned for
> making more smaller machines.  LOL.  Speaking of Hurco.  This is an old
> Hurco KMB1 that I have gutted the electronics cabinets to convert it
> over to direct PC control.
>
>
>

As I understand it, there is a severe shortage of machinists right now.
  Last numbers I heard was that there were about 40,000 job openings for
machinists in the country that can't be filled.

Good thing all those folks went to college for their poly-sci degrees
and we have de-emphasized education in the trades.