jackieschmidt
Gold $$ Contributor
As many know, I am in the Machine Shop Business.
Since the onset of Covid, everything we use in our daily working environment has gone up. We use a lot of large bar stock in 7.5 to 9.5 inch diameter, in lengths up to 36 feet.
Three years ago, we were paying on average 75 cents a pound got 1022 hot rolled, rough turned. On average now, we are paying $1.30 a pound. When considering how many tons we use a year, that is a substantial amount of operation money.
Tooling might be worse. We use large end mills up 2 inches in diameter. Anything from 1 inch to 2 has close to doubled in price in three years. The large threading inserts and turning inserts we use have increased about the same amount. Add to that you have to keep them on back order so you will not have to wait when you need to resupply.
The cost of insurance, electricity, natural gas, oxygen, acetylene, welding rod, submerged arc Stainless Steel Welding wire, flux, everything involved in daily production has gone up substantially .
And then there is labor. We have to pay the top wage in our field just to keep our men, and keep them happy. Most people who are not involved with the actual running of a business have no idea what it cost just to employ some one that is good enough at what they do so you can actually make enough profit from the billing rate to continue keeping the doors open.
I don’t see an end in sight in todays political climate. Far too many people simply do not care to work, and far too many want more in salary than you could ever make to meet that demand.
We employ 15 men now. We are darned lucky to have them.
our employment package is this. Out top machinist, we have three, make $55 an hour straight time. Overtime is of course time and a half and sometimes double time. We give seven paid holidays, two weeks paid vacation, we furnish the men’s health insurance, uniforms, and match his 401K.
All of this just to keep them.
Since the onset of Covid, everything we use in our daily working environment has gone up. We use a lot of large bar stock in 7.5 to 9.5 inch diameter, in lengths up to 36 feet.
Three years ago, we were paying on average 75 cents a pound got 1022 hot rolled, rough turned. On average now, we are paying $1.30 a pound. When considering how many tons we use a year, that is a substantial amount of operation money.
Tooling might be worse. We use large end mills up 2 inches in diameter. Anything from 1 inch to 2 has close to doubled in price in three years. The large threading inserts and turning inserts we use have increased about the same amount. Add to that you have to keep them on back order so you will not have to wait when you need to resupply.
The cost of insurance, electricity, natural gas, oxygen, acetylene, welding rod, submerged arc Stainless Steel Welding wire, flux, everything involved in daily production has gone up substantially .
And then there is labor. We have to pay the top wage in our field just to keep our men, and keep them happy. Most people who are not involved with the actual running of a business have no idea what it cost just to employ some one that is good enough at what they do so you can actually make enough profit from the billing rate to continue keeping the doors open.
I don’t see an end in sight in todays political climate. Far too many people simply do not care to work, and far too many want more in salary than you could ever make to meet that demand.
We employ 15 men now. We are darned lucky to have them.
our employment package is this. Out top machinist, we have three, make $55 an hour straight time. Overtime is of course time and a half and sometimes double time. We give seven paid holidays, two weeks paid vacation, we furnish the men’s health insurance, uniforms, and match his 401K.
All of this just to keep them.
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