The High Cost of Innovation

Where has all the innovation gone?

I know there is some innovation out there especially if you've got the budget for it but what about affordable innovation for the small business owner? Has anybody taken notice of the high shop rates that we are all paying now?

Today in New Mexico, shop rates for a good quality machine shop are $80 - $120/hour!!!

Ouch!! That hurts when you are trying to R & D a new product for your small business.

I started working at a small Engineering company back in Michigan in 1996 and the shop rates were $40/hour. Machinist wages were $12 - $25 DOE. Today shop rates are through the roof and machinists are still being paid $12 - $25/hour. What happened? I know that machinery is more expensive along with electricity and other overhead but not enough to double shop rates.

I think its time to rethink your tool room machinery. Instead of outsourcing R&D I think that R&D machining needs to move back in house where it belongs. How are we supposed to pull ourselves out of this ugly economy with innovation if it costs $200 for a custom made screw?

Something to think about.

Andy