Niche Guides & Deep Dives
Contracting Opportunities for Precision Machine Shops
If you run a precision machine shop, you already know how competitive the manufacturing industry can be. Finding new contracting opportunities isn’t just about marketing; it’s about understanding where to look, how to compete, and how to build solid relationships. In this post, we’ll break down the main avenues you can explore to grow your business through new contracts and contracts that can provide steady work and revenue.
Understanding the Types of Contract Opportunities
1. Government Contracts
Many small and mid-sized machine shops find lucrative opportunities by working with federal, state, or local government agencies. These contracts often involve manufacturing parts for defense, transportation, or infrastructure projects.
How to find them: The best place to start is SAM.gov, where all federal contracting opportunities are posted.
Key tips: Register your business in SAM, get your D-U-N-S number, and ensure your NAICS codes are accurate—these are the classifications that tell agencies what kind of work your shop can do.
2. Prime Contractor Subcontracts
Large companies often subcontract smaller shops to deliver parts and components. This is a great way to secure steady work without the hassle of going after government bids directly.
How to identify opportunities: Join industry groups, attend trade shows, and network with prime contractors that work in your niche.
Tip: Establish relationships with primes before a bidding process, so they keep you in mind for future projects.
3. Industry-Specific Manufacturing Contracts
Many industries, such as aerospace, medical devices, or automotive, have specialized needs that require precision machining. Being certified and familiar with industry standards can open doors for contracts in these sectors.
How to pursue these: Obtain necessary certifications (ISO, AS9100 for aerospace, etc.), and get listed in supplier directories such as SAE International for aerospace or Manufacturers' News.
Strategies for Winning Contracts
1. Build a Strong Capability Statement
Your capability statement is your business resume—highlight your equipment, certifications, past projects, and unique strengths. Keep it clear, concise, and tailored to each opportunity.
2. Network and Build Relationships
Attend trade shows, industry events, and local manufacturing meetups. Relationships matter. Personal connections can give you a competitive edge in winning contracts.
3. Make Competitive Bids
Research what similar shops charge and understand your costs thoroughly. Offer realistic, competitive pricing, and always factor in profit margins.
4. Ensure Quality and Compliance
Meeting industry standards and certifications improves your credibility. Clients want to work with reliable shops that deliver quality parts on time.
Resource Links
Small Business Administration (SBA) - Resources on government contracting
Final Thoughts
Contracting opportunities for precision machine shops are there if you know where to look and how to prepare. Focus on building relationships, maintaining high-quality standards, and understanding the needs of your target industries. These efforts can help turn your shop into a trusted supplier with a steady stream of work.