How much does a CNC Machine Shop cost to buy?

A typical CNC Machine Shop sells for 2.8x to 4.4x annual revenue. With average revenue of $1.2M, expect to pay $3.4M to $5.3M.

How much does it cost to start a CNC Machine Shop?

Startup costs range from $250K to $2.0M depending on location, equipment, and scale.

Physical

CNC Machine Shop

Q: What are the profit margins for a CNC Machine Shop?

The average profit margin for a CNC Machine Shop is around 22%. Main costs are machinist labor, raw materials, tooling, machine maintenance, rent, metrology and QA, software, and utilities. Returns depend on machine utilization, setup efficiency, and avoiding rework.

Precision parts, ugly websites, and customers who care more about tolerances than branding

CNC machine shops produce precision components, prototypes, tooling, and short-run parts for industrial and commercial customers. BizBuySell's machining and tooling benchmarks show median revenue of $1.09 million, median owner earnings of $269,438, and average earnings multiples of 3.45x, with 2025 buyers often paying at or above asking price. The surprising angle is that a shop with a few sticky OEM relationships and underutilized machines can become a quiet cash generator with real strategic value to larger buyers.

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Avg Revenue

$1.2M

Profit Margin

22%

Acquisition Multiple

2.8x - 4.4x

Startup Cost

$250K - $2.0M

Difficulty

5/5

How It Works

Customers send drawings or CAD files, the shop quotes the job, programs CNC machines, sources raw material, and produces parts to specification. Revenue comes from repeat production runs, prototyping, tooling, and rush jobs. Shop value rises with customer diversification, machine utilization, QA systems, and the ability to keep tribal knowledge in process docs instead of the owner's head.

Revenue Range

Low End

$500K

Typical

$1.2M

High End

$4.0M

Pros

+Sticky B2B customers once quality and lead times are proven
+Asset base creates a real moat in local markets
+Can win higher multiples than many Main Street businesses
+Strategic buyers care about capacity, certifications, and customer relationships

Cons

-Heavy capex and maintenance burden
-Skilled machinist recruiting is tough
-Customer concentration and project cyclicality can be dangerous

Best For

Operators or buyers who understand industrial sales, process discipline, and capex planning

Operating Costs

Main costs are machinist labor, raw materials, tooling, machine maintenance, rent, metrology and QA, software, and utilities. Returns depend on machine utilization, setup efficiency, and avoiding rework.