Precision manufacturing

Operation profile

Precision manufacturing is a process-related concept, rather than being defined by specific industry definitions or products. Applications that require precision manufacturing exist in many industries and operations, including aerospace (aircraft parts and engines), R&D (laboratory and testing equipment), and automotive (auto engine parts), among others.

The representative operation modeled is a small-volume manufacturer of high-value metal products with very low tolerance (e.g., a producer of precision components, casings, and housings). As detailed in the following table, this operation is characterized by:

  • Relatively small land and building requirements, and moderate equipment requirements
  • A workforce consisting almost entirely of highly skilled operators
  • Modest energy requirements
  • High costs for materials, reflecting the high value of alloys used in production.

The business is assumed to operate as a stand-alone profit center.
 

Summary of operating parameters

Industry: Precision manufacturing

Operation: Precision component manufacturing

Facilities requirements
   Owned industrial site - acres (8,094 m2)
2
   Size of factory - ft2 (2,787 m2)
30,000

Other initial investment requirements
   Machinery and equipment - US $'000
$14,800
   Office equipment - US $'000
$200
   R&D equipment - US $'000
-- 
   Inventory - US $'000
$2,400
   Equity financing - % of project costs
50%

Workforce
   Management
3
   Sales and administration
3
   Production/non-dedicated product development
      - Professional, technical
8
      - Operators
54
      - Unskilled laborers
1
   Other
1
 
Total employees
70

Energy requirements
   Electricity: monthly consumption demand - kWh
187,500
   Gas: monthly consumption - CCF (21,246 m3)
7,500

Other annual operating characteristics
   Sales at full production - US $'000
$33,000
   Materials and other direct costs - % of sales
58%
   Other operating costs - % of sales
2%
   Investment in tax-eligible R&D - % of sales
1.2%

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Precision manufacturing
Operation: Precision components
North America – lowest cost cities
Country and CityIndex & Rank1
CAFredericton, NB92.13
 Barrie, ON92.14
 Quebec City, QC92.25
 Montreal, QC92.26
 Moncton, NB92.37
MXMonterrey, NL89.41
 Mexico City, DF91.02
USShreveport, LA96.334
 Montgomery, AL96.635
 Savannah, GA96.636
 Nashville, TN96.637
 Gulfport-Biloxi, MS96.638
 New Orleans, LA96.739
 Baton Rouge, LA96.740
 Lexington, KY96.741
 Atlanta, GA97.044
 Mobile, AL97.045
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide94.524
 Brisbane95.732
 Melbourne94.323
 Sydney94.725
FRMarseille95.026
 Paris95.128
GEBerlin96.842
 Frankfurt96.843
ITMilan95.127
 Rome95.631
JPOsaka95.630
 Tokyo95.529
NLAmsterdam93.721
 Rotterdam93.720
UKLondon96.233
 Manchester92.912
1  Rank among 111 featured cities.

 
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