Locked-In Pricing: Why Blanket Orders Are a Great Tool in Uncertain Markets

Blanket orders are a critical tool for many buyers, ensuring predictable pricing, efficient volume, and guaranteed capacity. At Focused on Machining, we specialize in contract manufacturing services, including blanket orders in areas like aerospace machining.

This year’s regulatory uncertainty has made both buyers and machine shops hesitant about long-term commitments, but we think this moment presents an excellent opportunity for customers. If you’re concerned about the potential for rising costs, locking in pricing now through a well-structured blanket order could be a major win.

Learn how our collaborative approach to blanket orders and negotiations can help you secure the pricing stability and manufacturing capacity your business needs.

Collaborative, Open Negotiations Lead to Success

Negotiations aren’t always the most enjoyable aspect of manufacturing, but they’re essential to creating a win-win setup for everyone involved. We welcome open discussions about blanket orders, believing that every option is on the table to help find the best possible arrangement. That’s because we understand different factors matter most to different businesses.

If competitive pricing is your primary concern, blanket orders are an ideal solution. You’ll gain the cost advantages of large-scale production without the burden of large shipments. Getting the best possible pricing requires give-and-take on both sides, identifying areas where both sides can find beneficial terms. Ultimately, as a manufacturing partner focused on our customer experience, our goal is to understand your requirements and find the best path forward.

Strategic Approaches to Managing Material Costs

Material pricing is a significant challenge in today’s market, as pricing has risen at points during this year and uncertainty remains. As a result, some shops now shy away from blanket orders as they struggle to find vendors who will guarantee stable pricing.

At our Colorado machine shop, we take multiple approaches to this issue. First, our large network of trusted vendors often allows us to find suppliers for long-term commitments, even in today’s landscape. These partnerships give us leverage to secure competitive pricing that many shops or individual buyers can’t achieve.

Alternatively, some of our partners opt for upfront material purchasing in their blanket orders. This approach locks in current pricing, while we handle storage at our facility. An added benefit is that, with materials on hand, we can often accelerate your production schedule if your demand surges unexpectedly.

Flexible Payment Terms for Better Pricing

Risk directly influences our pricing structure, and that’s why customers who agree to more favorable payment terms will often see significant cost reductions. In a recent negotiation with a large space and defense contractor, for instance, our customer agreed to Net 15 payment terms. By reducing our financial risk, we were able to offer significantly lower prices per part.

The Benefits of Early Delivery

There are countless other areas that many of our customers often focus on to secure greater cost savings. Early delivery of contracted parts can benefit both our shop and the customer, depending on the situation.

Early delivery reduces your prices by allowing us to optimize scheduling, minimize setup costs, and reduce expenses from external processing and shipping.

Let’s Tailor a Blanket Order to Your Needs

Every aspect of our blanket order agreements is negotiable. If you’re seeking the stability and predictability that these structures offer in uncertain times, we’re committed to finding the terms that will work best for your business.

The strategies above represent just a small sample of how we can help customers achieve their goals. We’re always open to discussing any contract element where flexibility can help to create value for both our shop and our partner.

Ready to explore how a blanket order can benefit your business? Request a quote today to start the conversation with our Colorado contract manufacturing shop.

Focused on Machining Is the Perfect Tier One OEM Supplier

Every year, we conduct a customer survey to ensure we’re meeting customer expectations in areas like communication, quality, and delivery. In our most recent survey, the responses were positive across the board, with nearly every customer segment satisfied. One customer segment stood out with particularly strong feedback: tier-one OEMs.

Find out why so many aerospace and defense OEMs find Focused on Machining to be a reliable, nimble, and competitively priced partner for their precision machining needs.

Built to Act as a Tier-One OEM Supplier

Every customer in every industry values our precision machining capabilities and excellent quality—it’s the reason most first approach us. However, tier-one OEMs have specific requirements that we’ve built our operation to efficiently meet, including:

Quality Requirements

Our full quality department includes a dedicated quality manager and inspectors. We maintain tight tolerances and quickly verify accuracy, ensuring consistent results that meet strict OEM standards.

Lights-Out Machining

Our lights-out capabilities reduce OEM lead times by maximizing our production schedule. This automated approach allows us to maintain our competitive edge in both speed and pricing.

Critical Certifications

Our certifications make us an ideal tier-one OEM supplier. We are AS9100 certified, ITAR-registered, and nearing our final steps toward CMMC compliance. These credentials streamline audits by new customers and demonstrate our total commitment to quality.

Complex Documentation

With our suite of digital tools, we simplify the process of delivering complex paperwork required for tier-one OEM projects. Our ERP system generates all AS9102s, and every work order receives documented FAI in AS9102 format.

Supplier Diversity and Service-Disabled Veteran Status

Focused on Machining is a certified Service-Disabled Veteran-Owned Small Business (SDVOSB), helping tier-one manufacturers to meet the requirements of FAR regulation 19.201 and supporting their supplier diversity goals.

Cybersecurity

OEMs must protect sensitive data, and our CMMC efforts demonstrate our commitment to cybersecurity. We take every precaution to keep your data safe, because we know it’s critical to your operations.

Expertise in Exotic Materials

As an AS9100 machine shop, we’re experienced with a variety of challenging materials critical to the aerospace and defense industries, from titanium machining to Inconel and beyond.

The Benefits of a Small Shop as a Tier One OEM Supplier

Many OEMs may assume that partnering with a smaller shop means sacrificing certain capabilities, but it’s simply not the case. Our size is actually a strength when serving tier-one manufacturers. 

At our size, we can still be nimble and adaptable, keeping costs down without ever sacrificing quality. In contract negotiations, for instance, we have flexibility to meet OEMs halfway because of our streamlined structure. Our deep supplier relationships allow us to go through trusted vendors for the best possible prices. 

Many larger shops solve problems by adding layers of staff, but we leverage technology to stay lean. That allows for greater responsiveness and transparency both internally and externally, and ultimately lower costs that we pass on.

With this structure, we’re well-suited to partner with tier-one OEMs like:

• Lockheed Martin

• RTX Corporation (formerly Raytheon)

• Northrop Grumman

• Boeing

• General Dynamics

• Blue Origin

• SpaceX

Your Next Project Starts Here

With our advanced capabilities, essential certifications, and efficient operations, we are an ideal manufacturing partner for tier-one OEMs who need quality parts at competitive prices. From tight tolerance machining to handling exotic materials, we’re ready to tackle your challenging projects.

Request a quote and experience how easy manufacturing can be with our Colorado machine shop!

How to Select a Future-Ready Manufacturing Partner

When you’re evaluating a manufacturing partner, there’s a long checklist to consider, from precision machining capabilities to certifications to quality control systems. These criteria often appear in audits or new customer interviews, and we’re proud to meet stringent requirements in all of these areas.

But once the boxes are checked how do you evaluate what can’t be captured in a spreadsheet?

For example: In an industry facing an aging workforce and growing concerns about succession planning, how can you trust that your partner is built to last and positioned to keep improving?

At Focused on Machining, we believe future-readiness is just as important as technical precision. By embracing evolution in all areas of our operations, we help our customers achieve greater efficiency, lower costs, and optimize their project timelines. And not just for the short term. 

So how do we keep hitting today’s targets—while preparing for tomorrow’s challenges?

Staying Connected: NTMA and Industry Involvement

Our owner, Justin Quinn, has long been a passionate advocate for the value of NTMA—he served as treasurer in the local Rocky Mountain Tooling & Machining Association (RMTMA) prior to owning Focused on Machining, helping manufacturers better understand their banking options. 

Since acquiring FOM, his involvement has only deepened. Justin served as RMTMA president for three years, and now acts as vice president and trustee. These leadership roles keep him closely attuned to the latest manufacturing trends, from machining best practices to operational strategies. His industry involvement ensures he stays immersed in the innovations shaping the manufacturing landscape—and brings those insights back to our shop floor to benefit both customers and employees.

Through NTMA, Justin also gains national-level insights into policy decisions and legislation that shape our industry. Their expert guidance on tariffs, tax incentives like Section 179 depreciation, and R&D credits directly impact our shop’s economics—and by extension, the pricing and options we can offer our customers. 

Our CMMC certification efforts have been directly influenced by NTMA. While others have had to be reactive, NTMA informed us of the importance of CMMC early on, allowing us to plan and adjust well in advance. While many shops haven’t even begun the process, not yet understanding the long road ahead of them. This type of forward-thinking preparation gives our company and our customers a real edge.

Always Learning: Tradeshows and Industry Events

We invest heavily in staying up to date with new technologies. And that means not just researching online, but attending in-person events, as well. As you think about choosing a manufacturing partner, it helps to understand why staying active in the industry matters.

Our team has attended every International Manufacturing Technology Show (IMTS) for the past decade. IMTS is an important business trip, where we can demo technologies firsthand, ask detailed questions, and make smarter investments in our shop’s capabilities.

We also participate in user conferences, such as Paperless Parts’ annual event. These conferences allow us to learn best practices directly from a platform’s creators and swap advice with other shop owners. Fellow users have offered us insight in their custom setups that we can leverage to improve our own usage. That guidance shows up in our fast quoting, smooth operations, and quick part turnaround for our customers. 

One Unique Advantage: A Background in Banking and Military

Focused on Machining also benefits from Justin’s uncommon background. After serving in the military working on aircraft, he worked in banking and got his MBA before ultimately purchasing a CNC machine shop. 

This combination of technical and financial expertise benefits our customers in unique ways. When we work with defense contractors, for instance, we understand the full lifecycle of a military project, and can offer guidance to help optimize every stage—all the way through CNC production machining.

Or when economists at national NTMA conferences present forecasts of the coming years, Justin’s background in banking allows him to speak their language. He can translate that into real world advice for our customers. If a busy year is coming, we alert customers so they can take advantage of better pricing or plan production ahead of time more strategically.

How Do You Choose a Manufacturing Partner Wisely? Start With the Tangibles - But Don’t Stop There

Some shops might hesitate to take on these “extracurricular” activities—they might see it as taking away from their short-term efficiency. We see it differently.

Investing in knowledge and relationships ensures we stay future-ready, a critical aspect you must consider as you evaluate and select a manufacturing partner. We know our customers want a machine shop that is not only efficient today but will stay with them through tomorrow’s challenges. And that’s why we always keep an eye to the latest trends in our industry.

Request a quote from our Colorado machine shop to partner with a shop that’s built for the long haul!

Contract Manufacturing Services: 4 Critical Questions to Ask Before You Commit

Contract manufacturing offers significant advantages for companies that need consistent part production over an extended period of time. These agreements can reduce costs by offering customers pricing at scale and minimizing administrative tasks. 

However, the cost savings of contract manufacturing can disappear quickly if you don’t choose the right precision machine shop as a partner.

At Focused on Machining, we’ve structured our business to support reliable, long-term partnerships. If you’re evaluating contract manufacturing services, here are four essential questions to ask to be sure your partner has accounted for every detail.

Question 1: How Do You Maintain Quality Documentation For Large Orders?

When shops run blanket orders, they often produce parts in large batches to maximize efficiency. This approach to custom CNC machining reduces costs, but it can also create documentation challenges, especially when parts undergo secondary processes like plating. 

If a shop produces 300 parts at once but delivers them in multiple shipments over several months, they need a proper system to maintain accurate quality documentation for every part.

Our approach: Our ERP system allows us to segregate documentation by delivery lot, even when working in large batches. Every shipment you receive includes precisely matched quality documentation. This setup allows us to easily track parts through production and quickly respond to your questions about the status of upcoming deliveries in your contract manufacturing services agreement.

Question 2: How Do You Track And Isolate Potential Issues?

If a quality issue arises, it’s critical that the affected parts be quickly identified. However, many shops do not have systematic methods for tracking exactly which parts may be affected by a quality concern. Without proper lot segmentation and documentation, a single issue could require unnecessary rework of months of production.

Our approach: Our systems enable clear traceability. We can quickly determine the specific subset of parts that were affected by quality concerns through our detailed records of materials, processing, and inspection.

Question 3: What Happens If We Have Design Revisions?

While contract manufacturing services typically involve mature, stable designs, engineering changes are sometimes still necessary. Without clear policies for handling revisions, these changes can lead to disputes over inventory and pricing with your CNC machine shop, or even production delays. 

Our approach: We address revision management upfront in all long-term agreements. If customers ask us to hold inventory, we clarify who assumes responsibility if revisions occur. This keeps communication clear and protects both parties from unexpected costs.

Question 4: How Do You Handle Material Pricing Fluctuations?

Today’s manufacturing landscape faces a great deal of uncertainty, and potential material price changes are a source of risk in long-term agreements for CNC machining services. Without proper planning, a significant fluctuation in the price of aluminum, for instance, could destroy the financial benefits of these arrangements.

Our approach: We offer several strategies to reduce your material pricing risks. If you prefer total price stability to eliminate all risk, we can discuss purchasing and paying for all required material upfront. A second option is to offer pricing bands, with pricing adjustments if material costs go outside of these limits.

The Benefits of Our Long-Term Agreement Structure

At Focused on Machining, we’ve designed every detail of our systems and processes to ensure you get the maximum benefit from our long-term agreements. We aim for transparency, risk management, and clear communication to build a strong partnership over the duration of the agreement—and beyond.

Request a quote today to start contract manufacturing services with a Colorado machine shop that’s already thought through all of the “what-ifs” upfront!

Industry Spotlight: Partner With a Veteran-Led Aerospace and Defense Machine Shop

At Focused on Machining, we’re proud of our work as an aerospace and defense machine shop because it’s personal for us. 

Our owner, Justin Quinn, spent six years in the United States Air Force, serving around the world as a C-17 aircraft mechanic. Now, Justin is passionate about supporting the men and women behind every mission in his work leading a CNC machine shop.

We support the aerospace and defense sectors with high-quality, tight-tolerance machining backed by critical certifications, extensive documentation, and a veteran’s commitment to excellence.

Precision and Documentation: The Foundation of Aerospace Machining

In aerospace and defense, precision isn’t optional—it’s critical. Faulty parts can compromise an entire mission, and that’s why customers in these industries not only have extremely high standards, they demand clear documentation to ensure quality and compliance at every stage.

Our shop leverages ProShop ERP to ensure complete transparency and traceability throughout every aspect of manufacturing. From material certifications to calibration logs to inspection reports, every detail is tracked. When customers need documentation, we’re ready.

Certifications to Meet All Your Requirements

For an aerospace and defense machine shop, certain credentials are non-negotiable. We maintain some of the most important certifications for these sectors:

AS9100 and ISO 9001:2015 Certifications: AS9100 includes all ISO 9001:2015 requirements, along with additional standards for aerospace and defense. Together they demonstrate our commitment to excellence in quality systems for both general and industry-specific projects.

ITAR Registered: We are fully staffed by U.S. citizens and authorized for sensitive defense work.

CMMC Level 2 Compliant: We are ahead of the curve on cybersecurity and will be CMMC Level 2 compliant in the coming months.

Service-Disabled Veteran-Owned Small Business: We’re proud of our veteran-owned status and can provide our customers with official documentation when needed. 

Advanced Machining Capabilities for Precision Parts

Our aerospace and defense machine shop is built specifically to address the challenges of manufacturing for customers in these demanding industries, with capabilities including:

Multi-Axis Machining With Deep Aluminum Expertise

Our advanced multi-axis equipment machines parts with complex geometries in fewer setups, reducing lead times while increasing accuracy and repeatability for custom CNC machining projects. And while our shop works with a variety of materials, our experience with common aerospace options such as 6000 and 7000 series aluminum allows us to machine parts quickly without compromising accuracy.

Assembly Services

We streamline your workflows by delivering completed subassemblies, including performing high-volume rivet installation and installing hardware like nut plates that can be essential to aerospace projects.

Tight Tolerance Machining

Other shops might no-quote jobs with tolerances under +/- 0.0005”, but we’re always ready to meet your specifications. Our skilled machinists and advanced inspection equipment ensure precise results every time.

Streamline Your Projects With Focused on Machining

When we talk to engineers and buyers for aerospace and defense organizations, they often tell us they’re juggling a variety of different vendors: one for tight tolerance machining, one for certain certifications, one for specialized capabilities, and more. At Focused on Machining, we offer all of these in a single precision machine shop, backed by a team that truly understands your mission.

Request a quote to partner with a veteran-led shop with expertise in the aerospace and defense industries!

Finding Extra Value for Trusted Customers With Contract Manufacturing Services

At Focused on Machining, we know that all of our customers are constantly searching for ways to improve their costs without compromising on quality. One strategy we often suggest is to consider our contract manufacturing services.

Recently, for instance, we helped a large space and defense contractor achieve significant savings through a three-year manufacturing agreement. The process of agreeing to final terms required some give-and-take on both sides. Our partner was seeking lower prices, so we identified several areas where we could help them achieve savings if they could simplify the project for us in certain ways. 

Ultimately, when we have a customer relationship built on trust, we can find terms that deliver value to everyone involved through problem-solving and flexibility on both sides. Find out more in this story about our latest contract manufacturing agreement, and learn how we can help set you up for success with your own long-term agreement.

The Basic Benefits of Contract Manufacturing Services

For buyers, there are several key advantages to contract manufacturing services: 

Cost Savings

Cost savings through contract manufacturing stem from economies of scale. Setup expenses are distributed across more parts, tooling remains predictable and consistent, and precision machining operators become increasingly adept with each part. 

Consistent Quality

When you partner with a manufacturer you trust for multiple years of production machining services, you’re able to rest easy—the same manufacturing process will deliver the same quality every time. 

Reduced Administrative Work

Managing multiple suppliers for recurring parts requires constant attention to multiple purchase orders and follow-ups. Long-term agreements significantly streamline these processes.

Decreased Risk

Today’s economic environment includes concerns about tariffs and the potential for pricing volatility that accompanies economic uncertainty. By locking in prices today, you can insulate yourself from future disruptions.

Case Study: Creating a Mutually Beneficial Agreement

This year, a large space and defense contractor approached us requesting a quote for contract manufacturing services on a large package of stainless steel and aluminum parts. After seeing our initial proposal, they indicated they were interested in our services, but wanted to find ways to achieve lower pricing.

Because this was an established and trusted customer, we knew that we could collaborate to find those savings if they accommodated certain adjustments to the project’s structure. We identified incremental cost reductions in a variety of different ways, and to achieve their target price point, we negotiated several key arrangements:

Material Funding

Our customer had a large package requiring many thousands of pounds of material. By agreeing to pay for their materials upfront, our CNC machine shop reduced financial risk, allowing us to offer more competitive pricing.

Early Delivery

Our customer agreed to accept full delivery within a 12 to 18 month time frame, despite our three-year contract. Early delivery allows us the flexibility to optimize our production scheduling as needed, and that efficiency translates to savings for our customers.

Payment Terms

By agreeing to Net 15 payment terms, our customer further reduced our financial risk, enabling us to meet their target price point while maintaining our quality standards.

Building Your Customized Agreement

We successfully achieved our customer’s target price, resulting in a partnership that benefits both organizations. We’re excited about the collaboration and the value it creates for everyone involved.

These three elements represent just a few examples of how negotiation through collaboration can lead to the best outcome possible. However, all negotiations are unique, and the factors involved can vary—but as long as negotiations are built on trust and good faith, we’re always ready to develop solutions that meet everyone’s needs.

Whether you need contract manufacturing services or specialized projects involving aerospace machining for aluminum or tight tolerance machining, we’re ready to help. Request a quote today and let’s discuss how our Colorado CNC machine shop can support your next project.