Finding your Niche

The CNC machining industry is poised for significant growth in several key sectors. Lets chat

about two of them.

Automobile

The global electric vehicle market has experienced exponential growth in recent years, and

experts forecast that this will only accelerate. According to various market research firms, the

global EV market size is expected to grow at a compound annual growth rate (CAGR) of over

20% between 2023 and 2030.

 From 16.5 million in 2022 to 56 million by 2030: The International Energy Agency

(IEA) has estimated that by 2030, electric vehicles could make up more than 30% of the

total global vehicle fleet. This would represent significant growth from 16.5 million EVs

sold globally in 2022.

 Increase in Market Share: The percentage of EVs in total vehicle sales is expected to

rise dramatically, with some estimates projecting that over 50% of all new cars sold

globally could be electric by 2030, depending on regional government incentives and

infrastructure development.

With increased production costs and supply chain disruptions in China, U.S.

automakers are ramping up EV manufacturing, backed by government incentives, a

rising demand for sustainable transportation, and significant investments in

infrastructure. Companies like Tesla, GM, and Ford are expanding their EV production

capacity, while startups like Rivian also gain traction. As consumer demand for electric

vehicles grows, the U.S. could become a central player in the global EV transition,

potentially positioning itself for an "EV takeover" by capitalizing on trade shifts and

leveraging domestic manufacturing advantages. However, challenges such as securing

raw materials and competition from other markets must still be navigated for success.

How can your small machine shop capitalize on this opportunity?

A small machine shop could benefit significantly from the shift toward electric vehicles

(EVs) in several ways. As automakers and suppliers invest more in EV manufacturing,

they will require precision parts and components for batteries, motors, and other critical

systems, which presents a growing demand for custom-machined parts. Small machine

shops with the capability to produce high-quality, specialized components could tap into

this market, offering parts such as electric motor housings, battery enclosures, and

precision drivetrain components. Additionally, the increasing complexity of EV designs

means manufacturers will need more intricate, custom solutions that larger companies

may not be as agile in producing, providing an opportunity for small shops to become

vital players in the supply chain. Furthermore, as the U.S. expands its domestic EV

manufacturing base, small machine shops can position themselves to partner with local

manufacturers, benefiting from reduced import dependency and a growing local

demand for parts. By diversifying their offerings to include these new EV-related

products, small machine shops can not only stay competitive but also thrive in a rapidly

evolving industry.

Motorsport

The rise of electric vehicles (EVs) in the motorsport industry presents a significant

opportunity for small machine shops to expand their capabilities and tap into a rapidly

growing market. As motorsport teams and manufacturers increasingly embrace electric

powertrains for performance racing, the demand for precision components related to

electric batteries, motors, and drivetrains is expected to rise. Small machine shops with

the ability to produce specialized parts such as high-performance battery enclosures,

lightweight motor housings, and custom drivetrain components can become key

suppliers to the motorsport sector. With the complexity and customization needed in

motorsport EV technology, smaller shops can provide agile, highly specialized solutions

that larger manufacturers may struggle to deliver. By positioning themselves as trusted

partners in the evolving EV motorsport industry, small machine shops can not only

diversify their customer base but also stay at the forefront of technological

advancements in electric performance engineering.