It depends on volume made and the cost of the machine Jason. The bigger heavier stuff is rather expensive and needs to be run for most of the available time to get the costs down. Day shift and night shift style.
That's the problem for companies like Myford were. They would have to ask themselves if they recovered the cost of the plant would they sell all of the lathes. There can be other problems too that make things more expensive. Say 5 beds could be made in the time that it takes to machine up 1 headstock. Stupid example but what to do then – set up to make 5 headstocks to match the rate the beds come off.
Really stupid example because it's doubtful if both of these could be made on the same machine.
So what can happen is some million quid gets spent probably on lease hire and machines are left sitting around doing nothing at times. The costs still have to be recovered.
In some cases where castings are involved a company might switch to machining from solid. More expensive than the castings in volume making the parts more expensive but they may also have a machine lying about that isn't fully utilised and could choose to sell the parts at the same price to keep it occupied. Or simply charge more.
John
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