If you are careful yes. Doing job shop work (making other peoples parts) is hard to make a good profit as people expect overseas dumping rates.
The real profit comes from making your own products, as then you can force competition to also build their own factory to compete. By having lean production we can have a very large part catalog without having large amounts of inventory for low sales velocity parts.
We have at least a hundred variants that may only sell a dozen or two $100 parts per year, but they only cost us a line in the catalog to maintain the SKU. Since the products are for industrial use, most of our customers like the fact that we have in some cases been making the exact same part for nearly 30 years, which encourages them to design our products into theirs as we never discontinue products, so they don’t have to re-engineer theirs (our products in turn get used in machinery that might have a 10-100 unit/year global market).
The real profit comes from making your own products, as then you can force competition to also build their own factory to compete. By having lean production we can have a very large part catalog without having large amounts of inventory for low sales velocity parts.
We have at least a hundred variants that may only sell a dozen or two $100 parts per year, but they only cost us a line in the catalog to maintain the SKU. Since the products are for industrial use, most of our customers like the fact that we have in some cases been making the exact same part for nearly 30 years, which encourages them to design our products into theirs as we never discontinue products, so they don’t have to re-engineer theirs (our products in turn get used in machinery that might have a 10-100 unit/year global market).