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Securing competitive pricing in today’s market isn’t difficult - it’s borderline impossible if you don’t know how to play the manufacturing game strategically.

Yet at the end of 2025, we delivered something exceptional for one of our customers:

👉 We secured 2023-level CNC pricing — despite two years of inflation, rising material costs, and increased labour overhead.

To understand why this matters, let’s look at the landscape buyers are fighting:

The Reality Check: What Actually Happened Between 2023 and 2025

Manufacturing Inflation

From 2023 to 2025, UK manufacturing input inflation has risen 8–12% depending on sector.

Energy-driven cost spikes in 2024 pushed machining overhead rates up across the board.

Material Cost Increases

Aluminium: +6–8% since early 2023

Mild steel & stainless: +5–7% on average

Tool steels and nickel-based alloys: +10% at peak points

Even with some dips in Q2 2025, the overall trend remains upward.

Labour Costs

The 2024 and 2025 budgets pushed:

Higher National Living Wage

Increased employer NI burden

Sector-wide wage corrections to retain machinists

Net effect: Most CNC shops have increased hourly machine rates by 5–15%.

Under normal conditions, a 2025 quote should land noticeably higher than a 2023 equivalent.

And yet, our client paid effectively the same.

**So How Did We Pull This Off?

The Truth: It Wasn’t Luck. It Was Strategy.**

1. Machining Strategy Review (Biggest Lever)

When we analysed the original 2023 parts, we realised:

They were programmed for a different type of machine.

Therefore tool engagement was conservative.

We shifted the work to a supplier running a machine more suitable for this typ of work, which allowed:

Single-op machining

shorter cycle times

Better spindle utilisation

This optimisation alone neutralised 4–6% inflation impact.

2. Batch Optimisation & Call-Off Planning

We redesigned the sourcing model:

Annualised demand

Larger batch machining

Quick decision making to utilize idel capacity

Outcome:

Setup time amortised

Shop willing to give favorable rate

Lead time improved without increasing cost

This counterbalanced another 3–5% of expected inflation.

3. Supplier Ecosystem Leverage

Because TrueNorth works with great ISO-certified suppliers, we had options.

Some shops:

Needed spindle utilisation

Had idle capacity

Wanted channel stability

We matched the part to a shop whose machine availability + technical fit + strategic motivation aligned perfectly.

This shaved the final 4–7% off the quote.

The Result

In a market where CNC costs “should” have risen 10–18% since 2023…

👉 We brought the customer back to 2023 pricing 👉 Without compromising quality 👉 Without pushing unrealistic margins onto the supplier 👉 And while securing a stable pipeline for the shop

This wasn’t about squeezing suppliers. This was about engineering intelligent procurement strategy.

Why This Should Matter to Procurement & Supply Chain Leaders

Because it proves something important:

Inflation doesn’t automatically mean higher prices. It means you need smarter sourcing.

You can beat inflation if you:

Understand machining

Optimise batches

Improve call-off patterns

Know how machine strategies drive cost

Work across an ecosystem, not a single shop

Use should-cost logic to anchor negotiations

This is the new game buyers need to play in 2026.

If you want to explore whether this approach applies to your parts, I’m happy to walk you through the exact strategy we used in 15 minutes.