MSP Boosts Profits 20% with AI-Powered CNC Software

MSP Manufacturing in Bloomington, Ind., produces precision parts for the aviation industry, including cases, clamps, cooling vents, and switch guards. These parts require sub-millimeter precision and are traditionally made using CNC (computer numerical control) machines. However, the shortage of skilled CNC operators in the United States poses a significant challenge. Programming one part into a CNC machine can take from an hour and a half to an entire day, creating a bottleneck in production.

At an aviation trade show in England, MSP’s president and chief operating officer, Johnny Goode, discovered AI-powered software that could program a CNC machine to make a part in just seven minutes, significantly reducing the time required. This software, developed by CloudNC, a London-based startup, automates the programming of CNC machines, addressing the critical challenges of labor shortages and the need for faster, cheaper production.

The skills crisis in U.S. manufacturing is severe, with an aging workforce and a lack of interest from younger generations. A 2024 analysis estimates that 1.9 million manufacturing jobs could go unfilled by 2033 due to skills shortages, particularly in CNC operations. The roots of this crisis are deep, with nearly 70% of the machinist workforce over the age of 45 and young people perceiving the sector as unsafe and incompatible with flexible working arrangements. Training a new CNC programmer takes years, and mistakes can be costly.

CloudNC’s cofounder and CEO, Theo Saville, hit upon the idea for the company while working on a human-powered submarine project at the University of Warwick. The long lead times for manufacturing metal components and the requirement for extensive training to operate CNC machines inspired him to develop AI software that could automate the process. CloudNC’s solution uses a combination of small AI models, each trained to solve specific subproblems, working in tandem with standard software programs. The software analyzes a digital three-dimensional engineering drawing of a part and develops the specific instruction set for the CNC machine to execute the strategy.

Obtaining data to perfect these AI models is challenging, as the know-how for making new parts exists only in the minds of human CNC operators. CloudNC operates a small manufacturing operation in Essex to capture data and improve its software. The company has seen significant growth, with sales increasing from zero to multiple millions in just over a year, and has received about $78 million in venture capital funding. CloudNC’s goal is to achieve “one-click manufacturing,” where a customer could go directly from design idea to finished product in minutes or hours, instead of days or weeks.

MSP’s Goode notes that CloudNC has enabled the company to use its CNC machines more efficiently and deploy its human CNC programmers more productively. The software has allowed MSP to compete for orders that require rapid turnarounds, which the company would not have been able to fulfill before. By charging a premium for delivering rush orders, MSP has increased its profit margins. CloudNC’s solution has the potential to help American manufacturers close the looming skills gap and ensure that more things get “Made in America” again.