As the owner of Kremin Inc., I’ve spent the past two decades working with clients in the energy industry, ranging from oil and gas OEMs to renewable energy startups. We’ve machined everything from turbine housings and valve bodies to precision fittings used in hydrogen systems. In that time, I’ve learned that when it comes to energy sector manufacturing, CNC machines are both a powerful asset and a calculated decision.
While CNC (Computer Numerical Control) machining brings a lot of advantages to the table, it’s not a one-size-fits-all solution. Some processes and parts still benefit from alternative methods, depending on the application, volume, and materials involved.
In this blog post, I’ll break down the pros and cons of using CNC machines for energy industry manufacturing, drawing from real-world experience and insight gained at Kremin Inc.
The Pros of Using CNC Machines in the Energy Sector
1. Tight Tolerances for High-Stakes Components
Energy systems are high-pressure, high-temperature, and often high-risk. Whether you’re producing hydraulic control components for oil rigs or impellers for geothermal systems, tolerances matter.
CNC machines excel in delivering high-precision components. At Kremin, we routinely hold tolerances tighter than ±0.0005 inches for energy-sector customers. For applications involving fluid or gas containment, thermal cycling, and mechanical load, this level of precision is non-negotiable.
Bottom line: CNC gives energy manufacturers peace of mind, knowing every part will perform exactly as engineered.
2. Material Versatility
The energy industry demands parts made from a wide variety of materials—from Inconel and Monel in oil and gas to titanium and aluminum in renewables.
CNC machines are built to handle it all. With the right tooling, feeds, and speeds, we can machine virtually any industrial alloy, even high-temperature and corrosion-resistant superalloys.
For example:
- We machine Duplex stainless steel for subsea applications.
- We work with PTFE and other polymers for insulation and gaskets.
- We’ve even machined composite hybrid materials for advanced battery systems.
The flexibility of CNC equipment allows energy manufacturers to use exactly the material needed for the job, without compromise.
3. Rapid Prototyping and Low Volume Production
Energy innovation moves fast. From fuel cell development to carbon capture systems, engineering teams need prototypes fast—and often in small batches.
CNC machining is ideal for:
- One-off proof-of-concept parts
- Small-batch custom flanges
- Pilot-run mechanical housings
At Kremin, we often support R&D departments by delivering functioning prototypes within days. That kind of speed and agility is nearly impossible with casting, forging, or injection molding.
4. Durability and Ruggedness in the Field
Parts used in the energy industry must withstand harsh environments: corrosive chemicals, high pressure, abrasive materials, or massive temperature swings. Precision machining ensures critical surfaces and sealing areas are dimensionally accurate and stress-free, which extends the part’s lifespan in the field.
CNC also allows us to implement stress-relief processes and optimal surface finishes, which directly reduce the risk of fatigue failure or corrosion cracking.
5. Automation and Cost Savings Over Time
Energy manufacturers are always looking for ways to reduce labor costs and improve throughput. Modern CNC setups, especially multi-axis and Swiss-type machines, enable automated production with minimal operator intervention.
At Kremin, we run lights-out production on some energy sector parts, leveraging bar feeders and in-cycle probing. These savings—both in time and labor—add up fast and provide a strong ROI for companies willing to invest in CNC capability.
The Cons (or Limitations) of CNC in Energy Industry Manufacturing
1. High Initial Investment
There’s no sugarcoating it: CNC machines are expensive. A high-end 5-axis mill can run upwards of $500,000 once you add tool holders, fixtures, and CAM software. For manufacturers without a steady stream of precision work, that’s a hard pill to swallow.
Even subcontracting to a CNC shop involves costs—engineering hours, setup fees, and prototype revisions all add up. For certain low-precision parts or high-volume simple components, cheaper methods like casting or extrusion may make more financial sense.
2. Long Setup and Programming Time
Unlike manual machining or forming, CNC requires detailed programming. Complex components often take dozens of hours of CAD/CAM work before the first chip is even cut.
At Kremin, we’ve invested heavily in reducing setup times using modular fixturing and tool libraries, but the fact remains: if you only need 10 parts, the setup time might outweigh the benefit.
For example, if you’re building infrastructure like transmission towers or oilfield skids, CNC may be overkill for many structural components.
3. Not Ideal for Extremely High Volumes
Energy sector projects sometimes require tens or hundreds of thousands of identical parts—think utility-grade switchgear components or pipeline fittings.
At those volumes, casting, stamping, or injection molding can be significantly more economical, especially once tooling is amortized. CNC excels in medium to low volumes and high-mix work, but it’s rarely the most cost-effective option for ultra-high volume production unless tolerances demand it.
4. Waste Material
CNC machining is a subtractive process, meaning we start with a block of raw material and cut away everything that isn’t part of the final design. This can be highly wasteful, especially when working with expensive alloys like titanium or Inconel.
Although we recycle nearly all of our chips at Kremin, there’s still material loss. Compared to net-shape processes like additive manufacturing or casting, CNC machining can sometimes have higher material costs and waste.
5. Skilled Labor Shortages
Operating CNC machines requires trained machinists, programmers, and setup technicians. In many parts of the country, including here in Michigan, there’s a shortage of skilled labor.
Even though CNC machines automate much of the process, it still takes human expertise to:
- Select proper tooling
- Write efficient code
- Troubleshoot issues
- Maintain quality control
For energy companies looking to vertically integrate, this means investing not just in machines but in people.
When CNC Makes Sense—and When It Doesn’t
To help you decide whether CNC is right for your energy manufacturing needs, here’s a simple framework we use at Kremin when advising clients:
| Scenario | Use CNC? | Why/Why Not |
| Low-volume or prototype component | Yes | Fast turnaround, flexibility, no tooling needed |
| High-precision flow control or sealing part | Yes | Critical tolerances and surface finishes are required |
| Structural steel frames or brackets | No | Cheaper and faster to use welding, stamping, or cutting |
| High-volume standardized connectors | Maybe | Injection molding or casting may be more economical |
| Exotic materials or corrosive environments | Yes | CNC excels in machining superalloys and specialty metals |
Final Thoughts: It’s Not CNC vs. Non-CNC—It’s CNC Where It Counts
At Kremin Inc., we don’t see CNC machining as the answer to every problem. We see it as a surgical tool—ideal for complex, critical, and high-precision components that are common in the energy sector.
For parts that live in the mud, sand, heat, or pressure, the accuracy and repeatability of CNC ensures better safety, performance, and reliability. For innovation-driven companies trying to get from prototype to production, it offers agility and confidence.
But we also recognize the value of forging, stamping, forming, and additive manufacturing, especially for parts that don’t require such tight tolerances.
In the end, it’s about choosing the right process for the right part at the right time.
If you’re in the energy industry and trying to figure out how CNC fits into your manufacturing strategy, we’d be happy to help. Whether it’s a one-off prototype, a production run of precision parts, or a consultation on manufacturability, Kremin Inc. is ready to bring our expertise to your challenge.
Want to see how CNC machining can benefit your energy project? Reach out to us today or schedule a tour of our facility.