Crownwick Advances, a small-business funding service in Lancaster, PA, arranges funding for machine shops, fabricators, food producers and printers: equipment financing for CNC and production machinery, working capital for long customer payment terms, and inventory financing for materials. Manufacturing had the largest payroll of any sector in Lancaster County, PA in 2023.
| Manufacturing employers, county | 1,035 (CBP 2023) |
|---|---|
| Manufacturing payroll | About $2.63 billion |
| Fabricated metal shops | 200 shops; 5,778 on payroll |
| Food manufacturers | 147 plants; 8,697 on payroll |
| Printing companies | 49 employers |
| Payment estimate | CNC machine calculator |
The manufacturing cash cycle
A manufacturer buys material, turns it into product with expensive machines and paid labor, ships it, and then waits. Business customers may pay on 45, 60 or 90-day terms, and larger customers can set the terms. Meanwhile the steel, resin or ingredients were bought on 30-day terms and the machines carry monthly payments. Growth widens the gap: a new contract means more material and more hours before the first invoice is paid.
Capital equipment is the other defining feature. A CNC machining center, a press brake, a fiber laser, a packaging line or a printing press is a large, specialized purchase that will run for many years.
Lancaster County, PA manufacturing in the Census counts
Manufacturing had 1,035 employer establishments in Lancaster County in 2023 and employed 40,080 people, second only to health care's 43,316, with the county's largest annual payroll, about $2.63 billion (County Business Patterns 2023). Only 33.0% of manufacturers had fewer than five employees.
| Group | Employers | Employees | Annual payroll |
|---|---|---|---|
| Fabricated metal products (incl. machine shops) | 200 | 5,778 | About $410.8 million |
| Food manufacturing | 147 | 8,697 | About $531.0 million |
| Printing and related support | 49 | 2,309 | About $141.2 million |
Source: CBP 2023. Separately, 1,677 manufacturing businesses had no payroll in 2024 (Nonemployer Statistics 2024), a different program and year.
CNC machine financing and manufacturing equipment financing
CNC mills and lathes, machining centers, press brakes, lasers, welding cells, packaging lines and presses secure their own financing. New machines from a dealer come with a dealer quote; used machines can be financed with an inspection, hours or spindle-time records, and sometimes an appraisal. Tooling, installation, rigging and training may be included in the financed amount if they are on the quote.
Estimate a payment with the CNC machine payment calculator, which takes the price, down payment, a quoted rate and a term. Our post on financing a metal or machine shop in Lancaster County, PA covers return on a new machine and how leasing works.
Working capital for manufacturing
Long customer terms are one reason a profitable manufacturer can run short. Working capital sized to the receivables cycle, or a line of credit, covers payroll and material between shipping and collecting. Inventory financing can fund raw material or finished goods for a large order.
Manufacturing needs and the funding usually discussed
| Need | Usually discussed |
|---|---|
| CNC, press brake, laser, packaging line | Equipment financing |
| Payroll and material during long customer terms | Working capital |
| Raw material for a large order | Inventory financing |
| Plant layout changes, new building fit-out | Term loan |
A hypothetical new contract
Illustration only, not an offer: a 15-person machine shop wins a production contract for an equipment maker, paid net 60. Bar stock and tooling cost $34,000 upfront, extra labor runs about $9,000 a week, and parts ship over eight weeks. Before the first payment the shop carries roughly $106,000 of material and labor. The new contract also needs a second machining center quoted at $185,000, which belongs on equipment financing, not in the working capital request.
Business loans for manufacturing: what partners review
- Bank statements, receivables aging and customer concentration
- Purchase orders or contracts from customers
- Machine quotes, and for used machines, inspection or hours records
- Machines already under a lien and what is owed on them
- Time in business and personal credit
Local business support organizations are listed in the Lancaster County small business resources guide. County data is on the Lancaster, PA data page.
By Crownwick Advances · Updated
