I have been on both sides of this decision. I have set up in-house gun drilling operations and I have sent work to specialized shops. Both are the right answer in different situations.

The decision comes down to four factors: volume, diameter, depth, and how much your time is worth.

When In-House Makes Sense

In-house gun drilling works best when the conditions are right for it. Here is what I look for:

High volume of similar parts. If you are drilling the same hole in the same material every week, the setup cost amortizes fast. At 500+ parts per year of the same configuration, in-house is usually cheaper.

Diameters over 6mm. Small diameters need high coolant pressure (1500-3000 psi). If your holes are under 6mm, the equipment cost for high-pressure coolant goes up and the break-even volume goes up with it.

Moderate L/D ratios under 100:1. Longer holes need more machine rigidity, intermediate supports, and tighter alignment. These are all achievable in-house, but the setup complexity increases.

You already have a suitable machine. If you have a CNC lathe or mill with through-spindle coolant and good rigidity, the incremental cost of adding gun drilling capability is relatively low — a booster pump, a coolant inducer, and tooling.

When to Send It Out

Sending gun drilling to a specialized shop is the right call more often than most shops admit.

SituationWhy Outsource
Under 100 parts per yearSetup and tooling cost per part is too high
Diameters under 3mmHigh-pressure coolant requirements exceed typical shop capability
L/D over 200:1Specialized machines and operator experience matter
Exotic materials (Inconel, titanium, 17-4 PH)Tooling cost and parameter optimization require experience
One-off or prototypeMachine setup time exceeds the actual drilling time
Tight straightness (under 0.1mm/m)Alignment and setup precision of dedicated machines is hard to match

The cost of a scrapped part is higher than the cost of outsourcing, especially for expensive materials. I have seen shops spend $3000 on tooling and setup to drill 50 parts that would have cost $400 to send out.

Cost Comparison Framework

I use a simple cost-per-hole calculation to compare in-house vs outsourced:

In-house cost per hole = (Tooling cost per hole) + (Machine cost per hour x cycle time) + (Operator cost per hour x cycle time) + (Scrap rate x part value)

Outsource cost per hole = (Quoted price per hole) + (Shipping cost per part) + (Lead time cost)

The key variable most shops miss is the scrap rate. A 5% scrap rate on a $500 part adds $25 per hole that does not show up in the direct cost calculation.

FactorTypical In-HouseTypical Outsource
Cost per hole (simple steel)$3-8$5-15
Cost per hole (exotic material)$15-40$10-25
Setup time per job2-8 hoursNone (quoted)
Scrap rate2-10%0.5-2%
Lead timeImmediate2-4 weeks

These are general ranges. Actual numbers vary significantly by location and volume.

The Hybrid Approach

The approach I recommend most often is hybrid: send the difficult work out and bring the routine work in-house.

Keep In-HouseSend Out
High-volume standard partsSmall diameters (under 3mm)
Simple materials (steel, aluminum)Exotic materials
L/D under 100:1High L/D over 100:1
Loose tolerances (0.2mm+)Tight tolerances (under 0.05mm)

This lets the shop build experience on the easy jobs before taking on the hard ones. I have seen several shops start by sending out 100% of their gun drilling, then bring the routine jobs in-house after a year.

What I Tell Shops Asking for the First Time

If you are considering gun drilling for the first time, my recommendation is:

  1. Send the first 50 parts out. Learn what gun drilling looks like when it works correctly. Establish a baseline quality level.
  2. Take notes on what the outsource shop does. Ask about pressures, feeds, tool life. Most shops will share this information.
  3. Do an in-house trial on a simple job. Start with a 10-15mm hole in 4140 steel at 50:1 L/D. This is the sweet spot for learning.
  4. Scale up gradually. Add one new diameter or material at a time. Do not try to gun drill titanium until you have 100+ hours of experience on steel.

This phased approach avoids the most expensive mistake: buying equipment for a process you have never run.

Key Takeaways

  • In-house gun drilling pays off at 500+ parts per year of similar configuration.
  • Outsource small diameters (under 3mm), exotic materials, and high L/D ratios — these need specialized equipment and experience.
  • Include scrap rate in your cost comparison. A 5% scrap rate on expensive parts can make outsourcing cheaper.
  • The hybrid approach — outsource the hard jobs, bring routine jobs in-house — works best for most shops.
  • Send the first 50 parts out before buying equipment. Learn the process before investing in it.