Thomas Machining Inc. Uses SBA Support to Modernize and Diversify
SBA and resource partners support helped Thomas Machining Inc. in Texas complete a complex ownership transition, invest in new technology, and pursue higher-value markets.
Thomas Machining shows how an established machine shop used trade experience, SBA-connected financing, and technical assistance to strengthen its operations, grow its team, and build for the future.
Start with a mission
The Thomas family launched Thomas Machining Inc. in the early 1980s to serve industrial and railroad customers with precision parts and repair work. Owner Judd Thomas began working in the shop at 14, learning the trade during summers and holidays before building a career in machining and shop management.
Thomas later ran Dallas-area shops, gaining experience in operations, technology, efficiency, and crew leadership. When the opportunity arose to return to Thomas Machining, he brought that experience back to strengthen the business and prepare it for a more technology-driven manufacturing environment.
“I’ve spent my whole life in this shop and in this trade, so when there was a chance to come back and rebuild Thomas Machining, we were going to give everything we had to make it work.” – Judd Thomas
Access to SBA capital
Thomas returned to a complicated ownership structure involving multiple interests and trusts. The arrangement made conventional financing difficult, especially because lenders were hesitant to finance partial ownership interests and related real estate.
He began purchasing shares with personal funds while improving sales and developing a business plan that demonstrated the company’s potential. But completing the transition required a lending partner that understood the business, the property, and the ownership arrangement.
“Working with the Small Business Development Center and SBA gave us the partner we needed. They understood our situation and helped connect us with a lender who could see the strength of the business and support the transition.” – Judd Thomas
The Small Business Development Center and SBA staff connected Thomas with a lender in Waxahachie. An SBA-backed financing structure supported the ownership transition and gave Thomas Machining a more straightforward ownership model.
Results of SBA support
With ownership stabilized, Thomas focused on operations. The shop had long served hydraulic and railroad customers, but capacity and staffing were limited. He set targets for sales growth and efficiency, assigned work to better match employees’ skills, and asked established customers where his team could take on more responsibility.
He also moved in advanced machines he had purchased personally, expanding the shop’s ability to perform complex work. Over roughly 18 months, Thomas Machining grew from two or three employees to about 10 full-time staff members, plus weekend staff. Thomas said annual sales reached roughly three to five times the previous owners’ average levels during that period.
“We’ve been very blessed to put together the right crew at the right time, and seeing them match the opportunity with effort is what makes these numbers possible.” – Judd Thomas
Thomas and his wife reinvested in equipment, certifications, and employees. The company began moving toward a four-day operating schedule to support retention and provide employees more predictable time away from work.
The company also diversified beyond traditional construction-related work by adding aerospace and defense projects. Thomas Machining earned ISO 9001:2015 and AS9100 aerospace certifications, joined the OASIS supplier database, registered for ITAR, and is pursuing additional CMMC cybersecurity certifications to compete for defense work.
Market conditions
Changing market conditions have created new opportunities for Thomas Machining. Thomas said tariffs and supply-chain shifts have prompted more customers to consider U.S.-based manufacturers when quality, responsiveness, and reliability matter. That trend has generated more conversations around onshoring and higher-value work for domestic machine shops.
“The tariffs and supply-chain shifts have created real onshoring opportunities for shops like ours, and that gives us a chance to keep building our capabilities and taking on higher-value work.” – Judd Thomas
Thomas is preparing to meet that demand through equipment, workforce development, and aerospace and defense certifications. At an SBA awards event, he connected with businesses and began discussions about potential subcontracting opportunities. Those relationships help guide Thomas Machining’s next investments in technology, certifications, and talent.
Final thoughts
Thomas sees the company’s progress as the result of a lifetime in machining, operations, and team building. SBA-connected financing and SBDC assistance helped solve a difficult ownership challenge, while investments in people and technology created a stronger operating foundation.
For manufacturers facing ownership or financing barriers, Thomas’s experience shows the value of a clear operating plan, technical assistance, and the right lending partner. His focus remains on disciplined growth, workforce support, and the specialized capabilities needed to compete in higher-value manufacturing markets.