Engine builders...this machining cost sound excessive?

Economists are not equipped to figure this out... they don't run businesses.... so you're good! LOL

What you say in your 1st paragrpah is true about my local shop... I need to post a picture of the outside.... you'd think it was abandoned years ago, until you spot the newish Sunoco Race Fuel pumps and tank.. LOL. The one difference is there is no need to be so careful with electricity.... you live in the high tax NE. And you can build your own buildings here.

Business startups come in all sizes and approaches.. so your 2nd paragraph may be true or may not. What you describe is an investors'-like startup, but it can be done in other ways. I started my business small and built it up, and did things with used equipment and not getting the latest fancy stuff. I lot of it has to do with the owner's skills.... my local machinist, if he needs a tool, just grabs some tool steel and makes it. Cheaper and faster for him to get things done. Not everyone takes that approach, or is satisfied with just 'making a living'. The company up in the next county has the latest gee-whiz automated block machine.. costs a LOT to get a block square decked there for a walk-in customer.