We'd need new feeders for the P-n-P machine. Not a huge deal but they're having too many problems now. When we start using any real FPGAs 0402s will come with them. I've already been warning them. ;-)
We're a small company and up until recently, very seasonal (almost all income was in a three-month window). I'm told the worry was a that large, more "important", customer might bump our production at a CM. A month late and we wouldn't be set back a month but a year. The company couldn't survive that so we build our own; insurance.
The problem is that it's *low* volume and very seasonal. If we did a couple hundred systems a year it was a lot. We've recently added higher volume products (still only 2-5K per year) in a year-round market. This helps the production situation but the original market/products still have the same issues.