TAC,
FYI...the Krause retail gun shop in San Mateo, CA has a sizeable machine shop below the retail shop...along the ground floor. Krausewerk occupies a 2-story L-shaped apartment building, built in the 1950's or 1960's that was converted to his gun/trade business. I would guess the original apartment building had 15-18 units, originally.
I would guestimate that the machine shop and storage areas have 8,000 sq. ft. or so and looks like it is a full service machine shop for the gun trade. Other machinist(s) work along side Krause as well.
Considering several if not many .45 Luger pistols and .32 ACP Baby Lugers have been made by Krausewerk since the 1980's...it may be considered a 'factory'...IMO.
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