So where was this machine shop they partner with?
They use a manufacturer in China for the raw components and do the finishing work (sanding, painting, installing, etc.) here in the USA.
Why when stated the money will get the parts built to cut lead time that it is taking so long now, when they got 4x the amount they needed to work with this machine shop to produce the items?
First off, having X amount of money over a goal doesn't mean that the process of building parts moves that much faster. Having that many orders above their expectations slowed them down by three to four months.
Imagine your business is scaled to make 20 products (P) a week. Suddenly you have an order for 10,000P and you don't have the necessary manpower or factory space to increase your weekly production of 20P. Then there's a movie released that makes people very interested in P which increases the weekly orders of P from 20P to 100P. You now have a demand of 100P
a week plus the 10,000P single order.
You then make plans to expand your manufacturing space plus hire and train 30+ new employees to make P. The ordering/building of the new manufacturing space takes several months and getting OSHA to sign off on it takes another month or so on top of that. Now that you have your manufacturing space you can hire and train new employees some who, inevitably, will wash out in the first few weeks and you'll have to start the hiring process again which will slow down production. While you've been building the manufacturing space your 100P orders a week have been racking up so much that you've closed one of your online shop fronts on etsy to slow down the number of orders coming in and you're now getting an additional 70P instead of 100P ordered a week.
So. You're now ready to start working on that 10,000P order but you have an enormous backlog of P orders from months of increased interest. So you get to work on both simultaneously on both sets of P orders. You're now almost five months behind schedule and while you may have received alotta money you didn't have the capital available months earlier to have all the manufacturing space and new hires prepped to be ready to go once your overseas supplier, who wanted the money upfront, ships you the raw parts. You now are running several weeks behind your projected lead times with your regular P orders and several months behind on the 10,000P order. Your hopes for reducing lead times across the board are dashed for the time being until such a time that you've managed to catch up.