they have numerous video's on You Tube about how to build a guitar from the neck to the inlays to the body. I would assume they used really sharp razor knives and router type tools (dremel) rather than a mill or lathe. The better guitars, or actually the playable ones, are made with EXPENSIVE machines. If you don't plan on going into business doing this it is much cheaper to have one made for you. Some tools off the top of my head for a primitive setup I know you have to have are, planers and Joiners to get the wood straight,A dry workshop to age and bleed the wood properly, table saw, band saw, drill press(if you want precise holes), a couple of routers (Plunge, table mount & regular hand router plus all the bits), a few templates made to exact specifications for routing and shaping, table belt sander for fine shaping, a few hand sanders (palm,orbital) finish sanding/shaping, all of your usual hand tools(chisle,screw driver,hand drill), jig saw, mitre saw, fret machine (if you want it done right), there are a few specialty tools and jigs also that make the process more exact and easier. Its not impossible to say the least, just getting the basic tools will run a lot, and without the specialty industrial type tools the precision gets hairy. If You want it to sound good or be ornamental is another question. The wood isn't cheap, you have to hand pick it properly and make sure you know what a species behaves like ie..oils,moisture,density,etc.. It is a definite art form that most handy guys fall well short of experienced luthiers. I am a carpenter myself and I can get my mind around the process, but there is SOOO much learned info one has to have to get a worthy finished product that has fine playability and tone. But, you can't be an expert unless you are first green.
Good luck! and if it seems too much some luthiers will do some of the hard/intricate work for you so you can assemble the rest at home.
-JB
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