9 Ways to Reduce Sheet Metal Fabrication Costs

Sheet metal fabrication can be a very cost-effective means of production – assuming you do it right.

If you’re sourcing sheet metal parts or thinking about it in the future, read on to see how to optimize costs from design to production. Additionally, implementing comprehensive strategies for manufacturing cost reduction can significantly enhance operational efficiency.

Understanding Manufacturing Costs

Manufacturing costs are the backbone of any production process, encompassing all expenses incurred to create a product. These costs are typically divided into three main categories: direct labor costs, direct material costs, and overhead costs.

Direct labor costs refer to the wages and benefits paid to employees who are directly involved in the manufacturing process. These are the hands-on workers whose efforts transform raw materials into finished products. Direct material costs, on the other hand, include the expenses for raw materials, components, and other supplies essential for production.

Lastly, overhead costs cover indirect expenses such as rent, utilities, and equipment maintenance, which are necessary to keep the manufacturing operations running smoothly.

Understanding these manufacturing costs is crucial for making informed decisions about pricing, production, and investment. By analyzing these costs, companies can pinpoint areas for cost reduction and improvement, ultimately boosting profitability and competitiveness. 

Streamline Design for Manufacturability (DFM)

Ever heard of the saying, “Less is more”? Well, it’s a golden rule in sheet metal design.

The more straightforward your design, the smoother the fabrication process goes. Implementing lean manufacturing principles can further streamline the design process and reduce costs by addressing inefficiencies.

Limit Custom Specifications

Standard sheet sizes, thicknesses, and grades are your friends. While making a unique piece with custom dimensions is tempting, remember that every custom spec can increase the price tag.

Stick to the basics whenever possible.

Efficient Nesting and Layout

Maximizing the use of material through efficient nesting reduces waste.

By considering this during the design phase, you ensure that material utilization is optimized, leading to cost-effective quotations and production.

Utilize Standardized Hole Sizes and Corners

Utilizing standard tool sizes for features like holes and corners can expedite production and reduce costs. Designing with these standardized sizes ensures efficiency without unnecessary tool changes or setups.

Opt for Common Materials and Finishes

Selecting widely available materials and finishes can be a significant cost-saving measure. While unique materials offer distinct advantages, they often come with a premium. Ensure that the chosen materials align with the product’s requirements and budget considerations.

Aluminum is especially popular on the MakerVerse platform for many applications, as it offers a good balance of low cost and excellent properties.

Factor in Tolerances

Precision is critical in sheet metal fabrication, but over-specifying tolerances can escalate costs. Familiarize yourself with the standard tolerances and design with these parameters to balance precision and cost. At MakerVerse, the standard minimum wall thickness is 0.5 mm, but it depends on the material and geometry.

Supply Chain Optimization

Supply chain optimization is all about enhancing the flow of goods, services, and information from raw materials to the end customer. In the realm of manufacturing, optimizing the supply chain is vital for reducing costs, improving efficiency, and ensuring customer satisfaction.

Several strategies can help achieve supply chain optimization. Implementing just-in-time (JIT) inventory systems, for example, can significantly reduce inventory costs and improve responsiveness to customer demand. Streamlining logistics and transportation can cut lead times and lower costs, while building strong relationships with suppliers can lead to better prices and improved quality.

Collaborate and Seek Feedback

We’re ready to help. Our engineering experts have decades of experience combined. They can help you uncover opportunities for further cost savings and design improvements.

Consolidate Parts and Orders to Optimize Supply Chain

Ordering multiple components simultaneously or merging several designs can reduce both setup and shipping costs. Consolidation can lead to economies of scale, ensuring cost-effectiveness throughout production. Additionally, consolidating parts and orders can help reduce manufacturing costs by streamlining processes and minimizing waste.

Energy Efficiency and Sustainability

Energy efficiency and sustainability are increasingly critical for manufacturing companies, not just for environmental reasons but also for cost management. Energy costs can be a significant part of manufacturing expenses, and reducing energy consumption can lead to substantial savings and improved profitability.

There are several strategies to enhance energy efficiency and sustainability. Implementing energy-efficient equipment and processes is a primary step. This might involve upgrading to more energy-efficient machinery or optimizing existing processes to use less energy. Encouraging behavioral changes and engaging employees in energy-saving practices can also make a significant difference.

Start Saving on Sheet Metal Fabrication

By being mindful of these strategies, designers can ensure that the transition from a design file to production is seamless and economically optimized. 

When paired with an on-demand manufacturing platform like MakerVerse, sheet metal fabrication presents unique cost savings and efficiency opportunities.