How to Reduce Sheet Metal Fabrication Cost? 10 Ways

What is Sheet Metal Fabrication? 

To fully understand the cost related nuances of sheet metal fabrication, it helps if we understand its basics and manufacturing process.

Definition

In simple terms, sheet metal fabrication is a process of turning flat sheets of metal into three-dimensional structures. It involves cutting, bending, and assembling. In modern manufacturing, it is a critical process that converts sheet metal into PC chassis or highly sophisticated components of a fighter jet.

How Does Sheet Metal Fabrication Work

Did you know that every car body you see on the road was once a giant roll of sheet metal? A hydraulic press applies a massive force onto the sheet metal to form its final shape in 2 to 3 seconds. The deep drawing process creates complex, curved 3D structures like car doors or fenders.

Advanced CNC fabrication processes, like the laser combi-head technology, combine cutting and welding in one setup. It performs with tight tolerances in dimensions as low as ±0.025mm. All of these processes are called sheet metal fabrication.

The metal sheets are typically 6mm or thinner, which are converted into functional parts. Designers or clients may provide CAD files to the sheet metal fabricator to create prototypes for testing or produce objects in high-volume. Depending on the level of accuracy and precision required in the final product, cost can scale quickly. It brings us to the big question: how can you optimize your designs to save money?

Key Sheet Metal Fabrication Cost Components 

Before we dive deep into the cost reduction techniques for metal fabrication, lets understand the cost components that add up to the final price tag. There are two major components:

I. Material Cost Calculation

The material holds a large chunk of your overall cost of sheet metal fabrication. Typically its around 40% to 60%, depending on the process. The basic formula for the calculation of material cost is:

Total Material Cost=Sheet Area * Thickness* Density* Price per kg/Material Utilization Rate

To reduce the material cost, you need to analyze the following factors:

● Avoid Overdesigning with Metal Type and Grade

● Design Part to Work with Reduced Thickness

● Sourcing Smartly

● Improve Material Utilization Rate Through Nesting

Real World Example: A 304 stainless steel sheet with 1m x 2m x 2mm dimensions costs $5/kg. The full sheet weighs 32 kg based on its density. However, with 85% utilization rate, the actual cost per usable portion reaches $188.24 before processing. For advanced calculation, we can factor in the scrap resale value or recycle credits, offsetting 5-10% of material spend.

II. Processing Cost Breakdown

After we have the material cost estimation, the next cost comes from fabricating the part. The processing of sheet metal is fundamentally a calculation of time. Here is the formula:

Processing Cost=Machine Hourly Rate  Runtime

Every second that the technician works on a piece or the machine is running adds to the cost of the final product. The cost is added stage wise:

● Laser Cutting: It costs between $80 to $130 per hour, and the time taken to laser cut depends on the thickness of the part and its geometrical complexity.

● Bending: It costs $40 per hour. The number of bends and non-standard radii means more time is required for bending and tool swapping.

● Welding and Assembly: It is the most expensive part as it requires skilled labour to do the job. The heat can distort the sheet metal part. If possible, design your part with chapter options like stitch welding, spot welding, or mechanical fastening.

● Finishing and Hardware: Powder coating, anodizing, or passivation scale cost depends on the total surface area and automation of the facility.

● Overhead and Tolerances: Hidden costs of sheet metal fabrication may include setup time, custom tooling, QA, and additional time due to tight tolerances.

10 Ways to Reduce Your Sheet Metal Fabrication Cost

Reduction of cost requires early design optimization through identifying over-engineered portions, standardizing the process, balancing material performance, using automation, and tracking scraps and reworks. Lets analyze these aspects through 10 ways to reduce the cost of sheet metal fabrication:

1. Optimize Your Design for Manufacturability

As we mentioned earlier, the time taken to produce a sheet metal piece is directly proportional to the cost. Therefore, optimizing the design for manufacturability (DFM) can drastically reduce the cost. Here are some tips for optimization:

● Reduce bends, holes, or curves that require extra tooling or slower cutting speeds.

● Opt for standard radii and flat patterns to speed forming and reduce scrap.

● Eliminate welded pieces by using bent forms for fewer joints and assembly steps.

● Study CAD model in detail to flag producibility issues before production begins.

● Pre-calculate bend bulge in thicker sheets to avoid rework.

2. Choose Cost-Effective Materials and Gauges

The more we standardize the process and workpiece, the cost starts to reduce. For corrosion resistance, stainless steel is ideal, but it comes with a high cost. Go for mild steel with galvanization or other coatings for non-corrosive applications. Look for aluminum at places where lightweight metal is required. Aluminum is easier to ship and cuts faster. Balance sheet gauge with design requirements. A thinner gauge can be low cost but may require additional stiffening.

3. Enhance Nesting Efficiency to Minimize Scrap

Use nesting software to enhance the utilization of material by 70% to 90%+. It matches the parts just like the game Tetris on sheets, reducing waste. Group jobs with identical thickness to share material runs and cut shared edges where possible. Review possible scrap production before production starts to save material. Finally, recycle or sell scrap to offset costs.

4. Select Laser Cutting for Precision and Speed

Utilize CNC laser cutting machines for extreme precision. Laser machines offer narrow kerf, edges without burr, and automation, which greatly reduces machining time. They are ideal for complex cutting, which reduces the cost associated with deburring or grinding separately.

5. Standardize Bend Radii and Orientations

Plan your part design ahead of time to ensure that all the bends are in one direction to reduce the requirement to change the die. Ensure that all bending can be performed with a single bend radii. Simplify the design by reducing the number of bends and angles for faster brake pressing operation. Account for the spring back phenomenon of metals to avoid rework.

6. Reduce Welding and Assembly Requirements

As mentioned earlier, welding adds significant numbers to the final price tag. Reducing the multiple welds to a single weld can reduce extensive labor requirements. Go for low-cost self-clinching fasteners or rivets instead of continuous fillet welds on thin sheets. Welding on a thin sheet can cause distortion, leading to material wastage and rework.

7. Apply Tolerances Selectively

Tight tolerances are challenging for manual and automated work. Easing tolerances drastically reduces the cost of cutting and forming operations. The time taken at the inspection stage also reduces significantly. It's best to consult with fabricators to see which dimensions will truly be challenging to maintain tolerances in. Get your design reviewed before booking an order.

8. Scale Up to Batch or Volume Production

Look for large volume production as it impacts multiple aspects of cost. It spreads the fixed setup and programming expenses across more units, often yielding a 20-30% price drop. Sheet metal fabricators offer discounts and optimized sheet nesting for larger volumes. For identical parts, the stamping process outshines all others. Automated stamping ensures consistent quality with a minuscule increment in cost.

9. Incorporate Standard Hardware and Features

Ever had a hard time finding the right screw size for some part you need to fix at home? It's probably due to the non-standard size. Using off-the-shelf hole sizes, fasteners, and PEM-style inserts does not require custom tooling, thus reducing cost. Standardize corner radii and cutouts to match common punch/die inventory. Integrate pre-fab components to reduce lead time. It's like Toyota and Honda using the same part across multiple car line-up within their brand.

10. Collaborate with Experts Early for DFM Advice

Involving the expert sheet metal fabricators in the early stages of design can result in optimized material, process, and tolerance that prevent costly revisions. You get access to cost drivers specific to laser, bending, or stamping before final CAD lock-in. Through real world production knowledge of the experts, you get equipment-tailored layout optimizations for long-term efficiency.

Why Partner With BERGEK CNC for Cost-Effective Sheet Metal Fabrication

When implementing the 10 proven strategies to reduce sheet metal fabrication costs, partnering with BERGEK CNC means the execution of these strategies to provide significant savings. Because we have no minimum order quantities and full scalability, making a single prototype for proof of concept is as easy as ramping up to mass production. Our efficient machining and forming processes cut down on material waste and shorten cycle times. The result is a lower cost per part on every project.

Our 9,000 m2 Shenzhen facility is fully vertically integrated, so every step from laser cutting, bending, and stamping to heat treating, coating, and secondary operations happens under one roof. This gives us complete control over tolerances and quality.

Before any metal is cut, our engineers perform Design for Manufacturability (DFM) reviews on your CAD files to prevent costly trial-and-error. The outcome is reliability and predictability: with more than 15 years of experience across multiple industries, we've already solved challenges like yours. That's how we help protect your timelines and your budget, every time.

Conclusion

Reducing sheet metal fabrication cost starts with smart design and then goes to an efficient process. Finding a strategic partner is the way to reduce costs without compromising on quality. Implementing the 10 ways as mentioned in this article, such as nesting optimization, selective tolerances, volume scaling, and more, buyers can reduce expenses by 15 to 30%.

Focus on laser machining process, standardized bending, and high-volume stamping techniques to ensure repeatable savings across all projects. Collaborate early on with a partner that can maximize these savings through experience and expertise.

Visit https://www.bergekcnc.com/sheet-metal-fabrication-service or explore their laser cutting parts, sheet metal stamping parts, and sheet metal bending parts to start your next cost-effective project today.

FAQs

Q: What has the biggest impact on sheet metal fabrication costs?

Material is usually the largest cost driver. It often accounts for 40-60% of the total, and that's before you add the processing time for cutting, bending, and finishing. On top of that, poor nesting or too many welds can push the costs up even further.

Q: How can I calculate material cost accurately?

A common way is to use: (Area x Thickness x Density x Price per kg) / Utilization rate

You can get more realistic numbers by accounting for scrap and standard sheet sizes.

Q: Does higher production volume always reduce the price per part?

In most cases, yes. As volume goes up, your setup and tooling costs are spread over more parts, so the per-part cost drops. Stamping, in particular, can deliver very large savings once you get into the hundreds of units and beyond.

Q: Can laser cutting actually save money compared to other methods?

Often it can. Laser cutting produces cleaner edges, which can eliminate or greatly reduce deburring. It also runs at higher speeds, which cuts labor time, and it tends to generate less waste, improving material utilization.

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