Shaping Metal, Cutting Costs

Shaping Metal, Cutting Costs

Having worked closely with metal fabrication companies, we know that in the world of metal fabrication, keeping up with demand and tight margins can be a constant struggle. While traditional cost-cutting tactics like negotiating per-part prices might seem appealing, they often overlook bigger-picture savings, including those related to energy consumption. In this article we look at how to get the most out of working with metal fabricators, and what measures metal fabrication companies can take to help keep costs low.

Strategies for Long-Term Savings with Energy Efficiency in Mind

Here are key strategies to adopt a cost-avoidance mentality in metal fabrication, while keeping an eye on your energy bill:

• Early Design Choices: By exploring designs that minimise material usage and optimise production processes, you can reduce the overall energy required for fabrication.

• Exploring Alternative Production Methods: While upfront costs for processes like roll forming might seem high, they can be well worth it for high-volume production runs, especially if they involve less energy-intensive processes compared to traditional methods. Evaluating long-term cost-per-unit reductions, including energy consumption, can help justify the initial investment.

• Tooling Cost Amortisation: Partnering with a fabricator offering tooling cost amortisation allows you to spread the investment over time, minimising the immediate financial burden. This facilitates adopting high-volume production solutions without impacting cash flow, potentially leading to less energy-intensive production runs.

• Optimising Inventory Management: Holding excess inventory not only ties up capital but also incurs storage and labour costs, and often requires additional energy for climate control. Consider outsourcing inventory management or implementing just-in-time delivery systems to ensure a steady supply without unnecessary inventory costs and the associated energy consumption for storage.

• Smart Scheduling for Energy Savings: Many energy providers offer time-of-use billing, where electricity costs fluctuate depending on peak demand periods. Work with your metal fabrication partner to explore scheduling production runs during off-peak hours to take advantage of lower electricity rates. This can significantly reduce your overall energy expenditure.

The Power of Strategic Partnerships with a Focus on Energy Efficiency

Beyond cost-per-part negotiations, metal fabrication sourcing can be a springboard for building sustainable supplier relationships with a focus on energy efficiency. Partnering with the right metal fabricator can unlock significant cost savings and efficiency gains, including reductions in energy consumption. Here's how:

• Access to Advanced, Energy-Efficient Technology: Partnering with a fabricator that invests in cutting-edge, energy-efficient equipment and processes allows you to leverage their technology without the upfront investment. This can lead to improved product quality, reduced material waste, faster production times, and lower energy consumption. Look for fabricators that utilise technologies like LED lighting, variable-speed drives on motors, and efficient heating and cooling systems.

• Streamlined Production Processes with Energy Savings in Mind: The right fabrication partner can analyse your needs and suggest alternative materials, processes, or even design changes that optimise production efficiency, reduce costs, and minimise energy consumption. For example, they may recommend using lighter weight materials or processes that require less heat.

• Inventory Management Solutions with Reduced Energy Footprint: Working with a partner who offers just-in-time inventory management systems can eliminate the need for your own storage facilities and personnel, freeing up valuable resources and potentially reducing your energy footprint.

By adopting a cost-avoidance approach, building strategic partnerships with a focus on energy efficiency, and implementing smart scheduling practices, metal fabrication companies can move beyond short-term savings and achieve long-term financial benefits. This proactive strategy not only reduces costs but also encourages innovation, enhances product quality, and improves overall competitiveness.

For metal fabrication companies looking to reduce their energy spend, a trusted energy broker can be a valuable asset. A broker or energy advisor can help to navigate unit rates and types of contract, identify energy-efficient equipment and practices, and connect them with resources to optimise their energy consumption.  Resources such as our free Guide to Lowering Energy Costs for Manufacturing companies (https://www.seemoreenergy.co.uk/manufacturing-lower-costs-guide). 

If your business requires any further advice with its energy procurement, management, or planning, then don’t hesitate to contact Seemore Energyto speak to experienced advisors who can help you with bespoke strategies and advice that is tailored to your needs.