While OEMs hire seasoned professionals, they often outsource sheet metal manufacturing, since it is more economical for certain companies. They may also outsource welding, machining, metal finishing and assembly as well.
Here are five ways a sheet metal company helps cut costs:
1. Lean Manufacturing Cuts Costs and Waste
Using lean manufacturing techniques can enormously cut costs and waste by emphasizing raw materials. Developing a relationship with a contract supplier can help lower material costs.
2. Find Appropriate Supplier Programs
You can gain broad marketing insight by working with suppliers that recommend improvements for specific products. Seasoned experts understand how to streamline metal manufacturing services. Look for suppliers who offer stocking programs that allow flexibility based on market conditions.
3. Shipping Reductions
Your supplier may have ideas for reducing shipping costs, such as cutting the number of trucks in a shipping fleet. Keeping up-to-date with efficient containers also helps cut costs.
4. Expertise in Production Efficiency
Another key factor in determining your supplier should include their expertise in making production as efficient as possible. They should be able to recommend innovative systems such as automation services to help generate the greatest output for the lowest cost.
5. Recycle Your Scrap
Scrap metal can be recycled for money. It helps when the material can be used over and over again. Common metals that can be recycled by a sheet metal manufacturing factory include copper, steel, aluminum, brass and iron. Non-ferrous metals such as copper retain more value than ferrous metals like steel at scrap yards.