It doesn’t take a savvy business owner to know that reducing welding costs leads to better profits. What really sets a manufacturing company apart is knowing how to cut costs without cutting corners.
If you are the CEO or Operations Manager, it is your job to create plans and processes that make your stakeholders money. In fact, your job depends on it.
While you may be tempted to just look out for the lowest price tag for parts and materials, we don’t recommend it. Instead focus on cost-cutting practices that don’t compromise your output quality.
In this article, we will discuss the common costs of welding and how you can reduce them.
Costs of Welding
Typical welding costs include the materials to produce your product plus labor. Costs to consider include filler metals, shielding gas, raw materials, equipment, and electrical power.
While on paper this seems easy enough to budget, mistakes can happen which leads to costs adding up quickly.
Common causes of cost overruns:
- Unplanned downtime
- Consumable waste
- Lost labor
- Repairs and rework
- Lack of training
So how can you keep your facility from making these costly mistakes? Keep reading to find out!
8 Tips for Reducing the Cost of Welding
Stop missing out on savings because you think you don’t have enough time to implement new practices. While the more complex initiatives may take some time there are methods that don’t take much work on your part and can be easy to implement.
Attract And Retain Skilled Workers
Retaining employees can save you lots of money on training and recruiting. The best way to attract experienced employees is to enhance your culture and facility.
Creating a safe and comfortable environment not only attracts but retains dedicated employees. Additionally providing perks and ongoing training can ensure everyone is motivated to do well and has the resources to do so.
Your employees are the backbone of your company so investing in them is best for your bottom line. When they feel like you care about them they will care more about their job.
Improve Welding Procedures
No matter how long your business has been open or how efficient you think your procedures are there is always room for improvement. Start with an assessment of your facility’s current procedures to pinpoint any areas of weakness.
Factors that can affect your efficiency include:
- Feed speed
- Transfer mode
- Erratic arcs
From having procedures that leverage efficient technology to having procedures for storing and using parts, improving productivity can save you money.
Ensure A Safe Environment
As we mentioned earlier, a safe environment can attract and retain employees but it also has other benefits. Workplace injury lawsuits and workers’ compensation can be very expensive for your business.
Having automated processes and incorporating robots in your operations that are more dangerous can help protect your employees. Additionally, you should offer safety gear such as goggles and gloves.
Give Padding In Time
One of the biggest welding costs towards consumers that can affect your bottom line is unplanned downtime. It can lead to delays in revenue and lost loyalty.
When there is unplanned downtime you are still paying for labor and space without producing anything. This means not only are you not making any money but you’re losing it.
If you allow for padding time before delivery and between processes you can account for that when budgeting. This can also help with your partnerships because you can give a more accurate quote and ensure you meet expectations.
Invest In New Technology
As technology advances, it is able to make our jobs easier. Investing in new technology can help you improve your productivity, reduce maintenance, and reduce costs.
Automated technology is gaining power as more and more welders realize its benefits. It can allow you to reduce costly errors and cut down on labor costs.
While this involves an initial investment in the long run you will save time and money in production and improve quality.
Make A Preventative Maintenance Plan
It costs more to clean up a disaster than to prevent it. Having regularly scheduled maintenance performed can save you from wasting money on downtime.
Make a preventive maintenance (PM) plan for how operators should perform maintenance and build it into their procedures. The hour it takes to check on your equipment is far better than the days lost while waiting for a replacement.
Reduce Consumable Changes
Your consumables make up a large portion of operating welding costs. We often want to be preemptive and change consumables. But changing your consumables before it’s necessary can be wasteful and the costs add up.
Additionally, when welders use improper practices or equipment, they may experience birdnesting or other gas metal arc welding gun performance issues.
Replacing consumables not only costs you money for parts but leads to downtime which can cost you more.
Choose The Right Equipment
Many companies make the mistake of looking for the lowest price tag but when you invest in high-quality parts you save in the long run. You get what you pay for and cheaper products tend to have a shorter life span and can cost more in labor, downtime, and parts.
You want to ensure you have high-quality nozzles, contact tips, and gas diffusers to be able to maximize lifespan for your operation.
Cut Costs With American Torch Tip
Ready to start cutting costs the right way? At American Torch Tips we make it easy to save money.
Additionally, we offer a wide range of high-quality welding parts that have a long lifespan and reduce consumable changes. While we have 100% confidence in our consumables and parts we also include a lifetime warranty to give you peace of mind.
Our MIG guns and consumables are the most durable on the market but you don’t have to take our word for it. Try our products risk-free for 30 days and see the cost savings for yourself!
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