Factors that Determine the Cost of Custom Aluminum Extrusions

The customer's requirements ultimately determine the cost of producing customized aluminum extrusions.

FREMONT, CA: Various factors ultimately determine the cost of producing customized aluminum extrusions. Some of these variables can be anticipated, such as production rates and labor costs, while others, such as transportation costs and the market price of aluminum stock, can be more difficult to estimate. Understanding the price of custom aluminum extrusions will help more accurately anticipate expenses and manage the budget for the project, whether they require a particular profile, a rare alloy, or a specific surface finish. When standard inventory doesn't have something that will satisfy demands, ordering a custom aluminum extrusion is frequently the best option.

The current cost of aluminum

The cost of the base material utilized to make the product will ultimately affect how much the order will cost. Numerous elements, including worldwide demand, business trends, and electricity prices, impact the price of raw aluminum. In these situations, the extruder purchases a sizable quantity of the metal in advance and uses it gradually for manufacturing demands. The pricing of various aluminum grades varies, and a manufacturer is unlikely to have an abundance of unique aluminum alloys occasionally requested in custom orders.

Costs of labor and production

When estimating the price of custom aluminum extrusions, the manufacturing labor cost is frequently one of the simplest to forecast. Depending on local laws and conditions, this information is often easy to access. Operational overhead, equipment purchases, maintenance, utilities, and other production expenditures can also affect total costs. They may be more challenging to quantify, but the same factors influence them in manufacturing.

Production amount

Purchasing bespoke aluminum extrusions in large quantities can result in cheaper costs per unit produced, as is the case with many other manufactured goods. It is true partly because the fundamental die and tooling costs for custom orders are sometimes relatively similar for small and large orders. The cost to produce a single part is higher and is passed on to the customer if the manufacturer has to recover this expense for a limited number of pieces. However, the cost-per-unit will decrease as production volume rises.

Cost of logistics

The COVID pandemic has shown how much shipping logistics can affect inexpensive commodities. Consumers' final price is affected globally by the rising prices of shipping and containers, and these costs are subject to sudden changes. The additional costs could be more difficult to anticipate or estimate, but investigating if they might influence the company will help to make adjustments that will keep the project profitable.