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11 Ways to Cut Sheet Metal Fabrication Costs
Hey, I’m Barry Zeng. I’ve been bending metal, cutting steel, and trying to figure out why engineers design impossible parts for the last 12 years at Shanghai Yunyan Prototype & Mould Manufacture Factory. And if there’s one thing I’ve learned, it’s this: most people pay way too much for sheet metal parts. This isn’t because the fabricator is ripping them off — but rather because they don’t realize how much control they actually have over the price.
I’ve seen the same mistakes a hundred times, and honestly, I’ve made most of them myself early in my career. (There was a bracket I designed in 2015 that cost three times what it should have, which my boss still brings up at Christmas parties.) Consequently, I put together this list — 11 things you can actually do to cut your sheet metal fabrication costs. Some of these are about design, while others focus on material or just avoiding simple oversights. (I say that with love.) Let’s get into it.
Here’s the thing about sheet metal fabrication costs — they’re not some mysterious number that your fabricator pulls out of thin air. Instead, every dollar has a specific reason behind it. Furthermore, most of those reasons are hiding right in your design files. Let’s find them.
1. Stop Overthinking the Material
I’m going to say something that might upset some people: you probably don’t need stainless steel.
I know, I know. It looks clean and it doesn’t rust. However, unless your part is going to sit in a swamp, near saltwater, or inside a food processing plant — mild steel or aluminum will do the job just fine. Furthermore, the price difference is completely insane.
Here’s a rough breakdown:
- Mild steel (SPCC): Baseline cost. Solid, strong, and easy to work with.
- Aluminum (5052/6061): 1.5-2x the price. Lighter, and particularly good for electronics.
- Stainless (304/316): 2.5-3.5x the price. Pretty and corrosion-resistant, but highly expensive.
For instance, I had a client a few years ago spec 316 stainless for a bracket that was going inside an office printer. It wasn’t near water, nor was it exposed to chemicals. Instead, it sat inside a dry, climate-controlled office. They were paying triple for no reason, so I asked them why — they replied, “we always use stainless.” Ultimately, that’s not engineering. That’s just a habit, and expensive habits are bad for business.
2. Tolerances Are Not a Competition
This particular habit makes me want to pull my hair out. Frequently, I’ll get a drawing that specifies ±0.01 mm on every single dimension. When I ask the engineer why, they usually say, “that’s what we always do.”
Let me tell you a secret: tight tolerances are exceptionally expensive. This happens because:
- We have to machine at a much slower pace.
- Our process requires highly skilled operators.
- We must inspect every single part with a CMM.
- Consequently, we scrap more parts, because nobody hits ±0.01 mm on every single feature, every time.
Therefore, here’s my rule: only specify tight tolerances on features that actually matter — specifically things that mate with other components. Everything else? Let it breathe. Standard tolerances in sheet metal are usually ±0.1 mm, which is plenty for 90% of features. (In fact, I’ve seen designs where the engineer specified ±0.01 mm on a hole that just held a loose screw. The screw didn’t need that. Instead, the engineer’s ego did.)
3. Every Bend Costs Money
Don’t get me wrong, I love bends. They are what turn flat sheets into 3D parts. But here’s the thing: every single bend adds cost due to setup, tooling, and operator time.
Naturally, a part with 6 bends will cost more than a part with 2 bends. The pricing isn’t perfectly linear — sometimes a complex part with many bends is unavoidable. However, I’ve seen designers add bends simply because “it looks better.” Unless your part is going on a museum display, aesthetics alone are not a good reason to increase costs.
So, ask yourself: does this bend actually need to exist? Can I combine features instead? Is it possible to use a simpler geometry? If the answer is yes, you’re immediately saving money. (For example, one time I redesigned a part from 8 bends down to 4. As a result, the client saved 22% on their sheet metal fabrication costs. They bought me lunch. I like lunch.)
4. Keep Your Bends on the Same Axis
This is a small thing, but it matters tremendously. If all your bends are in the same direction — meaning on the exact same axis — we can complete them in one single setup. On the other hand, if they’re going different ways, we have to manually reposition the part. That takes time, and time is money.
Think of it like this: if you’re cooking dinner, you want to use one pot if possible. Using two pots just means more cleanup afterward. The same idea applies here. (Admittedly, I also use this analogy to justify eating instant noodles. It’s not a great analogy, so don’t follow my life advice there.)
5. Nesting Is Not a Game of Tetris — But It Kinda Is
If you’ve never heard of nesting, here’s what it means: fitting as many parts as possible onto a single sheet of metal. The better the fit, the less raw waste you generate. Consequently, less waste equals lower sheet metal fabrication costs.
A skilled nesting operator can improve material utilization by 10-15% using optimization software. However, you can help on the design side too. Simple shapes nest significantly better, meaning rectangles and circles are easy to pack tightly. Conversely, complex shapes with lots of erratic cutouts waste material.
Typical utilization numbers usually look like this:
- Simple shapes: 75-85% utilization.
- Moderate shapes: 65-75% utilization.
- Complex shapes: 50-65% utilization.
That 15-20% difference can easily add up to thousands of dollars on a large production run. I used to play Tetris as a kid, but now I’m basically playing Tetris for a living. (And thankfully, I’m much better at it now, even though the stakes are higher.)
6. Welding Is Not Free
I don’t know who needs to hear this, but welding is incredibly expensive. It requires specialized, highly skilled labor, custom fixturing, and often needs extra grinding to look presentable. Therefore, if you can design your part to avoid welding entirely, you absolutely should.
Consider these cheaper alternatives to welding:
- Riveting — faster assembly, less skilled labor, and cheaper overall.
- Clinching — cold joining that requires no heat and no extra consumables.
- Self‑clinching fasteners — cheap, fast, and easy to press-fit.
For example, I once had a client who designed a part that needed 12 individual welds. We collaborated to redesign it to use rivets instead. Consequently, the assembly time dropped by 60%, and the labor cost dropped by even more. The client was happy, and the welders were happy too because they had less tedious work. So everyone won.
7. Stop Paying for Fancy Finishes
Powder coating looks great and anodizing is fantastic. However, they cost real money. And if your part is going to be hidden deep inside a machine, nobody’s ever going to see it anyway.
Here’s what finishing operations typically cost:
- Powder coating: $0.50-3.00 per square foot.
- Anodizing (aluminum): Moderate cost, depending on batch size.
- Zinc plating: $1.00-5.00 per square foot.
- Brushing/polishing: Highly labor-intensive and very expensive.
Therefore, if your part is going inside an enclosure, consider skipping the finish altogether. If it’s stainless steel, basic passivation is cheap and gives you all the corrosion resistance you need. If it’s standard steel, a simple coat of rust-preventative oil will protect it during shipping. (Honestly, I’ve had clients pay hundreds of dollars to powder coat internal structural parts. It genuinely hurt me to see that budget wasted.)
8. Quantity Matters — A Lot
This comes down to simple mathematics. Setup costs — including programming, tooling setup, and initial fixturing — are entirely fixed. If you order 1 part, you pay all of those upfront setup costs on that single unit. On the flip side, if you order 1,000 parts, those costs are spread thinly across 1,000 units.
To illustrate, a single prototype might cost $200. Yet, the exact same part at a volume of 1,000 units might drop to $20. That’s not a typo. (In fact, I once had a client order 50 parts in 5 separate monthly batches instead of 250 parts all at once. As a result, they paid 35% more. I warned them, but they didn’t listen.)
So if you can consolidate your orders, do it. Furthermore, if you can forecast your needs for the entire year, you definitely should. Your overall sheet metal fabrication costs will drop significantly.
9. Don’t Add Features You Don’t Need
I see this happen all the time: decorative cutouts, embossments, and extra complex contours. These are things that look cool on a screen but add absolutely nothing to the actual function of the part. Furthermore, every single one of them adds machine time and cost.
If your part is hidden — or if it’s purely functional — please don’t add decoration. For instance, I had a client who wanted a complex diamond pattern laser-cut into a structural bracket. It looked awesome, but the bracket was going to be completely hidden behind an engine panel. Once we removed the pattern, we saved 15% on their sheet metal fabrication costs. The client told me, “I didn’t think of that.” Well, that’s exactly why I’m here.
10. Combine Parts When You Can
If your current design uses multiple separate parts that need to be fastened or welded together, consider combining them into a single bent component instead. This approach eliminates secondary assembly operations, reduces your inventory tracking, and cuts downstream labor.
For example, instead of a two-part assembly joined with welds, try designing a single flat pattern with a 90-degree bend. It is invariably cheaper and faster to produce. (I’ve seen designs that used 5 separate pieces for something that could have easily been one single bent piece. The engineer was brand new, so I forgave them, but I also made sure to educate them.)
11. Talk to Your Fabricator Early
This is the most critical point of all, and I saved it for last. Don’t just throw your design over the wall to a fabricator and assume the initial quote is set in stone. Talk to them. Ask them specifically what features are driving up the cost. Ask them what modifications make it cheap. Inquire directly, “If I change this radius, how much does the price drop?”
You will be amazed at what you learn from these brief conversations. Sometimes the savings are tiny, but frequently they’re massive. Ultimately, you’ll never know unless you ask.
Case in point: I had a client who saved 18% on their sheet metal fabrication costs just by moving a few holes a few millimeters away from a bend radius. That conversation took exactly 10 minutes, yet the savings amounted to thousands of dollars. (I also learned during the call that the client didn’t realize how much hole placement proximity cost. Now they do.)
Let’s Recap the 11 Ways
- ☐ 1. Don’t over‑spec material — mild steel or aluminum is usually fine
- ☐ 2. Tight tolerances are expensive — only use them where needed
- ☐ 3. Every bend adds cost — reduce the number of bends
- ☐ 4. Keep bends on the same axis — fewer setups
- ☐ 5. Optimize nesting — less waste, lower cost
- ☐ 6. Avoid welding — rivets and clinching are cheaper
- ☐ 7. Skip unnecessary finishes — hidden parts don’t need to look pretty
- ☐ 8. Order larger volumes — spread the setup cost
- ☐ 9. Don’t add decorative features — they cost money
- ☐ 10. Combine parts where possible — fewer components, less assembly
- ☐ 11. Talk to your fabricator early — they know what’s expensive
A Quick Story
A few years ago, a client came to me with a sheet metal bracket design that cost $45 per unit. Because they needed 500 units, the total cost was tracking at $22,500. We sat down for 30 minutes and systematically went through the design. Consequently, we changed the raw material specification, loosened the non-mating tolerances, combined two parts into one single flat pattern, and skipped the cosmetic powder coating.
The updated cost dropped to $18 per unit, bringing the total to $9,000. As a result, they saved $13,500 in half an hour. That is the real power of collaborating with your fabricator early. (And yes, they bought me a beautiful steak dinner afterward. The steak was excellent.)
Final Thoughts
Cutting your sheet metal fabrication costs doesn’t require magic tricks. It doesn’t require aggressively squeezing your fabricator for a lower margin either. Instead, it requires smart design choices, logical material selection, and an open conversation with an engineer who understands production limitations.
I’ve been doing this for 12 years now. Throughout that time, I’ve seen the good, the bad, and the downright ugly. Therefore, I’m always happy to look over a drawing and tell you, “here’s how you can make this cheaper.” No charge, no obligations, just honest feedback.
Send me over your design files. I’ll give you my honest engineering opinion. (And probably a bad joke too, since I can’t help myself.)
👇 Want to Cut Your Sheet Metal Costs? Let’s Talk.
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P.S. Mention “cost checklist” when you email, and I’ll send you my personal DFM checklist. It’s saved my clients thousands. And it’s free. Because I’m nice like that.
Barry Zeng
Senior Manufacturing Engineer, Shanghai Yunyan Prototype & Mould Manufacture Factory
(12 years of sheet metal experience. I’ve saved clients more money than I’ve spent on my coffee habit. And I have an expensive coffee habit.)



