Ordering a custom aluminum extrusion can often be the right choice when there is nothing in regular inventory that meets your needs.
Whether you need a specific profile, an unusual alloy, or a particular surface finish, knowing more about how much custom aluminum extrusions cost can help you better predict expenses and manage your project’s budget.
In this article, we cover some of the common factors that impact the cost of custom extrusions so that you can better prepare for how these products will impact your budget.
#1 Die and Tooling CostsFor custom profiles, new dies have to be tailor-made from scratch. For the manufacturers that need to recoup the costs for these special dies, this means raising the overall price of your order.
Compounding this even more, particularly complex geometries for the new die design will take more time and labor to produce, further increasing the cost to produce and the lead time for the final product.
Tool costs for extrusion dies that are used in normal architectural and industrial applications can range from $400 to $1,000. Tool costs for large parts to be made on 2,000-4,000 ton presses could be as high as $2,000.
Sometimes our manufacturers refund tool costs if a stipulated amount is purchased within 2 years. Most manufacturers do not charge for replacement tools after their useful life if orders continue.
Normal tool turnaround time is 3-4 weeks and production follows within a week of sample approval.
For more detail on these and other important design considerations, check out our helpful Aluminum Extrusion Design Guide as well as our article on Aluminum Extrusion Dies.
#2 Current Aluminum CostAs you might expect, the current cost of the base material used for your product will have a direct impact on the final cost of the order. The price of raw aluminum is affected by many factors, such as global demand, industry trends, and electricity costs. The base price of aluminum can be estimated through exchanges like the LME Aluminum valuation.
Since the cost of aluminum has fluctuated substantially in recent years, sometimes it makes sense to pay for a large amount of metal all at once to lock in a rate, particularly when you have ongoing production needs with a manufacturer.
In these cases, the extruder buys a considerable amount of the metal in advance and uses it for your production needs over time. By doing this, the extrusion costs can be made more predictable for you.
It’s also important to keep in mind that different aluminum grades may have different costs and that a manufacturer likely won’t be stocked up on many of the unusual aluminum alloys that are sometimes requested in custom orders. This can increase the price for obtaining special stock.
The cost of aluminum is the biggest wild card in the whole equation of extrusion cost. It has varied anywhere from $1,500 to $3,500 per metric ton in recent years.
Material costs can be affected by political events in different parts of the world. For example, Ukraine and Russia are key aluminum producers, and the war between them affects prices. Also, China is a big smelter of Aluminium, and recent environmental restrictions impact their operations.
#3 Labor and Production CostsOf the different factors listed in this article, the cost of manufacturing labor is often one of the easiest to predict when evaluating the cost for custom aluminum extrusions. Relatively stable and based on regional conditions and regulations, this information is typically easy to find. While manufacturing abroad can incur an increase in shipping costs, these are typically offset by larger production volumes as we’ll discuss later on.
Additional production expenses that can impact overall costs include operating overhead, equipment purchases, maintenance, utilities, and more. While they may be somewhat harder to determine, they are similarly impacted by the conditions in the region where the manufacturing takes place.
At Gabrian International, most of our aluminum extrusion production takes place in India, which has relatively low labor costs compared to the US or Europe.
#4 Surface Finishing and Secondary OperationsSurface finishing, as well as other secondary operations, can be performed on extrusions after concluding the extrusion procedure. These processes can be done to improve appearance, enhance protection, or to achieve special physical or mechanical characteristics needed for the product’s intended application.
When it comes to physical alterations, CNC machining can be used to create holes and shapes that cannot be achieved by extrusion alone. Bending extrusions is another common practice for creating physical alterations when a straight profile is not suitable for the intended application.
Temper treatments are the most common secondary operations used for changing the mechanical properties of extruded aluminum products. Temper treatments can be used to alter the strength, formability, hardness, and other physical attributes of extrusions. Normally, there is no extra charge for different tempers, though, as long as volumes are high enough.
Finally, surface finishes can be applied which affect only the aluminum’s surface. Aluminum extrusions naturally have a very smooth finish after normal processing, so they rarely require sanding, but sandblasting can be used to roughen up the surface if required, especially in preparation for other surface treatments like coatings.
Coatings and other types of surface finishes add a layer of material to the extruded aluminum for protection, improved appearance, or both. For example, powder coatings create a very durable and hard finish in a wide assortment of custom colors. Anodizing, on the other hand, is an electrochemical process that thickens the naturally-occurring oxide layer in aluminum to provide an appealing and corrosion-resistant surface. (Related: Should You Anodize or Powder Coat?)
If you want to learn more about these and other surface-finishing processes for aluminum extrusions, you can read our article on Types of Finishes for Aluminum Extrusions.
While adding any secondary operations to your product order will inevitably increase cost, you can save money by selecting a manufacturer with vertically integrated capabilities. Facilities that combine extrusion, fabrication, and finishing services will minimize the burden of logistical management and reduce the final cost for your order when compared with completing coordinated operations between multiple different vendors.
Costs for anodizing and powder coating vary from $1,200 to $1,400 per metric ton depending on the profiles. Alodine finishing is a little less expensive at about $800 per metric ton. There are special finishes such as wood-look finishing that are significantly more expensive and the cost generally depends on surface profiles.
Prices vary based on the complexity and kinds of machines required. Simple drilling operations can be in the range of $200-$300 per metric ton. For more complex operations, there will be tooling costs involved as well as machining time.
#5 Production VolumesAs with many other manufactured items, buying custom aluminum extrusions in bulk can lead to lower costs per unit produced.
This is true in part because, when custom orders are being produced, the basic die and tooling costs will often be very similar between a small and large order. If the manufacturer needs to recoup this expense for a small number of parts, the cost to produce each part is higher and is passed on to the buyer. However, as the production volume increases, the cost-per-unit will go down.
Bonus Factor: Logistics CostsThe COVID pandemic has put into perspective how much the low cost of commodities can be impacted by transportation logistics. For example, shipping disruptions have caused major fluctuations in the cost of containers shipped from India since the start of the pandemic. Around the world, the rising costs for containers and shipping ultimately impact the final price tag facing consumers, and these costs can change overnight.
Additionally, local duties and tariffs on imported products, such as the United States’ anti-dumping duty, can raise the cost of bringing products from abroad to your market. These extra fees may be harder to foresee or determine, but looking into whether they could impact your business can help you make adjustments that ensure your project remains profitable.
Despite these concerns, the shorter lead times in Asia compared to North America, as well as the lower production costs, are still worth it for many customers around the world.
The cost of international shipping has varied widely in recent years. Shipping a 40-foot container from Asia to North America has ranged anywhere from $8,000 to as high as $20,000. The costs have been driven by political uncertainty as well as the economic and trade climate. Recently the pandemic has had a significant impact on container availability and the Russia-Ukraine war has added more uncertainty impacting cost and availability.
Optimizing the Cost of Custom Aluminum ExtrusionsUltimately, the total price tag for manufacturing custom aluminum extrusions comes down to a combination of many factors. Some of these factors are predictable, like production volumes and labor costs, while others can be harder to foresee, like shipping costs and the market price of aluminum stock.
Gabrian’s Aluminum Extrusion Guide can help you to optimize the design of your extrusions so you can minimize production costs. If you need additional insights, our aluminum extrusion experts can help you decide the best combination of alloy, surface finish, and temper treatment needed to achieve your project’s goals at a cost you can manage.
Take advantage of our custom aluminum extrusion capabilities for your next manufacturing project to get a rapid turnaround for high-quality extrusions that fit within your budget.
The cost to manufacture a part, component, or product is greatly influenced by two things: the materials and the method. Aluminum extrusion profiles offer a cost-effective solution for manufacturing that can provide considerable savings over other metals and techniques. Regardless of the industry you serve, or whether you design products for direct-to-consumer or business-to-business buyers, it is essential to find a solution that will offer quality results at affordable prices. Not only will this help businesses to increase profit by lowering overhead but can also ensure the best rates for the end-user, increasing value across the board. Compared to other metals, aluminum is one of the most plentiful, eco-friendly, and cost-effective options. Not only does it have many inherent qualities that are beneficial to the intended use of the product, but the malleability of aluminum makes it quite easy to form into endless shapes and sizes.
One of the reasons why extruded aluminum is more cost-effective than other types of fabricated metal is that it can reduce the need for post extrusion operations and secondary fabrications that can increase both lead times and costs. Custom aluminum extrusion profiles can eliminate much of the extra work that would be required with other types of fabrication, such as welding and joining parts together to create the desired shape. Designed-in features can be included through the support of our expert team of engineers and technicians to streamline the process and create finished products that are stronger, more durable, and easier to produce. Affordable aluminum extrusion is the most economical method used to create standard or custom parts with a constant cross-section. It is cheaper to extrude pieces than to machine them or weld them to achieve a specific shape. By eliminating these additional operations, businesses can reduce the amount of time needed to make the parts without requiring machining or welding. This also helps to reduce costs across the board and makes the finished pieces more readily available without delay.
While you might think that it would cost more to design custom aluminum extrusion profiles than it would to simply modify standard extruded aluminum shapes, the truth is that you will save a significant amount of money over time when you go custom. The cost of profiles is also much cheaper than roll forming dies and casting molds. Other advantages of custom designs are being able to include all of the specific shapes, parts, tubes, and angles that you need without having to weld or join the parts together separately. Some methods of aluminum manufacturing cannot replicate the variations of wall thicknesses that can be created with extrusion profiles, further increasing the value of the custom designed shapes. Once you have designed your custom profile, you can continue to place orders with our team to maximize the return on investment. As your needs change or the design of your product evolves, our team can work with you to adjust the original design to will provide you with the best advantage.
Working with Silver City Aluminum means being able to get the extruded aluminum parts and components you want without having to invest in larger orders. We can produce short and long run orders to suit your needs. Even this approach makes aluminum extrusion profiles more economical than other processing methods. Our team can even assist with special quick orders to meet the demands of your business. Our standard lead time is significantly better than the industry standard of 30-45 days for custom extruded aluminum. Our team can get your order for affordable aluminum extrusion from design to shipping via our fleet of trucks within three to four weeks. Specialty orders in emergency situations for our value customers can be accomplished in three to seven days on the rare occasion that they are required. However, you will find that even our standard time for extrusion, fabrication, post extrusion operations, finishing, and quality control will far exceed anything else you will find through other manufacturers.
We understand that things are constantly changing in the world of manufacturing. Smaller units, tighter tolerances, increased demand for stronger and more durable products challenge nearly every consumer-based and business-to-business organization. When you work with our team of engineers, we can provide you with a regular review of designs to help reduce costs by eliminating or reducing tolerances as techniques and needs change. All of our aluminum extrusion profiles are produced according to industry standards for tolerance, shapes, and sizes. Premium finishes and custom solutions for post extrusion operations can be added to further enhance the finished product, including anodizing, powder-coating, painting, and textured solutions. Components can be designed-in to the profile so the part can be ready to evolve to meet changing demands and industry regulations. To learn more about our engineering and design services, as well as technical support for the production of affordable aluminum extrusion, contact Silver City Aluminum by calling 508-824-8631. We can answer any questions you might have about designing custom aluminum extrusion profiles and the advantages of choosing extruded aluminum for your next project.
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