Do We Really Need to Invest in Laser Cutting?-Cathy

A company that doesn’t have a laser cutting machine generally subcontracts the work to one or several job shops with that capability. This scenario doesn’t involve a lot of risk and can work if you have some flexibility with lead times.

But there will come that time when you have to ask yourself. Ask yourself if it is time for the company to bring laser cutting in-house. Even if the business relationship with the subcontractor is great, you must to consider this.

How do you know if it is the right time to own a laser?

Look at how much you are spending monthly for laser-cut parts. In the words of Henry Ford, “If you need a machine and don’t buy it, then you will ultimately find that you have paid for it and don’t have it.”

If the decision is made to bring laser cutting in-house, you may be put in a position where you need to justify why the investment needs to be made. The costs associated with subcontracting out the laser cutting are just the starting point for the justification. How much more productive will the manufacturing process be with in-house laser cutting? How does this affect lead times? From an expense standpoint, not only do you have the cost of the laser cutting machine. You have labor and consumable costs, such as laser cutting assist gas.

Figuring out these answers will give upper management or even a lending institution an idea about production savings and subsequent return on investment following the initial investment.