Thermal Spray Consumables Cost Control

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Thermal spray consumables expense is a recurring item that, if not watched over carefully, can eat up into profit margins in a big way. The consumables expense is a critical item for all industries and not limited to the thermal spray coatings business. In this article, we can discuss controlling the expenses of critical thermal spray consumables so that profit margins can be protected and increased if possible. Not all thermal spray consumables are amenable to cost control; there are some factors that are beyond control and these have to be taken in as they are. But steps taken to subdue the effects of flame spray cost increases will definitely pay off in increasing the bottom line of your thermal spray business.

A lot of burden regarding cost control of thermal spray consumables will fall on the purchasing initiative of your company. For example, lets take thermal spray powders. If you are utilizing 200 pounds of a certain powder, say Metco 73F or its equivalent, then there is no cost benefits to you if you keep buying 200 pounds every month. Instead, make a deal with the thermal spray powder supplier and place a blanket order for 2,400 pounds to be released 200 pounds every month for a year and negotiate to get better pricing because of increased volume order. Of course you are committing to this higher volume, but that’s what is needed if you want to reduce thermal spray powder costs. You may want to discuss with your customer regarding his commitment to purchasing from you and in turn let him have a small reduction in price in exchange for his commitment. The same applies to thermal spray masking consumables – why buy 10 rolls of tape every month at a higher price when you can get a much better deal by placing a blanket order for 120 rolls of tape to be released 10 rolls every month for a year. You will need to pay only for the released material so your cash flow will not get affected. This process needs to be addressed through out your thermal spray business; for example what about plasma spray nozzles – get an idea of how many nozzles you plan to use over the next twelve to fourteen months and put it in a blanket and get blanket pricing. In addition to getting a lower cost because you are placing a higher volume order, you will get your thermal spray consumables supplied to you in a timely manner; namely, your thermal spray line won’t be sitting idle waiting for a specific thermal spray powder or tape or nozzle, etc. Negotiating with thermal spray gas suppliers may be more difficult. Gas suppliers are usually unwilling to negotiate too much. There are some exceptions though; if you are dealing with a smaller gas distributor who also sells thermal spray powders ( and there are a few of them around ), you can try to combine the two purchases and save on costs. Hence, place blanket orders after evaluating your thermal spray powders and associated consumables usage forecast and you can make a significant difference to the bottom-line of your thermal spray coatings business.