Understanding Welding Cost: Using Flux-Cored Arc Welding (FCAW) for Cost Reduction and Productivity Improvement

Welding is often listed as a production operation that companies would like to reduce overall cost and improve productivity; however, most companies merely implement cost reduction programs focused on lowering welding consumable costs. Though significant and important, these associated material costs typically represent only a small percentage to the total cost, i.e., 10 to 20% (welding consumables 8 to 15% and power and equipment 2 to 5%) of the overall welding cost in a typical U.S. welding operation. To further reduce welding costs, companies need to look further. Since labor and overhead, which relates directly to productivity, represents approximately 80 to 85% of the overall cost of any given welding operation they also offer the greatest opportunities for significant cost reduction. Simply changing from Shielded Metal-Arc Welding (SMAW) to Flux-Cored Arc Welding (FCAW) can reduce labor cost and increase productivity. Due to the increased deposition efficiency and operating factor of FCAW the weld deposition rate increases thus translating into increased productivity. The increase in productivity, in turn, reduces labor cost by reducing the man-hours required for the completion of any given weld. An added benefit gained by using FCAW is that it also significantly reduces the skill level required by the welder to produce welds of equal quality. When all of these benefits are combined FCAW yields significant cost savings opportunities by reducing labor and simultaneously improving productivity.