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Deciding Between Sheet Metal and Machining Components

Tag Archive: Welding

  1. Deciding Between Sheet Metal and Machining Components

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    Deciding between Sheet metal and machining components is one of the first decisions engineers make during the design process. This decision impacts cost, lead time, whether there are additional steps in the fabrication assembly line, and overall performance of components. Both options have their advantages and deliver high-quality projects. Here is a guide to help determine which manufacturing process best fits your sheet metal needs. 

     

    How Complex Is It?

    Choose sheet metal fabrication when your products are lightweight brackets, chassis, or enclosures, and the design is made from a flat pattern, has flanges, or requires straightforward forming. 

    Choose machining if the part requires tight contours, deep cavities, and pockets. Machining is best for components with internal features or multi-plane designs. If the geometry can be created from a flat pattern, metal fabrication is the right option; if not, machining is the way to go. 

     

    How is the Pricing Different?

    With sheet metal fabrication, there is less material waste, production is typically faster (especially with TEDCO’s Amada ENSIS 3015AJ Laser), and costs are adjusted for bulk quantity projects. 

    You can see higher machining costs due to material removal and cycle times. Components that have more complexities add to labor costs and longer lead times. For many designs, the cost difference between sheet metal vs machined components becomes clear once strength, geometry, and tolerances are considered.

     

    Tight Tolerances 

    Sheet metal is best for standard commercial tolerances and bend variability. Machining is best for tight tolerances, mating surfaces, and critical fits. When precision drives product performance, a machined component typically offers the accuracy required.

     

    Material Requirements 

    Sheet metal works well with aluminum, stainless, and cold-rolled steel. It is ideal for thinner materials and lightweight components.  Sheet metal relies on bends and formed features for rigidity. 

    Machining supports thicker, high-strength components, handling a wide range of materials, and tough alloys. If the parts must withstand significant loads or require tight tolerances, machining may be the better choice. 

    Scalability 

    Scalability refers to whether there are plans for bulk production. Sheet metal is excellent for prototypes and large-volume projects. It works best for projects with minimal tooling and fast iterations. 

    Machining is best for low-to-medium volume jobs, as it is costly at large quantities because there is less automation in machining. Prototyping needs, production goals, and cost target all influence the decision process, so discuss in advance with your fabricators. 

     

    When a Hybrid of the Two Makes Sense

    Tedco has learned over the years that many project assemblies work best when sheet metal and machined components are combined. Tedco has built a close network of machinists who work directly with us for hybrid jobs. Combinations likely include enclosures with machined internal parts, Sheet metal housing with machined interfaces, or lightweight designs that require both rigidity and accuracy. 

     

    Choosing between machining and sheet metal components depends on the requirements of the project. Be sure to take a look at the necessary tolerances, strength, geometry, and the volume and scale of the project. Most importantly, share the budget with your engineering team to make adjustments when necessary. Both processes bring unique advantages, and many projects benefit from a hybrid approach. At TEDCO, we help clients decide the best manufacturing method for early prototypes through full-scale production.

  2. Navigating Tariffs in the Metal Industry

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    Navigating Tariffs in the Metal Industry 

    The constant flux of tariff regulations is causing uncertainties within the sheet metal manufacturing industry. These changes can impact businesses through increased costs and supply chain delays.

    At Tedco, we are dedicated to giving our customers access to metal supplier monthly trend reports to understand how we are navigating tariffs in the metal industry, while maintaining high-quality parts, quick lead times, and precision consistency throughout this changing landscape.

    Navigating Tariffs in the Metal Industry

     

    Why Tariff Alleviation Matters in Sheet Metal Fabrication

    Tariff mitigation affects companies heavily relying on international materials, leading to price surges and production slowdowns. While the worst-case tariff scenarios seem to have been avoided, the policies are still unstable, causing ripple effects across the global material market. 

    North American Stainless has introduced a tariff-like surcharge for May shipments, with potential fees included through July. With continued uncertainties, there are talks that other mills may follow, like Constellium, which has also implemented a tariff-related surcharge. This remains a trend to watch, as well as incentives to reshore manufacturing, which will likely increase. 

     

    Tariff Implications on Planning and Purchasing Materials

    Despite policy shifts, demand is steady for now. As expected, imported materials are becoming less attractive while companies are looking for domestic producers to help avoid fees. Many remain cautious, buying far more conservatively, stocking only what they need for in-house jobs, and rethinking their sourcing strategies. While depot inventory is thinning, perhaps an indicator of future lead-time increases. Supply chain planning and purchasing strategies remain critical.

    Metal Market Landscape as of Now*

    May 11, 2025: The administration reduced tariffs to 30% after previously increasing tariffs on international imports to as high as 145%. This means a return to slightly calmer waters. 

    Aluminum, copper, and nickel had tumbled 15-20% in the previous weeks but have now rebounded by roughly 10-15%.

    Aluminum- After plunging in early April to nearly $1.05/lb, prices have rebounded to the $1.10 range. This is due to a surge of pre-tariff Aluminum that flooded the U.S. market late last year, creating a temporary buffer that is still working its way through the system. We will see Midwest premiums creep up slowly in the coming months. 

    Nickel- Pricing is stabilizing around $7/lb; this range is now acting as the natural floor, especially as Indonesia raises royalties on nickel and tin mining. 

    Steel- Particularly for hot-rolled coil steel, prices are remaining steady at around $900/ton, showing less volatility than other metals. While carbon steel producers like Cleveland-Cliffs are taking capacity offline to remain efficient, possibly triggering a price floor in the coming months. 

    Navigating Tariffs in the Metal Industry

    *Sourced from Ryerson May 2025 Market Report

     

    Tedco’s Strategy for Managing Tariff Risks

    Our company’s approach to navigating tariffs in the metal industry is with resilience, transparency to our valued customers, and smart purchasing strategies to maintain our precision quality products, fair pricing, and efficient lead times. We plan on staying vigilant on market updates to remain ahead of the material trends and keep pricing accurate.

    We will be strategic when it comes to inventory planning, buying materials conservatively. And maintaining close relationships with our primary suppliers to ensure a transparent supply chain to reduce price spikes. 

    Tedco also sources domestically, giving us tighter control over costs, delivery, and turnaround times. 

     

    Let’s Connect 

    Want to know how Tedco can support your next project?- Contact us to learn more about our approach to risk management, precision fabrication, and how we are navigating tariffs in the metal industry. 

    More on current tariff conditions here.