Have you ever wondered how all those companies come up with the price of the product they produce for your organisation? It is typically a black box kind of a thing, where you can generally figure out a few key elements of the pricing structure, but they never add up, not even close to the amount quoted. It is similar for injection moulded parts and products.
Plastic injection moulding is a manufacturing process used to produce a wide range of plastic and bio-plastic products. It is a popular method for producing high-quality, consistent parts and products in large volumes. However, one of the most common questions that potential buyers of injection moulding services have is, “How can we optimise the price of injection moulded parts?” The answer to this question depends on quite a few factors and a lot on how you select your manufacturing partner and to what degree you collaborate on getting the product from idea to reality. In this guide, we will discuss the factors that affect the cost of plastic injection moulding and provide tips on how to reduce injection moulding prices, before you even commit to an offer.
01 // Equipment cost
The cost of equipment is one of the primary factors that affect the cost of plastic injection moulding. Injection moulding machines range in size from small tabletop machines to large industrial machines weighing several tons. The cost of the equipment depends on the size of the machine, precision of the machine, powertrain (electric, hydraulic, or hybrid), additional features, and the level of automation.
The average cost of a small-to-medium size injection moulding machine ranges from 20 000€ to 80 000€, in the case of an all-electric machine the costs can be up to 200 000€. Larger machines can surpass even seven-digit numbers. Having said that the actual cost of the equipment varies depending on the manufacturer, the model, and the features. There is a trade-off though. As a rule of thumb, more expensive machines, typically consume less energy, are more precise, can achieve better process optimisation, and produce fewer defective parts. This makes the process of injection moulding cheaper. Therefore, injection moulding companies with newer, hybrid or all-electric machines, can often offer very competitive product prices.
02 // Tooling cost
The cost of tooling is another significant factor that affects the cost of plastic injection moulding. Tooling refers to the design and fabrication of the mould used to produce plastic parts or products. The cost of tooling depends on several factors, including the complexity of the part or product, the size of the mould, the number of cavities, the technology used, and the material used to make the mould. Furthermore, the cost also drastically depends on how and from what the moulds are made. They can be 3D printed for ultra-low series of products, they can be machined of aluminium for small batches, or they can be made of hardened steel for large series and low wear and tear. Each of these also employs different approaches to creating moulds, from 3D printing to CNC machining and Electrical Discharge Machine (EDM) or Wire Electrical Discharge Machine (WEDM) machining for the most intricate designs.
The cost of tooling can range from a few thousand euros to tens of thousands of euros or more, depending on the complexity of the mould. The average cost of a simple mould ranges from around 5000€ to 15 000€. A mould with multiple cavities using hot runners will range from 10 000€ to 20 000€, while the cost of a complex mould can be as high as 100 000€ or in some instances even more.
While small-scale projects may have a higher cost per part than larger-scale projects, they are still more cost-effective than large production runs. Higher volume production runs are more efficient, but small-sized projects may be better suited for creating aluminium casts, which are cheaper than steel and still strong enough for several thousand injections (this is of course dependent on the product size and shape).
It is essential to note that the cost of tooling is a one-time expense. This is typically required upfront, but in some instances, it can also be amortized over the production volume of the part or product. Therefore, the cost per part decreases as the production volume increases.
03 // Injection material cost
The cost of injection materials plays a role that affects the cost of injection moulded parts and to the degree, of tooling as well. The cost of the material depends on the type of plastic or bio-plastic used, the colour, the additives, and the quantity required. Some common plastics used in injection moulding include polypropylene (PP), polyethylene (PE) ABS, polycarbonate (PC), Polystyrene (PS), and polyamide (PA).
According to Plastics News and something that we have also noticed is that the cost of raw materials for injection moulding has increased in recent years due to a shortage of resin caused by supply chain disruptions and increased demand. Currently, the prices of some commonly used virgin plastic range from 1,5€ to 2,0€ per kilogram of raw material. Some more specialised materials are more expensive, and similar also bio-plastics. These range from 3,5€ to 12€ or over for very specific types.
Prices of additives and colours vary significantly. They are as low as 3,5€ for the most used colours (white, grey, black, etc.) and as high as 20,0€ for bespoke colours. Speciality colours (glow-in-the-dark, reflective, metallic, etc. can be even higher and are not available for certain types of plastics). However, colours and additives, are typically used in smaller quantities, as they are added to the raw materials, therefore, when the product cost is calculated, a very small fracture of it is represented by the colourants and additives — typically less than 2% of the final product cost.
04 // Service and Labour Cost
The injection process is typically highly automated, with machines continuing to run automatically during the process, including the cooling and removal of larger parts. And it is because many clients know that they may wonder how service and labour costs are accounted for.
Service and finishing tasks include design and engineering services, tooling maintenance and repair, part-finalisation, assembly, packaging, storing, and shipping and logistics. And these often cannot be or are too expensive to automate.
Design and engineering services can help reduce the cost of plastic injection moulding by optimizing the design of the part or product for manufacturability and reducing the complexity of the mould. Tooling maintenance and repair can extend the life of the mould, reducing the need for costly replacements.
Assembly and packaging services can add value to the final product and reduce the overall cost of production by streamlining the manufacturing process. It is typically faster and cheaper to have these services available at the manufacturer, as it means the customer does not need additional people, capabilities and facilities for these tasks. At the same time, storing, shipping and logistics services can help reduce transportation costs and ensure timely delivery of the finished product.
Labour charges are also factored into the injection moulding process by considering setup costs, repairs, and monitoring. The setup process can be time-consuming, requiring the machine to be configured for specific functions during the moulding process. Moulds must be repaired as necessary, and faulty parts must be replaced. Technicians are also required to monitor the entire process, even though most machines run on automated processes. The cost of the technician’s time is included in the final part price.
While it is difficult to associate cost with these, as they are almost entirely dependent on the labour and technology involved, they add significant value and benefit to the customer.
05 // Quality Control Cost
Quality control is necessary to ensure that the final product meets the required specifications. Costs of quality control tasks are determined by the complexity of the product, the number of components that need to be assembled, the number of post-production operations and the size of the product. As a rule of thumb, the more components that need to be assembled, the more labour-intensive the control process will be, resulting in higher costs.
However, many injection moulding companies (we included), will commonly carry out intermediate quality control on their own anyway. Having said that, it is always better to work directly with the manufacturer to discuss and outline the plan for quality control to ensure all key points from aesthetics, functionality, part and material integrity, and fit are ensured.
Another point to consider in cost calculations is in the case of highly technical components, where speciality measuring equipment or technologies are required, such as laser or optical scanners, digital reference comparisons, etc.
06 // Size of Parts
The size of the part is another important factor that affects the cost of injection moulding. Larger parts require more material and take longer to cool, which increases production time and cost. On the other hand, smaller parts can be produced more quickly and with less material, which reduces cost. In addition, the size of the part affects the complexity of the mould design, as larger parts often require more complex and intricate moulds.
Generally, the cost of injection moulding small parts is lower than that of larger parts due to the reduced amount of material and shorter production time. In addition, parts with complex geometries or intricate details may require special moulds and additional manufacturing processes, which can increase the overall cost of production. It is important to consider the size and complexity of the part when designing for injection moulding, as this can impact the overall cost and production time.
Quite often it happens, that it makes sense cost-wise, to divide large parts into smaller ones, that assemble together. This can drastically reduce the complexity of the mould, and although this results in multiple smaller and less complex moulds, can bring down the cost of the final product. While this might be difficult to justify at the beginning, in the medium, but in the long-term, this can result in huge savings.
07 // Production volume
The production volume is another important factor that affects the cost of injection moulding. The more parts you need to produce, the lower the per-unit cost will be. This is especially true in cases where tooling cost is amortized over the production volume of the part or product, because the bigger the order volume the smaller the tooling increment of the part price is. On the other hand, if you only need a small number of parts, the cost per unit will be higher because the setup costs and tooling expenses are spread over a smaller number of parts.
When it comes to production volume, it’s important to consider your short-term and long-term needs. If you only need a small number of parts for a prototype or pilot run, it may be more cost-effective to use a lower-volume production method, such as 3D printing or CNC machining. However, if you anticipate needing a larger volume of parts in the future, it may be more cost-effective to use injection moulding, as the initial setup costs and tooling expenses can be amortized over the larger production run.
08 // Urgency
Urgency is another important factor to consider when it comes to the cost of injection moulding. If you need your parts quickly, it may cost more to produce them. This is because rush orders often require additional labour and overtime costs to expedite the production process.
If you have a tight deadline, it’s important to communicate this with your injection moulding company upfront. They may be able to work with you to find a solution that meets your timeline and budget. However, keep in mind that rush orders often require additional costs, so be prepared to pay a premium for expedited production. To reduce the cost of urgent orders, it’s important to plan ahead as much as possible. If you anticipate needing parts quickly, consider building extra lead time into your schedule to accommodate unforeseen delays. Additionally, consider working with an injection moulding company that has experience handling urgent orders, as they may be able to offer more cost-effective solutions to expedite the production process.
09 // Other Factors
Aside from the factors discussed above, there are a few other things that can affect the cost of plastic injection moulding:
- Quality Standards: In some industries, there may be specific quality standards that must be met in order for the product to be accepted in the market. These standards may require special certifications, audits, additional testing or inspection, which can add to the cost of production.
- Intellectual Property Protection: If the product being produced is a proprietary design or invention, it may be necessary to invest in intellectual property protection, such as patents or trademarks. These legal costs can add up but are essential to protect the company’s investment.
- Sustainability: Increasingly, companies are seeking to produce products in an environmentally friendly and sustainable manner. This may involve using bio-based or recycled materials, which are still more expensive than traditional raw materials, but gradually their price is reducing.
10 // Strategies for reducing injection moulding cost
The cost of a mould is determined by the complexity of the project and the manufacturing time required. Here are key strategic steps you can take to minimise the injection moulding price:
- Optimize Design: The design of the product can have a significant impact on the cost of injection moulding. Designing a product that can be manufactured with minimum waste, using fewer materials, and requiring fewer assembly operations can significantly reduce the cost of injection moulding.
- Material Selection: Choosing the right material for the product is crucial. Selecting materials that are readily available, cost-effective, and suitable for application can reduce the cost of injection moulding. Also, using recycled materials can lower the cost of raw materials, reducing the overall cost of the product.
- Reduce Complexity: Reducing the complexity of the product design can significantly reduce the cost of injection moulding. Designing products with fewer components can simplify assembly operations, resulting in lower labour costs.
- Optimize Production Volume: Optimizing the production volume can help reduce the cost of injection moulding. Large production volumes reduce the unit cost of manufacturing by taking advantage of economies of scale.
- Partner with an Experienced Manufacturer: Partnering with an experienced injection moulding manufacturer can help reduce costs. Experienced manufacturers can provide valuable insights into the design and material selection process, helping to identify cost-saving opportunities.
11 // Conclusion
Plastic injection moulding is an efficient and cost-effective method of producing plastic and bio-plastic parts and products. The cost of production can vary widely depending on a number of factors, including the cost of equipment, tooling costs, the cost of injection materials, the size and design of the parts, the production volume, and the urgency of the order, among others.
To reduce the cost of plastic injection moulding, there are several strategies that can be employed. These include selecting the right material, simplifying the design, reducing the size of the part, increasing the production volume, and allowing for a longer lead time.
Overall, it’s important for companies to carefully consider all the factors that can affect the cost of production and to work closely with their plastic injection moulding manufacturer to develop a cost-effective and efficient production plan.
12 // Bonus content
While each injection moulding contract manufacturer will have their own way to calculate costs, most of the elements of the forumal will be the same. Therefore, if you ever want to check how much would a simple part or product cost when manufactured using injection moulding, guys at CustomPartnet have created an Injection Moulding Cost Estimator. This should give you some guidance of the price range, but be weary, that this is still a very general estimation.
This guide was first published on MAKLIN Blog.
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