STOP!
If you are still cutting aluminum with a router, you could be losing $6,578 DAILY!
Cost Comparison
Based on real world example producing 12 letters 6" tall from 1/4" aluminum.
CNC Router
- MATERIAL COSTS $61
- Using a 1/2" web around each letter, this project will use 4.4 sq ft of material. Aluminum weighs 3.5lbs per sq/ft. and with current prices around $4.00/pd. this project will use $61 of material.
- LABOR COSTS $105
- We estimate that this project will take about 3 hours to process, this includes time to prepare the file, add hold tabs, change inside corner radius and run the job. After routing, we need remove the tabs, cleanup the edges and polish the letters. Using a labor rate of $35/hour the labor cost would be $105.
- MACHINE TIME & COST $90
- We estimate this project will take 1.5 hours, including fixturing for material hold down, tool setting and then operation. Add in time for cleanup, chip/scrap removal. Using a burden rate for the router of $60/hour, the overall machine cost for this job is about $90.
-
TOOLING COSTS
$30
- We will add to the cost one 3/16" carbide tool and use an average cost of $30 each. However, it a letter kicks during routing and a tool breaks, we may require a second tool, but we won't add that now.
- MISCELLANEOUS COSTS 15
- Miscellaneous costs (waste removal, electricity, rent, depreciation etc.)
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TOTAL COSTS
$301
CNC Laser
- MATERIAL COSTS $32
- Using a 1/8" web around each letter the project will require 2.3 sq ft of material. Aluminum at 3.5lbs per sq/ft. and $4.00/pd. the material used will be nearly 1/2 as much as the router with a total material cost of just $32.
- LABOR COSTS $20
- The labor estimate to prepare the file and process it including cleanup is about 35 minutes. With the laser there is minimal file prep, we do not need to change the inside corners so most files can be processed as is. With the laser operating at almost 3X the speed of a router the time to process and the labor required is drastically reduced. Using the same labor rate of $35/hour, the labor cost for this project would be just $20.
- MACHINE TIME & COSTS $27
- We estimate that this project will take 18 minutes including setup, operation. and cleanup. Using a higher burden rate for the laser of $90/hour, the overall machine cost for this job is just $27.
- ASSIST GAS COSTS $10
- Nitrogen is the assist gas we will use for this example. However, when volume of cutting aluminum exceeds 6 hrs/day then using high pressure air as an alternative becomes an option, lowering costs to less than a dollar in this example
- MISCELLANEOUS COSTS $5
- Miscellaneous costs (waste removal, electricity, rent, depreciation etc.)
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TOTAL COSTS
$94
Cost Comparison
Based on real world example producing 12 letters 6" tall from 1/4" aluminum.
CNC Router | CNC Laser | |
MATERIAL COSTS | $61.00 | $32.00 |
Using a 1/2" web around each letter, this project will use 4.4 sq ft of material. Aluminum weighs 3.5lbs per sq/ft. and with current prices around $4.00/pd. this project will use $61 of material. | Using a 1/8" web around each letter the project will require 2.3 sq ft of material. Aluminum at 3.5lbs per sq/ft. and $4.00/pd. the material used will be nearly 1/2 as much as the router with a total material cost of just $32. | |
LABOR COSTS | $105.00 | $20.00 |
We estimate that this project will take about 3 hours to process, this includes time to prepare the file, add hold tabs, change inside corner radius and run the job. After routing, we need remove the tabs, cleanup the edges and polish the letters. Using a labor rate of $35/hour the labor cost would be $105. | The labor estimate to prepare the file and process it including cleanup is about 35 minutes. With the laser there is minimal file prep, we do not need to change the inside corners so most files can be processed as is. With the laser operating at almost 3X the speed of a router the time to process and the labor required is drastically reduced. Using the same labor rate of $35/hour, the labor cost for this project would be just $20. | |
MACHINE TIME & COST | $90.00 | $27.00 |
We estimate this project will take 1.5 hours, including fixturing for material hold down, tool setting and then operation. Add in time for cleanup, chip/scrap removal. Using a burden rate for the router of $60/hour, the overall machine cost for this job is about $90. | We estimate that this project will take 18 minutes including setup, operation. and cleanup. Using a higher burden rate for the laser of $90/hour, the overall machine cost for this job is just $27. | |
TOOLING COSTS | $30.00 | |
We will add to the cost one 3/16" carbide tool and use an average cost of $30 each. However, it a letter kicks during routing and a tool breaks, we may require a second tool, but we won't add that now. | ||
ASSIST GAS COSTS | $10.00 | |
Nitrogen is the assist gas we will use for this example. However, when volume of cutting aluminum exceeds 6 hrs/day then using high pressure air as an alternative becomes an option, lowering costs to less than a dollar in this example | ||
MISCELLANEOUS COSTS | $15.00 | $5.00 |
Miscellaneous costs (waste removal, electricity, rent, depreciation etc.) | Miscellaneous costs (waste removal, electricity, rent, depreciation etc.) | |
TOTAL COSTS | $301 | $94 |
Analysis
If we sell the above job at $600, given the associated costs, a laser system could pay for itself quickly. Consider how many jobs you run on a router that could be done faster and less expensively on a laser. What would your return-on-investment look like?
Router
The example above of a job that requires an average of 3 hours of labor in an average 7 ½ hour workday means that only 2 jobs of equivalent size could be run. If sold for $600, producing this job twice a day for a total of $1200 can result in a gross profit of $600 in a single workday, after deducting the costs of approximately $300 per job.
Profit potential per employee per day: $600.
Laser
However, if the same job is produced using a laser, it can be completed in just 35 minutes, allowing for the production of 13 jobs in a 7 ½ hour workday. With a cost of approximately $94 per job, this can result in a gross profit of $6,578 daily, based on the estimated selling price of $7,800 for all 13 jobs.
Profit potential per employee per day: $6,578!
Even if the earning potential of the CNC router is overstated by 100, the laser still outperforms it by over 5 times. Therefore, it is important to consider the efficiency and earning potential of different production methods when deciding between a CNC router and a laser for job production.