The 15 billion dollar question for manufacturing tools

The 15 billion dollar question!
09/11/2005
Mike Abberley
President, Sandvik Coromant

In the United States, the manufacturing industry could save 15 billion dollars by using the right tools from the start, even if companies paid more for the tools, says this article.

The cost of the tools themselves is negligible (about 3% ) when compared to the total cost of production cost. Instead there are other, more profitable ways of doing business. The article goes on to say that the significant cost savings are achieved when we address the issue of use of these tools. Rather than concentrating on the tool alone, if a purchase focuses on a better performing tool and speeds up by increasing cutting data then he can reduce the cost of the component by 15 percent, goes on this analysis.

Read more from this 2005 article from American Machinist