Every business faces the challenge of balancing costs when starting a new fabrication project, and tooling is a major cost consideration. 

However, there are a number of ways you can approach tooling arrangements: partial tooling ownership, “free” tooling or amortized tooling. While there are benefits to each option, cost amortization allows you to maintain full ownership of your tooling, which means no hidden fees, just real values.

Need to be convinced? See why amortization is the best choice when it comes to tooling costs.

Tooling presents a significant upfront cost to new fabrication projects, and escalating tooling costs can hurt businesses’ bottom lines. As a result, tooling can be cost-prohibitive for many would-be roll formed products.

In response, some metal fabricators offer “free” or partially owned tooling. This allows manufacturers to reduce the upfront costs of roll forming, and free up cash flow.

But in the long-term, it’s not that simple.

Cash is king. 

For manufacturing companies, equipment and tooling costs are two investments that have a significant impact on cash flow. The cost of tooling often dictates what production process best fits the project.