Fabricators could be saving up to £200,000 a year by buying-in cut-to-size reinforcements direct, rather than going through their systems companies and cutting their own, according to research by ANGLO EUROPEAN.
The figures from the galvanised reinforcement supplier, based on customer modelling, show that fabricators manufacturing 1,500 frames plus, could save more than £100,000 a year in lower purchasing and manufacturing costs, and even smaller customers should expect savings of around £10,000 a year.
Manging director Paul Sullivan said: “There are massive costs associated with buying reinforcements through a systems company. Unit price is higher, as sitting between the manufacturer i.e. people like us, introduces a handling fee. But it’s the other costs for example, labour, wastage and skipping of material, which contribute to a far more substantial overhead.
“If you’re doing any volume you’re going to have someone on a saw. Throw in their salary and costs of employment and you’re looking at £30K a year. Buy-in cut-to-size reinforcement and that’s gone straight away.”
Paul added that one of the biggest advantages of buying-in cut-to-size steel reinforcement is that its customers free-up floor space: “Whatever its size of your factory floor, your yard, warehousing it’s never big enough.