Understanding Cost Drivers in Metal Fabrication Projects

When planning a metal fabrication project, one of the first questions clients ask is: “What determines the cost?”

Metal fabrication is not a one-size-fits-all process. Every structure, frame, skid, or housing is custom-built based on engineering needs. Understanding the major cost drivers helps companies plan more accurately, avoid surprises, and improve project efficiency.

This article breaks down the key factors that influence pricing in industrial metal fabrication, especially within the Singapore–Johor manufacturing environment.

1. Material Type and Thickness

Materials are one of the largest contributors to fabrication cost. Different industries require different grades depending on strength, corrosion resistance, or structural needs.

Common materials include:

• Mild steel

• Stainless steel (304, 316)

• Galvanised steel

• Aluminium (less common in heavy industry)

Costs increase with:

• Thicker plates or profiles

• Higher-grade stainless steel

• Larger sheet or beam sizes

• Special finishing (e.g., galvanising, epoxy coating)

Because global steel prices fluctuate, material cost remains one of the most variable components of any project.

2. Complexity of Design and Engineering Requirements

Fabrication is significantly influenced by how complex the structure is.

Projects with:

• Tight tolerances

• Multiple components

• Complex geometries

• Precise fitting needs

• Detailed engineering drawings

will naturally require more time and skill.

Simple box frames may take hours, while machinery housings or multi-section skids can require days or weeks. The more precision required, the more effort goes into cutting, forming, welding, checking, and final assembly.

3. Cutting, Bending, Rolling, and Other Processes Needed

Each fabrication process adds labour hours and machine time. Common influencing factors include:

Cutting

Laser, plasma, or saw cutting rates vary based on thickness, length, and cut quality.

Bending / Forming

Multiple bends, tight radiuses, or thick plates require more time and higher force.

Rolling

Rolling plates or pipes, especially thick, wide or small internal diameter pieces, requires specialised equipment and experienced operators.

Welding

Welding cost depends on:

• Total length of welds

• Number of joints

• Required weld appearance

• Welder skill and time

• Type of welds (Regular Welding, Bevel Weld, Full Penetration, UT (Ultrasonic Testing) Weld, X-Ray Weld, etc)

• Requirement of WPS and WQT, and its standards

Only a brief mention: fabricators should follow standard welding procedures to ensure consistency.

Each additional step adds to the overall production cost.

4. Assembly Time and Project Scale

Small frames or brackets require minimal setup. Larger structures like generator skids, machinery frames, or platforms require:

• Jig setup

• Positioning

• Alignment

• Partial assembly

• Rework if adjustments are needed

Larger assemblies also require more manpower, lifting equipment, and floor space.

A project that occupies a workshop bay for weeks carries a higher cost than a job completed within a few hours or days.

5. Surface Finishing and Protective Coating

Many industrial structures require finishing to prevent corrosion or wear.

Common finishes include:

• Hot-dip galvanising

• Powder coating

• Epoxy paint

• Sandblasting before coating

Coating cost depends on:

• Surface area

• Thickness of parts

• Type of coating

• Required durability

Finishing is often priced separately because it is commonly outsourced to specialised facilities.

6. Project Timeline and Urgency

Faster delivery requires:

• Reallocation of manpower

• Overtime

• Priority scheduling

• Faster procurement

Urgent projects often cost more because the workshop must adjust its workflow.

Standard lead times allow for better planning and lower overall cost.

7. Location: Singapore vs Johor Production

Fabrication cost can vary depending on where production occurs.

Singapore

• Higher manpower and rental costs

• Faster communication

• Suitable for precision or coordination work

Johor

• More cost-efficient for large structures

• Larger workshop spaces

• Lower production cost for bulk or heavy fabrication

Many companies choose a hybrid approach: Singapore for management + Johor for production. This combination provides both quality and cost advantages.

8. Packaging and Shipping Requirements

For export-ready projects, cost is influenced by:

• Crating

• Palletising

• Reinforced wooden boxes

• Loading arrangements

• Container space

• International freight documentation

Export packaging ensures the structure arrives safely without damage.

Conclusion

Understanding the main cost drivers in metal fabrication helps companies plan more accurately, design efficiently, and choose a fabrication partner that matches their budget and quality expectations. Whether producing machinery frames, generator skids, or custom industrial structures, clear communication and detailed drawings help control cost and prevent unnecessary rework.

Sunlink Engineering supports clients across Singapore, Johor, and overseas markets by providing clear cost breakdowns and efficient fabrication processes tailored to industrial needs.

Contact us to request a quote for your next project.

Sunlink Engineering Pte Ltd
info@sunlinkmetal.com
+65 9387 5463 (Call or Whatsapp)
https://www.sunlinkmetal.com/contactus/
Singapore & Johor (Malaysia) Fabrication Facilities