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How Long Does It Take To Recoup The Cost of Switching From Manual Welding To Automated Welding Machines?

Views: 0     Author: Site Editor     Publish Time: 2025-11-24      Origin: Site

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In manufacturing workshops, welding processes often face the challenges of "difficulty in recruiting workers, fluctuating efficiency, and high scrap rates." Many bosses are hesitant: the one-time investment in automated welding machines is not low, so how long does it actually take to recover the cost? In fact, the payback period is far shorter than imagined— the key lies in calculating the "income and expenditure account" between manual and automated welding, and selecting equipment that meets production needs. Below, we will help you figure out this account from three dimensions: cost composition, calculation logic, and practical cases.

First, Calculate Clearly: The "Hidden Costs" of Manual Welding Are Far Higher Than You Think

Many enterprises only focus on labor wages but ignore the hidden losses of manual welding. Taking a 10-person welding team as an example:
  • Direct costs: A skilled welder has a monthly salary of 8,000-12,000 yuan, so the annual salary expenditure for 10 people is 960,000-1.44 million yuan. In addition, enterprises need to bear additional costs such as social security, accommodation and meals, with an annual additional expenditure of about 20,000 yuan per person;

  • Efficiency costs: Manual welding is affected by physical strength and emotions, so the effective daily working time is only 6-7 hours. A skilled worker can produce about 200-300 pieces per shift, and the output of new workers will be reduced;

  • Quality costs: Manual welding is prone to missing welding and false welding, with a scrap rate usually between 3%-5%, which not only wastes raw materials but also may lead to rework and customer complaints;

  • Management costs: It is necessary to arrange special personnel to supervise production and inspect quality, while facing problems such as welder turnover and long training cycles for new employees (3-6 months).

The superposition of these explicit and implicit costs makes the actual investment in manual welding far higher than the surface salary.

Second, Clarify: What Are the "Investment Costs" of Automated Welding Machines?

The investment in automated welding machines is not a "fixed price," but mainly consists of 3 parts, which can be flexibly selected according to production scale:
  • Equipment procurement cost: According to the welding process (spot welding, laser welding) and automation level (single-machine automation, robotic welding line), the price ranges from tens of thousands to hundreds of thousands of yuan. For example, a conventional spot welding machine costs about 50,000-150,000 yuan per unit, and a robotic laser welding machine costs about 300,000-800,000 yuan, suitable for small-batch to large-scale production;

  • Supporting costs: Including installation and commissioning fees (usually 5%-10% of the equipment price), simple tooling modification fees, and training fees for 1-2 operators (manufacturers generally provide free basic training);

  • Operation and maintenance costs: The annual maintenance fee is about 2%-3% of the equipment price, mainly for consumable replacement and equipment calibration, which is much lower than the additional costs of manual labor.

It should be noted that automated equipment can be used for 8-10 years, so the annual depreciation cost allocated is actually very low, and high-quality equipment also has a relatively stable second-hand residual value.

Core Formula: Payback Period = Total Equipment Investment ÷ Annual Cost Savings

To calculate the specific payback time, you only need to master a simple formula: Payback Period (Years) = Total Investment in Automated Equipment ÷ Total Annual Cost Savings, where "Total Annual Cost Savings" is the key, which can be calculated through the following steps:
  1. Calculate the annual labor cost difference: (Total annual expenditure of the manual team - Total annual expenditure of automated operators). For example, replacing a 10-person team with 2 automated equipment and 2 operators can save about 700,000-1.1 million yuan in annual labor costs;

  2. Calculate the annual benefit from efficiency improvement: (Daily output of automation - Daily output of manual labor) × Annual working days × Profit per unit. Automated equipment can achieve an effective daily working time of 20-22 hours, with a single-shift output 2-3 times that of manual labor, and can work continuously for 24 hours, resulting in considerable annual output increase benefits;

  3. Calculate the annual benefit from quality improvement: (Manual scrap rate - Automated scrap rate) × Total annual output × Cost per unit. The scrap rate of automated welding can be controlled within 0.5%, which greatly reduces raw material waste and rework costs;

  4. Total annual cost savings = Labor cost difference + Benefit from efficiency improvement + Benefit from quality improvement - Annual equipment operation and maintenance cost.

Let's take a practical example: A new energy storage enterprise replaced 8 welders with 2 robotic laser welding machines, with a total equipment investment of 800,000 yuan. It saves 800,000 yuan in annual labor costs, gains 300,000 yuan in annual output increase benefits due to efficiency improvement, saves 100,000 yuan in raw material costs due to quality improvement, and has an annual operation and maintenance cost of 20,000 yuan. Total annual cost savings = 800,000 + 300,000 + 100,000 - 20,000 = 1.18 million yuan. Payback period = 800,000 ÷ 1.18 million ≈ 0.67 years, which is about 8 months.

Cases in Different Industries: Payback Period Is Mostly 6-18 Months

The payback period of automated welding machines varies slightly by industry, product type, and production scale, but most enterprises can recover their investment within 1.5 years:
  • Rail transit industry: Welded components are produced in large batches with uniform standards. After replacing manual labor with robotic laser welding machines, efficiency is increased by 2.5 times, and the scrap rate is reduced from 4% to 0.3%, with a payback period of about 6-9 months;

  • New energy storage industry: There is a large demand for welding of battery packs and boxes. Automated equipment can achieve continuous production, and a single equipment can save more than 500,000 yuan in annual costs, with a payback period of about 8-12 months;

  • Aerospace industry: Precision component welding has high quality requirements. Manual welding has a high scrap rate and high rework costs. Automated welding machines have high precision. Although the equipment investment is slightly higher, the payback period can still be controlled within 12-18 months.

Key to Shortening the Payback Period: Choosing the Right Equipment Is Core

Not all automated welding machines are the same— choosing the wrong one may extend the payback period, while choosing the right one can accelerate profitability. The core points to focus on are 3:
  • Adaptability: Select equipment according to product type. For example, choose spot welding machines for small-part spot welding, laser welding machines for large-part long welds, and robotic welding lines for mass production, avoiding "overkill" or "underpowered equipment";

  • Stability: Equipment failure rate directly affects production efficiency. Prioritize manufacturers with mature technology and good reputation to reduce downtime losses;

  • Cost-effectiveness: It is not about choosing the most expensive one, but comprehensively considering equipment price, energy consumption, and maintenance costs to select high-cost-effectiveness equipment with "low investment and high output."

Choose PDKJ Welding Machines for a Shorter Payback Period and More Stable Profitability

To quickly recover the investment in automated equipment, choosing a reliable manufacturer is crucial. As a professional manufacturer of spot welding machines, laser welding machines, and robotic laser welding machines, PDKJ's equipment is suitable for welding needs in various industries such as rail transit, new energy storage, and aerospace. It can not only accurately match your production process but also provide free installation and commissioning, operation training, and long-term after-sales support.

Our equipment adopts mature core technology, with low failure rate and energy consumption, enabling 24-hour continuous and stable production, helping you significantly reduce labor, quality, and management costs. Many cooperative customers have reported that after choosing PDKJ automated welding machines, the shortest payback period is only 6 months. In the long run, it can also continuously improve production efficiency, stabilize product quality, and enhance market competitiveness. If you want to know the specific payback calculation for products, feel free to contact us for a customized plan.


If you have welding machine requirements, please contact Ms. Zhao

E-Mail: pdkj@gd-pw.com

Phone: +86-13631765713


About Our Company

Founded in 2006, PDKJ is a professional supplier of welding automation solutions. The company has passed the ISO9001 international quality management system certification, has more than 90 officially authorized and applied national patents, and a number of core technologies in the welding field fill the technical gap at home and abroad. It is a national high-tech enterprise.

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