Nick's Niche: Calculating and controlling your powder coating operational costs
Anyone who owns or operates a powder coating system knows that it can be a costly process. However, few people really understand what their true costs are, which costs are more significant than others, or how to control or reduce these costs. This article will outline in broad strokes the different costs every powder coating system incurs, how to calculate these costs, and steps one can take to reduce these costs.
It is standard accounting practice to classify operating costs into two categories: Fixed Costs and Variable Costs. Fixed costs are incurred every hour the process is running, whether or not any product is being coated, and are accrued in dollars per hour. Variable costs are incurred for every part processed and are accrued in dollars per square foot area of coated surface. Fixed costs include utility costs, labor costs, and scheduled maintenance costs. Variable costs include consumable costs, pretreatment chemical costs, and miscellaneous costs.