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Home / Essays / I never thought we could afford a welding robot. Then we priced the work we were turning down

Can I afford it?

I never thought we could afford a welding robot. Then we priced the work we were turning down

· 4 min read

Welding automation looks unaffordable when you compare the cell to a welder's wage. It looks different when you compare it to the orders you decline every month because you cannot find a second welder. Here is that analysis, worked through with stated assumptions.

The short answer

In the example below, a fabricator turning away about 400,000 dollars a year of repeat weldments pays back a collaborative welding cell in roughly 16 months at the midpoint of the planning range. If the declined work is closer to 150,000 dollars a year, the same cell takes more than three years, and the honest advice is to fix the fit-up bottleneck first.

The shop, as a composite example

This is a worked example with made-up but realistic inputs, not a client story and not a quote. Every figure on this site is an illustrative planning range subject to engineering verification. Put your own numbers in the same slots and the arithmetic is yours.

Picture a 15 person fabricator with two welders, both good, both busy. Quotes for repeat brackets, frames and weldments go out and a share come back as orders the shop declines because the lead time would be eight weeks. The owner tracks the declines in a spreadsheet and the total is about 400,000 dollars a year. A welding robot has never been priced because a robot is for a factory.

The inputs we used

Recovered work: 400,000 dollars a year of repeat weldments in the base case, 150,000 in the low case. Contribution: 25 percent after material, consumables and the share of overhead that scales with it, so the base case is worth 100,000 dollars a year and the low case 37,500. Cell cost: the welding guide here carries an illustrative equipment range of 60,000 to 130,000 dollars and integration of 15,000 to 45,000 dollars. We used a 125,000 dollar midpoint and a 175,000 dollar high case. Operating: 8,000 dollars a year for wire, gas, tips, maintenance and software. Labor: one of the existing welders runs the cell about a third of their time and does fit-up and the hard joints the rest; we charged a third of a loaded wage, 25,000 dollars, against the cell.

How the arithmetic played out

Base case: 100,000 dollars of contribution less 8,000 operating less 25,000 of the welder's time leaves 67,000 dollars a year. A 125,000 dollar project divided by 67,000 is about 1.9 years. That is longer than the headline, and the difference is the welder. If the cell truly frees that third of a welder to take other paid work, which in a shop turning down orders is realistic, the labor charge nets to zero and the payback is 125,000 over 92,000, about 1.4 years, or roughly 16 months. We show both because the honest answer depends on whether the welder's freed hours are sold.

Low case: 37,500 dollars of contribution less operating is 29,500. Even with the labor charge at zero, a 125,000 dollar project takes 4.2 years. At that level the robot is not the answer; a look at why the work is being declined is.

What moves the answer most

The volume of repeat work you can actually recover. Then whether the freed welder hours get sold. Then contribution margin, which varies a great deal between shops. Equipment price is fourth.

What would have killed it

Weldments that do not repeat, so the setup cost is paid on every job. Fit-up so variable that the robot's bead lands in the wrong place. Joints the arm cannot reach or that need judgment on every pass. And a shop where the backlog is in fit-up, finishing or paint, so the extra welding capacity waits behind another station.

Run your own numbers

Pull a year of declined quotes and sort them by how often the parts repeat and how straightforward the joints are. The repeating, straightforward share is the number that goes in the first slot above. Describe what you weld and what you are turning down to Joe, the concierge on this site. It will work the arithmetic in this frame, name the class of cell that fits, and say plainly when the numbers do not support it.

Related on this site

If you are turning down welding work, the cost of not automating is already on your books. It is just filed under orders you never took.

Put it to the test on your own job

Tell Joe what you are running and he will apply this to your numbers, including telling you when a robot is the wrong answer.

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