1. To Spread High Mold Costs
Die casting requires custom molds (steel or aluminum), which are expensive to develop (30%-50% of total project costs). Suppliers rely on large orders to reduce per-unit costs. Small orders leave high mold costs per part, squeezing profit margins for both parties.
2. Maximize Equipment Utilization
Die casting machines produce hundreds of parts per hour, but mold changes and setup are time-consuming. Large orders minimize downtime, improve machine efficiency, and reduce operational costs.
3. Economies of Scale
Bulk purchasing of materials (e.g., aluminum/zinc alloys) and shared energy/labor costs lower per-unit expenses. Higher volumes boost supplier margins.
4. Supply Chain Stability
Long-term, high-volume orders allow suppliers to optimize production planning, secure raw material supplies, and mitigate market risks.
1. High Initial Investment, Low Marginal Cost
Mold costs are fixed but amortized over large volumes. Example: A CNY 100,000 mold costs CNY 10 per unit for 10,000 parts, but only CNY 1 for 100,000 parts.
2. Rapid Production Cycles
Short cycle times (30 seconds to a few minutes per part) and automated systems enable 24/7 production, yielding thousands to tens of thousands of parts daily—far surpassing sand casting.
3. Consistency and Precision
Mold-based forming ensures dimensional accuracy and surface uniformity, critical for industries like automotive and electronics requiring strict standardization.
4. High Material Efficiency
Minimal waste generation (especially with vacuum die casting) and scrap recycling significantly reduce material costs in mass production.
For Small-Batch Projects:
- Share Mold Costs: Collaborate with similar clients to split expenses.
- Simplify Mold Design: Reduce costs by modifying product design (e.g., adjusting shape, size, or complexity).
- Alternative Processes: Consider CNC machining (low-volume complex parts) or sand casting (low cost but lower precision).
Long-Term Planning:
If scaling up is likely, adopt phased investments (e.g., start with low-cost prototype molds, then upgrade to steel molds).
Die casting’s core advantage lies in “scaling for cost efficiency.” Understanding this logic helps clients negotiate strategically or choose the most suitable manufacturing method.