Metal components

Operation profile

The fabricated metal products industry encompasses both a wide range of products and production techniques, producing metal components for applications such as building products (hardware), automotive, agricultural, drilling/mining, transportation, appliances, and others.

The representative operation modeled is a small manufacturer of metal building products using machining tools. As detailed in the following table, this operation is characterized by:

  • Moderately high facility and equipment requirements
  • A workforce with some professional/ technical positions, many skilled operators, and some unskilled positions
  • Moderate energy requirements.

The business is assumed to operate as a stand-alone profit center.
 

Summary of operating parameters

Industry: Metal components

Operation: Metal machining

Facilities requirements
   Owned industrial site - acres (24,281 m2)
6
   Size of factory - ft2 (9,290 m2)
100,000

Other initial investment requirements
   Machinery and equipment - US $'000
$19,500
   Office equipment - US $'000
$500
   R&D equipment - US $'000
-- 
   Inventory - US $'000
$2,700
   Equity financing - % of project costs
50%

Workforce
   Management
4
   Sales and administration
16
   Production/non-dedicated product development
      - Professional, technical
17
      - Operators
44
      - Unskilled laborers
14
   Other
5
 
Total employees
100

Energy requirements
   Electricity: monthly consumption demand - kWh
240,000
   Gas: monthly consumption - CCF (28,895 m3)
10,200

Other annual operating characteristics
   Sales at full production - US $'000
$30,000
   Materials and other direct costs - % of sales
34%
   Other operating costs - % of sales
3%
   Investment in tax-eligible R&D - % of sales
-- 

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Metal components
Operation: Metal machining
North America – lowest cost cities
Country and CityIndex & Rank1
CABarrie, ON87.93
 Fredericton, NB88.14
 Quebec City, QC88.25
 Charlottetown, PE88.46
 Moncton, NB88.47
MXMonterrey, NL82.41
 Mexico City, DF84.92
USShreveport, LA93.632
 Montgomery, AL93.935
 Savannah, GA94.037
 Baton Rouge, LA94.138
 New Orleans, LA94.139
 Nashville, TN94.240
 Gulfport-Biloxi, MS94.541
 Lexington, KY94.642
 Mobile, AL94.743
 Atlanta, GA94.844
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide91.425
 Brisbane93.530
 Melbourne91.424
 Sydney92.027
FRMarseille92.329
 Paris92.328
GEBerlin93.531
 Frankfurt93.734
ITMilan91.023
 Rome91.826
JPOsaka93.633
 Tokyo95.145
NLAmsterdam89.817
 Rotterdam89.816
UKLondon93.936
 Manchester88.810
1  Rank among 111 featured cities.

 
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