Basic parameters:
Operator and skilled welder salaries vary somewhat according to geographic locations. The basic assumptions used in the calculations below are as follows:
Work hours per year: 2000 (40 hours/week x 50 weeks/years)
Manual welder Costs
Average welder pay: $16/hour (range from $14/hour - $18/hour)
Actual welder cost to employer: $24/hour equals $48,000/year
(1.5 X hourly rate for overhead, vacation, holidays, sick time, Social Security, unemployment taxes, insurance, etc.)
Operator Costs
Average operator pay: $10/hour (range from $8/hour - $12/hour)
Actual cost to employer: $15/hour equals 30,000/year
(1.5 X hourly rate for overhead)
The table below gives a simple example of calculations for return or investment based on equipment and labor costs alone. For a full analysis of actual costs the following must also be considered;
• Actual equipment cost • Labor rates • Production welding speeds possible • Supervisor cough • Personal management • Quality control costs • Reject and scrap cost • Customer relations •
Number of systems required for the call output.
8x
4x
1x
Individual system cost
Total equipment system investment
$5,000
$40,000
$32,000
$128,000
$200,000
$200,000
Individual welder cost/year
Individual operator cost/year
Labor cost/year for equal volume of output.
(One 8 hour shift)
$48,000
$384,000
$30,000
$120,000
$30,000
$120,000
Labor and equipment cost for a 12 month
period with one eight hour shift
$424,000
$248,000
$230,000
Labor and equipment cost for a 12 month
period with one eight hour shift
$808,000
$368,000
$260,000