What are the true costs of industrial rubber products such as seals, gaskets, and insulation? Buying rubber materials and fabricating them in-house may seem cost-effective, but is your company really saving money? For that matter, are you sacrificing quality, consistency, and potential sales opportunities for a questionable cost savings?
Companies that want to know the true costs of industrial rubber products need to understand the full scope of their manufacturing costs. Typically, these costs are divided into three categories: direct labor, direct material, and manufacturing overhead. If any of these costs are incorrect, your financial statements may under-report inventory value and the cost of goods sold.
In this article from Elasto Proxy, we’ll examine each category of manufacturing costs so that you can consider how your in-house operations compare to outsourced fabrication. By understanding your true costs, you can make better business decisions and strengthen your manufacturing operations. Continue reading