Forming technology instead of machining: No more expensive chips – Why milling and turning are becoming a cost trap for many companies

450 tons of material savings: This underestimated technology saves profit margins in mechanical engineering

For a long time, machining – the classic milling and turning processes – was central to production, but its economic viability is becoming increasingly risky in times of high raw material prices and stringent climate targets. Where machining produces up to 60 percent of the material as expensive waste, chipless manufacturing relies on resource efficiency par excellence. Precise shaping at room temperature allows material costs to be almost halved and energy consumption to be drastically reduced.

This transformation is no longer a purely technical decision, but a strategic necessity. From the automotive industry to aviation and medical technology, it's clear: those who don't want to fall behind must radically change their mindset. It's no longer about laboriously removing material, but about intelligently shaping it. This article explains why the return to forming technology is the crucial lever for improving CO2 balances, saving millions, and sustainably securing Europe's manufacturing base.

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• Contract manufacturer and subcontractor (“extended workbench”) for long turned parts, precision turned parts and CNC long turned parts

Why industry needs to radically change its mindset

While German and Austrian machine manufacturers are operating at capacity utilization rates of only around 78 to 82 percent, significantly below their long-term averages, and a large proportion of companies see rising cost and price pressures as a major obstacle to further growth, a solution presents itself that is not new but has been systematically underestimated: forming technology as a fundamental alternative to machining processes such as milling or turning. The economic reality cannot be sugarcoated. While global market forces cause raw material prices to fluctuate and energy costs remain elevated, companies cannot regain competitiveness through automation alone. They must fundamentally rethink their entire approach to design and manufacturing.

Chipless manufacturing technology is not merely a minor improvement to existing processes, but a fundamental shift in the value system of production. Instead of laboriously removing material and consuming enormous amounts of energy, forming technology precisely shapes the material into the desired final form at room temperature or moderate heat. This sounds simple, but the impact on cost structures, sustainability, and operational efficiency is immense.

Materials and energy: Double cost reduction

The most significant economic advantage of forming technology stems from a twofold saving: material savings and energy reduction work together. In conventional machining, typically between 40 and 60 percent of the raw material is removed as chips and disposed of as waste. This material must first be purchased at considerable expense, transported, and ultimately recycled or disposed of. Each of these activities incurs costs and worsens the environmental impact.

Forming technology almost completely eliminates this waste. Industry studies show that modern forming processes achieve material savings of 40 to 54 percent compared to cutting processes. This is not only a contribution to environmental protection, but also an economic necessity. If a manufacturing company, for example, processes 1,000 tons of raw material per month, a 45 percent reduction translates to a monthly saving of 450 tons of material. With steel prices ranging from €400 to €600 per ton, this results in annual material cost savings of €2.16 to €3.24 million for a typical medium-sized company.

Energy efficiency significantly increases these savings. While machining generates a lot of frictional heat, requires long processing times, and necessitates constant cooling, cold forming typically operates at room temperature with very low energy consumption. Digital forming systems reduce energy consumption by an average of 20 percent through precise real-time control. For example, an innovative cold forming process for high-strength steels achieves annual electricity savings of 900 megawatt-hours per system – an amount equivalent to the average electricity consumption of approximately 250 private households.

These efficiency gains add up quickly. A manufacturing company that switches its product range from machining to forming can realistically expect cost reductions of 25 to 35 percent per component, depending on the product shape and the quantity produced.

Fastening technology as an example: The revolution of the screw

No application demonstrates the economic superiority of forming technology more clearly than the production of fasteners. Screws, nuts, and special connectors are manufactured worldwide in enormous quantities. Cold forming has established itself as the leading economic process in this field and is increasingly displacing alternative technologies.

The production of screws by cold forming follows a fixed sequence: First, wire is cut to the correct length, then the screw head and basic shape are formed by pressing, subsequently details such as the thread are applied by rolling processes, and the part is finished. The entire process takes place without the application of heat and enables speeds of hundreds of units per minute while simultaneously producing smooth surfaces and high accuracy.

The economic figures are clear: Formed screws have minimal material loss, offer enormous production output in large quantities, and possess high strength. This is because the internal structure of the material is not disrupted during forming. The material hardens itself during processing, which means that stability is automatically increased without the need for subsequent heat treatments – an advantage that further increases energy savings.

The versatility of these parts simultaneously demonstrates their immense importance to the market. A modern car requires between 150 and 200 specialized fasteners, ranging from simple machine screws to innovative specialty solutions such as thread-forming or flow-drilling screws. A single major manufacturer supplies these parts for hundreds of thousands of vehicles annually. The economies of scale mean that even small savings per component translate into enormous overall savings. A practical example: Optimizing a gearbox housing by switching to a more modern screw system resulted in a weight saving of 42 grams per gearbox. With an annual production of one million gearboxes, this equates to a weight saving of 42,000 kilograms – a massive reduction made possible only through intelligent design.

CO2 reduction as an economic driver and an obligation

The CO2 footprint of metal forming technology is no longer just a technical or environmental issue, but a crucial economic factor. New European laws, CO2 border tariffs, and strict reporting requirements are making climate protection mandatory. Companies that cannot demonstrably reduce their CO2 footprint risk being excluded from supply chains and face rising financing costs.

Chipless manufacturing through forming achieves CO2 reductions of 37 to 45 percent compared to similar cutting processes. This reduction is comprised of several factors. First, minimal material waste means less raw material needs to be produced in energy-intensive steel mills. One kilogram of material saved directly prevents the generation of approximately 1.5 to 2.0 kg of CO2. Second, energy consumption during the forming process itself is significantly lower, as no heavy machining processes involving high temperatures are required. Third, the number of manufacturing steps is usually reduced, which shortens transport distances, storage times, and buffer stocks.

In the specific case of a highly efficient forming process for complex parts, a single production facility achieves annual savings of approximately 395 tons of CO2. For a large corporation with five such lines, this equates to almost 2,000 tons of CO2 reduction per year – an amount equivalent to the annual emissions of about 400 households. In an environment where CO2 prices are rising and customers are paying closer attention, these savings can be directly translated into lower costs and greater market acceptance.

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Industry and market structure: Who benefits the most?

Metal forming technology is not a small niche market, but affects almost the entire industry. A closer look at the main areas reveals both current applications and future growth opportunities.

The automotive industry remains the most important sector, where metal forming technology has been firmly established for decades. Every modern vehicle uses hundreds of formed parts: sheet metal body components, engine parts such as crankshafts, springs, and, of course, fasteners. However, the shift to electric vehicles has fundamentally changed the requirements. For example, the assembly of battery packs requires special connections that function without pre-drilling to maintain the material's integrity. A leading industry player is therefore currently building a new 60,000-square-meter plant with hundreds of jobs, specifically designed for climate-neutral cold forming for electromobility. Such investments demonstrate that the market views this transformation as permanent.

Electrical engineering and electronics represent the fastest-growing sector. Housings for electronics, connectors, and coolers are increasingly manufactured by forming rather than machining. This is due to the required precision and the enormous cost pressure that demands high efficiency.

Aerospace is a cutting-edge field where lightweight construction is vital. New forming technologies for extremely strong steels and aluminum enable designs that would be impossible or far too expensive with traditional methods. Weight savings of up to 60 percent with the same strength significantly improve fuel consumption and drastically reduce aircraft emissions.

The household appliance industry benefits from enormous production volumes. A typical refrigerator or washing machine requires many formed parts. With millions produced annually, the tooling costs are quickly recouped. At the same time, EU environmental regulations are forcing manufacturers to save materials and energy in production, making forming technology economically attractive.

Medical technology uses this process for extremely delicate components where cleanliness and smooth surfaces are crucial. General mechanical engineering is also increasingly relying on formed components to save weight and costs.

New technology standards: Innovation and economic consequences

Modern forming processes exemplify how technological innovations are rendering old cost calculations obsolete. One example is the processing of high-strength steel sheets at room temperature – a task that previously could often only be accomplished through energy-intensive heating and subsequent welding.

The new process works by gradually forming the material using special tools that distribute it precisely as needed. This prevents cracks and stresses that would occur with conventional methods. The result is a technical solution that previously seemed impossible, but is now highly economically viable.

The measurable effects are enormous. Initial industrial applications show material savings of 56 percent compared to previous hot forming processes. Weight is reduced by 60 percent while maintaining the same stability. The CO2 balance is also compelling: emissions per component are significantly lower compared to the conventional method. Extrapolated to an annual production of 100,000 components, this results in a substantial CO2 reduction. Strategically, this means that by investing in this technology, companies not only reduce costs but also acquire the capability to meet future demands for modern materials.

Legal requirements and sustainability as accelerators

Regulations for European industry are constantly tightening, transforming metal forming technology from an option into a requirement. CO2 border tariffs, new reporting obligations for companies, and the demands of large customers on their suppliers are creating a system that disadvantages companies with a poor environmental record.

An example from the industry illustrates this development: New technology centers are being planned that rely entirely on renewable energies. Even more impressive is the planned conversion of heat treatment plants to hydrogen. The annual hydrogen demand for such plants is enormous – comparable to the energy needs of a small town with 2,500 inhabitants. These investments are not merely symbolic gestures, but a fundamental transformation of production with the goal of achieving completely climate-neutral operations within a few years.

Such expensive investments are possible because the pressure from legislation and customer demands ensures the economic viability of such changes. Without this pressure, such sums would be difficult to justify. Today, they are a strategic necessity to remain competitive.

Market outlook and competition

The global market for smart manufacturing is growing rapidly and is estimated to reach approximately US$700 billion within a few years. Within this market, forming technology is playing an increasingly important role, driven by cost efficiency, sustainability, and technological innovations.

However, the German mechanical engineering sector is going through a difficult period. Capacity utilization is low, and cost pressures are cited as the biggest obstacle to its future. In this situation, new forming technologies represent important opportunities to regain a competitive edge.

At the same time, a trend is emerging to bring production closer to domestic markets. While low labor costs were previously a reason for relocating production abroad, rising tariffs, uncertain trade relations, and long supply chains often negate this advantage. This favors local, highly efficient factories where forming technology offers a clear cost advantage over machining. Companies that have mastered these processes are clearly at an advantage in this reshaping of the global economy.

The strategic obligation to realign

Chipless manufacturing through forming is no longer a niche solution for cost-conscious consumers. It represents a completely new logic in production. In an era of high raw material costs, expensive energy, strict environmental regulations, and uncertain global trade, forming technology combines economic and ecological objectives. It is the preferred method for manufacturing many components.

The conclusion for manufacturers is clear: investments in forming technology and its improvement are not optional, but necessary for long-term survival. This is especially true for locations with high cost structures like Germany, whose success depends on technological leadership and maximum efficiency.

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