Growth in carbide demand is reflected in machine shops’ tooling costs
In recent years, the prices of cutting tools have risen significantly. Behind this are changes in global supply chains, the geopolitical situation, and the sharply increased demand for raw materials used in cemented carbide. Cemented carbide is a key raw material in many industrial applications, and its demand has in recent years grown faster than production capacity. This has been reflected in the tool market as rising prices and occasional availability challenges.
For machine shops, the situation means a growing need to look at tool usage more holistically than before. Managing tooling costs is no longer just about competing on purchase price; the productivity, tool life and stability of the machining process over the entire lifecycle of the tools are becoming increasingly important. When tool usage is viewed as part of the entire production process, costs can be managed more effectively even in a changing market situation.
The real cost of a tool is created in use
The impact of a cutting tool on total production costs is often greater than its purchase price alone would suggest. In a machine shop, costs are also generated by tool change frequency, downtime, and potential quality deviations. A tool that performs predictably and has a long life can be clearly more economical overall than a cheaper but short-lived alternative.
Productivity can also be improved by optimising tool use as part of the entire machining process. Tool geometry, coating, cooling and chip control all affect how efficiently material can be removed and how stably the process runs. When these factors are matched with the workpiece material and the characteristics of the machine tool, tool life and process stability often improve significantly.
Tooling solutions can also influence costs by choosing the right type of tool for the application. In many applications, solid carbide tools can be supplemented or replaced by milling cutters and drills with indexable inserts, exchangeable-tip drills, and milling cutters with replaceable cutting edges.
As the price of cemented carbide has risen significantly in recent times, the amount of carbide used in a tool has an even greater impact on its total cost. For this reason, it makes sense to minimise the amount of carbide whenever it is technically feasible. In solutions based on replaceable inserts or carbide tips, worn parts can be renewed without replacing the entire tool, which reduces costs especially in series production.
Regrinding extends tool life
One of the most effective ways to manage tooling costs is through maintenance and regrinding of tools. The operating costs of carbide drills and milling cutters can be significantly reduced by regrinding them to their original geometry and recoating them. When done correctly, a reground tool performs very close to a new one, allowing the same tool to be used in production for much longer.
Tool regrinding is often a much more economical option than purchasing a new tool. Because carbide represents a significant share of a tool’s manufacturing cost, reusing the same tool body provides clear savings, especially in a situation where raw material prices are rising. A systematic regrind cycle reduces the need to purchase new tools and helps keep tooling costs better under control. When there is a clear process in place for collecting worn tools, servicing them and returning them to production, tool life is extended and inventory management becomes easier. At the same time, material waste is reduced, as the carbide remains in use longer before the tool is finally removed from circulation.
Regrinding carbide tools extends tool life and can reduce tooling costs by up to around 50 percent.
Correct cutting data determines tool life
Tool life depends greatly on whether the tools are used with cutting parameters in line with the manufacturer’s recommendations. Excessive feeds or cutting speeds can wear out the tool quickly, while overly cautious parameters reduce productivity and increase machine time.
Modern digital tool selection programs make it easier to determine optimal cutting data. Advanced applications can take into account the workpiece material, tool characteristics and the performance of the machine tool. This way, the machine shop gets realistic starting values that help balance tool life and productivity.
Special tools reduce the number of operations
Special tools can deliver significant savings in series production. A tool designed for a specific machining task can combine several operations into a single set-up.
When one special tool replaces several standard tools, the capital tied up in tooling also decreases. At the same time, tool positions in the machine are freed up and the number of tool changes is reduced, which shortens machining time and improves machine utilisation. As the number of tools required for a job decreases, tooling costs are reduced and the process is simplified.
The use of special tools has become particularly common in series production, where even small improvements in machining time per part quickly add up to substantial savings.
When drilling multiple diameters and chamfering of holes can be performed with the same tool, the need for separate tools is reduced, tooling costs decrease and production efficiency increases.
Tool inventory management affects tied-up capital
Tooling costs are also linked to the value of the tool inventory. As the price of cemented carbide has risen in recent years, a considerable amount of capital is tied up in tooling stocks in many machine shops. Inventory is often increased as a safety measure to ensure that production does not stop due to possible delivery delays. However, this ties up the company’s capital in tools that may not be needed continuously in production.
Modern tool vending systems offer a solution by enabling precise, systematic monitoring and control of tool usage and stock levels. Using the data collected by the vending system, tool consumption can be analysed and stock levels can be set according to actual demand. This way, the value of the tool inventory can be optimised to be as low as possible without causing production stoppages due to missing tools or allowing inventory value to grow unreasonably high.
With tool vending systems, real-time information on tool consumption is available, which facilitates inventory optimisation and purchase planning. At the same time, the time spent searching for tools is reduced and it is ensured that the right tools are always available. The systems can also control the use of reground tools before new ones are put into operation, supporting efficient lifecycle management and helping to utilise tools as far as possible before removing them from circulation.
The Walter Toolstation vending system simplifies tool storage and consumption tracking and helps keep the value of the tool inventory under control.
Carbide recycling as part of the material loop
Used carbide can be returned to production so that the same raw materials are reused in the manufacture of new tools. A refund is paid for recyclable carbide, which at the current price level can be significant. In many machine shops, broken or worn-out carbide tools easily end up in the scrap bin, even though the material value tied up in them is still considerable. In practice, every discarded carbide tool lying in a scrap box represents company capital that can be released back into use by recycling the material and using the refund to purchase new tools.
Recycling also has a broader impact on the market. When carbide is returned to industrial use, the pressure to mine and produce new raw materials is reduced. In the current situation, where demand for carbide has grown strongly and availability has occasionally tightened, returning material to the loop helps to some extent balance the market and curb cost increases. At the same time, machine shops can ensure that this valuable raw material remains in industrial use as long as possible and does not go to waste.
End-of-life carbide tools should be collected separately, as a refund is paid for recycling and the valuable material is returned to industrial use.
Partnership and services support machine shops in tool management
Changes in the tooling market have increased the need for comprehensive solutions in which tool procurement, use, maintenance and recycling form a single, unified whole. When tool lifecycles are managed systematically and production processes are developed together with specialists, machine shops can improve productivity and control costs even when raw material prices and availability fluctuate.
Camcut is the official distributor of Walter Tools and provides machine shops with a comprehensive portfolio of cutting tool products and services. In addition to standard tools, the range includes special tooling solutions that can significantly improve production efficiency, particularly in series manufacturing. With Walter Tools’ Xpress special tool service, customised tools can be delivered quickly, combining several operations into one tool solution and reducing machining times.
Correct cutting data and methods are also central to productivity improvements. Walter Tools’ Walter GPS application acts as a digital “tool navigator” for tool selection and determination of cutting parameters. The application takes into account the tool, the workpiece material and the machine tool characteristics, so that the recommendations reflect real production conditions and help to optimise machining processes.
Tool lifecycle management also includes maintenance and the material loop. Camcut provides Walter Tools’ regrinding service and carbide recycling service, allowing end-of-life tools to be returned to the manufacturer’s material loop. The recycled carbide is used in the production of new tools, which reduces the need for new raw materials and keeps the valuable material in use for as long as possible.
Tool management can also be enhanced through automation. Camcut supplies Walter Toolstation vending systems, which enable digital storage, consumption tracking and order management for tools. The system helps optimise inventory levels, monitor tool usage and ensure that the right tools are always available in production.
More information on tool regrinding, carbide recycling, special tools and other solutions related to tool management is available from Camcut’s specialists. They can help assess how different services can support the machine shop in controlling tooling costs and developing production in a situation where tool prices are on the rise.
