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Unstable Material Costs Prioritize Scrap and Remnant Reuse for Fabricators

Cincinnati, OH: With ongoing instability in material costs, maximizing scrap and remnant use is a rising priority with fabricators. SigmaTEK Systems, developer of fabrication workflow software such as SigmaNEST, SigmaMRP, SigmaTUBE and others, has long focused on increasing profitability through greater material utilization and increased scrap and remnant use. Whether metal, composite, wood or other mateial, FMA's annual survey reports an average reuse rate on scrap/remnants at 1.5% of sales. With tools such as SigmaNEST and SigmaMRP, fabricators can potentially double that, with savings going directly to the bottom line.

"Our robust, scaleable, modular tools for process, material and throughput optimization allow customers to align production goals with cash flow and profitability objectives, remnant and scrap use being critical," says SigmaMRP's Valter Bonelli. "We partner with them to uniquely configure what they need to grow, then grow with them," he adds.

SigmaTEK Systems' modular implementation means setting a feasible, profitable vision achieved in modular, scaleable steps toward the desired level of integration and automation. Customized configurations of modules such as SigmaNEST, SigmaMRP, SigmaMXP, SimTRANS and others on top of existing or emerging ERP systems are crucial, driving better performance with no downtime.

Technological advancements that make unique, custom configurations budget-friendly and easy to implement have helped make fabricators more optimistic, as shown by The Leading Edge Alliance's third Annual Manufacturing Survey Report. Some key findings include:

  • 81% of U.S. manufacturers expect to grow sales this year.
  • 61% expect their overall sector to expand in 2019. This is fueled by a 12% increase in optimism regarding the strength of regional, national, and global economies.
  • Manufacturers expect labor costs, raw materials, a lack of available talent and competition to pose significant obstacles in 2019.
  • The tariffs implemented by President Donald Trump are also creating productivity issues.
  • The manufacturers' top three priorities heading into 2019 are growing sales, improving profitability, and addressing the workforce shortage. More than half — 52% — cited labor and talent as the greatest barrier to growth, and 62% cited increasing compensation as a way to combat this. The second biggest barrier cited was competition (34%), followed by profitability (25%).
  • Three key growth strategies were identified — technology investments, mergers and acquisitions, and talent management.
  • More manufacturers are considering a sale, merger, or acquisition in 2019. The report states that 21% expect to acquire another business in 2019, and 16% are in the beginning stages of a merger or acquisition.
  • 76% said that they will investigate or prioritize cybersecurity in 2019.
  • 43% said they will prioritize Big Data, enterprise resource planning (ERP), or the Internet of Things (IoT).

To see the latest feature enhancements to SigmaTEK modules, visit

About SigmaTEK

SigmaTEK Systems revolutionized the fabrication industry with the 1993 U.S. launch of SigmaNEST™, a comprehensive CAD/CAM software platform solution developed by mechanical engineers specifically for fabrication facilities worldwide. Offering the most robust nesting engine available, NC programming and our unmatched, integrated MRP and MES modules on one scalable platform, SigmaTEK technology and innovation have helped bring the “Smart Factory” to life and growth-driving integration initiatives to the fabrication sector. 

Now with over 300 employees in twenty countries, speaking fourteen languages and supporting nearly twenty-five thousand licensed seats, SigmaNEST is committed to one mission: providing fabricators with a superb software platform that works with any cutting technology, on any machine, on nearly every material that can be cut. And as they cut, machine performance is optimized, production efficiency is enhanced, material utilization yields increase, and ROI is realized – the day they implement. SigmaTEK innovation continues to revolutionize the fabrication sector worldwide – and we’re just getting warmed up. To learn more, visit or call 513.674.0005.


Suzanne Warden

SigmaTEK Systems, LLC


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