Video summary

Breaking Down the Business of Carbon Fibre Manufacturing

Main summary

Key takeaways

Business

High-level summary

  • Paul from Easy Composites breaks down the full business economics of making a carbon-fibre engine cover using a prepreg / autoclave-style workflow, tracking real material, labor, tooling and equipment costs from initial design through a finished, clear‑coated part.
  • Key conclusion:

    Raw carbon material is a small part of the price. Most cost comes from tooling, skilled labor, long cure cycles and capital equipment. Volume (tooling amortization) is the main lever to reduce unit cost.

Processes / playbook (production flow & accounting approach)

Three “totalizers” are tracked throughout the project:

  1. Component / repeat costs — per-part materials, consumables, direct labor.
  2. One-off costs — design, pattern, mold, templates.
  3. Equipment / capital investment — ovens, CNC, pumps, spray guns, etc.

End-to-end manufacturing workflow used as the template:

  1. Styling & CAD (VR for initial surfaces → export → Fusion/SolidWorks refinements).
  2. Pattern machining (CNC) + hand finishing + sealing.
  3. Mold fabrication (tooling prepreg layers, debulking, high‑temperature cure).
  4. Template creation for kit cutting.
  5. Part production: mark/cut prepreg kit, layup (hand lamination), vacuum bag, oven cure (or autoclave in other contexts), demold, trim/finish.
  6. Clear coating/paint (2K paint, multiple coats/bakes/flatting).

Decision framework for selecting processes: match technique to desired quality, weight, volume and budget (examples: prepreg + oven vs. resin infusion; bespoke vs. copied designs; include/exclude clear coat).

Concrete numbers, KPIs and timelines (case example)

Materials and consumables (per part)

  • Prepreg usage: ~0.9 m → ≈ $63 (Easy Composites US pricing).
  • Vacuum bagging and other consumables: ≈ $4.
  • Paint/abrasives added later (see painting section).

Energy

  • Oven cure (XC110 prepreg): ≈ 2 kWh → ~$0.50 (rounded to $1 including vacuum pump).
  • Paint compressor energy: ≈ $1 on average.

Labor per finished part

  • Layup / laminate / bag / demold / trim (unpainted): 48 minutes.
  • Clear coat / paint process: +2.0 hours.
  • Total labor: 168 minutes = 2.8 hours.
  • Example labor rate: $25/hr → labor cost ≈ $70/part.

Per-part direct cost (materials + energy + labor)

  • Materials + energy ≈ $76.
  • Labor ≈ $70.
  • Total ≈ $146 per finished part.

One-off tooling, development and capital

One-off tooling & development (aggregated)

  • Design: 15 hours (VR + Fusion CAD).
  • Pattern: $335 tooling board; CNC machining 6 hours; 2 hours supervision; finishing materials $32; finishing 2 hours.
  • Mold: $359 tooling prepreg; vacuum consumables $6; mold labor 4.5 hours (laminate + debulking); curing times: 18 h on pattern + 19 h ramp off-pattern; mold finishing: 4 hours + $8 sealer/abrasives.
  • Template creation: 2 hours.
  • Aggregate one-off tooling / CAD / pattern / mold ≈ $1,500 (quoted).

Capital equipment used in the workflow

  • Typical total: ≈ $14,000 (examples: oven, vacuum pump, through-bag connector, CNC router, rotary tool + extraction, spray gun + compressor + extraction).
  • CNC router price range: <$1,000 (desktop) to >$100,000 (high end); typical cited ≈ $10,000.

Economies of scale & pricing illustration

Tooling amortization examples

  • If 1 part: per-unit cost > $1,650 (tooling all charged to that single unit).
  • If 10 parts: ≈ $297/part.
  • If 100 parts: ≈ $161/part.

Pricing and margin illustration

  • Example retail price: $800.
  • Selling 100 units at $800 → revenue $80,000; cost ≈ $16,000 → gross profit ≈ $64,000 (manufacturer margin before other overheads).
  • Note: resellers/distributors often take ≧30% of retail, lowering net to manufacturer.

Operational observations, risks and constraints

  • Prepreg selection matters: XC110 cures in an oven (lower equipment/power cost). Many prepregs require autoclave curing — much higher power use and six‑figure equipment costs.
  • Painting/clear-coating is time-consuming and defect‑prone (pinholes, fisheye). High cosmetic quality requires multiple paint/bake/flat cycles.
  • Many steps are manual and skill-dependent (cutting kits, layup, bagging, finishing). Automation helps some steps (e.g., CNC kit cutting, CNC trimming) but only at higher volumes.
  • Templates and test-fitting reduce waste and speed later assembly; invest time in templates for repeatability.

Actionable recommendations (for entrepreneurs / small manufacturers)

Use the three-totalizer accounting approach to evaluate feasibility: separate per-unit production cost, one-off tooling, and capital investment.

If low volume / limited budget:

  • Copy an existing part to avoid design + pattern costs.
  • Use resin infusion or wet layup instead of prepreg to eliminate oven/autoclave costs.
  • Skip clear coating where functionally acceptable (e.g., motorsport) or where buyers accept it.
  • Outsource expensive steps (pattern machining) to reduce capital outlay.
  • Use hand tools and lower-cost equipment for initial prototyping.

If targeting higher volumes:

  • Invest in CNC kit cutters, automated trimming and efficient mold tooling to reduce labor per part.
  • Amortize tooling and process optimization across expected run sizes — calculate break-even volume for capital investment.

When pricing for retail channels:

  • Account for reseller margins (≈30%) and ensure manufacturer margin covers overheads, warranty and rework.

Concrete case-study takeaways

  • Material cost is only ~ $60 of an $800 retail part; tooling, labor and equipment justify a large portion of price at low volumes.
  • Volume is the dominant lever: moving from 1 → 100 parts drives per-unit cost from >$1,650 → ≈ $161.
  • A retail price of $800 for limited-run, high-quality carbon parts is defensible given one-off tooling and skilled labor requirements.

Sources / presenter

  • Paul, Easy Composites (presenter). Pricing referenced from Easy Composites US website.

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