Sourcing something significantly better and significantly less expensive than what you’re using can be absolutely monumental for businesses. InterCoat®ChemGuard allows businesses to utilize low metallic zinc weights of HDG G30 while dramatically outperforming even HDG G235. Are you a mill, spending millions on zinc ingots? A service center keeping track of varying coating weights and SKU’s? A manufacturer paying for zinc, chemical treatments, EPA compliance, oil cleanup and frequent die replacement? Regardless, with InterCoat®ChemGuard, all three parts of the supply chain come out way ahead.
We’ll use a hypothetical program to estimate a ballpark number, but as a disclaimer: every business handles their margins differently. Our calculation won’t take into account what you pass on to customers, what internal costs you have with important variables, what gauges you most commonly carry, how often you buy and in what quantity, and how many versions of galvanized material are part of your business. It won’t take into account the use of passivations (expense), oil (expense and cleanup), or if you store (or ship) for periods in harsh environments.
Let’s say our hypothetical program utilizes HDG in quantities of 15,000 tons annually (about 1250 tons a month). For this scenario, let’s pick a common gauge, such as .0240″. For the cost of laying down our product, let’s assume that product is being applied at the galvanizing mill on an existing reverse roll coater. You don’t need to compare the high cost G235; in this scenario, you just want to compare, say, G90 to G30 with InterCoat®ChemGuard, which greatly exceeds the G90 in corrosion protection and formability, meaning you will not need oil, hexavalent chrome, or any chemical treatment.
Just the savings based on the zinc difference alone is impressive: for the mill, over $1.5MM; for the service center, over $1.7MM, and for the manufacturer over $1MM. Beyond those savings, factor in the impact on EPA paperwork, extended die and welding tip life, cleanup costs, inventory costs, fewer processes to remove or prepare surfaces, SKU reductions, and countless other factors that are not included in these numbers.
The reality is, while they may seem impressive, the numbers we gave above are arguably conservative. If you want help determining what your unique business’ additional savings could be, don’t hesitate to contact us.