How Much Does It Cost to Manufacture a Product in 2025? (Materials Cost Focus)
One of the first questions entrepreneurs and companies face when developing a new product is: how much does it cost to manufacture a product? While the final production cost includes many elements, one of the biggest early drivers is the cost of materials. Understanding material selection and estimation is crucial during the product design & manufacturing process.
In this article, we’ll guide you through the basics of material selection, discuss how to estimate material costs during design, and answer related questions like how do you find cost of goods manufactured and how do you get a product manufactured efficiently.
The Role of Materials in Product Design & Manufacturing
When launching a new product, your material selection affects:
- Manufacturing costs
- Product performance and durability
- Aesthetics and brand perception
- Supply chain reliability
- Regulatory compliance (e.g., FDA, aerospace)
Choosing the right material early can save thousands (or millions) later in products manufacturing and ensure your design meets performance, safety, and market expectations.
How to Estimate the Cost of Goods Manufactured (COGM)
The cost of goods manufactured includes:
- Materials (raw materials, sub-components)
- Labor (assembly, quality control)
- Manufacturing overhead (machinery, utilities, facility costs)
Material costs are usually one of the easiest to predict during the early product design & manufacturing phase.
To estimate material cost:
- Calculate the volume of material needed per unit (in cubic inches, cubic centimeters, etc.)
- Multiply volume by material density to get weight
- Multiply weight by cost per pound (or kilogram)
We’ll make this easier for you below with a ready-to-use calculator!
Common Material Costs: Metals, Plastics, Composites
To help you quickly ballpark different options, we compiled a table showing the material costs per pound and per cubic inch for 30+ commonly used materials in products manufacturing, along with ratings for key properties.
What Materials Are Used for What Types of Parts?
Different materials are often preferred for different types of parts based on their physical properties, appearance, processing compatibility, and use case. Here’s a high-level overview:
- Mild Steel / Alloy Steel / Stainless Steel:
- Used for: Structural components, frames, machine parts, housings, brackets
- Why: Excellent strength, easy to weld or machine, affordable (mild), corrosion resistant (stainless)
- Aluminum (6061, 7075, etc.):
- Used for: Enclosures, aerospace/automotive parts, consumer electronics casings
- Why: Lightweight, corrosion-resistant, easy to machine or extrude
- Copper / Brass / Bronze:
- Used for: Electrical contacts, decorative fittings, bearings, plumbing components
- Why: High conductivity (copper), aesthetic appeal (brass), wear resistance (bronze)
- Plastics (ABS, PC, PP, HDPE, Nylon):
- Used for: Consumer product housings, internal mechanical parts, packaging, disposable containers
- Why: Lightweight, versatile, moldable, cost-effective, good impact resistance (PC), chemical resistance (PP)
- POM / Delrin / PTFE / PEEK:
- Used for: High-precision mechanical parts, gears, valves, bushings
- Why: Low friction, high stiffness, temperature resistance, good dimensional stability
- Rubbers (TPU, Silicone, EPDM):
- Used for: Seals, gaskets, bumpers, wear pads, grips, medical devices
- Why: Elastic, durable, chemical and temperature resistance, biocompatible (silicone)
- Composites (Carbon Fiber, Kevlar, Fiberglass):
- Used for: High-performance structural parts, sports equipment, drones, aerospace and automotive panels
- Why: Very high strength-to-weight ratio, rigidity, tailored fiber orientation for load paths
- FR4 / PCB Materials:
- Used for: Printed circuit boards, electrical insulation panels
- Why: Excellent dielectric strength, thermal resistance, rigidity
Selecting materials based on how they’re commonly applied helps reduce design iteration and improves manufacturability. It’s a smart idea to consider real-world examples early in your product development process.
Material Cost Reference Table
Material
Price per lb (US)
Price per cubic inch (US)
Strength
Manufac-
turability
Appearance
Mild Steel (A36)
$0.42
$0.12
Stainless Steel 304
$1.40
$0.41
Alloy Steel (4140)
$0.50
$0.14
Cast Iron (Gray)
$1.09
$0.28
Tool Steel (D2/H13)
$2.50
$0.70
Copper (Pure)
$4.50
$1.45
Brass (Alloy 360)
$3.00
$0.91
Bronze (Bearing Alloy)
$3.50
$1.11
Aluminum 6061-T6
$1.00
$0.10
Aluminum 2024-T3
$2.30
$0.23
Aluminum 5052-H32
$1.10
$0.11
Aluminum 7075-T6
$5.00
$0.50
Aluminum A380 (die-cast)
$1.00
$0.10
Magnesium Alloy (AZ91D)
$6.00
$0.39
Titanium Alloy (Ti-6Al-4V)
$12.00
$1.92
Zinc Alloy (Zamak)
$0.60
$0.14
BS (Thermoplastic)
$0.88
$0.03
Polycarbonate (PC)
$1.37
$0.06
Nylon 6/6
$1.29
$0.05
HDPE
$1.29
$0.02
LDPE
$0.56
$0.02
Polypropylene (PP)
$0.54
$0.02
PVC (Polyvinyl Chloride)
$0.80
$0.04
POM (Acetal, Delrin)
$1.50
$0.06
PMMA (Acrylic)
$1.30
$0.05
PEEK
$10.00
$0.47
PTFE (Teflon)
$5.00
$0.40
Polyurethane (TPU)
$1.00
$0.40
Silicone Rubber
$2.40
$0.10
UHMWPE
$1.50
$0.30
Carbon Fiber (CFRP)
$15.00
$0.87
Fiberglass (GFRP)
$2.00
$0.14
Kevlar (Aramid composite)
$6.00
$0.31
FR4 (Glass Epoxy PCB)
$2.00
$0.13
Common Manufacturing Methods by Material Type
Different materials require different production methods for optimal results:
- Metals (Steel, Aluminum, Copper): CNC machining, casting, forging, extrusion
- Plastics (ABS, PC, PP, HDPE): Injection molding, blow molding, thermoforming, 3D printing
- Composites (Carbon Fiber, Fiberglass, Kevlar): Hand lay-up, vacuum bagging, resin transfer molding (RTM)
- Rubbers (TPU, Silicone Rubber): Compression molding, injection molding, liquid silicone rubber molding (LSR)
Selecting the right production method is just as important as selecting the right material.
Material Pricing: U.S. vs. China Comparison
Material costs can vary significantly between the U.S. and China. Generally, raw material prices in China are 20%-50% lower due to lower labor and energy costs, but there are risks like quality control, tariffs, and shipping costs.
Example comparisons:
- Mild Steel (A36): ~$0.42/lb in the U.S. vs. ~$0.20/lb in China
- Aluminum 6061: ~$1.00/lb in the U.S. vs. ~$0.90/lb in China
- ABS Plastic: ~$0.88/lb in the U.S. vs. ~$0.71/lb in China
- Carbon Fiber (raw fiber): ~$15.00/lb in the U.S. vs. ~$12.00/lb in China
While sourcing from China may offer lower upfront material costs, always consider quality assurance, shipping, tariffs, and lead times.
Material Cost Calculator
Use this simple formula to get a ballpark estimate of material costs:
Material Cost = (Volume in cubic inches) x (Price per cubic inch)
Example:
- Volume: 20 in³
- Material: ABS Plastic ($0.03 per in³)
Cost = 20 x 0.03 = $0.60 of ABS plastic per part.
To help you even further, here’s a basic calculator setup:
Material Cost Calculator
Estimated Material Cost: $0.00
After estimating material costs during product design & manufacturing, the next steps involve:
- Concept design (feasibility, function)
- Engineering design (CAD drawings, materials finalized)
- Prototyping (3D printing, CNC, injection molds)
- Pilot production (small batch for testing)
- Mass manufacturing (tooling + production runs)
Working with a trusted product development company ensures that you:
- Select the right materials
- Minimize design iterations
- Speed up time-to-market
Products manufacturing is an iterative process: prototype, validate, scale.
Key Tips for Selecting Materials
- Always balance cost, performance, and manufacturability.
- Consider supply chain risks (e.g., titanium from restricted markets).
- Think about recyclability and sustainability if it’s important to your brand.
- Test different material options during prototyping, even if you’re leaning toward one.
Material selection is not a one-time decision — it evolves with testing, customer feedback, and regulatory reviews.
