6 Cost Reduction Strategies When Building Custom Control Panels

Reducing your cost for custom control panels is about more than simply finding cheaper components; it comes down to making smart decisions throughout design, sourcing, and production.

Many of the biggest cost drivers are built into the process early. Savvy component selection and placement can help reduce your cost before the panel is created. This ensures you can maintain quality of your control panel builds while reducing the overall cost.

Below are six of the most effective strategies to reduce costs in custom control panel builds without compromising quality.

1. Standardize Components Where Possible

Custom control panels can still use elements of standardization. This means building each custom panel using a consistent set of preferred components wherever possible. You are standardizing the building blocks of each control panel as opposed to the final design.

Standardizing commonly used components such as breakers, relays, and terminal blocks helps reduce procurement costs and lead times. It also makes maintenance easier and lowers long-term replacement costs.

Standardizing specific components among several custom control panel layouts makes sourcing more predictable, improves part availability, and often leads to better pricing through volume purchasing. It also helps technicians and maintenance teams work more efficiently because they are familiar with the components.

Some actions you can take to standardize components are:

• Create an approved vendor and component list for commonly used parts
• Consolidate suppliers to improve pricing and reduce sourcing complexity
• Reuse proven components and subassemblies across multiple builds whenever possible

2. Design for Manufacturability (DFM)

A panel that is designed to be repeatedly manufactured can help reduce costs. Designing with manufacturability in mind, including clean layouts, logical component placement, and efficient wiring paths, reduces labor time and minimizes errors during assembly.

Labor is often one of the largest cost drivers in control panel builds, so improving efficiency at this stage can significantly lower overall cost. Panels that are difficult to build often require more time up front and for reworking after assembly. A well-designed panel flows smoothly through production with fewer delays and more consistent results.

Design for manufacturability by keeping the following in mind:

• Group components by function (power, control, I/O) to simplify wiring
• Maintain adequate spacing to allow for faster installation and easier access
• Use clear labeling and consistent documentation to reduce assembly errors

3. Select the Proper Enclosure Size

Selecting the correct enclosure size plays a major role in overall cost. Oversized enclosures increase material and shipping expenses, while undersized enclosures can lead to overheating and expensive redesigns. A properly sized enclosure helps avoid both issues.

Choosing the right size also impacts installation, floor space, and long-term performance. A balanced approach avoids having unused space within the enclosure while still allowing for safe operation.

To ensure you’re choosing the right size enclosure, follow these steps:

• Use layout tools or CAD software early to determine accurate space requirements
• Account for heat-generating components and proper airflow during design
• Standardize enclosure sizes where possible to reduce cost and simplify sourcing

4. Optimize Wire Routing and Length

Wire is a hidden cost driver in both materials and labor. Efficient routing reduces wire usage and speeds up assembly. It also improves organization within the panel, which simplifies maintenance and troubleshooting when the control panel is in-use. By designing custom panel enclosures to have the proper wire routes and lengths, the panel’s cost decreases during assembly and over its lifespan.

Some ways to ensure your wires are optimized for length and route are:

• Design direct and logical wiring paths to minimize unnecessary length
• Plan wire duct and routing channels during the design phase instead of during assembly
• Standardize wire lengths or use pre-cut/pre-labeled wires when possible

5. Avoid Overengineering

Adding extra features or higher-spec components than necessary can quickly inflate costs. Carefully evaluate the true requirements of the application and if simpler components can be used in your control panel for the same purpose as higher-spec ones. Simpler components are often more cost-effective and just as reliable as newer, more complex ones.  In many cases, “less is more” is the best advice to follow.

Take these steps to see if your engineering can be simplified:

• Align component specifications closely with actual application requirements
• Avoid unnecessary redundancy unless it is critical for safety or uptime
• Review designs with cross-functional teams to identify and eliminate excess

6. Partner Early with Your Panel Builder

   

One of the most effective ways to reduce costs is to involve your control panel manufacturer early in the design process. An experienced partner can identify cost-saving opportunities, recommend alternative components, and help prevent costly revisions after assembly. Early collaboration ensures the design is optimized for both performance and manufacturability from the start.

Follow these steps to partner with your panel builder at the optimal time:

• Engage your panel builder during the initial design phase
• Request design reviews to uncover cost-saving opportunities early
• Leverage their expertise in component selection, layout optimization, and sourcing

Reducing costs in custom control panel assembly is about making informed decisions from the start. By focusing on smarter design, efficient sourcing, and collaboration with the right partner, you can lower costs while still delivering a high-quality, reliable solution.

Planning your next control panel project? At MIS Controls, we help engineering teams optimize their designs for cost, performance, and manufacturability from day one. If you are looking to reduce costs on your next custom control panel build, our team is ready to help. Reach out today to start the conversation: https://www.miscontrols.com/contact-us/