Buying decisions in the electronics industry involves more than checking unit prices. In production companies, the Total Cost of Ownership (TCO) is what really matters. It includes all costs related to using a component—from buying and logistics to its effect on the production line and risks of delays. Indicators like COGS (Cost of Goods Sold), ROI (Return on Investment), or DPP (Days Payable Outstanding) help with planning, but they don’t show hidden costs that can affect the final profit.
Many buyers focus only on direct costs – the price of the part. However, indirect costs – like logistics, production losses, storage, or waste disposal – can raise total costs by 30–50%. In this article, we look at how printed electronics can help save money compared to traditional PCBs, and where the real savings are.
Traditional PCBs – Hidden Costs Often Ignored in Budgets
Many buyers don’t consider the full cost of PCB production and only look at the unit price. But traditional PCBs use a lot of energy and produce a lot of waste, which increases the final cost of the product. Energy prices in Europe keep rising, and production companies already pay 30–40% more than they did 10 years ago.
There’s also the problem of long lead times and complicated supply chains. A standard PCB order can take 6 to 12 weeks to finish, and even up to 16 weeks in busy times. This means companies must freeze money in large warehouse stocks, which causes extra storage costs and the risk of outdated parts.
Traditional PCBs – Hidden Costs That Can Hurt Your Budget
These days, when every cent matters and electronics are changing fast, just looking at the part price is not enough. As a buyer, you know the devil is in the details.
PCBs may look simple, but they can cause big problems. Waste disposal is expensive, deliveries are uncertain, and storing parts cost money. And let’s not forget about defective batches that can stop your production.
1. Energy use and production waste – making PCBs requires chemical processes that create a lot of waste. In Europe, waste disposal costs have risen by 25% in the last five years, and green rules are getting stricter.
2. Long lead times and delays – supply chains are more complex, and transport problems or material shortages can delay delivery by 30–60 days.
3. Storage costs – most suppliers want large orders, so you need space to store them. In Europe, storage costs are 5–10% of the product value each year.
4. Quality issues – bad PCB batches can lead to significant losses. Fixing defects and delays in production can raise the total cost of a part by up to 50%.
Printed Electronics – Lower Operating Costs and More Flexibility
Now let’s look at the other side. Printed electronics – it may sound futuristic, but it’s already here and brings real benefits. First, you use less energy because it doesn’t need high temperatures like traditional PCBs. That already saves money.
And what about waste? No chemical baths – you only print what you need. Logistics is easier too – no more waiting for containers from the other side of the world. You print locally when required and save on storage and transport costs.
Flexibility is key today, and printed electronics gives you exactly that.
- Lower energy use – printed parts use less heat, cutting energy costs by 30–40%.
- Less waste – printing layers exactly where needed removes the need for chemical etching and reduces waste by up to 90%.
- Shorter supply chains – local production means no need for long-distance shipping, which cuts transport costs by 20–25%.
- On-demand production – print when needed, no big stock, no risk of outdated parts.
TCO Analysis: PCB vs. Printed Electronics
So how do things look when we compare traditional PCBs with printed electronics? At first, PCBs might seem cheaper for big orders. But for smaller volumes, printed electronics can be more cost-effective. Plus, printed components use less energy and waste fewer materials. And supply chains? We all know the pain of waiting for a shipment from far away. With printed electronics, you produce locally and avoid the risk.
And most important – flexibility. Want to change the design? Just print new parts – no need to worry about old stock sitting in storage. In today’s fast-moving world, that’s priceless.
- Purchase cost – PCBs may be cheaper per unit in large orders, but printed electronics are better for smaller batches.
- Operating cost – printed parts use less energy and fewer raw materials, which matters over time.
- Risk costs – local production and simpler supply chains reduce delays and production stops.
- Production flexibility – easily adapt components to your needs without large orders, perfect for low-volume production and prototyping.
What Will Affect TCO in the Future?
What’s next? Because let’s be honest – we don’t live in a bubble. Environmental laws, EU rules about recycling and CO₂ emissions – these are real. Big changes are coming by 2030. Traditional PCBs could get more expensive. Add rising energy prices, and it’s clear the future favors energy-saving tech.
And supply chains? One problem on the other side of the world can stop everything. Customers also want more eco-friendly and flexible products. If we don’t give them that, they’ll go to someone who will. So it’s time to plan for future TCO costs – look for solutions that are cheaper and greener. Or else… we’ll be in trouble.
- Environmental laws – by 2030, the EU will make recycling and CO₂ rules stricter, which may raise PCB costs.
- Energy prices – global energy prices are rising, and PCB production is energy-heavy.
- Logistics issues – geopolitical tensions and raw material shortages increase the risk of delays. Local production will become more attractive.
- Market trends – customers expect green, flexible solutions, and that affects which suppliers they choose.
Conclusion
TCO analysis is key in electronics purchasing. Traditional PCBs may look cheaper in the short term, but long-term costs, delivery risks, and environmental impact can raise their true cost. Printed electronics, thanks to lower energy use, less waste, and more flexibility, are becoming a competitive option. With rising energy prices and new regulations coming, companies must include full TCO when making investment decisions.