Case study
Block Magnets for HVAC Linear Actuator Production Line
Scaling from 500 to 10,000 pcs/month of N35 block magnets for HVAC damper actuators while reducing unit cost by 18%.
Key results
- Unit cost reduced by 18% at scale
- Production scaled from 500 to 10,000 pcs/month
- Zero rejection rate over 6 consecutive shipments
Problem
An Australian HVAC manufacturer used N35 block magnets in linear actuators that control damper positions in commercial building ventilation systems. Their existing supply chain had two problems:
- Cost: Buying through a local Australian distributor at retail markup
- Scale: The distributor could not guarantee consistent stock above 500 pcs/month as production ramped up
They needed a direct supply relationship that could scale to 10,000 pcs/month while reducing per-unit cost.
Solution
We established a direct sourcing relationship with a Ganzhou factory producing standard-grade NdFeB block magnets.
Key optimizations:
- Blanket order agreement: 6-month forward commitment with monthly releases
- Standard grade selection: N35 (no need for high-temp grades in HVAC environment)
- Zinc coating: Cost-effective for indoor, non-corrosive HVAC environment
- Bulk packing: Row-packed in divided trays for direct assembly line use
Specifications
- Material: NdFeB (N35)
- Shape: Block
- Dimensions: 20 × 10 × 5 mm
- Tolerance: ±0.05 mm (standard)
- Coating: Zinc
- Magnetization: Through thickness (5mm direction)
- Volume: 10,000 pcs/month (ramped from 500)
Results
- Unit cost reduced by 18% compared to distributor pricing at equivalent volume.
- Successfully scaled from 500 to 10,000 pcs/month over 3 months.
- Zero rejection rate over 6 consecutive shipments (60,000 pcs total).
- Delivery consistently within 2–3 weeks of order confirmation.
Next Steps
Share your actuator drawing and monthly volume forecast. We will provide pricing tiers and a ramp-up schedule aligned to your production plan.
Request a supplier quote
Share your drawings, grade targets, and quantities. We will coordinate supplier feedback and confirm specs.
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