Manufacturers are increasingly being forced to re-engineer products in the face of volatile metal prices.

A recent survey showed as many as half of engineering firms had overhauled products and processes in response to huge moves in commodity prices.

The IMF has estimated that companies have been facing a 30 per cent year-on-year increase commodity costs, and sudden changes in raw materials prices have made it difficult for manufacturers to keep spending in check.

And the challenge isn’t just linked to price – around one in seven companies report problems with the availability of some materials – according to research from the EEF, the manufacturers’ organisation and Royal Bank of Scotland.

Among the examples are automotive firms replacing platinum with palladium in catalytic converters, while Gerry Dunne, of Aston-based Westley Engineering, said he had overseen changes in a raft of components to save money for customers.

One such case was a part which went into the braking system of trucks and was re-engineered to cut down on the amount of metal needed.

Mr Dunne said: “One example was a component that was made with three separate parts welded together and we have managed to make it out of one part.

“It is only a small part but over the course of a year the saving for the customer was something like £20,000. It was originally three mild steel components that were welded together and we managed to make it into one component by putting the strength in through a skirt around the outside of the component which made it stronger.

“Before then the component had been made the same way for more than 20 years.”

Mr Dunne said in another instance the company re-engineered a part which went into battery terminals after seeing the price of nickel rise by almost half in a short period. After working with the customer for more than 12 months Westley, which employs 27 people, created a new part made from stainless steel.

Mr Dunne added: “We try to work with customers all the time about what metals they are using and I have noticed in the last six months that customers are listening a lot more because the cost increases have become a big consideration.

“The materials account for about 60 or 70 per cent of the purchasing price.”

Mr Dunne said the volatile price of various metals had made pricing more difficult for Westley.