Cutting fluids in industry: a guide to reducing total cost of ownership (TCO)
Reading time: 5 Min. | 28.01.2026
In the metalworking industry, cutting fluids (coolants) are the lifeblood of every machine. They cool, lubricate, flush away chips, and protect against corrosion. Yet despite their central role, a critical mistake is often made when procuring them: the focus is placed solely on the price per liter. This short-sighted perspective ignores a wide range of downstream costs that can quickly turn an apparently low-cost purchase into an expensive wrong decision.
The misconception of the low price per liter
The true costs of a cutting fluid do not appear on the purchase invoice, but rather in ongoing production. From increased tool wear and unplanned machine downtime to intensive maintenance and costly disposal – the hidden costs can amount to many times the pure product price. This holistic approach is referred to as total cost of ownership (TCO).
Joachim Clausen, Head of Product Management Cutting Fluids at Rhenus Lub, strongly warns against this cost trap: “Anyone who looks only at the price per liter is overlooking what really matters. An unsuitable or unstable cutting fluid causes problems that directly impact productivity and profitability. The real question is not ‘What does the cutting fluid cost?’ but ‘What does it cost me to use the wrong cutting fluid?’”
The hidden cost drivers: where your money is really lost
A strategic selection of cutting fluids begins with identifying the true cost drivers in the process. These are the three biggest levers for significantly reducing your tco:
1. Tool wear and machine downtime
The direct point of contact between machine and workpiece is the cutting tool. The cutting fluid plays a decisive role here by reducing friction and temperature.
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The problem: A cutting fluid with insufficient lubricating performance leads to higher friction and heat at the cutting edge. The result: the tool becomes blunt faster and tool life is drastically reduced. Every additional tool change not only incurs costs for the new tool but, above all, expensive, unproductive machine downtime.
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The TCO approach: A high-performance cutting fluid that is precisely matched to the material and machining process forms a stable lubricating film and ensures optimal cooling. “We repeatedly see customers achieving tool life increases of 20, 30, or even more percent by switching to a suitable cutting fluid,” reports Joachim Clausen. “When calculated over the course of a year, this results in enormous savings potential that far outweighs the higher price per liter.”
2. Process stability, surface quality, and scrap
The quality of the finished product depends largely on the stability of the entire machining process. Unstable emulsions or improper handling of the cutting fluid are often the root cause.
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The problem: If the cutting fluid foams, cooling performance declines. Unstable emulsions lead to poor flushing performance, bacterial contamination, and corrosion on workpieces and machines. The result is inadequate surface quality, which means costly rework or, in the worst case, scrap.
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The TCO approach: A high-quality cutting fluid is characterized by robustness and long-term stability. It remains stable even under high pressures or when mixed with tramp oils, thus reliably protecting against process fluctuations. This ensures consistently high component quality and reduces scrap rates.
3. Maintenance, handling, and disposal
A cutting fluid is not a “fill-and-forget” product. It must be monitored, maintained, and properly disposed of at the end of its service life.
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The problem: Low-cost, unstable products often require high maintenance effort. Constant reconditioning with additives, the use of biocides to combat bacterial growth, and frequent partial or complete fluid changes tie up personnel and generate costs. At the end, costly disposal of the used cutting fluid is required.
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The TCO approach: A modern, stable cutting fluid reduces maintenance effort to a minimum. Thanks to its long service life, change intervals are significantly extended, which not only reduces disposal costs but also the associated machine downtime. “Our goal is always to maximize the service life of the cutting fluid at the customer’s site,” explains Clausen. “This conserves resources, lowers costs, and increases machine availability.”
The path to tco optimization: consulting as a success factor
Reducing total cost of ownership is not a product issue but a process issue. For this reason, Rhenus Lub sees itself not only as a supplier but as a strategic partner to its customers.
“Our approach always begins with a thorough on-site analysis,” says Joachim Clausen. “We examine the entire process: which materials are being machined? What is the water quality? What are the system peripherals and filtration systems like? Only when we understand the complete picture can we make a well-founded recommendation for the optimal cutting fluid and optimize its application.”
This consultative approach ensures that the selected cutting fluid not only fulfills a task but contributes as an integral component to the efficiency and stability of the entire production process.
Conclusion: from cost factor to value creation lever
Strategic cutting fluid management focused on total cost of ownership transforms a perceived cost factor into a powerful lever for greater productivity and economic efficiency. The investment in a high-quality, application-specific cutting fluid and the associated process consulting pays for itself in the shortest possible time through longer tool life, fewer downtimes, higher component quality, and lower follow-up costs.
Would you also like to uncover the hidden costs in your production and sustainably reduce your tco? Our experts analyze your processes and work with you to develop a customized cutting fluid strategy.
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Cutting fluids in industry: a guide to reducing total cost of ownership (TCO)
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