Laser Focus: Why 2025 Is the Tipping Point for Steel Processing Technology
NEACH MD Ryza Garbarz & Anton Peddinghaus.
In 2025, we are witnessing a definitive turning point in the adoption of laser technology across the steel processing sector, particularly in the preparation of thicker plate components and, increasingly, in the processing of shaft materials. For years, industrial-grade lasers remained out of reach for many manufacturers, confined to the wish lists of high-end operations due to steep capital costs. But that dynamic has changed. The price of these once-elite systems has dropped significantly, making them accessible, practical, and, for many, essential.
I recently attended Australian Manufacturing Week (AMW) in Melbourne, and what struck me most was the sheer number of suppliers now showcasing laser systems front and centre. Just three or four years ago, these machines were the domain of early adopters, technically impressive but commercially unviable for the broader market. This year, the shift was clear. The cost barrier has been breached, and laser processing is no longer on the fringe; it’s taking centre stage in fabrication workshops across the country.
This shift is about more than just affordability. Laser systems are being recognised not simply as upgrades, but as transformative tools that are reshaping how we think about precision, efficiency, and throughput.
In plate cutting, lasers deliver ultra-clean edges and drastically reduce rework.
In shaft production, they achieve micron-level tolerances and exceptional repeatability, a feat that traditional mechanical or plasma methods continue to struggle with.
This level of accuracy is crucial in industries such as transportation, mining, and infrastructure, where component integrity and alignment are paramount.
Speed and versatility are also major drivers of adoption. Advanced fiber lasers can transition seamlessly between material thicknesses and complex geometries without the need for tool changes or long setup times. For workshops that juggle small batches or custom jobs, this flexibility is a game-changer, streamlining operations, reducing lead times, and boosting overall productivity.
However, while the technology is advancing rapidly, regulatory frameworks in Australia are lagging. Current Australian Standards and government specifications often fail to reflect the superior outcomes laser processing delivers, particularly in terms of reduced heat input and minimal heat-affected zones. In contrast, updated standards in the UK and Europe now permit laser cutting across nearly all forms of structural steel fabrication, having removed outdated requirements for drilled or machined components. This regulatory modernisation has unlocked significant efficiency gains and given those markets a distinct competitive advantage.
In Australia, the adoption of laser cutting for structural components remains inconsistent. While some states have embraced the technology, others continue to restrict its use under legacy standards. National harmonisation is urgently needed to unlock productivity across the country and to help Australian fabricators remain competitive on the global stage.
At the same time, laser technology aligns perfectly with the shift toward automation and digital manufacturing. These systems integrate seamlessly with CNCs, robotics, and smart platforms, making them indispensable to modern, connected production environments. They're no longer just cutting machines; they're the backbone of Industry 4.0 in the steel fabrication industry.
With investment costs continuing to decline and technical capabilities expanding, the case for laser adoption grows stronger by the month. This isn't about being on the cutting edge anymore; it's about staying relevant. In the evolving world of steel processing, laser technology has gone from aspiration to expectation.
In 2025, the message is clear: lasers aren’t the future; they’re the new standard. If we want to compete globally, it’s time for Australia to treat laser processing not as an emerging technology, but as the benchmark.