Cold heading is a manufacturing procedure best suited for big volume production. Because tooling is required and the process involves high-speed equipment, cold heading seldom (if ever) makes sense for short runs under 5,000. However, if you are currently using traditional machining on a high-volume part, the cost savings of cold heading could have an enormous impact on unit cost. Cold heading production speeds typically range from 50 parts per minute to 350 parts per minute and up — far greater than traditional machining production rates.
While cold heading has several advantages, including fast speeds, reproducibility, and finished product strength, it is not always the best (or even the only) manufacturing method.
Cold Heading Process in Manufacturing from WCS Industries, a manufacturer of cold headed fasteners