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Cost Reduction Engineer Jobs (NOW HIRING)

PACCAR

Mechanical Engineer- Cost Reduction

Denton, TX · On-site

Requisition Summary This position will be responsible for cost reduction focused engineering design, development, and production support at Peterbilt Division Headquarters in Denton, Texas. Duties ...

PACCAR

Mechanical Engineer- Cost Reduction

Denton, TX · On-site

Requisition Summary This position will be responsible for cost reduction focused engineering design, development, and production support at Peterbilt Division Headquarters in Denton, Texas. Duties ...

PACCAR

Mechanical Engineer- Cost Reduction

Denton, TX · On-site

Requisition Summary This position will be responsible for cost reduction focused engineering design, development, and production support at Peterbilt Division Headquarters in Denton, Texas. Duties ...

Noblesoft Technologies

Cost Engineer

Auburn Hills, MI · On-site

Cost Engineer -Stamping & welding Location: Auburn Hills, Michigan USA Experience requirement ... Advantageous • Required Automotive industry experience. • Automotive cost reduction/ Should ...

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How much do cost reduction engineer jobs pay per year?

As of Jul 11, 2026, the average yearly pay for cost reduction engineer in the United States is $97,048.00, according to ZipRecruiter salary data. Most workers in this role earn between $81,000.00 and $114,000.00 per year, depending on experience, location, and employer.

What engineer makes $500,000 a year?

A senior or specialized engineer such as a petroleum engineer, aerospace engineer, or software engineer with extensive experience and advanced skills can earn $500,000 or more annually, often through bonuses, stock options, or consulting roles. These positions typically require advanced degrees, certifications, and a high level of expertise in their field.

What engineers make $200,000 a year?

Senior engineers in specialized fields such as petroleum, aerospace, software, and electrical engineering can earn $200,000 or more annually, especially with extensive experience, advanced certifications, or leadership roles. High-paying engineering positions often require advanced skills, project management, and sometimes working in high-demand industries or locations with a high cost of living.

What engineers make $300,000 a year?

Senior engineers in specialized fields such as petroleum, aerospace, or software engineering can earn $300,000 or more annually, especially with extensive experience, advanced skills, and leadership roles. High compensation often involves working in high-demand industries, holding managerial or executive positions, or possessing rare technical expertise and certifications.

What are the key skills and qualifications needed to thrive as a Cost Reduction Engineer, and why are they important?

To thrive as a Cost Reduction Engineer, you need strong analytical skills, knowledge of manufacturing processes, and a degree in engineering or a related field. Familiarity with cost analysis software, CAD tools, and Lean Six Sigma or similar process improvement certifications is typically required. Effective communication, problem-solving, and cross-functional teamwork are vital soft skills for identifying and implementing cost-saving initiatives. These competencies are essential for driving profitability and operational efficiency while maintaining product quality.

What is the difference between Cost Reduction Engineer vs Process Engineer?

AspectCost Reduction EngineerProcess Engineer
Primary FocusIdentifying cost-saving opportunities across operations and supply chainDesigning, implementing, and optimizing manufacturing or business processes
Skills & CertificationsCost analysis, Lean/Six Sigma, engineering fundamentalsProcess design, Lean, Six Sigma, engineering principles
Work EnvironmentManufacturing plants, supply chain, corporate officesManufacturing facilities, R&D labs, production lines
Industry UsageManufacturing, industrial, supply chain sectorsManufacturing, engineering, industrial sectors

While both roles involve process improvement and efficiency, the Cost Reduction Engineer primarily focuses on reducing costs across operations, whereas the Process Engineer concentrates on designing and optimizing manufacturing processes. Both roles often require similar certifications like Lean or Six Sigma and are found in manufacturing and industrial environments.

What are some typical challenges a Cost Reduction Engineer faces when implementing cost-saving initiatives?

Cost Reduction Engineers often encounter challenges such as balancing cost-saving goals with maintaining product quality and performance. They must navigate cross-functional collaboration, aligning priorities between engineering, procurement, and production teams. Resistance to change from stakeholders and the need to identify sustainable, long-term savings—rather than short-term fixes—are also common hurdles. Effective communication, data-driven analysis, and a proactive approach to stakeholder engagement are key to overcoming these challenges and ensuring successful cost reduction projects.

What are Cost Reduction Engineers?

Cost Reduction Engineers are professionals who specialize in analyzing, developing, and implementing strategies to decrease expenses in manufacturing, production, or service processes without compromising quality or performance. They work closely with cross-functional teams to identify cost-saving opportunities, streamline operations, and improve efficiency. Their role often involves conducting value analysis, negotiating with suppliers, and applying lean manufacturing principles to optimize costs across projects and products.

What is the role of a cost reduction engineer?

A cost reduction engineer analyzes manufacturing processes, materials, and operations to identify opportunities for reducing costs while maintaining quality and safety. They often use data analysis, engineering principles, and cost management tools to implement efficiency improvements and optimize resource use.
More about Cost Reduction Engineer jobs
What job categories do people searching Cost Reduction Engineer jobs look for? The top searched job categories for Cost Reduction Engineer jobs are:
Cost Reduction Engineer jobs near you

Cost Reduction Engineer

MOBILE CLIMATE CONTROL CORP

York, PA • On-site

Full-time

Re-posted 14 hours ago

Job description

Cost Reduction Engineer (CRE) — Job Description

Position Summary

The Cost Reduction Engineer (CRE) is responsible for identifying, developing, and implementing material, labor, and warranty cost reduction initiatives across product lines—without compromising safety, performance, durability, or compliance. This role drives measurable savings through value engineering, design-to-cost, supplier collaboration, and manufacturing process improvements, partnering closely with Engineering, Sourcing, Operations, Quality, and Field Service.

This position is expected to be comfortable moving between analysis and hands on, shop-floor learning, supplier engagement, and CAD-driven design changes that result in released drawings/BOM updates

Key Objectives / Outcomes

  • Deliver validated cost savings through approved design, supplier, and process changes.
  • Build and manage a pipeline of cost-reduction projects (ideation → analysis → implementation → sustainment).
  • Reduce warranty exposure by eliminating failure modes with design/process/supplier corrective actions.
  • Improve manufacturability and assembly efficiency using Lean / Kaizen / Toyota Production System principles.

Essential Duties & Responsibilities

1) Cost Reduction & Value Engineering (Primary)

  • Identify high-impact cost opportunities via teardown reviews, should-cost modeling, BOM analysis, labor studies, and supplier benchmarking.
  • Lead design-to-cost initiatives on mechanical, thermal, and electro-mechanical assemblies (e.g., coils, sheet metal, panels, harnesses, brackets, subassemblies).
  • Execute DFM/DFA improvements: part count reduction, tolerance rationalization, commonization, modularization, alternate materials/processes, and packaging improvements.
  • Quantify and present business cases (one-time vs recurring savings; tooling ROI; PPV; labor savings; warranty reductions) using strong financial and data discipline.

2) CAD Design & Release (Hands-On Execution)

  • Create or modify 3D models, 2D drawings, and assemblies; maintain drawing standards and revision discipline.
  • Develop production-ready documentation packages (drawings, GD&T where needed, notes, specs) and support release through engineering change processes.
  • Preferred capability using Autodesk toolchain: Inventor / AutoCAD / Vault.

3) Cross-Functional Leadership & Kaizen

  • Facilitate Kaizen / Lean events and implement improvements that reduce waste, scrap, rework, and cycle time.
  • Collaborate with Operations and Manufacturing Engineering online efficiency, quality escapes, and repeatable standard work.
  • Influence effectively across functions; lead initiatives even without direct authority.

4) Supplier Collaboration & Sourcing Support

  • Partner with Sourcing to evaluate alternate suppliers, negotiate technical requirements, and implement approved substitutions.
  • Support supplier technical reviews: manufacturability, process capability, PPAP/FAI readiness as applicable, and quality plans.
  • Drive cost-down with suppliers while protecting quality and delivery performance.

5) Risk & Reliability / FMEA Leadership

  • Lead DFMEA activities, participate in PFMEA’s to identify cost-reduction risks and proactively mitigate failure modes.
  • Ensure changes meet reliability expectations (validation plans, fit/function checks, performance testing as required).
  • Integrate lessons learned from field performance and warranty data into project prioritization.

6) Reporting & Communication

  • Build clear executive-ready summaries: savings realized, savings in-flight, project health, risk/mitigation, and next decisions.
  • Maintain structured documentation and project tracking for audits and sustainment.



Required Qualifications

  • Bachelor’s degree in Engineering (Mechanical preferred; Manufacturing/Industrial/Electrical considered) or equivalent experience with demonstrated technical depth.
  • 5+ years engineering experience in a manufacturing environment; HVAC industry strongly preferred or adjacent experience (thermal systems, electromechanical products).
  • Demonstrated experience with components/processes such as:
    • Heat exchanger / coil designs and manufacturing considerations
    • Sheet metal fabrication and assemblies
    • Electrical panel layout considerations, and/or harness routing/assembly realities
  • Ability to perform cost analysis and translate findings into actionable engineering changes.
  • Strong CAD capability; able to produce and revise drawings and models to release-quality standards.
  • Proficiency with Microsoft Office (Excel-heavy work expected for costing, analysis, tracking).

Preferred Qualifications (Highly Desired)

  • Experience leading continuous improvement using Lean / Toyota Production System / Kaizen methodologies; Six Sigma experience/certification a plus.
  • Track record of leading teams through FMEA and design/process risk reviews.
  • Familiarity with product lifecycle change control disciplines (ECO/ECN, revision control, structured release processes).
  • Experience supporting sourcing activities: supplier selection, cost-down negotiations, technical RFQs, and supplier process understanding.
  • Working knowledge of manufacturing process capability, measurement discipline, and quality tools (8D, root cause analysis, control plans).

Core Competencies / Behaviors

  • Results-driven: relentlessly closes actions and delivers measurable savings.
  • Analytical + practical: can build a model and validate it on the floor with real parts and operators.
  • Team player with independent execution: collaborates well, but thrives owning deliverables end-to-end.
  • Structured problem solving: uses data, root cause discipline, and clear documentation.
  • Communication strength: can explain technical tradeoffs and financial impact to mixed audiences.

Success Metrics (Examples)

  • Annualized cost savings implemented ($) and verified savings tracking quality.
  • Cost-out per project vs target; implementation cycle time from idea → release → production cut-in.
  • Warranty reduction impact (claims reduction, repeat failure mode elimination) where applicable.
  • Manufacturing efficiency gains (scrap, rework, touch time, cycle time).

Working Conditions / Travel

  • Office + manufacturing environment with regular shop-floor engagement.
  • Up to 5-10% Travel (Supplier/Customer Sites)
  • Passport required (Travel to Canada/Mexico)

Reporting Relationship (Typical)

Reports to Engineering leadership; works closely with Product Engineering / R&D Engineering, Sourcing, Operations, Quality, and Field Service on cost/warranty reduction initiatives.



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