Since plasma cutters produce a very hot and very localized 'cone' to cut with, they are extremely useful for cutting sheet metal in curved or angled shapes.

Plasma is an effective means of cutting thin and thick materials alike. Hand held torches can usually cut up to 2 in (48 mm) thick steel plate, and stronger computer-controlled torches can pierce and cut steel up to 12 inches (300 mm) thick. Formerly, plasma cutters could only work on conductive materials, however new technologies allow the plasma ignition arc to be enclosed within the nozzle thus allowing the cutter to be used for non-conductive workpieces.

Plasma gouging is a related process, typically performed on the same equipment as plasma cutting. Instead of cutting the material, plasma gouging uses a different torch configuration (torch nozzles and gas diffusers are usually different), and a longer torch-to-workpiece distance, to blow away metal. Plasma gouging can be used in a variety of applications, including removing a weld for rework. The additional sparks generated by the process requires the operator to wear a leather shield protecting their hand and forearm. Torch leads also can be protected by a leather sheath.