Own business: production of construction nails

* The calculations use the average data for the World

A nail is a fastener in the form of a rod with a head and a sharp end. Nails are made from steel wire using special equipment. The production of these hardware is considered low-cost, simple and at the same time very cost-effective. The range of nails is very wide. There are a large number of hardware of various lengths, diameters, shapes, having different purposes, differing in the processing method. According to the main classification, the following types of nails are distinguished: ordinary building nail, screw nail, dukert-nail, comb (torn) nail, slate nail, roofing (roofing nail), finish nail, concrete and metal nail.

So, if you are going to engage in the production of nails, first of all, you will need to choose the legal form suitable for such a “garage business”. The best option is an individual entrepreneur with a UTII tax form.

There are no special requirements for the premises for the production workshop. For this, even a garage or a barn is suitable. The main thing is that it should be sufficient in area (about 15-20 square meters) and heated. In addition, electricity (380 watts) must be connected to it. The cost of renting such a premises will be from 15 thousand rubles per month, but, of course, it is best if you own it.

For the manufacture of nails will require special semi-automatic or automatic equipment. Finding the right nailing machine is easy. The minimum cost of such a machine is from 300-450 thousand rubles. For so much you can buy used equipment in working condition. The new machine will cost about 500-700 thousand rubles, depending on the productivity, the size of the bay used, the diameter of the wire, on the type of product that can be produced on such equipment. It will be necessary to purchase a machine for sharpening nails of the machine, equipment for cleaning nails from fine chips, dirt and rust, equipment for applying anti-corrosion coatings (for some models of machines) to a nail making machine;

You can do even less by purchasing a separate wire-nailing machine (from 100 thousand rubles), a grinding and polishing machine (a tumbling machine used for final grinding of nails, worth about 15 thousand rubles), a sharpening machine for sharpening working tools (from 2 thousand up to 15 thousand rubles).

As raw materials for the manufacture of nails, low-carbon or medium-carbon steel wire is used. For each individual type of fastener, a certain diameter wire is required. This wire is usually supplied in coils weighing 0.7 - 1.0 tons. With an average productivity of the machine, one coil is enough for 12-15 days of operation. The yield of finished products with such a volume of raw materials will be 1.5-2 million units. The most widely used construction nails are 120 mm long. The wire for their manufacture with a diameter of 1.2 mm will cost 32-34 thousand rubles per ton. Depending on the volume of purchases and the agreement with the supplier, the cost may change up or down.

In addition, packaging for finished products will be required. It represents wooden boxes with a capacity of up to 50 kg. The cost of one such box is about 400 rubles. Accordingly, only packing one ton of nails will cost a little less than ten thousand rubles.

To work with the machine one person is required. With an equipment productivity of 125 kg per hour, a ton of products can be produced in one eight-hour working day. At the same time, the salary of the machine operator is up to 1000 rubles per one ton of nails worked out.

The process of making nails on automatic equipment is extremely simple. The nail is formed by cold forging. First, the wire is fed to the working tools of the nailing machine, where it is cut to a predetermined length and the tip of the nail is formed. At the same time, a nail head is formed at the other end of the workpiece. In this case, the machine operator should simply monitor the progress of the technological process, timely wire the wire and ensure proper care of working tools and equipment.

The cost of the finished product depends on the purpose and size of the nails. For comparison, the cost of the most common type of construction nails with a length of 120 mm is about 55 thousand rubles per ton.

Thus, with production volumes of 20 tons of nails per month (which is possible only using automated equipment with a capacity of 125 kg of nails per hour), the company's revenue will amount to 1.1 million rubles, and the cost of production is about 850-900 thousand rubles. From the difference of these two amounts, you need to subtract administrative costs (up to 50 thousand rubles) - the cost of rent, payment of electricity and taxes. Net profit will be about 100 thousand rubles per month with a profitability of production of 14%. The payback period when using an automatic machine is six months.

Think in advance about the distribution channels of your products. The competition in this segment of the market is quite high, so you should only open such a production if you are confident that you can sell your hardware. You can sell them through wholesale companies, sales representatives, directly to construction organizations, through distribution networks and stores of goods for construction and repair.

Sysoeva Liliya (c) www.clogicsecure.com - a portal to small business business plans and guides

08/18/2019


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