Your business: how to open the production of screws

* The calculations use the average data for the World 2 200 000 ₽

Starting investments

800 000 ₽

Revenue

300 000 - 350 000 ₽

Net profit

8 months

Payback period

The production of self-tapping screws does not require a large number of personnel and strict conditions for the areas, and due to the wide choice of equipment, unnecessary costs can be avoided. And most importantly - everyone needs self-tapping screws.

Self-tapping screws are one of the most versatile fasteners that are widely used in construction, during repairs or in production. However, producing them is quite simple; this business does not require special knowledge or work experience. A wide range of equipment offered provides entry into the business at minimal cost. If there is a fairly wide range of products, the market for self-tapping screws is very wide - they are sold by both small hardware stores and large supermarkets.

Types and application of self-tapping screws

Self-tapping screws are one of the types of fasteners. They are widely used in construction and repair work, vary in appearance, shape, material and purpose. There are many varieties of screws. Basically, the screws differ in the method of application, that is, they are designed to work with: wood, drywall, concrete, metal, sandwich panels, window profiles and others. Additionally, the screws are divided according to the material from which they are made, the thread pitch, the type of cap and the tip of the screw.

Self-tapping screws are a unique connecting tool, which determines their widespread use in various fields of activity. To connect materials with self-tapping screws, it is not necessary to drill holes previously, which greatly simplifies and reduces the cost of work.

The use of self-tapping screws is so wide that it makes no sense to talk about the self-tapping screw market, they are available in almost any supermarket or in a small hardware store, which confirms the constant demand for them.

Another plus that determines the effectiveness of the business for the production of self-tapping screws is the fact that there are no well-known and popular brands on the market, which makes it easy for any new manufacturer to enter the market.

Sales of screws are usually carried out in bulk. The main consumers are construction supermarkets, hardware stores, construction and repair organizations, as well as various manufacturing enterprises that produce furniture, window blocks, doors and other similar products.

Technology for the production of screws

Self-tapping screws are usually made of wire made of low carbon steel, but other hard and inexpensive metals such as stainless steel, brass, nickel alloys or aluminum alloys can also be used. The quality of the metal used for the manufacture of self-tapping screws is of utmost importance in order to avoid cracking. Also, the self-tapping metal can be coated with zinc, cadmium, nickel or chromium for additional protection.

Simplified production process consists of two main stages: processing the workpiece and threading.

In the process of processing the workpiece, the wire is fed from the coil into the machine, which provides preliminary tension. The straightened wire goes directly to the machine, which automatically cuts the wire to a predetermined length. Next, the stamp cuts the screw blank. The hat slicer uses either an open or closed die. A closed (or solid) matrix creates a more accurate workpiece. Depending on the productivity of the machine, from 100 to 550 blanks per minute are produced.

Threading begins after preparation of the workpiece. Screw blanks are automatically fed to the threaded dies from the vibrating hopper. The hopper guides the screw blanks down onto the chute to the dies, while setting them in the correct position.

In a third step, the preform is cut using various methods. The thread cutting matrix uses two flat dies. One stamp is stationary, and the other moves, and the screw blank rolls between them. In the case where a centerless cylindrical die is used, the screw blank is rolled between several round dies to cut a finished thread. Another method of rolling threads is to use a circular rotating head. In this case, the machine holds the clamping blank motionless, and several cutters cut the thread in the blank.

If necessary, a galvanic coating is applied to the self-tapping screw or heat treatment is performed.

What equipment is needed for the production of screws

Machine tools for the production of self-tapping screws are produced by various manufacturers. As a rule, these are machine tools made in China and Taiwan. The market also offers equipment of Russian and Ukrainian manufacturers. The most popular among buyers of equipment are Chinese-made machines. At the lowest price in their niche, they have a relatively good quality. Machines made in Taiwan, as a rule, are somewhat more expensive and are of better quality.

Please note that equipment commissioning services should be included in the equipment supply contract, due to the fact that the initial setup of the equipment can be of some difficulty. In the future, after the initial setup, the management of such a production line and its reconfiguration to produce various types of products is quite simple and accessible to any specialist after passing a minimum training.

When choosing a certain type of equipment, pay particular attention to the availability and availability of spare parts, consumables and equipment for the operational maintenance of the production line. If you decide to purchase equipment directly from a foreign supplier, which is now quite simple, please note that delivery can take several months, and the delivery of consumable components takes the same time. Therefore, at the first stage, especially if the production of self-tapping screws is a new business for you, we recommend that you choose a Russian supplier.

Samples of products manufactured on this equipment will help you choose equipment. Pay attention to the following features of self-tapping screws that will help you choose equipment that produces quality products:

  • the same color of products, which indicates high-quality industrial processing of the product and the presence of the same strength indicators;

  • the self-tapping screw should not have a burr or unevenness;

  • thread pitch should be the same;

  • pay attention to the possibility of marking the self-tapping screw itself, as this is considered a sign of a better product.

The cost of equipment mainly depends on the degree of automation and equipment performance. The basis of the production line for the production of self-tapping screws includes a cold heading and thread rolling machine.

The cost of a mini-machine for the production of self-tapping screws is about 200 thousand rubles. At the same time, the productivity of such a machine is up to 55 pieces per minute.

The cost of more productive equipment starts from 1.8 million rubles. A similar line will make it possible to produce about 150 self-tapping screws per minute. It is served, as a rule, by one operator and one auxiliary worker. It is advisable to immediately purchase the necessary consumables - punches and rods, on average, they work several shifts. Molds have been in operation for several years.

In addition, it is necessary to take into account the cost of commissioning and delivery. Thus, taking into account the cost of equipment, its delivery, commissioning and necessary equipment, the total cost of acquiring equipment will be about 2.2 million rubles.

In some cases, additional galvanization of finished products is used. The galvanization process is necessary to protect against corrosion, increase the wear resistance and electrical insulation properties of the base coat on ferrous and non-ferrous metals, by creating a protective film on the surface of the product. The cost of equipment for galvanization is from 100 thousand rubles.

Requirements for the premises for the production of self-tapping screws

For the production of screws, a small room with an area of ​​50-70 m2 is enough. Observe the basic requirements that apply to such premises. First of all, it should be noted that the volume of the production room should be at least 13m3 and at least 4m2 per worker. The height of the premises is calculated on the basis of the dimensions of the equipment, in our case the equipment is not bulky, however, the regulated ceiling height should be at least 3.2 m.

It is undesirable to have a workshop for the production of self-tapping screws in a basement or semi-basement, this may raise questions from regulatory authorities. Pay attention to the need for adequate lighting and ventilation for industrial premises.

If you use galvanic bathtubs to increase the resistance of self-tapping screws, then the requirements for rooms will be more stringent. You can familiarize yourself with the requirements for operation when choosing specific items of equipment.

Of course, in practice, all of these requirements are not always complied with, but if your employee gets an industrial injury, be sure that all of the specified parameters are checked and if it is proved that the production premises do not meet the necessary parameters, then they will be held criminally liable.

You can rent or build the necessary premises. In our opinion, starting any business, it is better to minimize investments in it, which will reduce financial risks in the event of unfavorable market conditions. Therefore, at the initial stage, it is better to rent an industrial premises.

Average rent for renting production facilities in Russia, rubles *

ROOMS 50-60 SQ. M

ROOMS 70-80 SQ. M.

22, 284

25 326

* According to the analysis of Avito ads on 08/18/2019

However, if you have the necessary funds, you can also build your own workshop premises. For the production of screws, the production room is easiest to build from a sandwich panel. Providing a sufficiently low rate of heat loss, such structures are characterized by low cost and short installation time. The cost of such a construction starts from 900 - 1200 rubles per square meter. The building is going in a few days.

Pay attention to such an important moment as the availability of communications on the site for the construction of buildings. If the building itself can be assembled within a few days, the process of connecting communications will take several months. Especially long is the process of connecting natural gas, which can be used both for heating and for some stages of the production process in the manufacture of self-tapping screws. Such a connection can take you at least six months and will require several hundred thousand rubles, even if the gas pipe passes in the immediate vicinity of the production facility being built.

Financial performance of the business in the production of screws

Equipment for the production of self-tapping screws of average productivity allows you to produce about 2 million products per month. The cost of selling screws depends on their specific characteristics and package size.

Monthly revenue from the sale of self-tapping screws will be about 800 thousand rubles. The cost of production consists of the following main elements:

  • the cost of materials, mainly wire for production;

  • costs of equipment and consumables, packaging;

  • energy costs, mainly electricity and space heating;

  • salaries to employees, for the described business 3-5 people will be enough, depending on the productivity of the equipment and the degree of automation;

  • production expenses, for example, for rental of premises;

  • overhead costs, that is, the costs of organizing the production process;

  • payment of administrative costs, such as accounting services, legal services, advertising and others.

The total cost of manufacturing self-tapping screws is about 60% of the selling price. Thus, the profit will be about 300-350 thousand rubles a month. In this case, the payback period will be about 8 months.

Legal registration of a business for the production of self-tapping screws

First of all, you need to register the business officially. To do this, you must open a legal entity (limited liability company) or register as an individual entrepreneur.

For the business of manufacturing self-tapping screws, it is optimal to register as an IP. The process of registering IP is somewhat simpler than LLC, as well as the regular reporting provided. The easiest way to apply for registration as an individual entrepreneur is through the public services portal.

Opening an LLC for this type of business may be appropriate if you are starting a business with a founder with whom you co-finance a project and want to legally formalize the relationship.

Applied OKVED - 25.94 “Production of fasteners”. This OKVED includes the production of threaded fasteners, such as bolts, screws, self-tapping screws and similar threaded products.

Finally

To summarize the assessment of the effectiveness of opening a business for the production of screws. First of all, it is necessary to pay attention to the wide range of equipment for production, which ensures the selection of equipment that produces the necessary range of screws and allows you to choose equipment based on optimal costs, which reduces the threshold for entering this business. Despite the fact that the construction business is in a recession stage, the existing pace of construction, with a competent marketing approach, will fully load production and ensure sufficient profitability. A large number of personnel are not required to service the production of self-tapping screws; many production processes are automated. Requirements for production facilities for the placement of equipment are minimal, which will allow you to choose a room with minimal cost.

Anton Vodolazov, business consultant, candidate of economic sciences

Contact the author:

(c) www.clogicsecure.com - a portal to business plans and guidelines for starting a small business 08/18/2019


Popular Posts