Starting a Nail Manufacturing Business

A nail is a type of fastener that has a rod-like shape. On one side, the product has a hat-shaped head, and on the other, it has a pointy end. The metal wire is used in the manufacture of nails, which is done with specialized equipment. The technological procedure for making nails is extremely simple and requires little initial investment, but it has a very high-profit margin. A wide range of options also encourages further development. Nails of various lengths and diameters, as well as shapes, can be created. They may also serve different functions or be processed in different ways. These items are classified using the following categories:

  • Classic construction nails;
  • screw nails;
  • Duckert nails, characterized by a much smaller cap size;
  • Comb (ruffed) nails;
  • Slate nails;
  • Roofing nails (roofing);
  • Finishing nails;
  • Nails for work on concrete and metal structures.

Register your business

It is essential to choose the appropriate OPF (legal form) for doing business before planning the technical process for the production of construction nails. An individual entrepreneur (single entrepreneur) with a UTII taxation form is the best solution (single tax on imputed income). In the event that any construction services are provided, that very same design will be required.

Requirments for premises

The workplace has no specific requirements. Not only may you use a specified space, but you can even use your own garage or rustic barn. One of the very few requirements is that a minimum amount of land is set aside for nail manufacturing shops. A minimum of 20 square meters is recommended. It’s also a plus if the heating can be controlled. This is especially true during the winter since a cold environment might cause faults in some systems. In addition, the premises must be supplied with three-phase electricity with a production capacity of 380 W. It will also be beneficial to have adequate lighting.

Renting premises in such places with communication networks connected costs more than 20,00 dollars┬áper month on average (depending on the region you have chosen, as well as on the location – premises located directly in the city will cost much more than premises outside it). If you prefer to work outside of the city borders, you should find a location that is as close to the city as feasible, as this will save you money on transportation of both raw materials and finished goods.

This expense item can be eliminated if you have a suitable room that can be used for manufacturing workshops.

Necessary equipment

Specialized semi-automatic/automatic facilities are required for the production of building nails. However, before buying the appropriate equipment for the production of nails, it is important to identify the diameter of the finished goods. The evaluation metrics of the equipment are determined based on this indicator. The following characteristics should be taken into consideration:

  • Wires of various diameters have distinct operating modes.
  • The presence of a function for altering the hat’s diameter;
  • The plant’s production capacity.

A wire nailing machine is required for the production of standard building nails, and the production capacity is the major indicator. This figure will be small for minor installations. Yes, they are significantly less expensive than their larger counterparts, but such machinery can only create nails with a specific diameter.

Large installations are required for the production of nails and dowels of various diameters (the larger the range you create, the easier it will be to establish distribution networks for your products). However, the price will be substantially greater – nailing equipment with the ability to modify the width of the cap costs on average 750 dollars.

You can get a grinding machine to substantially improve the quality of the output goods by giving the nails a more appealing look. A typical installation costs between 200 and 250 dollars. There are numerous options for selling finished goods:

  • By weight. Nails are packed in large boxes (mostly made of wood) that can store up to 50 kilos of finished nails. A wooden crate weighing 50 kilogrammes costs roughly 500-750 dollars. 1000/50 = 20 wooden crates equals 1 tonne of nails. As a result, packing 1 tonne of nails in a similar manner costs 20 * (500-750) = 10 – 15 dollars.
  • Packing. Small plastic bags are being used to pack the finished goods (mainly in ziplocks – bags that are hermetically sealed with a special fastener). This method is superior, but it needs the purchase of a specialist packing equipment to implement. Its cost varies between 500 and 500 dollars.

In comparison to similar foreign installations, the cost of the above domestic industrial installations is significantly lower. However, in terms of performance and utility, they fall short of the second.

Second-hand units can also be obtained for extra savings on the purchase of the minimum equipment. To make sure they’re working, double-check them. When purchasing low-quality equipment, there is a chance that it will become obsolete quickly, resulting in increased costs for repair or replacement, which is undesired.

Raw Material

Steel wire with a low to moderate carbon content is the most commonly produced material used to make building nails (percentage of carbon and its compounds). Wire of various widths is used for various sorts of nails and other fasteners. It is primarily delivered wound on coils ranging in weight from 700 kilos to one tonne. 1 coil can last for 2 weeks of labour based on the average production capacities of the chosen production line. With specified raw material quantities, the volumes of manufactured products range from 1.5 to 2.5 million units.

Building nails with a length of 120 millimetres are the most frequent and popular hardware. The wire used in their production has a diameter of 1.2 millimetres and costs around 45 thousand rubles per tonne (1 large coil).

Staff requirements

The assembly plant for building nails can be serviced by just one person. With a manufacturing rate of 125 kg per hour, 1 tonne of finished nails may be produced in one 8-hour shift. At the very same time, an operator’s average wage for┬átons of produced nails is around 1000 dollars.

Production process

Making any type of nail is renowned for its simplicity; even basic skills are not required, particularly when employing an automated production line. Cold forging is the most common method of nail formation. The wire is first put into the nailing machine, where it is trimmed to the specified length.

The method of creating the product’s pointy component follows. On the opposite side of the workpiece, the process of making a hat is in progress. The operator who maintains the equipment must keep a careful eye on the technological process, thread the wire in a timely manner, and guarantee that the production line is kept in good working order.

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