Prepare your own business plan in nail industry

- Nov 29, 2020-

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Introduction

We are witnessing a construction boom particularly in suburban areas. This has hugely increased demand for building materials, including wire nails, which is expected to keep up with the upward trajectory for many decades to come.

According to industry inputs, only four percent of the total demand in met by local production and for the rest, the state depends on outside produce for the unsatisfied demand.

There are about 300 kinds of different nails around the world ,The nails are made from coils of metal wire which is fed into a nail-making machine that produces up to 2000 nails per minute. The nails are then further twisted or formed, cleaned, finished, and packaged.

Market snapshot

According to the industry, some place maybe your place where people popularly use wood frames for door, windows and cupboards, and you build house use wooden roof . alone consumes nails worth too much every year. Of this, the domestic production accounts for just 20% , That leaves a huge gap for new players in your country, there are industries barbed wire, chain link fencing, crate mesh and wire nails. There are thirty units across the country producing these items, out of which only few units manufacture wire nails.

Opportunities:

· There is a yawning gap between demand and supply

· Corrugated tin roofing in your area has no alternative

· A huge wood work is prevalent

· Since construction in your country is at a boom nails are also required for shuttering purposes

Challenges:

· Less availability of raw material

· It is a capital and labour intensive industry

· Management of scrap and waste material is difficult

· Dearth of highly technical people to run the unit

· Retention of technical people

Here is example of china factory that give you hints that you can start bussiness

Factory place : Chaohu city Anhui province

Capacity : 15 MT nails per day

Factory : 2100 sqm

People : 12

Invest: about 1800000 RMB

Normally 1000 kg steel roll , output 976 kg nails

Factory layout L= 63 M W=16.5 total = 1039 SQM

Another same factory building now use for office and warehouse , now prepare to produce coil nail

Different price for NAIL and Row material (RMB) : 1500 Per Ton.

15T X1500 = 22500 per day

Equipment cost = 1800000 x 50% / 300 = 3000 per day

( two years cover the equipments’ cost and work 300 days one year )

Factory building rent = 2000 x 15/30 = 1000 per day

Salary for perday 12 x 300 = 3600

Electricity and other 1000 per day

Consumables: 1000 per day

Marketing: 2000 per day ( This is two high, Because for nails making factory, no need for marketing )

Finance : 2000 per day

Tax & office and other not count

Cost total : 13600

Profit : 22500-13600 = 8900 RMB per day

So , start your business today and go to success