This type of business can be started with the production of small batches of self-tapping screws, for example, up to 1.5 million pieces of triangular threaded screws per month. Nowadays it is quite possible to purchase inexpensive modern equipment. Regardless of the scale of the enterprise, the process of manufacturing the product remains unchanged.
You can expand the production line for self-tapping screws at any stage of commercial activity. It is enough to purchase high-performance machines for the production of self-tapping screws of various formats and other metal fasteners. At the moment, such a business orientation is recognized as profitable.
A competent approach to business, started with low costs, will manifest itself from the commercial side after some time. Mini production will begin to bring good profits:
- Self-tapping screws are in demand in the same way as nails. Not much more expensive, but have more extensive applications;
- Wide range: universal self-tapping screws, roofing screws, for metal, plasterboard, wood, for sandwich panels and others;
- Availability of raw materials;
- There is machine-building capacity in the country, but not enough fasteners are produced. Russia imports tens of thousands of tons of them annually;
- Our construction market was almost unaffected by the economic crisis;
- Private investors are happy to respond to a promising idea, subject to a professionally drawn up business plan;
In addition, Russia has programs that support small industries.
Types and use of self-tapping screws
Self-tapping screws are one of the types of fastening elements. They are widely used in construction and repair work and vary in type, shape, material and purpose. There are many types of self-tapping screws. Basically, self-tapping screws differ in the method of application, that is, they are designed to work with: wood, plasterboard, concrete, metal, sandwich panels, window profiles and others. Additionally, self-tapping screws are divided depending on the material from which they are made, the thread pitch, the type of head and the tip of the self-tapping 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, you do not need to pre-drill holes, which greatly simplifies and reduces the cost of the work.
The use of self-tapping screws is so widespread that it makes no sense to talk about the market for self-tapping screws; they are available in almost any supermarket and in a small hardware store, which confirms the constant demand for them.
Another advantage that determines the efficiency of the self-tapping screw production business is the fact that there are no well-known and popular brands on the market, which makes it easier for any new manufacturer to enter the market.
Sales of self-tapping screws are usually carried out in wholesale quantities. The main consumers are construction supermarkets, hardware stores, construction and repair organizations, as well as various manufacturing enterprises producing furniture, window units, doors and other similar products.
Sales of finished products
When using new generation equipment, it becomes possible to produce products in small batches of various formats. A simple analysis will allow you to determine the most popular fasteners on the market and competently organize sales.
A professionally drawn up business plan provides various sales opportunities:
Concluding contracts with large construction companies, manufacturers of furniture, windows, doors. Conclude agreements for the retail supply of products to local stores and retail chains. Selling self-tapping screws through your own business card website.
To attract customers, it is optimal to set competitive prices, but you should not significantly reduce them. A novice entrepreneur needs to remember that it is very difficult to increase the cost of products with concluded contracts.
It is noteworthy that as productivity increases, production costs decrease. It is to increase production and sales volumes that every entrepreneur should aim. An increase in income allows you to expand your own workshop to the scale of a plant and enter into long-term contracts for the supply of metal structures.
Self-tapping screw production technology
Self-tapping screws are typically made from mild steel wire, but other tough, inexpensive metals such as stainless steel, brass, nickel alloys, or aluminum alloys can be used. The quality of the metal used to produce self-tapping screws is of paramount importance to avoid cracking. Also, the metal of the screw can be coated with zinc, cadmium, nickel or chromium for additional protection.
Simply put, the production process consists of two main stages: processing the workpiece and cutting the thread.
During the processing of the workpiece, the wire is fed from a reel into a machine, which provides pre-tension. The straightened wire goes directly into the machine, which automatically cuts the wire to the specified length. Next, the stamp cuts the head of the screw blank. A cap cutting machine uses either an open or closed die. A closed (or solid) die creates a more accurate workpiece. Depending on the productivity of the machine, from 100 to 550 workpieces are produced per minute.
Thread cutting begins after preparing the workpiece. Screw blanks are automatically fed to thread dies from a vibrating hopper. The hopper guides the screw blanks down a chute toward the dies while positioning them in the correct position.
At the third stage, the workpiece is cut using various methods. The thread cutting die uses two flat dies. One die is stationary and the other is moving, and the screw blank is rolled between them. In case a centerless cylindrical die is used, the screw blank is rolled between several round dies to cut the finished thread. Another method of thread rolling is to use a circular rotating head. In this case, the machine holds the clamping workpiece motionless while several cutters cut threads into the workpiece.
If necessary, the self-tapping screw is galvanized or heat treated.
Pre-project activities
Before you begin implementing a self-tapping screw production project , assess the degree of preparation of the organizational and legal components of your business.
Things to check:
- Is your company registered as a legal entity?
- Is she registered with the tax office and has a current account been opened?
- Has the location of the main workshops and office buildings been determined?
- Have negotiations been held with equipment suppliers?
- How mature is the job market in the region?
- What permits and licensing documentation will be required.
What equipment is needed to produce self-tapping screws?
Machines for the production of self-tapping screws are produced by various manufacturers. As a rule, these are machines made in China and Taiwan. The market also offers equipment from Russian and Ukrainian manufacturers. The most popular among equipment buyers are Chinese-made machines. At the lowest price in their niche, they have relatively good quality. Machines made in Taiwan are usually somewhat more expensive and are of better quality.
Please note that the equipment supply agreement must include equipment commissioning services, due to the fact that the initial setup of the equipment may be somewhat difficult. In the future, after the initial setup, managing such a production line and reconfiguring it to produce various types of products is quite simple and is accessible to any specialist after undergoing minimal training.
When choosing a certain type of equipment, pay special attention to the availability and accessibility of spare parts, consumables and equipment for prompt maintenance of the production line. If you decide to purchase equipment directly from a foreign supplier, which is now quite simple, keep in mind that delivery can take several months, and the delivery of consumable components also 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 choosing a Russian supplier.
Samples of products produced 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 the 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 irregularities;
- the thread pitch must be the same;
- Pay attention to the possibility of applying markings to the screw itself, as this is considered a sign of a higher quality product.
The cost of equipment mainly depends on the degree of automation and productivity of the equipment. 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 producing 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 at 1.8 million rubles. Such a line will allow the production of about 150 screws per minute. It is serviced, 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. The molds are used for several years.
Additionally, it is necessary to take into account the cost of commissioning and delivery. Thus, taking into account the cost of the equipment, its delivery, commissioning and necessary equipment, the total cost of purchasing the 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 wear resistance and electrical insulating properties of the base coating on ferrous and non-ferrous metals, by creating a protective film on the surface of the product. The cost of galvanizing equipment starts from 100 thousand rubles.
Production plan
This section should include the following items:
- Industrial premises intended for the installation of equipment: its dimensions, area, technical condition, energy supply, fire safety.
- Technological processes for the production of fasteners, based on financial capabilities and determined by the required volume of production.
- Manufacturing equipment and tools, as well as office equipment and office equipment (for example, computers).
- Production layout, including also areas for intermediate warehouses, warehouses for storing finished products, fuels and lubricants, spare parts, etc.
- Premises for administrative and management personnel, cabins for recreation.
- Issues of ensuring the safety of existing production: measures for electrical and fire safety, protection of the facility territory.
All items must have specific deadlines.
Requirements for premises for the production of self-tapping screws
To produce self-tapping screws, a small room with an area of 50-70 m2 is sufficient. The basic requirements for such premises must be observed. First of all, it should be taken into account that the volume of the production premises must be at least 13 m3 and at least 4 m2 per worker. The height of the premises is calculated based on the dimensions of the equipment; in our case, the equipment is not large, but the regulated ceiling height must be at least 3.2 m.
It is undesirable to locate 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 production areas.
If you use galvanic baths to increase the resistance of self-tapping screws, then the requirements for the premises will be more stringent. You can familiarize yourself with the operating requirements when choosing specific items of equipment.
Of course, in practice, all of these requirements are not always met, but if your employee receives a work-related injury, rest assured that all of the specified parameters will be checked and if it is proven that the production premises do not meet the necessary parameters, then you will be held criminally liable.
You can rent or build the necessary premises. In our opinion, when 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 production premises.
Average rent for renting industrial premises in Russia, rub.*
| ROOMS 50-60 SQ. M | ROOMS 70-80 SQ. M. |
| 22 284 | 25 326 |
*according to analysis of Avito advertisements as of September 12, 2018
However, if you have the necessary funds, you can build your own workshop premises. For the production of self-tapping screws, the easiest way to build a production facility is from sandwich panels. Providing fairly low heat loss rates, such structures are characterized by low cost and short installation time. The cost of such a structure starts from 900 – 1200 rubles per square meter. The building is being assembled within a few days.
Pay attention to such an important point 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. The process of connecting natural gas is especially long, which can be used both for heating and for some stages of the production process in the production of self-tapping screws. Such a connection may take you at least six months and will require several hundred thousand rubles, even if the gas pipe runs in close proximity to the industrial premises being built.
Financial indicators of business in the production of self-tapping screws
Equipment for the production of self-tapping screws of average productivity allows us to produce about 2 million products per month. The cost of selling self-tapping screws depends on their specific characteristics and packaging size.
Monthly revenue from the sale of self-tapping screws will be about 800 thousand rubles. The cost of manufactured products consists of the following main elements:
- materials costs, mainly wire for production;
- costs for equipment and consumable tools, packaging;
- energy costs, mainly electricity and space heating;
- wages for employees; for the business described, 3-5 people will be enough, depending on the productivity of the equipment and the degree of its automation;
- production expenses, for example, rental of premises;
- general production costs, that is, the costs of organizing the production process;
- payment of administrative costs, such as accounting services, legal services, advertising and others.
In total, the production cost of self-tapping screws is about 60% of the selling price. Thus, the profit will be about 300-350 thousand rubles per month. In this case, the payback period for the investment will be about 8 months.
Staff
Automated production processes make it possible to avoid hiring a large number of employees, and small production allows you to work on a regular schedule without shifts. Hire one foreman for each production site, as well as a sales manager, driver and accountant.
Contributions to the salary fund are based on average market salaries:
- Workshop foreman, 3 people - 75,000 rubles
- Sales manager, 1 person - 30,000 rubles
- Driver, 1 person – 25,000 rubles
- Accountant - 22,000 rubles
- Total - 152'000 rubles
Legal registration of business for the production of self-tapping screws
First of all, you need to register your business officially. To do this, you need to open a legal entity (limited liability company) or register as an individual entrepreneur.
For a business producing self-tapping screws, it is optimal to register as an individual entrepreneur. The process of registering an individual entrepreneur is somewhat simpler than an LLC, as is the regular reporting provided. The easiest way to apply for registration as an individual entrepreneur is through the government services portal.
Opening an LLC for this type of business may be advisable if you are starting a business with a founder with whom you are co-financing a project and want to properly formalize the relationship legally.
The applicable OKVED is 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
Let us summarize the effectiveness of starting a business producing self-tapping screws. First of all, it is necessary to pay attention to the wide range of equipment for production, which provides a choice of equipment that produces the required range of self-tapping screws and will allow you to select equipment based on optimal costs, which reduces the barrier to entry into this business. Despite the fact that the construction business is in decline, the current pace of construction, with a competent marketing approach, will allow production to be fully utilized and ensure sufficient profitability. To maintain the production of self-tapping screws, a large number of personnel is not required; many production processes are automated. The requirements for production premises for equipment placement are minimal, which will allow you to select a premises at minimal cost.
Anton Vodolazov
, business consultant, candidate of economic sciences Contact the author (c) www.openbusiness.ru - portal of business plans and guides for starting a small business
10.22.2018
All materials by tag: production of self-tapping screws
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Investments
The main cost item for starting a business is the operating line for the production of screws, which operates automatically. Automation is more expensive, but more profitable in the long term. You don't have to hire a large staff.
| Expense item | Cost, rub. |
| Registration | 10 thousand |
| Premises for rent, 100 sq. m | 50 thousand |
| Equipment | 2 million |
| Raw materials, months norm | 150 thousand |
| Salary, 4 people. | 100 thousand |
| Additional expenses | 200 thousand |
| Total | 2.51 million |
The cost of renting premises is indicated subject to working in a city with a population of up to 500 thousand people. We rent premises that are ready for use and do not require major repairs. The costs of all preparatory work are included in additional costs.
