Do you want to start a construction nail manufacturing business? If YES, here is a complete guide to starting a construction nail manufacturing business with NO money and no experience.

Okay, so we have provided you an in-depth sample construction nail manufacturing business plan template. We also took it further by analyzing and drafting a sample construction nail manufacturing marketing plan backed up by actionable guerrilla marketing ideas for construction nail manufacturing companies. In this article, we will be considering all the requirements for starting a construction nail manufacturing business. So put on your entrepreneurial hat and let’s proceed.

Why Start a Construction Nail Manufacturing Business?

A nail is usually a metal rod that has a head and a pointed end that can be hammered into either a piece of wood or material in order to fasten them together, hence they are usually called fasteners in the United States. Most nails are made of steel, with the remaining few are made of brass, aluminum and other metals.

In order to improve its corrosion resistance, its gripping strength as well as its decorative appearance, the surface of the nail is either coated or plated. There are more than 300 types of nails manufactured in the United States with most of them used in construction of buildings.

Depending on their length, nails can be divided into three broad categories. Nails that are less than 1 inch are usually called tacks; those between 1 to 4 inches are called nails, while those over 4 inches are called spikes. A nail’s length is usually measured in a unit called the penny which comes from how nails were used and sold in England in the late 1700s.

Nails have been in use as far back as 3500 B.C in Mesopotamia but were made from bronze or copper before iron started being used. The nails were usually made one at a time in that period and were scarce and expensive because they had to be forged with hammers.

If you think this is the sort of business that you may want to commence, then find more information below.

Starting a Construction Nail Manufacturing Business – A Complete Guide

  • Industry Overview

Nails are affected by the steel industry, so as the demand for scrap steel continues to grow with limited supplies, it affects how the nails are produced. In the United States, wire rod prices have continued to climb and because the inventories are running low, buyers have become concerned that there may not be enough materials left.

The only external source of steel rod to the United States is Turkey as the prices from the European market is still quite high and China not willing to enter into steel rod trade with the United States, which has led to strained supplies.

Globally, rod and wire prices have continued to climb, which has in turn had an influence on the price of raw materials for nails and also the end prices of the nails as well as their supplies. Nail manufacturing companies in America have had to battle nail manufacturing companies in countries such as China and the United Arab Emirates over their less than fair value of certain steel nails entering into the United States as the subsidies as well as government actions on nail manufacturers in these countries have caused an unfair advantage and have tilted the field of competition.

According to an industrial study by The Freedonia Group, it is expected that the global demand for industrial nails and fasteners will climb to 5.4 percent every year to 2018 and reach a market value of nearly $94 billion. Increases in production and construction will cause the global economy to not only expand but see an increase in investment expenditure.

The gains in the market are expected to be of high value both in the developing and developed countries. It is however expected that advances in developing countries will outpace that of the developed countries especially as standards of living start to rise in these developing countries.

According to Global Industry Analysts (GIA), the global market for industrial fasteners is expected to reach nearly $84 million by the year 2020 which will be largely due to the improvements in the global economy. Fasteners are regarded as indispensable in the construction industry.

Aside from the improving economy, other factors that cause an increase in growth is the growth in construction and the growing demands from developing countries. The construction nail market is going to benefit a great deal from technological developments that will help to improve the fatigue strength of the nails.

Apart from nails benefiting from the improvements in the global economy, it is expected that the attempt to make smaller devices will bring about the innovation of microfasteners, with threaded and plastic fasteners also. This is so that nail manufacturers can take advantage of the niche markets that exist for plastic fasteners especially nylon fasteners which due to breakthrough in technology have started being very popular.

This demand for industrial fasteners is set to be driven not only by end-use sectors such as the construction industry but also other strong industries such as the automotive and the aerospace industry.

According to research report, the Asia-Pacific has the largest market globally due to the rise in investments in several of its sectors such as infrastructure, defense, and aerospace. It is also expected that the region’s growth will come from expanded investments in its manufacturing sector.

Countries in the Asia-Pacific that are to be reckoned with are China, India, Malaysia and South Korea. However, the United States remains the single largest market when it comes to industrial fasteners. It is expected that the United States’ market will continue to remain productive for a long time to come.

The United States fastener industry represents a multi-billion dollar segment of the economy. This is largely due to the fact that it has a lot of companies that cater to the requirements of their clients. The industry is one that has grown tremendously and in the late 60s, there were nearly 600 nail manufacturing firms generating nearly $2 billion every year.

During this period, the industry employed more than 50,000 people. However, the industry has experienced a decline over the past two decades due to production requirements that keep changing and an increase from foreign competitors, who caused a crash in nail prices.

Starting a Construction Nail Manufacturing Business – Market Research and Feasibility Studies

  • Demographics and Psychographics

The people who require construction nails are usually those in the construction industry. Carpenters, wood workers, furniture makers, and households usually make use of construction nails too but on a very small scale. Even though the uses of nails are diverse; if you are looking to define the demography for your construction nail manufacturing business, it should be one that will align with the niche which you intend to offer.

List of Niche ideas Within the Construction Nail Manufacturing Business That You Can Specialize in

There are various types and sizes of construction nails and several other kinds of fasteners used by clients which means that there are a lot of niches for entrepreneurs looking to start this business. Before going into any niche however, it is important that you conduct a thorough research on the niche so that you do not end up wasting resources and time in going into a niche that will no become profitable.

While large scale companies can afford to delve into many niche areas, small scale companies have to consider capital and therefore choose their niches carefully. Below are some of the niche ideas within this particular business that one can specialize in;

  • Clips and Fasteners
  • Torx Screws
  • Metal Roofing Screws
  • Specialty Fastener
  • Industrial Fasteners
  • Customized Fasteners

The Level of Competition in the Construction Nail Manufacturing Industry

The construction nail manufacturing business is a different kind of business from most businesses because when customers purchase construction nails, they do not look for brand names because all nails are all manufactured according to types and specifics regardless of what brand is manufacturing them.

This therefore makes the level of competition in this industry to be a bit tough as all nails depending on the size and type are basically the same. All customers want are nails that are of good quality. In order to be able to compete, most construction nail manufacturers usually specialize in other products so as to get their brand names recognized.

If you are therefore looking to start your construction nail manufacturing business in the United States of America, then you should know that there are various construction nail manufacturing businesses scattered all over the country, so it is important that you study the industry well in order to know who your competitors are, especially those in your local area where you intend to operate from, and how best you can position your company in order to have the edge that you will need.

List of Well – Known Brands in the Nail Manufacturing Industry

In in every industry, there are brands that stand out and the construction nail manufacturing industry is no different as there are brands that are well known in the industry either due to how long they have been in the industry, their consistent quality, their brand presence or excellent customer service.

Below are some of the well-known constructions nail manufacturers in the United States of America;

  • Gerdau Ameristeel Corp
  • Davis Wire Corp
  • Ford Fasteners, Inc
  • Treasure Coast Fasteners Inc
  • Maze Nails
  • Mid-Continent Nail Corp

Economic Analysis

The areas where nails are used are quite diverse in nature. Nails or fasteners can be used in several industries such as mining, automotive, marine, nuclear, petrochemical, construction and specialized applications. According to estimation, close to 350 manufacturing plants in the United States alone, manufacture more than 200 billion nails every year.

Nails are very critical in the construction industry as they are used in building structures by helping to provide structural integrity. Construction nails are those nails that are used in securing building materials and are often called commodity or task specific fasteners. Most places where construction nails are used on are; roofs, decks, buildings and bridges.

The market for fasteners and nails in the United States has increased at rates that are relatively strong especially since the recovery of the economy domestically.  The upturn in the economy saw new home constructions as well as remodeling activity in residential and nonresidential markets. This saw to an increase in the demand of metal fasteners as well as non-ferrous nails.

Even though nails have long been considered as a product that is low-tech, modern nails are becoming more sophisticated, which has allowed suppliers to start developing better products as well as offer their customers services that are advanced in nature.

Starting Your Construction Nail Manufacturing Business from Scratch vs Buying a Franchise

When starting any business as an entrepreneur, one thing that you would need to seriously consider is if you intend starting your business from scratch or you are looking to buy a franchise. These two options are important because they will determine how you will start your business and what milestones you intend to reach at certain points in time.

However, it should be noted that no option guarantees the success of a business as there are certain other factors that goes to make a business successful. Also, taking this decision shouldn’t be hard especially if you already have a plan laid down on how you intend to run your business.

In the construction nail manufacturing industry, there are no franchise opportunities available and so the only option available to an entrepreneur is to start your business from the scratch. You can however make it easy for yourself by buying off an existing construction nail manufacturing business as that will lessen the amount you will spend for starting the business. Ensure that you not only have a business plan at hand but that you also build a solid business structure that will enable you to recruit the best hands for your construction nail manufacturing business.

Possible Threats and Challenges You Will Face When Starting a Construction Nail Manufacturing Business

Every business faces challenges and threats – either startup or already existing and so as an entrepreneur, you should be prepared for whatever challenges and threats that you are likely to face by first knowing all there is to know about the business.

If you aren’t prepared to combat the challenges whenever they crop up, it means that you aren’t committed to the business which you are looking to start-up. It is however important to note that not all threats and challenges can be easily handled or taken care of and when this occurs, the best you can do is to remain optimistic.

Some of the threats and challenges you are likely to face include; having to compete with other construction nail manufacturing business, having to promote your brand in order to make it become known, dealing with new entrants into the industry and economic downturn which will see fewer construction activity being carried out.

Starting a Construction Nail Manufacturing Business – Legal Matters

  • Best legal entity to use for this type of business

The legal entity to use for your business is very important as this has an impact on how much the business can grow. Choosing a legal entity is therefore one of the most important decisions that an entrepreneur will make when looking to start a business as the wrong entity can limit the business. It doesn’t matter if you intend to grow your business regionally or make it to be known nationally or internationally.

There are many legal entities that you can use for your business as an entrepreneur in the United States, but not all these legal entities will be suitable for a construction nail manufacturing business especially as things could either go wrong during the course of production to either your employee or equipment and so if you had chosen the wrong legal entity you will suffer the consequences.

Even though there are five legal entities in the United States for entrepreneurs such as Sole Proprietorship, Partnership, S Corporation, C Corporation and Limited Liability Company (LLC), the decision on which to choose will depend on the attributes that each legal entity possesses. The attributes that can make for an easy decision are liability, taxation structure, ease of setup, flexibility, ownership and control.

And so while it might look great to start the business as a sole proprietor because of how easy it is to setup the legal entity, should anything happen during the course of the business to either your employees or equipment, you will personally be held liable, as the assets of the business and that of the owner are not regarded as separate in a sole proprietorship.

Catchy Business Name ideas Suitable for a Construction Nail Manufacturing Business

In whatever business you are going to start, one of the tasks that you have to handle beforehand is what to call your business. A business name is important because it is what identifies your business from other similar businesses especially if your name indicates the industry that you are in.

Therefore, a business name must be memorable, easily pronounceable and must be distinct enough to gain attention. Ensure that you have more than one name in mind so that if the name you have chosen has been, you can easily go for the backup name instead of going back to square one.

Some of the catchy names that might be suitable for your construction nail manufacturing business are;

  • Banon Fasteners Inc
  • Spiky Fasteners & Supply Inc
  • Trump & Irwin Inc
  • Kushner Fasteners
  • Zoom Fastening Systems

Insurance Policies

The manufacturing sector is one that is prone to many incidents or break down of equipment during production, and because of this, having insurance policies is very necessary for those in the manufacturing sector. Having insurance will help you to easily handle any incident that might happen on or to your property as you will be passing the risk on to your carrier.

Ensure that you consult with an insurance agent or broker regarding the insurance policies that you would require for your construction nail manufacturing business. Below are some of the insurance policies that you would need to purchase when looking to start your construction nail manufacturing business in the United States;

  • General Liability Insurance
  • Commercial Property Insurance
  • Workers Compensation Insurance
  • Equipment Insurance
  • Casualty Insurance
  • Product Liability Insurance
  • Umbrella Policies

Intellectual Property Protection/Trademark

Construction nails are basic looking nails that must be of certain specifications in its varying length and sizes; this is therefore not a business that will require you to apply for any sort of intellectual protection before starting the business. However intellectual property protection is vital for almost every business that is being run in the United States.

You can apply for intellectual property for the name of your company, its logo or any other material that you deem vital to the smooth operation of your business. Your best bet is to engage a lawyer adept in IPP to help with any filings or advice regarding the IPPs you might need to protect.

Is Professional Certification Needed to Run a Construction Nail Manufacturing Business?

This business is one that is capital and technically inclined and there is no need for one looking to start this business to get any sort of certification before doing so.

However, if you are thinking of growing your business to compete nationally against other construction nail manufacturers, then it might be necessary for you to get certifications in management, finance, marketing and other aspects that might help you attain the edge you need in running your business.

List of Legal Documents You Need to Run a Construction Nail Manufacturing Business

For every business run in the United States, there are some documents that you are expected to have if you do not want to run into any trouble with the law. There are basic documents that every entrepreneur is expected to have no matter which state they are operating from and there are also documents peculiar to the state in which the entrepreneur is operating from and so it is necessary that you know all there is to know about the documents that you will most likely need.

One sure way of not contravening the laws is to engage the services of a lawyer experienced in the sector that you are in to help you out. Below are some of the legal documents that you will require in order to run your construction nail manufacturing business;

  • Certificate of Incorporation
  • Operating Agreement for LLCs
  • Business Plan
  • Business Permit
  • Sales Contract Document
  • Insurance Policy
  • Employer Identification Number (EIN)
  • Federal Tax Identification Number (TIN)
  • Employment Agreement

Financing Your Construction Nail Manufacturing Business

Business ideas no matter how fantastic can never become a reality if the entrepreneur has no finance at hand or has nowhere to source for finance. And so while it might not be an easy task for an entrepreneur to source for the necessary start-up capital for a business, it is not something that can be wished away; which is why entrepreneurs are usually advised to have a comprehensive business plan at hand as this makes it easier to source for funds from private investors or financial institutions.

Below are some of the financing options that are available for your construction nail manufacturing business;

  • Using private funds as part of startup capital
  • Sourcing for startup capital from business partner or private investor
  • Applying for loan from a commercial bank

Choosing a Suitable Location for your Construction Nail Manufacturing Business

One important decision that an entrepreneur has to take during the course of starting a business is where to locate the business. This is because where a business is located can have a very high impact on how much revenue the business will generate. So, while this might seem like something trivial, it isn’t and should be considered very important.

If you are going to be starting the business on a low scale and have a large property where you can create space for your equipment and then produce your nails, then you might not need to bother with sourcing for a facility with which to use in running the business. One chief reason why you will need to lease or buy a facility for use in running your business is if you intend to run the business on a large scale, which will mean that you will also need to hire people to work for you.

If you are going to be leasing a facility, ensure that the environment is under the right zoning requirement. It is important that you engage the services of a real estate agent to help out with the location that will be most appropriate for your nail construction business.

It is necessary that the environment that you have chosen is easily accessible for your employees especially the trucks that will help distribute the nails. Whether you are building from scratch or buying an already existing building, it is essential that it must be conducive for the employee as well as the equipment.

It is essential that you create a budget that will be used for the facility you intend to lease or buy and inform the real estate agent as this will help them know which area depending on your budget will most likely be the right one for you.

Starting a Construction Nail Manufacturing Business – Technical and Manpower Details

An average house built of wood in the United States makes use of between 20,000 and 30,000 nails of varying types, lengths and sizes. The function of a nail is determined by its head, shank, point and shape.

Nails are therefore considered very essential in the construction industry and nail production is therefore highly dependent on this industry than other sectors that use the nails. Therefore, an economic downturn will not only affect how many residential or nonresidential houses are being built, it will also affect the number of nails that will be produced. Another factor that can severely limit nail production is the shortage of raw materials either within the country or outside the country.  If the raw materials are also highly priced, it will affect the number and price of nails.

Nails are made from several materials such as steel, copper, aluminum, bronze, brass, stainless steel, silver, iron, zinc, monel and nickel and are categorized into three categories depending on their length. There are three major steel fasteners used in different industries and they are; stainless steel, alloy steel and carbon steel. The major equipment that you will need to produce your nails are nail making machines, automatic wire former and tack machine. You will also require finishing and packaging equipment.

Depending on the scale of business you intend to run, building a solid business structure is very important for your business as the right choice of individuals will enable your business to grow and achieve its full potential. Therefore, those that you will need to hire include; machine operator, machine maintenance engineer, office manager, accountant, customer service officer, marketing executive, security guard, cleaner and driver.

From the above breakdown, you will require at least 10 individuals to help run your business and achieve its full potential.

The Service Delivery Process of a Construction Nail Manufacturing Business

Most nails in the market are usually made from steel. Other materials that can be used include copper, aluminum, bronze, brass, nickel, stainless steel, zinc, silver, monel and iron. A nail is made from coils of metal wire which are fed into a machine that is specialized for nail making. Most machines produce about 700 nails every minute and the nails can either be formed or twisted, before being cleaned and packaged.

The raw materials used must meet certain standards in terms of chemical composition, hardness, yield strength, corrosion resistance as well as have other properties. These standards are usually certified by the wire supplier but can also be checked independently by the nail manufacturer.

When also undergoing manufacture, it is essential for the nails to also meet certain specifications especially regarding its properties as well as dimensions. Nail manufacturers in order to ensure this, usually use statistical process control that checks the dimensions and properties of the nails that are being produced in order to evaluate any changes that might occur.

Starting a Construction Nail Manufacturing Business – The Marketing Plan

  • Marketing ideas and strategies

Marketing is a very serious aspect of a business because this is how revenue is generated by a business. As an entrepreneur, while it is very important for you to source for finance with which to start your business and grow it to a certain extent, it is equally important for you to engage in activities that will generate revenue that will not only grow the business but also sustain it. With marketing, you are expected to anticipate the wants of your customers and look towards meeting them by giving them the products or services that they want.

However, before you can correctly identify what it is your target market wants, you will need to conduct market research. The market research you are looking to conduct should not only enable you have in-depth knowledge of the business you are going into but also of your intended target market and what they are likely to expect from you. Also, you can easily know who your competitors are and what their major strengths and weaknesses are, and how you can easily manipulate that to your advantage.

Once you understand the market you are going into, it is easier for you to draw up your marketing goals and craft your marketing strategies.

Most entrepreneurs either hire marketing executives or engage the short term service of a marketing consultant who has the experience needed to help the business achieve its goals and objectives. It is important that you set aside a budget for your marketing activities and this budget can be reviewed depending on how much of your marketing goals are being achieved. Also, it is essential that different means of marketing are being explored as the internet has allowed for entrepreneurs to attract the attention they need for their business.

Below are some of the marketing ideas and strategies that you can use for your construction nail business;

  • Formally approach huge construction companies in order to inform them about your construction nail company and what incentives you are willing to offer them. Ensure that you include your contact information as well
  • Empower your marketing executives to physically market your construction nail company
  • Place advertisements in local and national newspapers and construction magazines as well as on radio and television stations
  • Ensure that your nail construction business is listed in yellow pages and also appears in online directories as well
  • Ensure that you promptly bid on nail contracts from manufacturing companies
  • Use the internet especially your social media platforms such as Facebook, Twitter, Linkedin and Instagram in order to market your construction nail manufacturing business

Strategies to Boost Your Nail Manufacturing Business Brand Awareness and Create Your Corporate Identity

Having the right strategies in place that will boost awareness for your brand and also create a positive corporate identity for your business is very vital. This is because the more you publicize your business, the more people are aware of it and the more you generate revenue for your business. Publicity can therefore be viewed as another form of marketing for a business, which is why it is being taken seriously by businesses that are already in existence especially those that are successful.

To be engaged in activities that will boost your brand and also create a corporate identity for your business requires that you study the market to know what will rightly suit your company and also how much you may need to set aside for your publicity strategies.

The right publicity strategies will not only allow you to penetrate the market and get a fair share for yourself, it will also enable you to compete fairly against your competitors in the same industry. There are many ways by which you can publicize your business to your intended target market as the internet has made it very easy for entrepreneurs to effectively reach a large number of their target audience and still spend less.

Below are some of the strategies that you can use to boost awareness for your brand and also create a corporate identity for your company;

  • Install billboards and flexi banners in various strategic locations so as to create awareness for your business
  • Leverage on social media platforms such as Facebook, Twitter and Linkedin to promote your construction nail manufacturing business
  • Engage the services of a professional web designer to help create a website for your business where your intended clients can check out your products and services
  • Employ an SEO consultant to help ensure that your website us highly ranked in various search engines
  • Place adverts for your construction nail business in newspapers, magazines as well as on radio and television stations
  • Ensure that your official vehicles and your packaging are well branded with a well designed logo and contact information