Are you about starting a welding and fabrication business? If YES, here is a complete sample welding and fabrication business plan template & feasibility report you can use for FREE.
When we look around where we work or reside, we will sure note items that you that was produced by a wielder or has been through a welding process. This is why the services of skilled wielder will always be needed and the craft will keep getting attractive.
It is believed that the wielding industry is one industry that shows a substantial return in your investment at every turn and moment. When starting a wielding business, you go need to go for welding training. You also need to be certified, and to get certified, you need to undergo certain trainings in welding.
A Sample Welding and Fabrication Business Plan Template
1. Industry Overview
This ever blooming industry seems to be growing the fastest with recent years showing maximum growth. The welding industry has been approximately stated to grow at the very least 6% per year. Conventional electric arc welding equipment and filler metals represent over two-thirds of this total.
This industry has many segments and each segment of the industry and each welding process have its own growth patterns noted after accurate research. It’s important to note that Welding is now the universally accepted method of permanently joining all metals.
The welding industry is considered a mature industry but it is still a growing industry from different perspectives. The true impact of welding on the metalworking industry should be measured in the value of the parts produced by welding, the amount of money saved by the use of welding over other metal fabrication processes, and in the value of products made possible by welding.
Facts on ground has gone a long way to show the growth of the welding equipment and materials industry, which also serves as an indication of the projected growth for the future.
2. Executive Summary
Sonic Welders (SW) is an established wielding and fabrication business that is engaged in the production of aluminium boat docks that will suit and satisfy the diverse designs and concepts of the customer. We at SW are very much dedicated to providing the highest quality workmanship, reaching the agreed delivery dates, and actualizing the custom work exactly in accordance with the customer’s concept a d astonishing designs.
Our focus at SW is to find out who our future target clients are and understand our marketing strategy, and to expand our operations and marketing so it can substantially increase profitability while also serving the united states of America. Sonic Welder will be established in Thunder Bay, Wisconsin.
Marquette is the county seat of Marquette County and it’s in the upper peninsula of Lake Superior. SW is a business built or established as a sole proprietorship and is owned by Nathan Cardozo who has over 27 years of experience in the wielding and fabrication industry and has built a reputation of excellence and quality work that is very important in the industry.
We at SW plan to manufacture and sell aluminium boat docks and also perform other welding and fabrication services for truck bodies and commercial equipment. We at SW plan to gain our market share in the following target markets: Marinas in Marquette, Lake Superior Upper Peninsula (boat owners), Commercial Customers, Agricultural Entities, and Local Municipalities.
3. Our Products and Services
We at SW primarily wield, fabricate and sell aluminium boat dock in the Marquette area of upstate Wisconsin. We also plan to fabricate and repair truck bodies, and perform aluminium repair jobs. All unused scrap metals will also be recycled by Sonic Welders.
The first revenue stream is extremely important to us at SW as our bottom line is to make sure that the welding services we render are in continued demand despite deleterious changes in the general economy. We also believe that this revenue stream has very high margins and will make sure that the profitability of our enterprise on a monthly basis.
We at SW also plan to raise revenues through the distribution of welding supplies, gasses, and related items that will be bought primarily by local contractors (and also individuals that do their own welding). We at SW expect gross margins of 50% on all welding products sold in our company.
4. Our Mission and Vision Statement
- Our vision at SW is to become the recognized local leader in our targeted market for all wielding and fabrication activities.
- Our mission at SW is to build the best quality product, supply over the top service at installation, and provide exceptional customer service after the sale of the product.
Our Business Structure
It is very important to note that the backbone and founder of SW is Nathan Cardozo. Nathan Cardozo got a dual degree from UC Berkeley, one in business, the second in mechanical engineering. We believe that Nathan Cardozo chose these fields because of his interest in parts construction and general engineering theories and application.
Nathan also believed that it would be very crucial for him to have a business background for possible future application. Sonic Welders will be run solely for now by Nathan Cardozo. He will be in charge of product procurement, order taking, customer service, and assorted other activities.
But as he moves to grow the business, by travelling to the trade shows, doing all necessary things as well as ramping up sales to accommodate the distributor sales, Nathan Cardozo will employ workers that will cover a wide range of services for the company. These workers include;
- Chief Executive Officer
- Service and Production Supervisor
- Operations Manager
- Sales and Marketing Executive
- Welding and Fabrication Engineers / Technicians
- Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counselling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- In charge of providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- In charge of signing checks and documents on behalf of the company
- Evaluates the success of the organization
Service and Production Supervisor
- Serve as project manager of the organization; works directly with employees
- Develops strategic plan by studying new automobile technological, and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.
- Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Make certain that the service and production department perform efficiently, coordinate employee efforts, and facilitate communications between management and computer repairs and maintenance engineers and technicians
- Make sure s that the organization works in line with international best practices.
- In charge of overseeing the smooth running of HR and administrative tasks for the organization
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- In charge of training, evaluation and assessment of employees
- In charge of arranging travel, meetings and appointments
- Oversee the smooth running of the daily office and factory activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyse the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- In charge of handling business research, market surveys and feasibility studies for clients
- In charge of supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develop, execute and evaluate new plans for expanding increase sales
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
Accountant / Cashier
- In charge of preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- In charge of financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- In charge of developing and managing financial systems and policies
- In charge of administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the business
- Serves as internal auditor for the business
Welding and Fabrication Engineers and Technicians
- In charge of developing welding and fabrication techniques, procedures, and application of welding equipment to problems involving fabrication of metals, utilizing knowledge of production specifications, properties and characteristics of metals and metal alloys, and engineering principles: Conducts research and development investigations to develop and test new fabrication processes and procedures, improve existing or develop new welding equipment, develop new or modify current welding methods, techniques, and procedures, discover new patterns of welding phenomena, or to correlate and substantiate hypotheses.
- Tasked with preparing technical reports as result of research and development and preventive maintenance investigations.
- Builds welding procedures to guide production and welding personnel relating to specification restrictions, material processes, pre- and post-heating requirements which involve use of complex alloys, unusual fabrication methods, welding of critical joints, and complex post heating requirements.
- In charge of evaluating new developments in welding field for possible application to current welding problems or production processes.
- Responsible for directing and coordinating technical personnel in performing inspections to ensure workers’ compliance with established welding procedures, restrictions, and standards; in testing welds for conformance with national code requirements; or testing welding personnel for certification.
- In charge of contacting personnel of other agencies, engineering personnel or clients to exchange ideas, information, or offer technical advice concerning welding matters.
- May perform experimental welding to evaluate new equipment, techniques, and materials.
Client Service Executive
- Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
- Make sure s that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Serves as a auto parts sell attendant
- Manages administrative duties assigned by the creative director in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to Make sure accurate and helpful information is supplied to clients when they make enquiries
6. SWOT Analysis
We at SW believe will have the plan and capabilities to take over the welding industry. We hope to build and maintain an extensive shop which can handle all welding and fabrication issues. We have adequate plans to make our business the best in the industry, which is why we contacted Mandolin Business Consultants to do our SWOT Analysis for us.
Mandolin Business Consultants are known for the experience and agility they posses in terms of business consulting and analysis.
They were very thorough with their dealings and outlined below is a summary of the SWOT Analysis they conducted for us. The following SWOT analysis captures the key strengths and weaknesses within our company, and describes the opportunities and threats facing us at SW.
- Outstanding reputation.
- Quality – we at SW will guarantee all of our work, using the highest quality materials available and the most experienced fabricator available.
- Customer Care – we at SW will go extra time to make sure the customer is satisfied with the service provided.
- Experience – Over 27 years in the construction business, Nathan Cardozo is a talented, experienced fabricator, with a strong work ethic.
- Our weaknesses at SW come from the lack of funding to grow the business. Grant money will be used to purchase equipment, company expansion, create website, advertise, and hire an employee.
- Growing market with a significant percentage of our target market still not knowing we exist.
- Strategic alliances offering sources for referrals and joint marketing activities to extend our reach.
- Increasing sales opportunities beyond our “lake area” to include the many other lakes in the [STATE] area.
- The only obstacle to our success at SW would be further downswings in the economy of the world
7. MARKET ANALYSIS
- Market Trend
After due research, it is believed that semiautomatic welding will greatly increase, machine and automatic welding will increase modestly, but manual welding is decreasing at least as a percentage of the total. Furthermore, it is now evident that the following must be considered with regard to the future of welding:
- There will be continuing need to reduce manufacturing costs and to improve productivity, since wage rates for the people in manufacturing industries will keep on increasing, the cost of metals for producing weld metals and filler metals will also continue to be more expensive, and energy and fuel costs will increase and shortages may occur.
- Also there will be a continuing trend towards the use of higher-strength materials, particularly in the steels and lighter-weight materials.
- There will be more use of welding by manufacturing industries, probably decreasing the use of castings.
- There will be a trend towards higher levels of reliability and higher-quality requirements.
- The trend towards automatic welding and automation in welding will accelerate.
Productivity in this very industry is considered the amount of welding that can be done by a welder in a day. Productivity can be determined by several factors, the most important of which is the operator factor or duty cycle. Operator factor for a welder is the number of minutes per eight-hour period that is spent actually welding.
The different methods of welding have different average duty cycles. Manual welding has the lowest operator factor with semiautomatic welding approximately double and machine welding the next highest, with automatic welding approaching 100%.
Efforts will be made to utilize those processes that have the highest-duty cycles. The expected trend will be away from manual welding towards semiautomatic welding and to machine or automatic welding when possible.
Another factor affecting productivity of welders relates to the deposition rate of the welding process. The higher current processes have the highest deposition rates, thus the submerged arc welding process and the electro slag welding process will remain important as costs must be reduced.
8. Our Target Market
We at SW hope to focus on our ability to complete any project with the required equipment by having all the necessary tools.
Sonic Welders market segmentation scheme is fairly straightforward, and focuses on the target markets of the lake marinas within the banks of Lake Superior, local municipality contracts, agricultural entities, and commercial and residential customers.
We also understand that our prospective customers will prefer a certain quality of work and timeliness and it is our duty at SW to deliver on their expectations. We at SW know that there will always be a need for fabrication companies.
We understand that the customers within the fabrication industry want exceptional workmanship and affordable rates. We believe that our prospective customers will appreciate the quality service that we are hoping to offer, as well as the knowledgeable and experience of our owner.
We believe that these customers have the option to go elsewhere, but they understand that giving their business to SW will be of more advantage to them because we at SW deliver the dedication that they desire. We know Boat dock fabrication is seasonal but with aggressive marketing efforts could expand company operations and reach many more markets along the lakes. Our target market may include;
- Marinas around the mighty Lake
- Agricultural entities in Marquette
- Local Municipalities
Our competitive advantage
It is a known fact that Welding will continue to be a highly efficient and economical method for maintaining structural integrity when joining metals and non-metals, including plastics and composites. We also believe that the welding industry will continue to maintain a strong reputation for producing reliable and cost-effective welded components in the global market.
We have also noted after extensive research that the industry due to a growing need for welded components and a decline in skilled workforce is focused on continual design advancements in welding machines (particularly welding automation) to further enhance efficiency.
The competition in this industry is becoming heavy and unbelievable, which is why we are making all plans efficiently to make sure we take over the market.
We at SW have a strong competitive edge in the industry due to the many fabrication services we hope to offer. We hope that by building a business based on satisfying clients, SW simultaneously build defences against competition. We at SW plan to continue helping clients understand what we offer them and why they need it.
We at SW also plan to become a leading provider of fabrication services in the local area. We believe that to achieve this, we have to invest in many ways that will pay off in competitive advantages for our customers, by pre-job conferencing upon request and assisting in the technical or conceptual design.
9. SALES AND MARKETING STRATEGY
- Sources of Income
It is very important to note that the US fabricated metal parts manufacturing industry includes about 55,000 companies with about 0 billion in combined annual revenue. Major companies in specialty segments include Ball Corporation, Flowserve, Mueller Industries, Snap-On, and The Timken Company.
We believe that because of the special manufacturing processes involved for individual parts, most companies make a limited range of products.
We also have noted after extensive research that the industry as a whole is fragmented: the largest 50 companies account for about 20 percent of revenue. But concentration can be high in industry segments such as boiler, cutlery, metal can, and spring manufacturing.
We at SW plan to get revenues by wielding, fabricating and selling aluminium boat dock in the Marquette area of upstate Wisconsin. We also plan to get funds by fabricating and repairing truck bodies, and performing aluminium repair jobs.
All unused scrap metals will also be recycled by us. The first revenue stream is extremely important to us at SW as our bottom line is to make sure that the welding services we render are in continued demand despite deleterious changes in the general economy.
We also believe that this revenue stream has very high margins and will make sure that the profitability of our enterprise on a monthly basis.
We at SW also plan to raise revenues through the distribution of welding supplies, gasses, and related items that will be bought primarily by local contractors (and also individuals that do their own welding). We at SW expect gross margins of 50% on all welding products sold in our company.
10. Sales Forecast
Our primary ethics at SW is to maintain an excellent customer relation skills and work ethic; these skills we believe will be useful in making customers comfortable in believing us to provide their construction services. We believe that maintaining our customer’s satisfaction is an implicit part of building a relationship that will encourage repeat business.
Our sales projections at SW are based on our promising foundation, our planned increase investment in advertising for our business and future expansion will make us even more appealing to prospective customers. Our Sales forecast for the coming three years in as follows;
- First Year-: $650,000
- Second Year-: $1,100,000
- Third Year-: $2,452,000
- Marketing Strategy and Sales strategy
We at SW totally understand that satisfied customers will aid our business by referring our company to other clients who need our services. We at SW plan to serve the metal fabrication market segment. Our specific choice of target markets at SW is based on an in-depth understanding of our prospective customer’s needs.
We believe that our skills and capabilities will allow us to very well compete and develop our reputation within our business area. This is the reason why we believe that obtaining grant funding and developing a marketing strategy will improve our profitability levels and help us in building a strong customer base.
We at SW plan to use a direct sales force and relationship selling to reach its target markets. These channels are most appropriate because of time to market, reduced capital requirements, and fast access to established distribution channels.
We also plan to advertise in Yellow Pages and local newspapers, and create a website with information, construction background, and contact information will be available online. References to the website will be mentioned in all other forms of advertising once the website is in effect.
SW is a member of the Marquette Lake Association and will obtain a mailing list for potential customers. But we believe that our marketing budget will allow our employed marketing firm the leverage to push us to the top.
11. Publicity and Advertising Strategy
We at SW plan to use email marketing campaigns as an outreach to our prospective customers. We all know that technology that incorporates video with email and offers very powerful, robust and dynamic features. Another advantage is in communicating through the use of streaming video embedded within the email.
We at SW believe that the use of this technology will give us a strong competitive edge and outreach to the community. We at SW are also planning to incorporate an email drip campaign with video into our marketing efforts.
We believe that this technology will more effectively market to our customer and potential customer base. We understand that it is cost effective (averaging about $99 per month), especially when compared to the $1,000’s spent on print advertising, mailing and postage.
We believe that the built-in analytics provide immediate feedback as to the campaigns effectiveness and who actually viewed the message. We also hope that the Auto responders with a specific message can be utilized as an immediate follow-up tool.
It is important to note that we at SW hope that this new email marketing campaign technology will serve to position us to achieve and sustain name recognition in front of our current market within the local community.
We believe that this type of marketing is cost effective and efficient. The first thing most of us do every day is check our email in-box. It is also worthwhile to state that we at SW are currently unaware of any of our competitors incorporating the use of this technology within their operation.
12. Our Pricing Strategy
We at SW know that we are in a purely competitive industry where each business must be a price taker. Meaning that a business that has no ability to affect the market price of its services, regardless of how much work it does is destined for a meltdown.
Therefore, putting it, that marginal revenue (the revenue incurred by producing or servicing one more unit) is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, we at SW plan to at total capacity without affecting the price in the market.
This means that we at SW must strive or look to charge our clients at the market price (or lower). We believe that the price we charge will depend on the workload and duration of the said work, and we understand that as long as marginal costs do not surpass revenues, the method to increase short-run profits is to service automobiles at maximum capacity.
- Payment Options
We at SW after extensive research understand that payment options are the forces that bring any business closer to the heart of the people, and we hope to make use of that extensively. We will be bringing payment options that are unique and will make the payment for the service we offer very easy for our customers.
- Payment by via bank transfer
- Payment via POS machine
- Payment via online bank transfer
- Payment via mobile money
- Payment with cash
To provide all these outstanding services, we have partnered with a renowned bank in the country and we hope to make use of that relationship. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.
13. Startup Expenditure (Budget)
It is very important to note that no matter how breath taking your ideas and goals might be or how attractive your business plan might be, without proper and enough financing your ideas are just like water poured on a rock.
It is a known fact that in every business enterprise fund is a big ingredient that can move a business to the limelight and without a detailed business plan; a business won’t be able to land substantial funds from prospective investors. We have analysed the market and have decided on how we plan to spend our start up fund.
These are the key areas where we will spend our start – up capital on;
- Business incorporation fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring a work facility that can accommodate a good number of cars per time for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
- The amount required to purchase the needed tool box and repair equipment – $25,000
- Equipping the office (computers, printers, projectors, markers, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
- Amount required to purchase the needed software applications to run our business – $3,500
- Launching an official Website will cost – $500
- Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
From our detailed cost analysis above, we will be needing approximately two hundred and fifty dollars ($250,000) to start SW. Everything has been put in place and every fact made sure of, that is to enable us achieve our goal and objectives.
Generating Funding / Start up Capital for Sonic Welders
Sonic Welders (SW) is an established wielding and fabrication business owned by Nathan Cardozo that is engaged in the production of aluminium boat docks that will suit and satisfy the diverse designs and concepts of the customer. The business will be funded by him until we decide to accept investors or partners. Ways we hope to raise our start up capital may include;
- Generate part of the start – up capital from personal savings
- Generate part of the start – up capital from friends and other extended family members
- Generate part of the capital from the bank (loan facility).
Note: Nathan Cardozo has been able to raise $100,000 ($70,000 from personal savings and $30,000 as soft loans from family and friends) and we are at the final stages of obtaining a loan facility of $100,000. We have verified all the necessary procedures to actualize or get our start up cost.
14. Sustainability and Expansion Strategy
We at SW understand that our business being medium in nature requires a simple organizational structure. We believe that the implementation of this organizational form calls for Nathan Cardozo to make all of the major management decisions in addition to monitoring all other business activities.
Nathan Cardozo started working in the metal fabrication industry after working in the salt mines for several years and now brings over 27 years of experience to the success of the Company. Our management philosophy at SW is based on responsibility and mutual respect.
We believe that SW will maintain an environment and structure that will bring about productivity and respect for customers and fellow employees. At Sonic Welders, everybody is considered as an individual and we strive to the very last point to respect their dignity and recognize their merit.
We believe that our employees will be encouraged to have a sense of security and pride in their jobs. We will also afford equal opportunity for employment, development, and advancement for those qualified. Our employees at SW will be committed to:
- Afford a safe work environment to protect employees, the employees of customers and subcontractors, and the public.
- We will also supply safe products for customers.
- We will also without setbacks keep on improving the company’s safety program to reduce the risk of accidents and occupational illness in a changing work environment.
- We will advice our employees to participate in accident prevention programs and take personal responsibility for their own and their co-workers’ health and safety.
- Regulatory compliance and contribution to high safety standards for our industry.
- Monitoring workplaces, enforcing safe work practices, and communicating the company’s safety performance to employees and other stakeholders.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts various banks in the United States: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of All form of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the start – up capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress