sheet metal fabrication business plan

Business Tips

Starting a metal fabrication business: what you need to know, november 07, 2023.

 Starting a metal fabrication business is no small feat, but with the right prep work and planning, your custom metal shop can thrive! If you are considering setting up a metal fabrication business, you need to have a solid business plan in place first and foremost. So, check out the following insightful overview to help you get started.

Determine the types of services you will offer

First things first, you need to determine the type of metal fabrication services you will offer. Standard services include cutting, welding, shaping, grinding, and repairs. Depending on your level of expertise, you could also provide speciality processes, such as casting, powder coating, and powder metallurgy . You can make sure your metal fabrication business stands out from the competition by offering more specialised services.

Determine the equipment you will need

The type of fabrication services you decide to offer will determine the equipment you need to obtain. You may need to purchase tools like lathes, press brakes, lasers, shears, welding machines, and machining centres. Thankfully, such equipment does not have to be bought new. You will find a wide variety of high-quality used machinery for sale , which can help you reduce your initial financial outlay for tools and equipment.

Determine how many employees you will need

Once you know what types of services you will provide and what machinery you will use, you can work out how many employees you will need . You will also want to think about bringing in specialists who can perform specific jobs well. For example, you may want welders or smiths who are highly qualified and experienced. By pooling a team of experienced experts, you can ensure that your operations run smoothly from day one.

Determine how many customers your business can handle

To help you know how many employees to hire initially, you need to know how much work your metal fabrication business can handle, on a weekly or monthly basis. So, determine how many customer jobs you could realistically take on. Other factors, like the equipment capacity and the size of your space, will also contribute to working out how many customers you can handle.

Many large and established metal fabricators handle over 120,000 sheets of steel in a month. You will probably not be able to handle that much when your business is just starting, but as your company grows, you will be able to take more jobs over time. As a new business, it is worth opting to cater for either commercial or household clients to start with, but you also have the option of catering to both.

Evaluate the competition

To determine things like the type of services you will offer and what type of clients you will work for, it is essential you evaluate the competition in your area . By understanding the competition, such as the type of services they provide and their strengths and weaknesses, you can decide how to position your metal fabrication business against established companies.

Perform market analysis

You also need to look at the metal fabrication market as a whole to help you define your target market and your plans for catering towards that specific audience. By gaining relevant market analysis data (by using these market research methods ) and processing it via charts or graphs, you can come up with a solid plan for progression.

Get the appropriate insurance

When you start your own metal fabrication business, a major requirement is obtaining the appropriate insurance. Your employees will be regularly working with dangerous tools and equipment, so there is always the chance of accidents and injuries occurring at your workplace. Compare and contrast different insurance providers and get quotes from them so that you can decide on the best insurance option for your fabrication business.

Come up with sales and marketing strategies

You need to outline pricing and sales information before you can begin operating your metal fabrication business. In turn, that allows you to come up with appropriate sales and marketing strategies . You can have the best machine shop and the most experienced and qualified employees in the world. But unless you have a solid marketing strategy for gaining customers , your business will fail before it has even gotten off the ground. So, rationalise why your target audience will purchase your services and how you intend to reach them via marketing and advertising efforts.

Raise capital and write a financial plan

Before you can begin any business, you need funds behind you . Most new businesses either save up capital to invest in the firm or take out small business loans. But you also have the option of gaining individual investors . The amount of money you will need for your new fabrication business will largely depend on the type of service your business will offer. Once you have worked out details like the type of machinery you need, how many employees you require, and your marketing costs, you will have a much more accurate idea of how much initial money is required to set up and run your business . And it is essential you write a financial plan. That should include:

•   The amount needed to start or maintain your business.
•   The amount needed over the next two, three, and five years.
•   Plans of how you will use your funds .
•   Anticipations of additional funds required.
•   Ongoing expenses, such as salaries, insurance, and marketing costs.

Bringing your vision and expertise in metalwork to the marketplace is an exciting endeavor. With strategic preparation and a passion for the trade, your custom fabricated products can find buyers and make your metal shop thrive.

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How to Successfully Kickstart Your Sheet Metal Fabrication Business

• April 7, 2021
• 26.6K views
• 5 minute read

Metal fabrication businesses are generally not the first business idea that most manufacturing entrepreneurs want to pursue.

Still, for people who’ve spent their entire professional life around manufacturing facilities and are highly skilled manufacturers, fabricators, and welders, opening a sheet metal fabrication business could prove to be a brilliant decision.

After all, the sheet metal fabrication services market was estimated at $3.8 billion in 2020 and is projected to reach $4.3 billion by 2027 , with a steady growth rate of 2% over that period of time. 

So, do you feel like it’s time for a career change? If you’ve spent your entire career in the metal fabrication industry, starting a sheet metal fabrication business might be just what you need.

Like in any business and industry, success is never guaranteed, but we can increase the odds in your favor. Beneath, we’ll talk you through everything you need to know before kickstarting your sheet metal fabrication business built for success. 

Available Prospects For New Sheet Metal Companies

As the average person comes into direct contact with uncounted sheet metal products every day, ranging from manufactured aircraft to building facades and ductwork, sheet metal fabrication is an essential component of the manufacturing and construction trades.

This diversity and ubiquity of sheet metal applications are hugely advantageous to people in business committed to opening their own sheet metal fabrication facility.

However, since not a single sheet metal business can source the marketplace’s breadth, specialization is key.

Because of that, we strongly suggest you pick a field of specialization early and create your business plan following the demands of your selected industry niche. If you choose to be in the field of industrial ovens, we have PQovens which will surely be loved by our clients. 

Needed Equipment And Machinery For Sheet Metal Startup Companies

The best sheet metal manufacturers heavily depend on a couple of essential quality sheet metal equipment and machinery to perform their jobs effectively.

So, if you’re thinking about what pieces of equipment you will need to begin your new business adventure, you will need to be equipped with a highly sophisticated inventory of fine quality that includes:

• press brake;
• other assorted tools.

Financing the acquisition of startup equipment and machinery is a challenge for many business owners.

Keep in mind that the undercapitalization of a sheet metal startup is a recipe for disaster, so delay the launch of your new company until you can secure startup funding through personal savings, financing, investors, or other sources.

Safety Guidelines And Regulations For Sheet Metal Workplaces

As you already probably know, sheet metal fabrication facilities are full of safety hazards.

Because of that, as a responsible business owner, make sure that you make workplace safety your top priority. At a bare minimum, your manufacturing site and processes must meet OSHA safety standards and regulations .

To take your fabrication plant’s safety to the next level, you can participate in trade organizations like the Sheet Metal And Air Conditioning Contractors’ National Association or SMACNA .

This organization, among other things, provides a wide variety of resources to help its members minimize injuries on the job and develop a safe working environment.

Create A Winning Sheet Metal Fabrication Company Business Plan

You probably know how important a good and thorough business plan to your sheet metal fabrication business startup is. If you take your business plan seriously, the final product will be a file that will guide your business through the critical first year of operation and beyond.

Moreover, a winning company business plan will help you evade any crucial startup mistakes. Lacking a future-proof business plan, many new businesses find themselves incapable of performing consistent decision-making processes. 

In contrast, committed business planners rely on their business plans to guide their decision-making and long-term planning efforts.

Take A Look At What Your Competition Is Doing

Before you launch your sheet metal operation within your area, it’s always wise to see how your company will fit in the competitive landscape. Take a look at your local competitors.

 Even better, please look at what the best sheet metal fabrication companies in the world offer since many clients nowadays outsource their sheet metal products to cut costs and receive better final products. You can even foray into a similar venture, like castings machining , once you establish your business.

Ensure you know what you’ll offer to prospective clients to provide a significant advantage over your competition’s offering and know your competitive edge in the fierce industry.

Learn Everything There Is About The Industry

If you’re seriously considering entering the sheet metal fabrication scene, be sure to talk to somebody who’s already in the industry. And if you think that owners of nearby sheet metal industrial businesses will give you some free advice, think again.

What’s in it for them? Nothing, you’re just another competitor on the market.

Thankfully, somebody who runs a sheet metal fabrication business in another city or country will be much more likely to talk with you, given that you won’t compete with them in their area.

In fact, many seasoned business owners enjoy providing advice to startup entrepreneurs . If you are persistent enough, rest assured that you’ll find a business mentor who will be willing to help you out and tell you a thing or two about the industry you’re about to get into.

Acquisition vs. Startup

Sad to say, many new sheet metal fabrication business entrepreneurs approach ownership with the deluded idea that a startup is their only alternative when they could also pursue a business acquisition model .

Both ownership strategies have their advantages and drawbacks. It makes more sense for first-time manufacturing business owners to buy an existing sheet metal fabrication business than to attempt to build one from scratch.

Established sheet metal fabrication companies are already equipped with resources and processes new business owners commonly struggle to acquire.

If you decide to pursue an already established business, chances are, you’ll be able to locate a turnkey operation with proven profitability records and a well-oiled business model.

Final Words

The tips mentioned above can help you kickstart your fabrication business in a short amount of time and with little hassle.

Make sure to review the available prospects for new sheet metal fabrication shops, get the latest equipment, follow the strict safety guidelines and regulations, develop a sound business plan, and consider whether it’s better to build a business from the ground up or to acquire an already existing company in your area.

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Welding and Fabrication Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Construction & Engineering Industry » Welding and Fabrication

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

• 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
• 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 Manage r

• 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.
• 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.

Opportunities

• 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.

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.

Checklist/Milestone

• 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

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Apply These 5 Secret Techniques To Improve Start Your Fabrication Shop

For many professional welders and fabricators, the idea of a fabrication shop start up is becoming a popular option. Self-employment provides more freedom in terms of work hours, the kind of projects to take on, and proper work distribution over a time period to meet the deadline. However, while most fabricators have technical expertise, many still lack knowledge on the business front. Like any other enterprise, starting a fabrication shop requires time, research, resources, and a good location. This blog provides information on the same.

Preliminary Steps to Start a Metal Fabrication Business

The preliminary steps involved in starting a metal fabrication shop business are similar to other business startups. You can proceed using the following steps:

• Create a Business Plan: It is impossible for your metal fabrication unit to succeed without a business plan. Accuracy and eye for detailing are the two main requisites for an effective business plan.
• Evaluate the Competition: Prior to launching a sheet fabrication business, you need to evaluate the competition in your area. You can search online directories to get information about metal fabricators in your area. This will help you understand the competition, the strengths and weaknesses of your competitors, and allow you to decide how you can position the new business against established firms.
• Learn from others in the Business: It is beneficial to learn the trade from people in your business. You can talk to some fabricators who serve outside your community or locality. You can approach them as a customer to understand their approach towards your requirement.
• Decide on Customers: As you know, metal fabrication is a broad segment in itself. The scope of your setup depends on the size of your space and equipment capacity. Many established and large metal fabricators can handle more than 120,000 steel sheets in a month or so. However, that may not be easy for you in the initial years. So, you need to decide whether you want to cater to commercial or household clients, or wish to serve both together.

Setting up your Metal Fabrication Shop

To ensure that fabricators have the knowledge to start out on their own, here are the steps to set up a metal fabrication shop. However, we are not focusing on financial investment in this post.

• Decide on your Fabrication Services: There are a variety of services that come under fabrication. These include welding, cutting, grinding, shaping, repair, or renovation. The kind of tools you require will depend on the type of work you will take on. So look at your strengths, and get the equipment for those fabrication services.
• Find a Suitable Location: It goes without saying that you need a place to work. After assessing your services, look for a location that will be large enough to fit your tools, and give you space to move around. Ensure that there is enough ventilation. If you are doing a lot of welding and grinding work, you will need to ensure that the fumes will be expelled from the shop.
• Welding machine
• Measuring device
• Heavy welding gloves
• Light working gloves
• Table with a metal surface
• Soap stone for marking metal
• Welding helmet with dark shade
• Grinder for cleaning up the metal
• Ball peen hammer, or any metal working hammer
• A level to ensure that your metal is straight and flat
• Soft sandpaper pads, and cutoff wheels for the grinder
• Take the Appropriate Insurance: This is one of the major requirements, if you are starting your own metal fabrication shop business. As you or your workmen will deal with dangerous equipment, tools, and materials on the regular basis, there are chances of injuries and accidents occurring at the workplace. The medical expenses can be expensive in such situations. You can avoid big medical expenses by taking the right insurance. You can check with all major insurance service providers in your area or receive quotes online.
• Get the Accreditations: There are certain legal papers that need to be acquired before you start taking on projects. These include a business license, Employer Identification Number (EIN), and a Unified Business Identifier (UBI) Number. Depending on the state you live in, you may also require special permits to do your work. Visit the local government offices to find out more on the documents needed to start your shop.
• Decide on Number of Employees: Not everyone can be jack of all trades. You will need to bring in specialists who know how to perform certain jobs well. One of the most important people to bring in are welders. They require special certifications to do their jobs. People who have experiencing in smithing are also ideal for fabrication projects. If you decide to bring a laser cutting machine, then you will need an operator for the same.

A Few Final Tips

Ensure that your shop has all the safety equipment and first aid medical supplies in case of an accident. Train all your employees in terms of work and first aid. Buy quality equipment as that will only ensure quality results.

Marketing your business is important as well. You can figure out whether you want to promote your business through local classifieds or social media for a better outreach.

By taking all these steps, you will soon have a successful metal fabrication shop business. Start off with small projects and work your way up. The better the results, the more your business will grow.

These various tips can help you set up your metal fabrication shop in a short amount of time, and with little hassle. Interested in buying fabrication tools? Woodward Fab can provide you the products and tools you need to turn your shop into a major success. We provide simple, powerful, and easy-to-use equipment. Download our free catalogue now. Woodward Fab products are also featured on well-known automotive and fabrication shows. These include Two Guys Garage, Truck’s TV Segment, Stacey David – Tool Tech. Need more information? Give a call to Darren O’Brien, Manager at Woodward Fab.

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Techniques and Tips to Start Your Own Metal Fabrication Shop

Do you have the will to start your own metal fabrication shop? You may know a ton about sheet metal and fabrication, but there’s a lot that you need to learn about running a business.

About 20% of all new businesses don’t make it to the end of their first year. Close to 30% fail in their second year, and half don’t make it through their fifth year.

There’s a lot that you can’t control in your business. You can’t control the economy and your customers. What you can control and the decisions you make will determine the fate of your business.

Read on to learn exactly what you need to do to start a successful metal fabrication business.

1. Write a Plan for Your Business

Every business idea needs to be thoroughly vetted. This is often a major mistake that new business owners make. They have an idea, think that it’s great, and rush to open the doors of the business.

Six months later, the excitement wears off, and the business owner is struggling to keep things afloat.

A business plan is a way to test and validate your business idea. It forces you to ask the tough questions of your business and evaluate the risks of starting your business.

Another reason why you need a business plan is to finance your business. It’s not cheap to invest in the fabrication equipment, and you’re going to need a business loan or investment to get off the ground.

A business plan will detail your competition and your target market. You’ll also have financial projections that show your projected income and expenses.

2. Learn Business Finance

You work with a lot of numbers in metal fabrication. You know that a small fraction can make or break a project.

The business world is a bit similar. You have to understand numbers to be sure that your business is profitable. Any mistakes could be very costly to the long-term health of the business.

If you don’t know much about business finance, take a class to learn the basics. They’re often free online or you can visit your local Small Business Administration office.

You’ll get the confidence you need to project your revenue and get a handle on your outgoing expenses. It will also help you manage your business cash flow, which is a critical part of managing a business.

3. Choose a Good Location

The location of your business is also going to impact the success of your business. You want to have a location that is within your budget and has the room that you need for your equipment.

If you plan to have employees, you should choose a location that’s centrally located and has parking available.

Other considerations will depend on the type of fabrication you do. Welding and grinding require a lot of ventilation. Otherwise, you’re going to inhale fumes.

You should consider working with a commercial real estate agent who can help you find the perfect location for your metal fabrication shop.

4. Find Reasonable Financing

You’re going to need to finance your shop, and putting everything on a credit card isn’t a good idea. You’re going to want to find the right financing for your business.

Before you start shopping for a loan, you want to do your best to show potential lenders that you will pay your loan back. The two factors that lenders will look at are your personal credit score and your business plan.

Pull your credit score and make sure it’s at least above 700. If it’s not, take the time to raise your score. You could wind up with a high-interest loan that does more harm to your business than good.

There are several ways you can finance your business. You can start with your bank. They may offer SBA loans or other business loans at low interest rates.

There are also resources online, such as peer-to-peer lending sites. These are sites that match individual investors who lend money to small businesses with business owners looking for investment.

5. Invest in Equipment

Once you get your business loan, you can start to buy equipment for your business. You should have detailed the equipment you need in your business plan.

A basic shop needs to have a hammer, measuring device, welding machine, safety equipment, and a level.

6. Create a Marketing and Sales Plan

You’re going to need to work hard to get business in the door at first. A good marketing plan needs to detail how you will raise awareness of your metal fabrication shop and generate leads.

A good website will be necessary because most people will look for services online.

Before you start building your site, take a look at other metal fabrication sites to see what they do well and what you’d like to incorporate on your website. Visit this page for a good example of a metal fabrication website.

When the website is built, you’re going to need to learn how to drive traffic to your website. You’ll need to learn search engine optimization (SEO) and pay-per-click marketing.

Your marketing plan can also include offline marketing, such as networking and community engagement.

Marketing should drive leads to your business. Sales will close the leads. You can use a CRM system to manage and follow up with your marketing leads.

Starting a Metal Fabrication Shop the Right Way

Starting a business is risky, there’s no doubt about it. The more you can prepare and plan before you open your metal fabrication shop, the better off you’ll be.

Take the time to develop a strong business plan that shows you’re targeting the right market that’s profitable. You can leverage your business plan to find financing at a reasonable rate.

Are you ready for more startup tips? Head over to the home page of this site for more helpful information.

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Manufacturing and Industrial

How To Grow Your Steel And Metals Manufacturing Business

Shalane Layugan January 5, 2022

Steel continues to be one of the most sourced products on the Thomasnet.com platform. It is no surprise that steel and metals represent an important supply source to today's aerospace, aviation, and medical industries.

So how can steel and metal manufacturing businesses continue the momentum of their business growth? First, make sure you have a clear business plan . Some manufacturers try to grow their manufacturing business by doing everything possible. In this post, we'll help you choose business goals that are realistic and how you can document them so you can see your milestones and track your growth along the way. Doing so will ensure you're not as overwhelmed and your employees stay motivated too.

Create A Business Plan

If you're just starting out , a good   business plan   will save you time later and potentially attract angel investors if you plan to seek out that kind of   funding . There are several factors to consider, including your legal requirements, where you’ll be selling, your day-to-day roles, and when you’ll start making money. There are also production and personnel data you should detail in your business plan and answer questions like:

• How are your steel products or service produced?
• What does it cost to produce your steel products or service?
• Is there an adequate pool of talent for future hires?
• Do you have an organizational chart?
• Do you have a management strategy?

💡 Get Your Free Business Plan Template : Establish A Roadmap For Future Growth

Understand What Your Employees Need To Thrive

You may have heard before that when you keep your employees happy, they keep your customers happy. It’s true that both your employees and your customers are at the heart of what you do — and key to business success.

Amerequip Corporation, a designer and manufacturer for the utility tractor, skid steer loader, and lawn & garden equipment markets,  implemented several steps  contributing to their $150 million annual revenue. One of the first steps was improving the culture of their internal teams. They needed to improve processes and reduce employee turnover to ensure they were equipped to handle more growth. Ameriquip modified their working hours with morning and afternoon shifts that run 10 hours each, Monday through Thursday, and a weekend shift that comprises three 12-hour days, Friday to Sunday — and they're now able to fill their talent pipeline.

Flexibility is what the modern workforce is looking for today, and it’s a solving factor of one of the challenges many U.S. manufacturers are still experiencing to bridge the generational gap. Addressing internal improvements can ultimately lead to efficiencies, improved quality control on the shop floor, and increase your customer base.

Build On A Customer-Centric Model

As a business owner, we know you’re already focused on servicing your customers — but don’t get so busy tending to their needs that you forget they’re key to attracting new ones. Keep your customers happy by communicating with them regularly — outside of regular customer service needs or problems. Involve them in your new growth plan and ask them for feedback about what you could be doing better. This helps you keep their needs top-of-mind while opening opportunities to address new challenges for other customers. Also, reminding customers of your presence when they least expect it can go a long way in keeping them in your accounts receivable column. You may get a customer referral out of it.

➡️ Thomas Fact: More than 5000 manufacturers have requested a free custom in-market buyer report to see which buyers are sourcing for their services.

Take Advantage Of Modern Technologies

We can't stress it enough — it's an increasingly digital world today and the strength of your online presence is more important now than ever. Many manufacturers may argue that they don't need an online presence because they have sustained growth through word-of-mouth referrals and traditional growth methods. But this creates a false sense of security. 

Add Videos To Your Marketing Arsenal

Video conferencing has taken a big role in meetings and tradeshow dollars are being shifted toward online solutions. More manufacturers are investing in different ways to stay connected with their customers .

Learn More:  10 Ways Manufacturers Can Spend Their Marketing Budget

But investing in digital marketing strategies doesn't always have to cost an arm and a leg. While it is an investment that secures the future of your business, you can start with small efforts that address your prospects' buying habits. According to Content Marketing Institute , more than half the engineers and technical professionals surveyed for the 2020 Smart Marketing for Engineers report indicated that they spend at least one hour per week watching videos for work (those aged 45 and younger reported spending the most time watching videos). 

Steel and metals businesses looking for new customers should understand that the workforce is now largely millennials. And in response, smart manufacturers partner with industrial marketing experts to produce videos that keep millennial prospects and customers engaged. 

Some machining or steel processes can be complicated for buyers. Videos help explain the size, conditions, capabilities, and products and services available from your business. The other most common reasons manufacturers use videos are:

• Videos are easy to share. Videos are visually appealing and make them the ideal format to share on social media and emails.
• Videos are proven to increase sales. Reports show that 77% of consumers reported that they’d been convinced to buy a product or service based on a video.
• Competitors are already using videos. 92% of marketers who use video say it's an important part of their marketing strategy — up from 78% in 2015. 

And according to HubSpot, marketers who incorporate video in their content marketing strategies have seen 49% faster revenue than those that don't. Manufacturers can get a factory tour or company profile video like the one below produced for free with an advertising program — click here to learn more .

Use Industry-Focused Content

Due to the in-person limitations of COVID-19, manufacturers are using the effectiveness of digital marketing to generate new customers.

As expected, companies are 21% less likely to invest in trade shows while the use of webinars & virtual events (20%), search & social media (14%), and websites (12%) all increased in light of COVID-19.

But in today's super-connected digital world, a website is not enough to get more customers. To fuel growth, manufacturers use a compilation of emails, videos, advertising, SEO strategies , and diversified website content. 

Start small with an "Industries Served" page on your website and list all the markets your services supply. As you grow, include high-quality photos and graphics to validate the quality of your work further.

"Diversified content on our site has really helped us stand out as a leader in the industry," said Eoin Lynch, Executive Director of Sales and Marketing at Tex Tech Industries . "Some aerospace technology can be complex, but our graphics, datasheets, and videos from Thomas Marketing Services break it down for buyers to understand what they need and how we help them."

Corrugated Metals set a record for quotes and tapped into the aerospace industry after investing in online advertising from Thomasnet.com — they were contacted by the U.S. Air Force to create a custom part for them.

"Advertising with Thomas lets us develop accounts that build our backlog and keep us more stable as the economy grows," said Ken Carlton, VP of Corrugated Metals. "One Thomas lead that came to our company spawned an entirely new company for our business." 

Steel and metal manufacturing companies looking to grow need to take advantage of the digital revolution not only from a marketing perspective, but to improve operation models and the supply chain.  Digitization in the steel and metals industry  will give supply chain access to real-time information and appropriately respond to unpredictable changes in the market while decreasing risk and providing growth opportunities.

Success Story: Growth For Continental Steel & Tube Company

The manufacturing industry has always aspired toward supply chain consolidation. Sourcing your products from fewer suppliers can significantly benefit your company's bottom line and reduce frustrations.

This kind of consolidation helped Continental Steel's  Don Ascione  grow his business in a way he didn't plan for — but recognized and capitalized on as a metal specialist with a world-class network.  Continental Steel has established itself over the years as a company whose specialty is sourcing hard-to-find metals. Ascione, the company's founder, utilized his operations management background and connections from around the United States and Mexico to amass a tremendous network of metal suppliers.

By supplying numerous fabrication contacts with necessary materials, Ascione also created a tight-knit network of fabricators. This network allows Continental Steel to act as a manufacturer's representative for the fabrication companies and sell projects to customers looking for pressure vessels or staircases (as an example).

Continental Steel has an advantage to really help the customer because he can choose the best fabricator for the job and provide the best pricing on the raw material for the project. The customer gets the best of both worlds, and the network gets more business as well. 

When Ascione realized the opportunity to generate revenue from connecting customers with the very fabricators he was supplying, he leaped at the chance. It couldn’t have happened without Continental Steel’s expertise, knowledge, reliability, and firm establishment as a leading source for procuring elusive metals.

Knowing that opportunities like these are few and far between, Ascione seized the opportunity to nurture this new stream of revenue. Pairing a network of metal specialists with fabricators is tremendously helpful for clients. Rather than looking to Continental Steel for metal procurement exclusively, groups can now find the fabrication services they need for their project, which they previously would have needed to quote from elsewhere.

Continental Steel is now positioned to meet all of its clients’ needs, from finding whatever metal materials are required for the project, to developing the top-quality final product. Clients know that the caliber of fabrication will be unsurpassed because of the wide reach to find the best for the job. 

His team works to find metals and fabricators for his clients so they don’t have to do it themselves. And now Continental Steel has become a leading source for metals procurement around the globe and a premier source for custom fabrication, as well.

UNLOCK YOUR FREE PROSPECTING REPORT: See the buyers and companies searching for your services with a free Custom In-Market Buyer Report — your next new contract might be on this list

Promote Your Steel Business 

Navigating the digital landscape can be tough, along with changing global policies, and complicated distribution channels — as a manufacturing business owner, you already have so much on your plate to manage. But Thomas has been powering the manufacturing industry for more than 122 years, connecting buyers to suppliers and helping engineers get their jobs done. 

“As a small machine shop, it’s critical that every marketing dollar I spend attracts the right kind of customers — those that I actually want to do business with. My Thomasnet.com program paid for itself within the first 3 months.” — Richard Barnard, President, Eaglestone Technology, Inc.

Our industrial experts have compiled the below resources to help ensure your business grows and continues to prosper no matter what economic or global health situations come your way.

Our related blogs to keep you up to date on the latest industry tips:

• How To Sell B2B Products In A B2C World
• The Importance Of Marketing And Advertising During Economic Downturn
• The Manufacturer's Playbook For Direct-To-Consumer Selling
• What Manufacturers Need To Know About The Defense Production Act
• 6 Common Mistakes That Job Shops Make
• 3 Must-Have Lead Generation Ideas For Steel And Metals Companies

Our online solutions to help you grow:

• Learn about our free video content production services to help manufacturers and industrial companies connect with more customers creatively online when travel is restricted.
• Contact us   to learn how you can get in front of qualified buyers and increase your bottom line. Thomas provides   lead generation services   that fit any size budget. 
• To see where you can improve online and how your brand compares to competitors, request a free Digital Health Check .
• Increase your RFQs with a free Thomasnet.com profile and connect with new customers on the platform where more than a million buyers from various industries and geographies source are sourcing for products and services.
• See the exact companies searching for your steel and metals manufacturing services with a free In-Market Buyer Report .
• For articles just like these, subscribe to our daily email newsletter Thomas Industry Update .

Editor's Note: If you're sourcing suppliers for COVID-19 items, click here for those manufacturers and distributors . If your industrial business can support the production of essential supplies to combat the COVID-19 outbreak, please complete this form to notify us of your availability and willingness to dedicate resources. Thomas is working with State and Federal Government offices to help mobilize manufacturers to deliver supplies and services. 

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The Ultimate Guide to Building a Successful Sheet Metal Fabrication Business

The sheet metal fabrication industry is a booming sector, with a projected growth rate of 3% annually. With the increasing demand for customized sheet metal products in various industries such as automotive, construction, and aerospace, it's no wonder that many entrepreneurs are considering starting their own sheet metal fabrication businesses. In this comprehensive guide, we'll walk you through the essential steps to establish, grow, and maintain a thriving sheet metal fabrication business.

1. Research and Understand the Market

The first step in starting any business is to have a deep understanding of the market you're entering. This means researching the sheet metal fabrication industry, identifying the key players, and determining the potential clients and customers. You'll also need to assess the competition and identify any gaps in the market that your business can fill.

2. Develop a Solid Business Plan

A well-crafted business plan is crucial for the success of your sheet metal fabrication business. Your plan should outline your business's mission, goals, target market, and strategies for growth. It should also include a detailed financial plan, including projected revenue, expenses, and profit margins. A strong business plan will not only help you stay on track as you grow your business, but it will also be invaluable when seeking financing or investors.

3. Acquire Necessary Licenses and Permits

Before you can start your sheet metal fabrication business, you'll need to obtain the necessary licenses and permits. This may include a general business license, zoning permits, and any industry-specific certifications. Be sure to research the requirements for your specific location, as regulations can vary from one jurisdiction to another.

4. Invest in Quality Equipment and Tools

The success of your sheet metal fabrication business largely depends on the quality of the products you produce. To ensure you can deliver top-notch products to your clients, you'll need to invest in high-quality equipment and tools. This may include sheet metal shears, press brakes, welding machines, and more. While this initial investment may be significant, it will pay off in the long run as you build a reputation for quality workmanship.

5. Build a Skilled and Reliable Workforce

Your employees are the backbone of your sheet metal fabrication business, so it's essential to hire skilled and reliable workers. Look for candidates with experience in the industry and a strong work ethic. Providing ongoing training and development opportunities can also help you retain top talent and ensure your team stays up-to-date on the latest industry trends and techniques.

6. Establish a Strong Online Presence

In today's digital age, having a strong online presence is crucial for any business. This includes a professional website, active social media profiles, and a presence on industry-specific platforms. Use these channels to showcase your work, share industry news, and connect with potential clients. You can also leverage online marketing strategies, such as search engine optimization (SEO) and pay-per-click (PPC) advertising, to increase your visibility and attract new customers.

7. Develop a Robust Sales and Marketing Strategy

A well-executed sales and marketing strategy can make all the difference in the success of your sheet metal fabrication business. Identify your target market and develop a plan to reach them through various channels, such as trade shows, industry events, and targeted advertising. Building strong relationships with clients and providing exceptional customer service can also help you generate repeat business and referrals.

8. Implement Efficient Production Processes

Efficiency is key in the sheet metal fabrication industry, as it directly impacts your bottom line. Implementing lean manufacturing principles and investing in automation technology can help you streamline your production processes, reduce waste, and increase productivity. Regularly reviewing and optimizing your processes can also help you identify areas for improvement and stay competitive in the market.

9. Stay Up-to-Date on Industry Trends and Innovations

The sheet metal fabrication industry is constantly evolving, with new technologies and techniques being developed all the time. Staying up-to-date on these innovations can help you maintain a competitive edge and offer your clients the latest and greatest in sheet metal fabrication. Attend industry conferences, subscribe to trade publications, and network with other professionals to stay informed and keep your business at the forefront of the industry.

10. Continuously Evaluate and Adjust Your Business Strategy

As your sheet metal fabrication business grows and evolves, so too should your business strategy. Regularly evaluating your progress and adjusting your plan as needed can help you stay on track and achieve your goals. Be prepared to pivot and adapt to changes in the market, industry trends, and customer needs to ensure the ongoing success of your business.

By following these ten steps, you'll be well on your way to building a successful sheet metal fabrication business. With dedication, hard work, and a commitment to excellence, you can carve out a niche in this thriving industry and create a prosperous future for yourself and your employees.

What is Sheet Metal Fabrication

Sheet Metal Fabrication is the process of forming metal sheets into structures or parts using various techniques such as cutting, bending, and welding.

This process commonly use for products such as car parts, building materials, and household appliances.

The sheet metal is often cut to size and holes using a shearing machine or laser cutter, and then bent into shape. Once the parts formed, they are typically welded, riveted, or fastened together to create the final product.

Asianstar Professional Sheet Metal Fabrication

Asianstar Company Sheet Metal Fabrication provides a range of services to clients.

We have machines involves Cutting, Bending, Punching, Drilling, Welding and Forming, we also have hand-tool to make samples of sheet metal fabrication samples in rapid reaction.

With our skillful engineers and tools, we are able to provide complicated structure sheet metal components, and then apply surface finishing treatment on components and support clients to assemble the final products.

For huge quantities sheet metal fabrication demands, we use our own CNC Machines to open tooling or mold for sheet parts, with our in-house facilities supporting, we can carry perfect result on the structure and productivity.

Asianstar: Professional CNC Machining Supplier

Advantage of asianstar cnc machining service.

Multiple Machining Processes

Asianstar has various machining processes to support different types of components from client, we can choose the best suitable manufacturing solution to carry result in perfect performance and cheap cost

Flexible Custom Service

With skillful machining technologies, Asianstar is flexible to support clients on different materials and different structures of the components, we also flexible on the components quantities and even assembly

Create Designing for Clients

Not only producing according to clients drawings, Asianstar also propose the better designing to clients, supporting clients to buildup improved designing or even new generation components

Standard Procedures

Asianstar production, as experienced by many years, is strictly following internal Standard Operating Procedures, to make sure the production schedule is smooth and plans are well carried out well without accidents

Asianstar strictly controlling product quality by system. We start QC controlling from production plan once setting up, to production process by monitoring QC checking and until the final Inspection before packing

Fast Lead-Time Delivery

Asianstar strictly control the production processes, teams keep the plan moving ahead according to the procedures, we have internal time management schedule which mostly bring earlier lead-time of delivery

OUR CNC MACHINING SERVICES

CNC Turning Service

Our CNC Turning Service provides different sizes of roll shape work-pieces, the diameter range is from 0.5mm to 480mm, reaching tolerance +/-0.003mm.

CNC Milling Service

Our milling machines and CNC centers are able to produce complicated structure part, five-axis devices produce multi-sides at one-time jag which bring high precision result

Sheet Metal Fabrication

Our Sheet Metal Fabrication provides slicing, punching, bending, welding, painting and assembling for set products, unique tooling for each project to raise production efficiency

Aluminum Extrusion

Our Aluminum Extrusion brings clients various shapes of aluminum parts, high efficiency for mass quantity, our precision extrusion mold control tolerance within 0.01mm

Forging Service

For some steel serious products, we apply Forging Service to make out their outer shape and them use CNC devices to start drilling, forming, rolling, cutting, etc.

Finishing Service

Our Surface Finishing Service uses chemical or electro post-treatments after machining tasks are finished, normally includes Oxide, Anodizing, Passivation, E-Plating, Painting,etc.

Yes, we support ODM/OEM, we provide custom-made service for clients or even support clients on designing or improving

We are mostly providing custom-made service, so we don’t have product in stock; But we have some stock of raw materials because it is convenient for our sampling or prototyping

Our monthly production capacity are around 200’000PCS for turning parts, 100’000PCS for milling parts, 100’000PCS for turning and milling parts, 1’000’000PCS for forging and extrusion and sheet metal fabrication parts

Our Factory located in Dongguan City, Guangdong Province, China, and Markeing Office in Guangzhou City. Our factory is near to Shenzhen Sea Port for delivery

Yes, sampling are charged and can be returned once mass order placed

We sales service team will follow up clients usage of products, we support any product questions. If product have quality defect, we can compensate the total qty by re-production

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Sheet Metal Fabrication Service Business Plan and SWOT Analysis

Sheet Metal Fabrication Service Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Sheet Metal Fabrication Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Sheet Metal Fabrication Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

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Sheet metal fabrication services are always in demand given that many of the products that they produce are used for construction as well as for specialized product fabrication. As such, these businesses are able to generate substantial gross margins from the production of custom parts as well as roofing from sheet metal components. Typically, the gross margin generated from each sale usually produce margins of 50% to 75% depending on the type of product being manufactured at the facilities. The barriers to entry for a new sheet metal fabrication service are considered to be moderately low. Typically, these businesses have a startup cost of $150,000 to $500,000 depending on the type of equipment that will be purchased in conjunction with providing sheet metal fabrication. The additional underlying costs for these businesses can be somewhat significant given that they require a number of employees and they have high energy usage. However, the gross margin generated from sales almost always able to cover all operating expenses plus any underlying debt service that is associated with the business. In lieu of directly purchasing much of the equipment that is used for sheet metal fabrication – some entrepreneurs will choose to be specific equipment in order to keep their capital expenditure or cost down.

Given the high gross margins, strong economic stability, and significant assets – almost all financial institutions are willing to provide a significant amount of capital support for a sheet metal fabrication business. Of course, a sheet metal fabrication service business plan is going to be required. This document should have a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Within the business plan, a substantial amount of information regarding the targeted demographics should be included as well. This includes discussing the types of businesses will be targeted, their annual revenues, their annual expenditure with the sheet metal fabrication service, number of employees, and their target market radius.

Usually, the sheet metal fabrication service has a target market radius of 100 miles. However, these businesses can readily expand by offering their services on an ongoing basis. This allows some sheet-metal fabrication companies to operate in a nationwide capacity. Usually, the most common types of companies that you sheet-metal fabrication services or construction businesses, real estate developers, roofing contractors, painting contractors, and related businesses where sheet-metal is frequently used as part of their overall contracting or manufacturing processes.

A sheet metal fabrication service marketing plan should be developed as well. This marketing plan should feature a number of different components. First, an online component should be developed that showcases the proprietary website that will be developed by the sheet metal fabrication service in order to have people find the business quickly over the Internet. As many small businesses and large businesses alike now use the Internet to source service providers.

The company’s proprietary website should feature information regarding services rendered, time for two delivery, hours of operation, preliminary pricing information, as well as relevant contact information. This website may also feature e-commerce functionality where individuals and businesses can upload CAD produced files so that the company can produce sheet-metal components to exact specifications of customers. This functionality is now becoming more commonplace among many businesses and as such the sheet metal fabrication company can have a significant competitive advantage by end to grading these types of functions into its website.

Presence on social media is not necessary for you sheet-metal fabrication service but it can help boost visibility among individual hobbyists as well as smaller contractors. There are a number of communities on major social networking platforms such as FaceBook, Twitter, Instagram, and Google+ where people that have shared interest regarding hobbies or their careers as contractors can discuss relevant topics. As such, a presence on social media can help boost visibility in the business if the owner operator decides to become part of these online communities.

Once the online component has been developed it is time to produce the marketing aspects for traditional marketing operations. This includes sending flyers and brochures specific to the demographics that were discussed above. Again, an average target market radius for a new sheet metal fabrication services usually around 100 miles. As such, lists can be purchased so that these companies can be effectively targeted. There are a number of online companies where the directories of specialized businesses can be acquired for a relatively low fee.

A sheet metal fabrication service SWOT analysis should be produced as well. As it relates the strengths, these businesses are relatively immune from negative changes in the economy as manufacturers and contractors are going to continue to need sheet-metal components as part of their overall operations. The gross margin generated from sales and services usually allow these businesses to remain profitable and cash flow positive at all times. For weaknesses, there are a number of local, regional, and national level competitors that the business is going to need to deal with on an ongoing basis. Again, there are number of ways at the sheet metal fabrication service can effectively differentiate its operations from those of competitors. It is imperative that the operator be able to provide just-in-time delivery and affordable pricing as it relates to all fabrication services rendered. For opportunities, one of the quickest ways that these businesses are able to expand is through online sales platforms. Additionally, a sheet metal fabrication service can develop additional locations so that there target market radius is expanded greatly. There are no known sense at this time that would impact the way that these companies conduct their operations.

A sheet metal fabrication service company can be a very lucrative small business investment given the high gross margins generated from specialty services. A significant portion of the capital that is usually used to develop these businesses consist primarily of tangible equipment. As such, the business does not go as planned then a significant portion of the investment can be recouped when the tangible equipment is sold to a third party. These businesses are less subject to automation and other industries within the construction, contracting, and manufacturing markets given the unique nature of the products that they produce. As such, an owner operator of a successful sheet-metal fabrication company can expect a very strong return on investment as it relates to their equity.

How To Start a Metal Fabrication Business

As professional welders , we know that we can either work for someone's welding company, become independent contractors, or start up our own company. This blog will provide you with the proper steps on how to start a metal fabrication business.

Lay Out a Business Plan

First thing’s first: start a business plan. Without one, you’ll encounter questions or problems you might’ve never thought you’d experience. For example, what would happen if you didn't have the right tool for a client's project? What would happen if a welder messed up and kept making mistakes? These are all problems many of us will face, so take good care and develop a business plan.

Check Out Your Competition

The competition around you will often determine how successful your company will be. One way of knowing how to start a metal fabrication business will include having some knowledge about your competition. Some of the things to look for include location, services offered, and learning what makes other competitors weak. Knowing their weaknesses will help determine your take on a new position with your company.

Navigate and Learn From Others

To fully benefit from the welding industry, you need to learn how to get back up when you fall on your face. Connect with other fabricators in or outside of your locality. Talk to them about the trade and learn the better ways to succeed in starting up your metal fabrication company.

Decide Who Your Customers Will Be

The metal fabrication business is a high-ticketed item, which means you can expect jobs from all sorts of companies willing to pay the most to get a welding job done correctly. However, you might not see those clients right away. And that's okay. Before starting your business, decide whether you want to provide services to commercial or residential clients (or both.)

While in this step, you can even determine what kind of services you want to provide in your stainless steel fabrication shop before taking on any potential clients. That'll help clear out the potential client pool with customers that are seeking out the services you are offering.

These steps will not only help guide you in starting up your metal fabrication business, but they'll also be your guide in standing out from your competitors and doing research on the suitable types of services you should be offering compared to other local companies.

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Sheet Metal Fabrication Service Business Plan

The Sheet Metal Fabrication Service business plan template is a comprehensive document that you can use for raising capital from a bank or an investor. This document has fully automated 3 year financials, complete industry research, and a fully automated table of contents. The template also features full documentation that will help you through the business planning process. You can see a full sample of a BizPlanDB.com template on the Samples page.

Product Specifications:

• 3 Year Automated Financial Model in MS Excel
• Complete Industry Research Specifc to the Sheet Metal Fabrication Industry
• Bank/Investor Ready
• Meets SBA Requirements
• Automated Table of Contents
• Delivered in MS Word and Excel Format with Easy to Follow Instructions
• Loan Amortization and ROI Tools
• FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!
• Updated for 2018!

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Metal Fabrication Business Marketing Plan Template

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Are you a metal fabrication business owner looking to take your marketing efforts to the next level? With ClickUp's Metal Fabrication Business Marketing Plan Template, you can create a comprehensive marketing strategy that will skyrocket your business's success.

This template will help you:

• Identify your target markets and understand their needs and preferences
• Create strategic messaging that resonates with your audience and sets you apart from competitors
• Set clear marketing objectives to track progress and achieve your business goals
• Select the most effective marketing channels to reach your target audience and generate leads
• Drive sales and increase customer awareness of your products and services

Don't miss out on this opportunity to supercharge your marketing efforts. Get started with ClickUp's Metal Fabrication Business Marketing Plan Template today!

Benefits of Metal Fabrication Business Marketing Plan Template

When using the Metal Fabrication Business Marketing Plan Template, you can:

• Clearly define your target market and identify the most effective ways to reach them
• Develop strategic messaging that resonates with your audience and sets you apart from competitors
• Set clear marketing objectives and track your progress towards achieving them
• Select the most appropriate marketing channels to reach your target market and maximize your ROI
• Increase customer awareness of your metal fabrication business and generate a steady stream of leads
• Drive sales by implementing effective marketing strategies and tactics.

Main Elements of Metal Fabrication Business Marketing Plan Template

To help grow your metal fabrication business, ClickUp's Metal Fabrication Business Marketing Plan template offers a comprehensive solution with the following key elements:

• Custom Statuses: Keep track of your marketing tasks with 6 different statuses including Cancelled, Complete, In Progress, Needs Input, Planned, and To Do, ensuring clear visibility on the progress of each task.
• Custom Fields: Utilize 6 custom fields such as Quarter, Task Type, Impact, Progress, Percent Completion, and Effort to track and analyze the effectiveness of your marketing strategies and campaigns.
• Custom Views: Access 5 different views including Key Results, Timeline, Getting Started Guide, Objectives, and Progress Board to gain a holistic view of your marketing plan, track milestones, set objectives, and monitor progress.
• Collaboration Tools: Leverage ClickUp's collaboration features to improve communication and coordination among your marketing team, including task assignment, comments, attachment sharing, and real-time updates.

How to Use Marketing Plan for Metal Fabrication Business

If you're a metal fabrication business looking to create a successful marketing plan, follow these six steps to get started:

1. Define your target audience

Identify the specific industries or customers you want to target with your marketing efforts. Are you focusing on construction companies, automotive manufacturers, or something else? Understanding your target audience will help you tailor your marketing messages and strategies to reach the right people.

Use custom fields in ClickUp to categorize and track information about your target audience, such as industry, company size, and location.

2. Set clear marketing goals

Determine what you want to achieve with your marketing plan. Are you aiming to increase brand awareness, generate more leads, or boost sales? Setting clear goals will help you stay focused and measure the success of your marketing efforts.

Create Goals in ClickUp to outline specific objectives, set timelines, and track progress towards achieving your marketing goals.

3. Research your competition

Analyze your competitors to understand their marketing strategies and identify areas where you can differentiate yourself. Look at their online presence, social media activities, and advertising campaigns. This will help you identify gaps in the market and find opportunities to stand out.

Use the Table view in ClickUp to gather and compare data on your competitors, such as their marketing channels, messaging, and target audience.

4. Develop your marketing tactics

Based on your target audience, goals, and competitor analysis, determine the marketing tactics that will be most effective for your metal fabrication business. Consider strategies such as search engine optimization (SEO), social media marketing, content marketing, trade shows, and partnerships.

Use tasks in ClickUp to create a detailed plan for each marketing tactic, including timelines, resources needed, and assigned team members.

5. Implement and track your marketing campaigns

Execute your marketing tactics and closely monitor their performance. Track metrics such as website traffic, social media engagement, lead generation, and conversion rates. This will help you understand what's working and what needs adjustment.

Use Automations in ClickUp to automate tracking and reporting of key marketing metrics, saving you time and providing real-time insights.

6. Evaluate and optimize

Regularly evaluate the effectiveness of your marketing campaigns and make adjustments as needed. Analyze the data you've collected and identify areas for improvement. Continuously optimize your marketing efforts to maximize results and achieve your business goals.

Use Dashboards in ClickUp to visualize and analyze your marketing data, allowing you to easily identify trends, spot areas for improvement, and make data-driven decisions.

By following these steps and utilizing the features available in ClickUp, you can create a comprehensive and effective marketing plan for your metal fabrication business.

Get Started with ClickUp’s Metal Fabrication Business Marketing Plan Template

Metal fabrication business owners can use the Metal Fabrication Business Marketing Plan Template to effectively promote their products and services and drive sales.

First, hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive marketing plan:

• Use the Key Results view to set specific marketing goals and track progress towards them
• The Timeline view will help you visualize your marketing activities and their deadlines
• Refer to the Getting Started Guide view to understand how to use the template effectively
• Utilize the Objectives view to define your marketing objectives and align them with your business goals
• Track the progress of your marketing initiatives using the Progress Board view
• Organize marketing tasks into six different statuses: Cancelled, Complete, In Progress, Needs Input, Planned, To Do, to keep track of progress
• Update statuses as you work through tasks to keep team members informed of progress
• Monitor and analyze marketing activities to ensure maximum effectiveness and ROI

Related Templates

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Sheet Metal Fabrication Business Plan

Publisher description.

This is a complete business plan for a Sheet Metal Fabrication Service. Each of our plans follows a 7 chapter format:   Chapter 1 - Executive Summary - This part of the business plan provides an introduction for the business, showcases how much money is sought for the company, and acts as a guideline for reading the rest of the business plan.   Chapter 2 - Financing Summary - The second section of the business plan showcases how you intend to use the financing for your business, how much of the business is owned by the Owners, who sits on the board of directors, and how the business could be sold in the future.   Chapter 3 - Products and Services - This section of the business plan showcases the products/services that you are selling coupled with other aspects of your business operations.   Chapter 4 - Market Analysis - This is one of the most important sections of your business plan. Each of our plans includes complete industry research specific to the business, an economic analysis regarding the general economy, a customer profile, and a competitive analysis.   Chapter 5 - Marketing Plan - Your marketing plan will showcase to potential investors or banks how you intend to properly attract customers to your business. We provide an in depth analysis of how you can use your marketing plan in order to drive sales.   Chapter 6 - Personnel Summary - Here, we showcase the organizational structure of your business coupled with the headcount and salaries of your employees.   Chapter 7 - Financial Plan - This is the most important part of your business plan. Here, we provide a three year profit and loss statement, cash flow analysis, balance sheet, sensitivity analysis, breakeven analysis, and business ratios.

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Marketing for metal fabricators: don’t pitch, educate, update your go-to-market strategy with the new way.

• By Bruce McDuffee
• October 10, 2016

In his recent book, Disrupting Digital Business, Ray Wang states, “Since 2000, 52 percent of the names on the FORTUNE ® 500 list are gone, either as a result of mergers, acquisitions, or bankruptcies. The changes are the result of digital business models creating disruption in the marketplace.”

Whether or not you are on the FORTUNE 500 list, your fabrication business is at risk—but with that risk also comes incredible opportunity. If your fabrication business is the one in your competitive space to adopt a digital model for your go-to-market strategy, you become the disruptor, and you become the winner whose business grows and gains market share.

When a manufacturer thinks about digital disruption, it probably considers the Internet of Things, automation, or how production and distribution are changing. Although these aspects are important, I submit that the single most important, and potentially most powerful, digital transformation is with your marketing strategy.

What Is Marketing, Really?

First, let’s take a step back to answer a more basic question: What is marketing? Again, it’s not just about making eye-catching brochures and websites. It goes deeper.

Marketing reinforces the value proposition —that is, why customers buy from you and not your competitors—and enables the sales team to be more effective as prospects move to the final buying decision.

Marketing builds a company’s credibility, reliability, reputation, and trust. Put another way, marketing shapes how customers and prospects (the target audience) perceive the company. It does this not just through fancy fonts and photography, but by addressing the audience’s pain points.

Although most custom fab shops don’t have an entire department devoted to marketing, an element of marketing has always existed in this industry. Many shops were founded on work gained from that one-on-one, live human contact. It was—and still is, in many respects—very much a handshake business, with reputations built through word-of-mouth.

In this sense, such word-of-mouth communication is like marketing. People in the area talk about a certain fab shop, the fact it has stellar on-time delivery and quality, and about how the fabricator bends over backward for its clients. Like marketing, the word-of-mouth communication builds the company’s credibility, reputation, and trust in the market. That gives the fab shop’s CEO or salesperson wind in his sails as he visits prospective customers.

Of course, unlike marketing, word-of-mouth communication isn’t shaped directly by the fab shop. And, rightly or wrongly, it can destroy a shop’s reputation just as easily as it can build it.

Prospective customers now have access to more information than ever. If a purchasing agent needs to find a new custom fabrication supplier, he need not rely only on a Rolodex of business cards. He now can search for fabricators in the area on the Internet and thoroughly research his options before ever picking up the phone. In the digital age, fabricators need to create awareness, build relationships, develop credibility, and build trust, all before the salesperson gets a call.

This is where high-engagement digital marketing plays a critical role. Digital marketing is more than just websites, social media, emails, and banner ads. These are mere activities that happen to exploit digital technology. The disruption and the opportunity with digital marketing lies in meaningful and broad engagement with the people in your target audience.

I call this “The New Way to Market for Manufacturing.” Going forward, I’ll refer to it simply as the New Way.

Stop Pitching, Start Educating

The fundamental idea behind the New Way is to stop pitching services and start sharing expertise. When you stop pitching your fabricating services, awareness increases dramatically and you create a perception of credibility at the top of the proverbial sales funnel.

Most manufacturers are trying to engage and gain awareness by sharing company information: machines, facility size, and so on. This is like asking someone to marry you on the first date. It doesn’t work. First, you need to share expertise, educate, provide knowledge, and show how you can solve problems. Pitch your fabrication services when they are ready to buy.

Customers and prospects want to buy like it’s 2016. They use the Internet to qualify potential vendors well before they contact them. At least, that’s what they would prefer, but they often can’t. Manufacturers typically force people to talk with a salesperson if they want information beyond certain specifications or machine capabilities.

If you don’t believe it, take a look at your competitors’ websites, and while you’re at it, take a look at your own. Is there any information on your site beyond a description of your company and its fabricating capabilities? Are there webinars? A blog or e-newsletter that is not about the company? An educational resource center? Most likely, you won’t find one in a hundred fabrication companies sharing this type of content. But again, webinars, blogs, and other marketing vehicles are only as good as their content, which in turn is only as good as how well it addresses the pain points of your target audience.

Importance of the Marketing Function

Most manufacturers consider the marketing function as a service provider to the sales and management team. But the truth is, the marketing function can no longer be relegated to the back rooms where they set up tradeshows, place print ads, and make brochures for the sales and product teams.

The marketing team needs to be fully engaged and empowered to effect business goals, and marketing needs to be on the same level as sales and other front-office functions.

Marketing and sales serve separate purposes within a broader revenue-generation team, where their roles are equally important. It is the job of a modern marketing team to gain awareness and create a perception of credibility, trust, and reliability within the minds of the people in the target audience.

What is the New Way to Market?

Marketing has both strategic and tactical components. Manufacturers typically relegate the tactical functions to a marketing team and address the strategic components to the leadership or sales team. The typical outcome with this arrangement is an irrational marketing strategy: basically a sales plan backed up with a series of tradeshows and perhaps some social media.

The New Way marketing function must include a leader who understands business, marketing as a practice, sales, marketing technology, and how to establish deep understanding of a target audience. Other components include a proper, vetted, written marketing plan aligned to the business goals. It should offer targeted prospects and customers useful information when they want it, where they want it, and how they want it.

How It Works

Think about the way you make a significant purchase in your own personal life. The first thing we all do is educate ourselves on the web. Most of us do not contact a vendor immediately when we have a need. For some of us, the last thing we want to do, and the last step we take, before making a considered purchase is to engage with a salesperson.

This is exactly how your prospects act. The winners of market share will be those who engage with prospects effectively when those prospects are learning and, in essence, becoming an educated buyer.

Consider this scenario. One fabricator in your competitive space has developed content that is useful to the people in the target audience; it is not simply about the fabrication services it provides. We’ll call this fabricator Company A.

To get here, the marketing department at Company A has worked with sales and shop leaders to identify the target audience’s pain points, including the most prominent: late deliveries. Company A’s delivery happens to be world-class, a standout among its competitors. How can Company A market this effectively?

It starts by asking questions. Why exactly can’t competing shops meet due dates? After all, the marketing team at Company A knows that they do business in a competitive region for fabricators. After the dot-com bust and the Great Recession, the remaining custom fabricators in the area tout their latest-and-greatest machinery. And yet they hear from customers that these fabricators still deliver a number of jobs past the due date.

This leaves another reason for late deliveries: l ack of communication . Many purchasing managers and engineers at various customers have retired in recent years, and their knowledge and experience have left with them. This includes the basics of sheet metal fabrication, and it also includes inventory options and the basics of securing a reliable delivery schedule, through kanban replenishment programs and the like.

With this pain point identified, the marketing team at Company A gets to work. Collaborating with sales and company leadership, the team develops (among other things) a website unique among the shop’s competitors.

Then along comes a prospect who ultimately will buy the service Company A or one of its competitors offers. The prospect has identified a need because they have a problem that is costing them time and money. It’s the problem the marketing team at Company A already knows about: The area’s fabricated part suppliers aren’t very reliable when it comes to on-time delivery.

The first thing prospects do is to search for an answer to their problem via an Internet search engine. Here’s the first thing they notice: All the custom fabricators in the area look very much alike. They all have websites that describe the services they offer: laser cutting, punching, press brake bending, and the like. But those really don’t address the prospect’s problem, so they bounce off those pages immediately.

Then the prospect finds Company A’s site. It doesn’t have a listing of capabilities or photos of welding arcs and laser beams, like so many other websites. And it also doesn’t say “We deliver quality parts on time, every time.” This again really doesn’t solve the problem; it just pitches a service, one that the prospect probably doesn’t believe anyway—at least not yet.

But the website does have an archived webinar posted. The prospect clicks on it, and within a few seconds he knows he’s dealing with what seems to be a different kind of operation. The webinar details the basics of kanban replenishment and other elements of lean manufacturing; how part families can be redesigned so that they can be partially built and inventoried, then pulled from stock, customized to order, and quickly delivered.

The site also has a video showing a 3-D animation of various fabrication processes, including laser cutting and press brake bending, giving the basics of how each process works, and basic tips about which kinds of sheet metal designs work and which don’t.

The webinars and videos on the site do not pitch the prospect; they educate. They also don’t judge. They simply describe certain part flow and fabrication methods. They describe how the methods work, but they don’t say they are better or worse than any other.

The site also has a helpful white paper and an archived webinar that directly addresses delivery problems. The prospect clicks on the useful information and finds himself at a highly relevant webpage where he can get even more useful information, which he then forwards on to his engineering department. The prospect downloads the information and bookmarks the page.

After a few days or weeks spent reviewing the information and several more visits to Company A’s website, they are ready to make the purchase. They have identified five custom fabricators that offer similar services, and they may even solicit bids from all five—but it’s too late for the other four companies, because all they have to rely on is a low price or a really good salesperson.

The four other fabricators end up racing to the bottom of the profit margin bucket, hoping that no other company will offer a lower price. But neither low price nor a super salesperson is enough for any of them to win the business.

That’s because the prospect has already developed a relationship with Company A, without ever talking to a salesperson. Company A has credibility leading to a perception of reliability. The prospect wants to reciprocate with Company A in appreciation for all the help in solving his problem. The result: Company A will get the business—even at a higher price.

How to Get Started

The first step is to acknowledge that marketing is integral to your business. This can be a big culture change in most manufacturing companies. Peter Drucker famously stated, “Culture eats strategy for breakfast,” meaning that any change to a company culture is very difficult and takes a lot more than just a new strategy. In most cases, the change must be incremental and should be introduced by demonstrating the power of the concept one step at a time, not as a complete revision.

Before you shake your head and move on to the next article, consider the earlier scenario. You cannot gain credibility by pitching the features and benefits of a product or service. You gain credibility by giving prospects something that matters to them. They may not care about what metal fabrication technology your company has. They care about WIIFM (what’s in it for me); that is, they care about what you and your company can do for them. This is a subtle but incredibly important difference.

To get started, first write a proper marketing plan, one that starts not with your company’s capabilities, but what customers really need.

You also need to gain the support and approval of company leadership to prove that good, focused marketing can help grow the business. You’re not going to change everything all at once, and you shouldn’t present it that way. Pre-sent the idea as a pilot or test program to prove the concept.

Next, figure out a topic of interest that matters to your audience. To market effectively to a prospect, you need to find the sweet spot, where the prospect’s pain points and your company’s expertise intersect. Hint: Do not describe a particular product or service.

Then prepare a pilot program built around the topic you select. The program may include webinars, email newsletters, or similar educational content. Regardless of the platform, it should be able to show meaningful numbers, collect contact information, and identify sales leads. After you launch the pilot program, share the results, and ask for permission and resources to expand the concept.

Leadership and stakeholders must collaborate and agree on the strategic marketing fundamentals. This includes defining your target market, understanding its needs, and determining a positioning statement and value proposition that address those needs. All of this needs to be part of your initial marketing plan.

First Movers Will Win

Let’s be clear, this strategy may not replace all of your existing marketing activities completely, but it should be your leading strategy for engagement and growth. One thing is for sure: This strategy is very rare, almost nonexistent, in metal fabrication.

Let us also be clear on a second point: It isn’t easy to build awareness and credibility in a marketplace by sharing expertise. It takes persistent, consistent marketing activity, and it takes time.

If you become Company A, your competition eventually will catch on and try to copy your success. The first movers have two to three years (barring copyrights and patents) before the fabrication market space playing field is once again level. You must be the first or second mover in your competitive space and stick with it for a couple of years to really gain an advantage. The first movers will win and the laggards will either stagnate or disappear—as have 52 percent of FORTUNE 500 companies.

About the Author

Bruce mcduffee.

Manufacturing Marketing Institute

303-953-4361

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• Business Plans Handbook
• Business Plans - Volume 05
• Metal Shop Business Plan Business Plan

Metal Shop BUSINESS PLAN

KROSNOW METAL WORKS

6500 East River Street

Cincinnati, OH 44612

This business plan will be of particular interest to entrepreneurs wishing to take advantage of the changing climate of international trade. It examines a business venture begun by American citizens in Poland and covers, among other things, banking procedures relevant to this country. Also note the estimates for projected revenues and costs; although doing business overseas may seem risky and unfamiliar, given the correct preparation, it is as likely to succeed as any business in North America.

INTRODUCTION

Executive summary, keys to success, company summary, strategy and implementation summary, management summary.

• FINANCIAL PLANNING

In the decade of the 90s Poland has been the scene of an enormous and successful experiment. A nationwide transition from a centrally planned economy to a free market was initiated and implemented here for the first time in world history.

Commencing in January 1990, a comprehensive program of economic reforms Poland freed-up prices, introduced convertibility of its currency, stabilized the exchange rate and, as a rule, demonopolized business and opened the economy. These measures resulted in a notable development of a private sector, increase of competition and general revival of the economic dynamism. Poland was the first country in Central and Eastern Europe to show signs of economic recovery already in 1992. Once begun, the positive trends in the Polish economy grew stronger in the subsequent years, finally making Poland the fastest growing major economy in all of Europe.

From the very beginning of its profound transformation, Poland has been continuously attracting the attention of the international business community. In the fall of 1993, the influential New York City investment bank, Morgan Stanley, was the first to use the expression "European tiger" in referring to the Polish economy. In 1994, US Department of Commerce officially named Poland one of the world's ten Big Emerging Markets. The next year, the renowned British business newspaper Financial Times in its March special edition summarized the Polish economy's 5-year achievements by the phrase "Shock therapy works a miracle". And at the end of 1995, Busines Week magazine in its feature article on Poland presented the Polish economy as the "hottest" in Europe.

Today's Poland offers enormous business opportunities. Various investments made so far by American and Western European firms have already proven to be successful and profitable. No doubt, these successes have been largely possible due to the unique business advantages offered by Poland's marketplace, its size, geographical location, economic potential and international ties.

Leaders of experienced US and European companies urge the international business community to look closely at Poland. "We at P&G are betting heavily on the future of Poland. . . We are doing so with a lot of confidence. I would counsel other globally oriented businesses to do the same" stated J.E. Pepper, CEO of Procter and Gamble, Midwest-based consumer products manufacturer.

The message is simple: If you are looking for new significant business opportunities in the world marketplace, consider Poland - the most dynamic economy in Europe.

Poland is a significant untapped business opportunity. Most Polish businesses were governmentowned and inefficient with old sub-standard equipment. By utilizing existing order commitments, key contacts within the Polish Government and with the principals' dual cultural background, Krosnow Metal Works will set up a high technology metal working facility within Poland.

• Start up manufacturing production in Poland within 6 months of obtaining financing.
• Have first year revenues of $90,000,000.
• Show a profit in the first year of operation of the business of over $900,000.
• Double sales revenue in 2nd year of operation.

Krosnow Metal Works will be a startup high technology manufacturing company in Poland that aims to provide high quality, low cost machined metal parts to Polish industry. Also, Europe presents itself as an excellent market to whom to export this superior technology and machined metal parts.

We intend to generate a fair return to our investors and to finance continued growth. We also intend to create a work environment that facilitates training of employees in the use of high technology machine tools.

The keys to success in this business are:

• Follow thru on the existing letter of intent to buy machined metal parts from us to ensure that they materialize into orders.
• Cordial relationships with Polish government's economic development authorities.
• Employees well trained in the use of high technology metal-working machinery.

Krosnow Metal Works is a startup metal-working manufacturer to be located in Poland. The principals' extensive machining skills, their excellent relations with the Polish government and their existing order commitments will ensure the success of this startup venture.

Company Ownership

Krosnow Metal Works is a privately held Ohio corporation. The company is equally owned by Vaclav Wysocki and Piotr Puzdrowski.

Startup Summary

Our start-up costs come to $2,000,000 which will be primarily used to purchase new production equipment. The start-up costs are to be financed 15% by individual investors and 85% by a bank loan from a national bank in Poland.

COMPANY PRODUCTS

Krosnow Metal Works will machine metal parts as subcontracted by major manufacturers in Poland. These orders may be from automobile plants, machine tool manufactures or others. By offering new and better technology Krosnow Metal Works can produce high quality, low cost parts and win business from these manufacturers that they may have done in house or subcontracted with other Polish companies with lower quality equipment.

COMPANY LOCATIONS AND FACILITIES

The manufacturing plant will be located in Krosnow Poland which is 90 kilometers (65 miles) north of Gdansk. The plant will have 12,000-sq. ft. of manufacturing space and 1,000 sq. ft of office space.

Krosnow Metal Works will machine metal parts for large manufacturing customers. The raw material for most of these parts will also be provided by these customers.

Competitive Comparison

As Poland moves to a modern market-based economy, its manufacturers will generate an enormous demand for specialized machined metal parts from subcontracting job shops. Existing metal-working job shops in Poland use old style machine tools that are very labor intensive and unreliable, in their product quality. Consequently, their products are low quality and high cost.

Krosnow Metal Works, equipped with new computer controlled machine tools, will be able to produce high volume, high quality and low cost machined metal parts. Poland's existing job shops cannot match our technological advances.

Krosnow Metal Works machines metal parts that in most cases have been supplied by their customer. Our machining process adds value to the part. As a consequence, this production has real no raw material cost but a material cost of 10% of sales is assumed to cover other circumstances.

Metal-working has been a part of the manufacturing process for years. Machine tools such as lathes and milling machines were developed in the 1930s and 1940s to improve quality and productivity of the metal-working process.

In the 1970s computers were connected to machine tools to further streamline the machining processes. These machines are termed CNC for Computer Numerical Control.

While CNC machines have been vastly deployed in the West, a poor economy and limited investment capital have kept this technology out of Poland.

Future Products

As product demand progresses, Krosnow Metal Works will diversify its manufacturing processes and equipment to match its customer/partners needs. In addition, its success in training its machinists in the new computer controlled equipment will be used to sell training services to other companies within Poland.

Our strategy is based upon bringing high technology manufacturing into a market currently serviced by old and obsolete technology.

Marketing Strategy

Initially, we are focusing on servicing the Polish machine tool industry. But this will be extended beyond Poland and to service other industries besides machine tools.

Pricing Strategy

Krosnow Metal Works intends to price its metal-working services about the same $50/hour as its competitors. However, with its high technology equipment Krosnow Metal Works will be able to produce better quality products and have a 75% greater production rate.

Promotion Strategy

Krosnow Metal Works will use the support of the Polish Government's economic development organization and Krosnow Metal Works's business partners to find new customers and spread the word about the company's high technology resources.

Sales Strategy

We expect sales to grow rapidly once word gets out about Krosnow Metal Works's high quality, low cost production capability.

Sales Forecast

The following table and related charts show our present sales forecast.

Strategic Alliances

We have opportunities to build strategic alliances with the Polish machine tool manufacturers and with the Polish Government's economic development offices in their efforts to bring high technology to Poland.

Growth in Krosnow Metal Works's business over the 3 year plan period will result in minimal additional hiring.

Management Team

Vaclav Wysocki is a highly experienced precision CNC programmer and has dual citizenship with the USA and Poland. He is also fluent in Polish and English. Piotr Puzdrowski is also a highly experienced precision CNC programmer.

Management Team Gaps

The management team is strong on metal-working machining and cross cultural contacts. The present team will be supplemented with an American CPA and American attorney.

Personnel Plan

Immediate personnel plans call for increases from 18 people at start up to 24 in three year's time.

Financial Plan

The financial plan depends on the following assumptions.

Break-even Analysis

The break-even analysis shows that Krosnow Metal Works break-even production would be 25,000 units a month while the sales forecast for the first year calls for the production of 50,000 units per month on average.

Projected Profit and Loss

We expect income to hit over 4 million for the first year and it should increase too more than 38 million by the third year of the plan.

Projected Cash Flow

We expect to manage cash flow over the next 3 years with an initial $300,000 of equity investment, a bank loan from a national bank in Poland for $1,700,000 and working capital generated by the retained earnings of the business.

Projected Balance Sheet

As shown in the balance sheet in the table, we expect a healthy growth in net worth, from $300,000 are start up to $58 million at the end of the three year period.

Business Ratios

Standard business ratios are included in the table that follows.

Business Biography of Vaclav Wysocki

Vaclav Wysocki was born in a small town in Poland on August 20, 1961. He moved to Olsztyn so he could study at the Technical School of Metallurgy. He specialized in the field planer operations. Vaclav worked at the "Byson" getting an education in the manufacturing of both tools and machines. He honed his skills there for 5 years until he was called into the Polish army. He married in 1986 and moved to the United States. His dual Polish-American citizenship gives him many advantages in Poland. He can buy land and businesses in Poland and get tax advantages for his company. Vaclav further sharpened his skills at the K.S. Machine shop and General Machine Products. Because of his knowledge he was promoted to shift supervisor. Meanwhile, he attended Hamilton Community College where he studied computer programming on CNC machines. He is currently working at Encore Mfg. Co. as an executive CNC programmer. Vaclav will move back to Poland where his skills, education and experience will be a tremendous asset in starting Krosnow Metal Works on the road to becoming a successful and profitable company.

Business Biography of Piotr Puzdrowski

Piotr Puzdrowski started his metalworking training back when he was in high school. He started his machining training right out of high school by working at a variety of jobs in machineshops. During this training period he was trained in all aspects of the machining industry. During the last six years of his fourteen year career he has spent working on Computer Numerically Controlled (CNC) machines. He has been awarded two Certificates of Training. One has been for proficiency in CNC and the other for completion of training in Statistical Process Control (SPC). During his working and training periods he developed the skills and knowledge to use various types of inspection equipment and high-tolerance technology that insure precision products at low cost. Piotr has the training, knowledge and experience to make Krosnow Metal Works a leader in the manufacturing industry. Piotr is married and lives in Cincinnati with his wife and young child.

Letter of Intent I

(Translation from Polish to English Language)

NUMERI-TECH (Address in Poland) 6500 East River Street Cincinnati, Ohio 44612

Krosnow Milling Machine Factory is offering a lease of a portion of production space area of 1200 m2 for $2.50 per m2 monthly. The cost does not include electricity, water, compressed air or heating.

Electricity, water and compressed air can be provided according to meter readings (necessary to install).

The cost of heating is $1.00 per m2 in the heating season, which is November through April. On our side we guarantee combined total value of orders worth about 1500 work hours per month on conventional machines under the condition that prices offered by you will be lower than the cost of production.

In addition, I see a chance of putting into motion a large scale production (additional 200 thousand/year) details according to the enclosed drawings and even increasing the assortment of other details if offered prices are attractive.

For your information, the actual cost of 1 KWh is $0.10, the cost of m3 of water is $0.55 and the cost of m3 of compressed air is $0.03.

Kindly waiting for your response.

Respectfully,

Temporary Director CFO

I, K. Toroska, translator, certify that the above statement is a true and exact translation of the attached document

Translator Sate of Ohio County of Hamilton

Sworn and subscribed to before me, a notary public, this 16th day of July 1996 at Cincinnati, Ohio.

Letter of Intent II

FABRYKA OBRABIAREK PRECYZYJNYCH "AVIA" ul. Siedluska 32, 42-997 Gdansk

Mr. Vaclav Wysocki President Krosnow Metal Works 6500 East River Street Cincinnati, Ohio 44612

In reference to our meeting in Gdansk and conducted conversations, I am presenting an outline of future collaboration between our factory in Gdansk and the firm Krosnow Metal Works in Cincinnati. The Factory of Precision Milling Machines Avia in Gdansk is a producer of conventional milling machines and CNC centro milling equipment and feed shafts. A high technical level of production allows for continual increase of sales. For this reason the factory must free up new areas of installation, increasing continuously the boundary of cooperation. Proposals presented by the Krosnow Metal Works firm, based on the purchase of CNC milling machines production centers and numerical controlled inspection equipment are very interesting to our factory.

After establishing production in Poland by the firm Krosnow Metal Works, AVIA will establish permanent working cooperation with that firm and will supply appropriate details necessary for production and equipment storage-park. The quality of work and the price will decide the level of involvement. Also, I wish to underline that in Poland there are very few firms that have modern machine parks and at the same time specialize in cooperation in the machine industry.

This is why many other factories are in a situation similar to Avia.

At this point we are waiting to hear from Krosnow Metal Works about their future plans in Poland.

J. Krol, General Director

I.K. Toroska, translator, certify that the above statement is a true and exact translation of theattached document.

State of Ohio County of Hamilton

Sworn and subscribed to before me, a notary public, this 16th day of July 1996 at Cincinnati, Ohio. Notary Public

Letter of Intent III

Panakowski Kasa Oszczednosci Ul. Mitria 5 88-665 Gdansk

Krosnow Metal Works 6500 East River St. Cincinnati, Ohio 44612

In reference to your letter we wish to present credit offers which are available in our bank. Financing is available for investment, and as operational credit. We provide loans in polish currency (PLN), and in western currency (USD), and (DEM). We provide investment credit in the form of a credit account and may be used for the purchase of new equipment which is necessary in the production start-up process, also this form of credit may be used for purchasing machines to replace existing equipment. This type of credit must be repaid in five years, or longer in cases of long term investments. The amount of credit must be verified as the actual cost of investment and not to exceed 80% of entire investment (20% of own resources). Interest rates for credit in polish currency is at 26% for short term loans (no longer than 12 months) and 27% for long term loans (over 12 months). Interest rates are set by the board of directors PKO BP. These rates are expected to change (in our predictions they will be lower in the near future).

Operational credit is available in the form of ongoing accounts, no longer than 12 months. Interest rates for this form of credit are at 21.3% and are expected to lower. Interest rates for this form of credit depend on risk of investment and may be 1 and 8 points. Interest rates for loans in western currency (USDand DEM0 depend on interest rates offered on international financing markets, bank charges, and may be between 2 and 7 points for investment credit, and 0.5 to points for operational credit.

Terms of payment are a matter of negotiation and may be monthly or quarterly for client convenience. In cases of investment credit, payments may start after reaching full production ability. Interest charges in this case must be paid monthly or quarterly.

Bank charges are:

• application fee of 0.5 to 2% of entire amount.
• unused fee of 0.25% to 0.5% of interest charges for unused amount (does not apply to operational credit).

When applying for investment credit our bank requires the following documents:

• credit application filed by client
• IRS confirmation (tax being paid)
• articles of incorporation
• bank account statements
• letters of intent and other signed contracts
• ownership title of properties or lease agreement
• business plan analyzed by independent expert
• local government investment approval
• other in some cases

Loan will be approved automatically when:

• ownership title is used for collateral
• equipment titles are used for collateral
• authorization to freeze accounts is given by client
• additional bank cosigns
• all shares held by client are used for collateral
• client agrees to reassign all accounts receivable to bank
• equitable cosigner

At this time PKO BP can finance single subjects up to 58 mil. USD. In some cases we will finance up to 78 mil. USD, but only with special permission of central offices. Besides credit, we may also cosign on loans from other banks. Bank charges then are from 2 to 2.5% of entire amount.

Additionally our bank provides service in international transactions in several ways. All of these offers are of a basic concept and is a matter of individual negotiations.

For more information please contact:

Regional Office PKO BP Gdansk ul. Selewska 10/09 00-955 Gdansk

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