How to open your own forging business. DIY cold forging technology

We live in an age of rapidly developing technology. And gradually folk arts and crafts are being squeezed out of our lives. And, perhaps, forging is almost the only craft that not only has not disappeared in the course of technological progress, but, on the contrary, has recently become more and more popular. What is the reason? In demand. Nowadays, forging is firmly connected with the design of residential premises and offices, with landscape design. With the growing number of country and holiday villages, it is difficult to imagine without forged gates and gazebos. Forging is still in demand in the funeral business.

Forging is not only large outdoor products, but also objects that decorate interiors of different styles.

Forging is a synthesis of craft and art, making each item unique.

And therefore, now the business of manufacturing forged products is very promising.

What to choose: cold or hot forging?

Hot forging is an ancient blacksmith's craft. Since ancient times, in forges throughout Rus', iron was heated on fire, and then craftsmen gave the softened metal the desired shape.

This type of forging requires a lot of effort and time, but products forged in this way are truly unique.

Today there is a more modern version of metal processing - cold forging. Basically, when creating a product, ready-made forged elements are used. This is a less labor-intensive method for the master and cheaper for the customer.

It is not easy to compare two types of forging. Hot forging is uniqueness and elegance, cold forging is durability and reliability.

Imagine the situation: you have decided to create a business manufacturing forged products. The first question is: what kind of forging should I do? Hot forging requires, above all, skill and skill. And this takes time. Therefore, taking a realistic look at things, let’s first turn to cold forging and gradually begin to create a business.

Sales market and competition

Any production is consumer-oriented. Therefore, first you need to study the demand for forged products in your area. Are there cottage villages nearby, individual construction, are orders from the municipality possible?

Get to know your competitors, real and potential. These are not only business colleagues, but the production of this area, located nearby. Forge shops, which are now being opened by large metallurgical enterprises; imported forged Turkish products, very cheap compared to custom-made ones produced in a small workshop; products from Europe, which are more expensive than Turkish ones, but also in demand.

Even a funeral agency that has its own small workshop producing monuments and fences will also compete.

The creation of paving slabs is more relevant today than ever: more and more people want to improve the appearance of their garden, yard and just the surrounding area. Read in ours how to realize yourself in this business.

Fundamentals of the bookmaker business:

We are starting to produce products

Exists standard product list, with which all blacksmiths begin:

openwork grilles and gates;
fences of all types and purposes;
canopies for porches;
garden furniture and gazebos;
bars on windows;
fireplace accessories and so on.

Over time, you can switch to producing exclusive products. This requires experience and the availability of individual orders. For example:

knight's armor for the interior of a country house;
unusual lamps (garden and indoor);
parts for furniture, etc.

Video: DIY metal forging as an art

DIY forged elements: where would we be without advertising?

Any business, big or small, needs advertising support.

You can use local media for this purpose by posting photos of products, your interview, customer reviews, or a large article about your business.

Use the Internet. For example, at least just submit ads on Avito.

Many large and small cities hold festivals of folk crafts, including blacksmiths, on City Day. (For example, every year in August such festivals are held in the ancient city of Ustyuzhna, Vologda region, where blacksmiths come even from abroad).

Profitability of the blacksmith business

Let’s take as a basis the situation that you made the first trial product in your garage and have not yet registered as an entrepreneur:

a set of the most necessary equipment for cold forging - 400 thousand rubles.

Now let’s calculate the cost of producing 1 meter of garden trellis with a height of 2 m:

metal – 500 rub.;
Anti-corrosion coating - 15 RUR;
electrodes – 20 rubles;
electricity – 100 rub.;
miscellaneous expenses - 400 rubles.

Total 1035 rubles.

One meter of forged product costs on average 3000 and above.

This will take more time if you have built a workshop. But this is also a more serious investment in business.

Paperwork

Creating any business starts with. Without it, it is impossible to issue the relevant documents. In many regions of the country you can get a good business plan.

Further registration must take place in accordance with the Law “On State Registration of Legal Entities and Individual Entrepreneurs dated August 8, 2001 No. 129-FZ”.

Metal forging ── is a promising line of business, and with proper organization it will flourish successfully.

The constant technological progress inherent in modernity is gradually displacing from our lives handicraft (manual) production and crafts that have come down to us from our ancestors.

But cold forging can undoubtedly be classified as a craft that not only maintains competition, but is also gaining increasing popularity.

Forging elements are actively used:

in the construction and design of country houses, residential premises and offices,
in the production of furniture products,
in the funeral business.

It is very difficult to imagine the exterior of a modern building without beautiful wrought iron grilles, gates and gazebos. Due to this cold forging products are in great demand and relevant. This is one of the main factors that budding businessmen pay attention to.

Forging combines art and ancient craft, thanks to which the cost of products is assessed not by the cost of the material, but by the complexity and beauty of the created structure.

Thus, the sale of finished products or the provision of cold metal processing services to the population is a very profitable and promising line of business for beginners.

Features of production organization

Forging is usually associated with traditional blacksmithing, where metal is manipulated after it has been heated. Such forging requires special training and a certain level of skill from the blacksmith, which is honed over the years.

The process of “hot” forging is very labor-intensive and time-consuming: the metal is heated in special furnaces until it becomes “soft” and with the help of hammers, a press and other devices it is given the desired shape, after which the part is cooled.

Today, cold forging technology has gained popularity..

Craftsmen process metal using special equipment, so the process takes less time, and the finished products are much cheaper for customers.

It is much easier to master this technology, which is attractive for beginning entrepreneurs. However, according to reviews from professionals, the cold forging business has its own specifics, which should be taken into account when organizing the business.

Market analysis and competition

Before starting any business, it is necessary to analyze the sales market, determine consumer preferences and identify the level of competition. However, cold forging products do not fall into the category of essential goods, which complicates the solution of these problems.

In the process of determining the need for forged products the following points need to be clarified:

The number of workshops and forges that are already operating in your region.
What is the demand for forged products and in what volume?
Where can you sell your products?
Determining the seasonality of business.
What price category product will satisfy user needs?

Once the answers are received, entrepreneurs will be able to make a final conclusion: is it necessary to start a cold forging business in your area?

Mastering technology

Without special knowledge and skills, it is difficult to organize a cold forging workshop.

An entrepreneur will be very tempted to hire an experienced specialist, but at the initial stage of the business this is not recommended, since he will need to pay a large salary and you will be very dependent on him.

Therefore, before starting a business, a businessman will need to undergo training himself. Theoretical knowledge can be gained even through the Internet: there is a lot of information on the Internet on artistic and cold forging technologies.

However, in order to learn how to cold metal work, you need practice:

You can get a job as a production worker or become an apprentice to one of your competitors.
An experienced professional should only be hired if there is no other choice. But even in this case, be sure to agree with the master that he will teach you his craft.

After the entrepreneur goes through the training process, he needs draw up a detailed business plan for the implementation of your idea. In this case, it is necessary to use the information obtained in the process of market analysis and training.

The success of a business will depend on how well the business plan is drawn up and how accurately it is implemented.

It is worth noting that in some regions of Russia there are programs for state subsidies for small businesses, and financing of the idea is carried out on the basis of a business plan.

What will you need at the start?

Practical steps to organize any business must begin with state registration. The procedure is described step by step in the law “On State Registration of Legal Entities and Private Entrepreneurs”. In accordance with the law, a person engaged in entrepreneurial activity and receiving a permanent income must register as an individual entrepreneur or LLC.

Selecting a room

The room must first meet all fire safety requirements. The minimum workshop area should be 20 square meters. m. In addition, electricity must be installed.

An insulated garage can be an ideal place for a workshop. It is worth making sure that production noise does not disturb the inhabitants of nearby residential buildings.

The cold forging process involves welding, which cannot be done in a small enclosed room. In addition, you will need a place to store finished products. For these purposes it is necessary to organize a canopy at the workshop.

An entrepreneur must ensure that the premises had a wide access road for trucks. Otherwise, the process of unloading raw materials and loading finished products will become more difficult.

Equipment and tools for the workshop

It is impossible to imagine a cold forging workshop without special equipment and tools. One of the main expense items is investment in fixed assets.

At the initial stage for manual cold forging you need:

Welding machine.
Gnutik, used for bending metal. It is the main tool for cold forging.
Wave. Serves to give the metal a wave-like shape.
Snail. It will help to give a spiral shape to metal rods.
Twister. Used to twist a metal rod around an axis.
"Flashlight", which is one of the varieties of twister.
Crafting table, with a vice.
Bulgarian.
Grinder for cleaning the surface of metal structures.
Hammer, which may be needed when installing finished products.

At the initial stage, this equipment will be sufficient in the workshop.

The most famous brands on the market that produce high-quality equipment are the German Eizenkraft and Metalkraft.

The process of making curls using the cold forging method using a snail, see the video:

Purchase of raw materials

For that, To save time and not miss an urgent order, you should stock up on raw materials in advance.

The cold forging process uses:

Low carbon steel blanks.
Various metal profiles: square, sheets, corners, rods, etc.
Auxiliary components: anti-corrosion paint, primer, solvent and electrodes.

It is necessary to purchase raw materials from trusted suppliers, which can also be found via the Internet. In this case, it is worth paying attention to the consistency of price and product quality.

Product range

Ideally, a cold forging workshop should work to order, because in this case there is no need to sell the goods.

However, for new entrepreneurs, especially if there is a lot of competition in the market, it is difficult to get an order. That's why at the first stage of work, you can start producing current products and their subsequent sale.

As the portfolio expands and authority emerges, large orders will come.

At the initial stage, it makes sense to produce the following types of products:

Metal bars on windows.
Wickets.
Canopies for the porch.
Fences for various purposes.
Fireplace accessories.
Garden gazebos and garden furniture.

Example of financial calculations

Costs for starting a business - 720,000 rubles.

One-time expenses– 635,000 rub.

State registration – 10,000 rub.
Organization of work space (repair and equipment of the workshop) – 25,000 rub.
Purchase of a minimum set of equipment and tools – 400,000 rubles.
Purchase of the minimum volume of raw materials – 200,000 rubles.

Monthly expenses– 85,000 rub.

Rent of premises – 15,000 rub.
Salary fund for employees (2 foremen) – 50,000 rubles.
Utility costs – 10,000 rub.
Other expenses - 10,000 rubles.

The average markup is 200% on the cost of production. In a fiercely competitive market, this is the most common markup on cold forging products.

For example: the production of 1 m of lattice for a garden 2 m high costs 535 rubles. (metal – 500 rubles, anti-corrosion paint – 15 rubles, electrodes – 20 rubles). To this amount is added the corresponding share of current expenses (85,000 rubles/250 products per month = 340 rubles).

The planned markup is added to the resulting amount (535+340=875 rubles). As a result, the minimum cost of 1 meter of grating is 2,600 rubles.

Conclusion

Cold forging is more related to the service sector, therefore To determine the profitability of a business, it is necessary to calculate finished products.

It is worth noting that the success of your business will depend on how well you manage it. If an entrepreneur manages to use all production capacities and quickly sell finished products, then the profit from the business will be large and constant.

Artistic forging has always been popular among buyers, although sometimes the prices for such products are too high. Despite the economic crisis, many private developers want to improve their home or site, for example, with a wrought-iron fence or handmade interior elements that not only look good, but are also a quality product.

If we talk about current realities, then it is better to launch artistic forging as a business either in large cities or in the suburbs. The price tag for these products is serious, and you need to primarily focus on the target audience, and these are wealthy people, of whom there are not many in the provinces. The second option is to work in a small town, with subsequent resale to a metropolis, but here you already need to attract the client by price and quality, and be able to convince him why he needs to use your services.

Who is a business selling forged products suitable for? Firstly, for people with a welding education who love to make beautiful and creative things and want to open their own business. Secondly, if you do not have a specialized education and work experience in this area, you will not be able to compete in the market, unless you hire qualified specialists. But as experience shows, if you don’t personally understand this, you will not be able to control the level of work done, and it will be difficult for you to evaluate all the business processes taking place. Alternatively, you can get a job as a welder in some competing company, work there and gain experience, and only then start your own business.

Documentation

To legally work in this direction, you will need to obtain all permits and receive all documents.

Here's a basic list of what you'll need:

open an individual entrepreneur or LLC.
indicate OKVED for the activity. For Russia it is 25.50. For Ukraine – 25.50.
If necessary, hire personnel.
conclude a rental agreement for premises or a deed of purchase and sale.
obtain permission to operate from the fire department.

These are the basic documents that you will need; to obtain more detailed information on this issue, it is advisable to use the services of a lawyer.

Technology selection

Before starting a metal forging business, you should decide what technology you will use. There are two main directions here:

cold forging.
hot forging.

If we talk about hot forging, then this is an ancient type of craft that requires special skills and abilities from the blacksmith. The entire manufacturing process of the product is carried out manually by heating the metal over a fire and then manually shaping the design. At the moment, the list of such masters is very small, but the price tag for unique products here is high.

At the start, we would advise you to look towards the cold forging business. This is the most commercially attractive option for a novice master. The base of the structure is also bent by heating the metal, but all decorative elements are purchased in stamped form and are subsequently attached to the base of the frame by welding. Due to the simply huge assortment of various stamped forging elements, the master can immediately draw a sketch of the future product and implement it step by step. The cold forging method reduces the production time of the same gates or benches and at the same time is not inferior in quality to the approach given above. A plus is the lower price tag for the products, which cannot affect sales volume, even during a crisis.

Searching for markets and assessing competition

The first is the issue of competition in the field of sales of artistic forging. In large cities, the level of competition is quite high, but at the same time, it is quite possible to start using online sales and advertising yourself on social networks, which many forges are not doing at the moment. In small towns, there are several such private enterprises, but you can also work there, since often either the quality of the products is poor, or the deadlines are delayed, or the price tag is inadequate. When considering this business idea, we can conclude that although the niche is filled with experienced players, with the right advertising approach, you can always get regular customers and take your place in this field of activity. Often it is your name as a brand that is formed, and people will turn to a specific master on the advice of friends and relatives. So, keep an eye on the company’s image through high quality and reasonable prices.

To analyze the market, you need to study the following questions:

the number of competitive firms in your region.
volume of products sold.
pricing policy of enterprises.
the presence of good craftsmen and assessment of the quality of products in general.
how well their business is promoted, and what advertising methods are not used.

The main task is to find the weaknesses of competitors and fill this gap when organizing your own forging business.

The main markets include:

owners of private houses.
government agencies.
business structures.
sale of forged products in retail stores (tables, chairs, shelves).
funeral service agencies. For the design of fences at the cemetery.

These are just some of the options. In fact, everything will depend on what products you will focus on, for example, the production of interfloor stairs, this is a narrow niche, but it can bring in a solid income if you provide beautiful examples of work and a market price tag for services. You can start with a narrow segment, gradually expanding the list of works.

Location and premises

For a business producing and selling forged metal products, you will need to rent premises. The best location would be on the outskirts of the city. Why? Firstly, this is a low price tag for renting space. Secondly, forging involves a fairly noisy process of making the product, and this way you will be able to avoid complaints from your neighbors.

You can rent either a garage or a small hangar. For work, you can consider options from 60 sq.m. and more. All this is needed in order to divide the room into work areas. There should be several of them:

area for installing a work table and a shelf with tools.
a place for connecting welding and other equipment.
space for painting and sanding.
warehouse for storing finished products and materials.
staff rest area and bathroom.

This segmentation of the area will allow you to organize the entire process as conveniently as possible.

Equipment for artistic forging

Equipment plays an important role in the quality of the resulting products, of course, with the practical skills of the craftsman. In order to work comfortably, you will need a basic base of tools, and it is for this that you will need to allocate a separate item in the expense item when drawing up a business plan for a company for the production and sale of forged products.

Here is the basic list of what you will need:

welding machine.
Desktop.
workbench with cleavers.
Bulgarian.
cold forging machine. It heats up the metal and then changes its shape, for example twisting, bending, etc.
Grinder.
air compressor for painting products.
lathe, drilling and milling machines.
hood.
hand tools (hammer, screwdrivers, wrenches).
security alarm system.
furniture for staff.
racks and shelves for storing tools.
structures for storing finished products.

Depending on the focus of your business, you may need additional tools and accessories. Also, do not forget about safety precautions and always use gloves, safety glasses and masks.

Raw materials and components

The next stage is the purchase of consumables and ready-made stamped elements for work.

steel.
metal profile (square, pipe, corner, round timber and others).
primers, paints and solvents.
electrodes.
grinding and cutting wheels.
stamped forged elements.

All these materials can be found in stores or warehouses with rolled metal. If you live in a small town, then you can take a small wholesale batch of stamping and start selling elements for forging in your city at retail prices. This can bring in a small additional income to the main activity.

How to make products look marketable?

The times of standard artistic forging, which our grandfathers were engaged in, are long gone; now all artistic elements are made using stamping. You can buy them in specialized stores, which are usually located in large cities. Their prices start from $1 and above. By taking a price list with pictures, you can think about your future product in advance.

Product range

As we said above, in the forged products business you can choose two development paths. The first is to choose a narrow niche and build your portfolio in this direction. The second is to initially have different product options. Which one to choose is up to you. It is important to remember that the more examples of work you can provide to the customer, the more likely he is to buy your product. Also, using photographs of the work, you can often sell the client the version of the design that you have already implemented in practice, this will save your time, and the client will be able to see the finished version of the product in a “real” format.

gates and wickets.
forged fences.
visors.
furniture.
fireplace accessories.
interfloor stairs.
interior items and more.

The list can be very long, since forged products are partly an element of creativity. And you can come up with many different options, apply this approach in everyday life or in the design of something.

Advertising

The issue of marketing strategy for such a company is very important. Of course, you can’t do without standard approaches. You need a bright, large sign so that customers who want to come to you can find you on the outskirts of the city. Advertising in the media and online bulletin boards still gives good results.

To attract customers from the Internet, you can create your own website and run contextual advertising or engage in search engine promotion, which many of these enterprises do not do. The main thing on the site is the portfolio, price list and contact information.

One of the extraordinary methods of attracting clients is to search for customers on construction forums or in groups on social networks. But to do this, you need to be active on specialized resources and, by the way, sell your services to the target audience.

How much money is needed?

To really estimate the cost of opening such a production in your business plan, it is important to calculate all the costs of organizing the forging process itself and the subsequent sale of products.

Starting investments:

purchase of tools – $10,000
documentation – $200
corporate identity and advertising products (sign, website) – $750
starting purchase of consumables – $1500

Monthly costs:

premises rental – $5 – $8 per 1 sq.m.
utility bills - from 10% of the rental amount during the heating season.
taxes – $120
salary – from $200 per employee.
advertising – $100
transportation costs for delivery – $80

We have indicated only the basic costs of this business. Your list may be longer if you plan to provide an additional set of services.

Business profitability

What markup do specialists in this field usually make? In fact, it is purely individual. But in most regions, the cost of the product consists of half the cost of materials, the other half is paid for labor. If you gather a clientele, you can earn good money.

It would not be a bad idea to think about the delivery of goods. But at first, you can use the services of a cargo taxi until you buy your own car.

Here is an example of prices for finished products:

Forged gates, wicket - about $160 per 1 sq.m.
Wrought iron fence - about $65 - $70 per 1 sq.m.
Balcony fencing - about $120 per square meter.
Stair railings - about $130 per m.p.

By assessing these values, you can predict the approximate level of earnings from certain products.

The payback period for a business is on average 1.5 years or more.

Conclusions. The forging business is a profitable niche for real craftsmen who live and are interested in this simultaneously creative and technical process. It’s difficult to attract a client and make a sale, but if you have a good portfolio, high quality work without delaying the deadline for the product, and an adequate price tag, you can find your audience. This business is a stable source of income for many years.

Do you have experience in this niche? We look forward to your feedback in the comments below.

Forged metal products have recently become an indispensable attribute of luxury cottages and private houses. Antique-style gates, elaborate fences, and ornate grilles become objects of admiration for others and pride for the owners. Wealthy people want to stand out among their peers with something original and exclusive. They are ready to pay good money just to emphasize that they belong to the class of “living beautifully.”

Such prerequisites gave rise to a new direction of entrepreneurial activity - the business of artistic forging.

Artistic forging: advantages of business

Once upon a time, artistic forging was a delicate art, subject only to great masters. In addition to talent, remarkable strength was also required. Nowadays, powerful hammers and manual pipe benders have been replaced by modern compact machines. A good blacksmith is now associated with an artist rather than with a hammer hammer. It is art education that is now relevant for businessmen who decide to make money from artistic forging. It also doesn’t hurt to know the basics of blacksmithing, but this can be learned quite quickly in special courses or from recognized masters.

To get started, you don’t need a specially equipped room. At first, even an ordinary garage will do, as long as it has heating (there’s plenty of work in winter too) and water supply.

The initial investment is not intimidating due to the number of characters. 350 thousand (Russian rubles) should be enough to purchase equipment. Multifunctional machines are able to solve specific problems and are ready to work with heavy loads every day. The productivity of the equipment is high, so the final result largely depends on the qualifications of the personnel. You can find experienced craftsmen for a decent salary.

If orders come in, the money spent will be returned within a few months. If the business expands, there will be no problems with the relocation of machines - the equipment is compact and transportable.

A good place for a future workshop seems to be the entrance to an elite suburban village or exit from the city.

Equipment and raw materials for forging

The central unit is a universal forging machine (Russian production will do), adapted for both cold forging operations (spiral curling, longitudinal twisting of a metal rod) and hot (heating up the metal, end rolling of a rod).

A welding machine capable of welding and welding (direct current) low-carbon, low-alloy, corrosion-resistant steels and cast iron is required. The welding table is equipped with a hood and good lighting.

To cut and process products you will need a grinder and an abrasive cutting machine. For crimping pipes and for painting work, a piston compressor is needed. A workbench with a vice, a good-quality anvil and various shelving wouldn’t hurt.

Over time, it will be appropriate to acquire lathe, drilling, and milling machines. Time will also tell you what other equipment you will need.

The initial raw materials, which are steel billets made of low-carbon steel (St0, St1, St2), can be purchased at any metal depot. Metal profile - round timber, square, sheet, corner, pipe.

It is necessary to create a supply of consumables: anti-corrosion paint, primer, solvent, electrodes, cutting and grinding wheels, coke, patina and others.

A little advertising

Advertising support for activities has never harmed anyone. You can not only tell, but also demonstrate your achievements in the media, the Internet, on advertising banners and next to your own workshop. Exhibits placed in a prominent place will be the best invitation to cooperation. The range of artistic forging depends on the skill of the craftsmen. These can be forged fences and gates, garden benches and gates, window bars and stairs, iron furniture and fireplace accessories, exclusive lamps and knight's armor. Often, the expansion of the assortment is facilitated by unusual orders, which over time become permanent.

Expenses and income

Let’s simplify the task of conditionally calculating profit by assuming that you are located in your own garage and make your first orders (for example, a forged grille) without registering an individual entrepreneur.

The total cost of the initial set of equipment will be about 350 thousand rubles, of which a universal forging unit will cost up to 250 thousand.

The following materials will be used to produce 1 m2 of average complexity grating:

rolled metal worth 450 rubles;
anti-corrosion paint - 12 rubles;
abrasive wheels - 12 rubles;
propane - 5 rubles;
electrodes - 13 rubles;
electricity - 48 rubles;
workers' salary is 200 rubles.
overhead costs - 230 rubles.

Total: the cost of 1 m2 of grating is 970 rubles/m2.