Five Profitable Steel Business Ideas for 2018
The foundation of modern civilization is laid in steel, so you can rest assured that in the foreseeable future, the iron and steel industry is not going to go out of business in the US. However, that doesn’t necessarily mean every business which opens up in the sector is a resounding success though. While there are a lot of factors that usually decide how a business is going to pan out, here are five steel business ideas which are the most likely to be successful, owing to the high demand for these parts in the industry right now.
Nuts, Bolts and Screws
Whether you are trying to construct a house or a car, you can’t do it without screws, nuts and bolts, so starting a manufacturing plant for these fundamental components is actually a great idea. Do be careful with the materials you use for the manufacturing because if you get a bad rep to begin with, it’s going to be very hard to come back from that. Always use superior stainless washers in your products and avoid the cheap materials at all cost. Also, do a market survey first to find out how much competition you have in the area and what would be a lucrative price point for your manufactured products to enter the local market with.
Mild Steel Wire
There are two types of mild steel wires (MS wires) and they are as follows.
Copper coated MS wire– Used in metal inert gas welding and area welding process, copper coated MS wires are always needed in the shipbuilding, railways, petrochemicals, cement and fertilizer industry, to name a few.
Galvanized MS wire– Barbed wire and screen rivets are the main products that are manufactured from galvanized MS wires, along with a range of other fasteners.
If you are planning to start a business in steel, you probably know that this is one of the prime products in the industry, but the competition is steep. Even then, if you can afford the upfront cost and manage to survive the initial struggle, manufacturing thermo-mechanically treated bars can be extremely profitable.
The welding industry is intricately associated with the steel industry and you could supply both small and large industries by going into the welding electrodes manufacturing business. The demand for these are virtually limitless, so your chances of success are pretty high, especially due to the fact that it’s a relatively low-investment manufacturing field.
The Hardware Store
This is the place where people come to pick up what they need and unless there are a lot of hardware stores in your area already, there’s a good chance that your store will see good profits. Depending on whether you are trying to serve businesses or individuals, the size and contents of the store will vary, but keep in mind that while it’s a relatively safe business to retail, it is not as profitable as manufacturing your own steel parts are.
Note that while the businesses on this list are very likely to succeed, a lot depends on your own prior experience and connections. Nevertheless, every veteran steel trader was once a novice, so don’t let it stop you from starting the business, but keep in mind that it might take a while for your establishment to see significant success.