Starting a successful roll-forming company is much more than just shaping steels. It requires intensive engineering, innovating, and strategic planning – the right combination of which can help you establish a lucrative roll-forming business.
How? Here is our five-step guide to building a successful roll-forming company from scratch. But, first:
What is a Rollforming Company?
A roll-forming company specializes in shaping metal coils (particularly steels) into specific cross-sectional profiles. These customized profiles are then used in various industries, including:
- Construction: Wall and roof panels, framing components, and window casing
- Appliances: Panels, frames, ducts
- Automotive: Parts of engines, transmission, and bodies
- And more…
Given the vast use of roll-formed products in various industries, their demand in the market is high, with limited competition and high profitability. Versatility, efficient production, scalability, and minimal material waste further add to the charms, making it an excellent business opportunity for you.
5 Steps to Building a Successful Rollforming Company
Market Research and Business Plan
As with every business, a roll-forming company needs a comprehensive business plan powered by detailed market research. This will form the base for understanding your market landscape, identifying opportunities, and developing a roadmap for success.
So, start with market research. It should include:
- Industry analysis: Current trends, growth projections, key players, market segments, and roll-formed product needs in different industries.
- Competitive analysis: Rollforming services and products, market positioning, pricing strategies, customer base, and gaps/underserved niches where you can shine.
- Customer research: Target market’s needs, preferences, and purchasing behaviors. Use customer surveys, interviews, and focus groups for precise understanding.
With the research done, flesh out your business plan with:
- Executive Summary: Company mission, vision, objectives, target market, financial projections, etc.
- Product and Services: Outlines your range of profiles, materials, and customization options. Also, mention value-added services, like prototyping, design assistance, or finishing.
- Marketing and Sales Strategy: Describe channels, tactics, and messaging you’ll use to get customers and drive sales. Add your pricing strategy, sales forecast, and revenue targets.
- KPIs and Evaluations: Define the KPIs for your company and how you’ll track and monitor them.
Choose Your Factory Location
A Rollforming company needs a spacious location suitable for different types of machines. The terrain should also be feasible for installing the inventory and factory operations.
Another factor you must consider is transportation. Since the factory will need consistent supply and deliveries through large vehicles such as trucks or container lorries – select a convenient traffic point open to major roads for easy steel transportation.
To further save rental costs, you can opt for rural areas (at least 10km away from urban). It’ll also help save on other factory facility costs.
Next, the business premises should have open spaces for your company workers. Ideally, it has to be airy with proper ventilation. Also, avoiding residential areas is best since the manufacturing process will be loud.
Consider the Total Cost of Ownership
A roll-forming business comes with unique expenses that you must consider. The following are the major ones:
Cashflow: A roll-forming company is best suited for high-volume production. You have to work with the customers to factor in all the expenses associated with raw materials, tooling, time, assembly, prototyping, production, and shipping – plus how these factors will impact your cash flow.
Demand Forecast: Since high-volume production often leads to less production agility, you can often overproduce. To avoid this, identify the parts most appropriate for Rollforming. For example, you want to focus on versatile components that can be quickly produced in mass quantities over highly customized components with shorter life spans.
Inventory: This will be one of the biggest investments of your business (discussed next).
Depending on the above and the scale of each project, estimate your financial budget.
Select the Rollforming Machine
Start by determining the type and shapes of sheets you’ll be producing. Consider the material’s width, thickness, and complexity. Analyze your anticipated production volume.
Based on the above and your budget, here are the types of roll-forming machines you can choose:
Roofing Rollforming Machine: Popular amongst beginners, this is widely used since it offers a variety of speed options from the slowest 20 meters/ min to 60 meters/ min. It has a high potential to bring in good profits and scalability.
Crimping Curve: This can be easily combined with a roll-forming machine to create curved domes used for building eaves. It’s also flexible to use in container trucks and bending trucks.
Step Tile Rolling Machine: Great for special architectural projects due to high aesthetics.
CZ Purling Combination: This can help save space and labor since one machine can produce two formats (C and Z) in 20 different sizes.
Whatever you go for, make sure to demo and test the machines. Also, opt for ones that can be easily upgraded and integrated with other equipment as your company scales.
Invest in Prototyping and Testing
Starting a roll-forming company needs a massive upfront commitment of time and money. Make sure your investment is right – the profiles fit well with other parts.
In the early stages of the process, invest heavily in testing. Prototype and evaluate the profile’s fit, function, and form.
Gear Up for Success
Building a successful roll-forming company is a complex and time-consuming process. You have to be cautious with every decision, from choosing the location to the machinery and professionals. The high upfront investment makes the business even more challenging.
However, when implemented and operated right, it can be one of the most lucrative businesses. Therefore, use the above-mentioned tips as a stepping stone and set your roll-forming company into motion.
