Local steel yard for fabricators and builders

Small fabrication shops, builders, farmers, engineering workshops, and tradies who need steel at short notice.

You buy in bulk from mills or larger suppliers and sell at a markup. Extra income comes from cut-to-size fees and delivery charges. Trade accounts bring repeat orders.

• Knowing steel grades and sizes
• Pricing and negotiating with suppliers
• Stock control and organising a yard
• Customer service with trade customers

• Zoning and council approval for your premises and any truck movements
• Forklift and crane work usually needs a high risk work licence, so check your state's workplace safety regulator
• Public liability, stock and property insurance, plus workers compensation once you hire
• Steel prices can move quickly, so tied-up stock can lose value
• Customer credit risk on trade accounts, so consider credit checks and clear payment terms
• Check whether your customers need steel certified to Australian Standards, with paperwork you can provide
• Startup costs are mainly initial stock, racking, a saw, a forklift, and a lease deposit, plus working capital while trade customers pay on account

Estimates suggest startup costs are typically around $130,000 to $350,000, depending on initial stock, racking, a saw, a forklift and the lease deposit. You also need working capital while trade customers pay on account.

Monthly revenue is typically estimated at around $20,000 to $80,000, depending on stock range, customers and steel prices. That is revenue, not profit. Steel prices can move quickly, so tied-up stock can lose value. Expect about 35 hours a week or more.

Check zoning and council approval for your premises and truck movements. Forklift and crane work usually needs a high risk work licence, so check your state's workplace safety regulator. Also check insurance, and whether customers need steel certified to Australian Standards.