This mobile welding business plan example is a result of the booming construction industry. When developing your business plan be sure to ask yourself how the wider sector will affect your startup. For example, if construction was expected to slow you may reconsider starting a mobile welding business.
Furthermore, be sure to perform a market research analysis prior to pouring your life savings into the new company. It is always important to know how viable and in demand your product or service is before writing a business plan.
Are you interested in starting a welding business, but not sure where to begin? Or maybe you’re already in the welding business, but struggling to attract customers and increase profits. In this blog, we’ll explore welding business ideas, how to start a mobile welding business, how to market your welding business, welding trailer layouts, small welding business ideas, small welding shop layouts, welding project plans to download, and much more.
Let’s explore some welding business ideas. Welding is a skilled trade that has a wide range of applications. From automotive repair to construction, there are many different industries that require welding services. If you’re looking to start a welding business, here are some ideas to consider:
Mobile welding business: A mobile welding business is a great way to offer your services to customers who can’t come to your shop. With a mobile welding rig, you can travel to job sites and provide on-site welding services.
Small welding shop: If you have a space to work from, setting up a small welding shop is a great way to start your business. You can specialize in a specific type of welding, such as MIG or TIG, or offer a variety of services.
Fabrication shop: If you have experience in metal fabrication, starting a fabrication shop is a great way to expand your services. You can create custom metal pieces for customers, such as gates, railings, and furniture.
Welding education: If you’re passionate about welding and enjoy teaching, starting a welding education business could be a great fit. You can offer welding classes to hobbyists or professionals who want to learn new skills.
Starting a welding business can be a challenging yet rewarding endeavor. If you’re considering starting a welding business, you’ll need to invest time in careful planning and preparation to ensure its success. Here are the steps to follow:
Get certified: Before you can start a welding business, you need to be certified as a welder. Check with your local welding association or trade school to find out how to get certified.
Purchase equipment: You’ll need a welding rig, which includes a welder, generator, and other equipment. You’ll also need a vehicle to transport your rig to job sites.
Get insurance: You’ll need liability insurance to protect yourself and your customers in case of accidents or damage.
Create a business plan: Your business plan should include your goals, target market, marketing strategies, and financial projections.
Market your business: You’ll need to advertise your services to attract customers. Consider creating a website, social media accounts, and welder welding business cards.
In this article, we’ll also focus on effective marketing strategies for welding businesses. Without a doubt, marketing plays a critical role in the success of any welding business. Here are some marketing strategies to consider:
Create a website: A website is essential for any business, including a welding business. Your website should include information about your services, prices, and contact information.
Use social media: Social media is a great way to connect with potential customers. Create social media accounts for your business and post photos of your work, customer testimonials, and promotions.
Offer promotions: Offer discounts or special deals to attract new customers. You could offer a discount for first-time customers or a referral program for existing customers.
Attend trade shows: Attend trade shows and events related to welding and metalworking to network with other professionals and showcase your work.
Are you a skilled welder looking to take your business on the road? A welding trailer could be just what you need to offer your services on-site, without being tethered to a stationary workshop. With a well-designed welding trailer, you can take your skills wherever they’re needed most. Here are some tips for designing your welding trailer layout:
Choose the right size: Your welding trailer should be large enough to hold your equipment and materials, but small enough to be easily transported.
Install a workbench: A workbench provides a stable surface for welding and other tasks. Make sure your workbench is securely attached to the trailer to prevent any accidents or movement while in transit.
Include storage options: To keep your equipment and materials organized, it’s important to include storage options in your welding trailer layout. Consider shelves, cabinets, and toolboxes to keep everything in its place and easily accessible.
Install lighting: Good lighting is crucial when working on welding projects. Be sure to include adequate lighting in your welding trailer to ensure you can see what you’re working on, even in low light conditions.
Consider ventilation: Welding produces fumes and gases that can be harmful to your health. It’s essential to include proper ventilation in your welding trailer layout to ensure a safe working environment.
Include electrical outlets: Many welding tools require electricity to function properly. Be sure to include electrical outlets in your welding trailer to power your tools and equipment.
Incorporate safety features: Safety should always be a top priority in any welding business. Consider adding safety features such as fire extinguishers, first aid kits, and emergency exit windows to your welding trailer layout.
By designing a well-planned welding trailer layout, you can increase your productivity and efficiency when offering welding services on-site. It’s important to carefully consider your needs and preferences when creating your layout to ensure a successful and safe mobile welding business.
Now that you have learned about the various aspects of starting a welding business, you may be feeling enthusiastic about launching your own welding business. However, before you get started, here are a few more essential pieces of information to keep in mind. Knowing about small welding business ideas, small welding shop layouts, and welding project plans to download can be incredibly advantageous for aspiring welders looking to start their own welding business.
With small welding business ideas, you can identify unique opportunities in the market and carve out a niche for themselves. Having a small welding shop layout can help you maximize your workspace’s potential, streamline the workflow, and improve the overall efficiency. Welding project plans to download can provide welders with a variety of design options to choose from in creating their own designs. These resources can help welders save money, reduce waste, and increase their productivity. By utilizing these tools and ideas, welders can set themselves up for success in the welding industry.
1.0 Executive Summary
“Mobile Welding Co.” operating as “Mobile Welding Co.” (The company) was incorporated on January 5, 2019 in the province of British Columbia by owner operator Pete Gridwall. The company specializes in oilfield construction and maintenance, including the decommissioning of wellheads, structural fabrication, pipe fabrication, and trucking services.
Founder and owner Pete Gridwall is an Indigenous entrepreneur from the River First Nations and has been serving the Northern BC region with professional welding, inspection and maintenance services to the oil and gas industry since 2001. The company is seeking funding through the River Nation Business Loan Program.
This opportunity and business are led by experienced welder, Pete Gridwall, who has sector-specific experience and industry connections. Pete Gridwall is a Qualified Welding Inspector and has over 20 years of experience in the oil and gas industry. The company’s goal is to provide high-quality services to clients, always going above and beyond what is expected, while maintaining a high level of safety and compliance. The company aims to be inclusive of local indigenous people by prioritizing employment of local indigenous peoples, providing steady, reliable employment in nearby areas.
The company is seeking a $65,000 loan from the River Nation Business Loan Program to cover expansion expenses, operational expansion, and hiring of key personnel and staff accommodation. The River Nation Business Loan will be used for the purchase of a company truck, payroll expenses, and the leasing of a brick and mortar location. The company will also use the funds to maintain certifications such as CWB and Technical Safety Certifications.
2.0 Business Overview
Mobile Welding Co. provides professional welding, inspection and maintenance services to the oil and gas industry. The company’s services include well abandonments, structural fabrication, pipe fabrication, and trucking services and rentals.
2.1 Mission Statement
The company’s mission is to provide high-quality, safe professional welding, inspection and maintenance services to the oil and gas industry. The company also prioritizes indigenous hiring in all jobs to promote employment opportunities and economic development.
2.2 Vision Statement
The company’s vision is to be the leading oil and gas service company in North Eastern BC, providing competitive rates and excellent service to their customers on a year-over-year basis.
2.3 Core Values
Mobile Welding Co.’ core values are centred on providing the best, high quality service to their customers while creating an inclusive employment opportunity for rural indigenous community members. The company values strong relationships and going above and beyond for clients to deliver a superior service.
The company has achieved the following milestones thus far:
- Hired an administrative staff
- Purchased a second welding unit and trailer for the business
- Plan to purchase an additional truck to accommodate increased demand
- Developed a partnership with another company to expand offered services
2.5 Goals and Objectives
. The goals and objectives for Mobile Welding Co. are as follows:
- Grow the company’s human capital to allow Pete to take a director role
- Hire an Operations Manager
- Open a brick and mortar location in Fort St John equipped with housing for employees
- Increase employee productivity
- Increase website traffic
- Reduce expenses
- Open a second location in Kelowna
3.0 Market Analysis
Mobile Welding Co. primarily serves the oil and gas sectors located in Northern BC. The oil and gas industry relies on welders to build infrastructure such as rigs, pipelines, platforms, and is necessary when building, maintaining, and dismantling oil and gas infrastructure. Canada has oil and petroleum products, natural gas, and natural gas liquids. Alternatives to traditional oil and petroleum including liquid natural gas and compressed natural gas are increasing in Canada, expecting a 40% increase by 2040 (Canada Energy Regulator, 2021), indicating that whole global trends for oil sands production may be slowing globally, demand will maintain or even increase in coming years due to further energy transitions.
3.1 Government Regulations
Oil and gas construction companies are typically considered highly risky workplaces. As such, Mobile Welding Co. is required to abide by the following regulations: Worksafe BC Oil and Gas Guidelines, Canadian Welding Bureau (CWB), ISNetworld, Complyworks, and Technical Safety BC. All regulations require annual certifications and are subject to audit and inspection.
3.2 Market Trends
The Canadian Oil and Gas Construction Industry is currently valued at $7.8BN in revenue, with an annual growth rate of 4.7% between 2020-2025. While the oil and gas industry is dominated by a few key players, the oil and gas construction sector is highly fragmented between a number of smaller, independent companies and contractors. Most companies are dependent on location, serving a few key markets in specific geographic locations and work sites. Companies in the oil and gas construction industry determinants for success include the ability to accommodate environmental requirements, having a good reputation, ability to secure and manage external contacts, and prior success, meaning reputation, customer service, and performance are crucial in maintaining a successful business in this sector. As of 2021, there are 3,218 established units in Canada, and this is expected to increase to 3,454 by 2025.
3.3 Key Competitors
Mobile Welding Co. competes with other businesses located in Northern BC providing services to similar clients such as Endbridge, Petronas, Keyera and Canadian Natural Resources. The top three competitors are as follows:
Rumble Industries: is a general construction contractor providing services to oil and gas customers in the Northern BC and Alberta areas. Their services include general construction contracting, oilfield maintenance, specialized welding, and decommissioning of wells, facilities and pipelines, and environmental drilling. They hold an A Class Contractor license and are CWB certified for Stainless and Aluminum welding. Rumble Industries offers both on-site and internal fabrication and welding services, and offers a variety of on and off site services.
D-W Wilson: is a general contractor company serving customers in the Northern BC and Alberta area. They offer a variety of services including facility construction, fabrication, pipeline construction, maintenance, decommissioning and asset retirement, civil earthworks, and utility construction and maintenance. The company’s pillars are health and safety, quality, and environment, and have a number of programs and certifications in place to support these corporate values. Arctech Welding & Machining: is a welding and machining company based out of Fort St John, BC. The company specializes in structural steel and mobile welding. The company offers general fabrication, beam line, structural steel and mobile welding, with a combination of workshop and field welding services.
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4.0 Products and Services
The company has a variety of offerings in welding, well abandonments, and trucking services. Within each offering, the following services are available:
- Track repair for tracked equipment such as vehicles
- Ice lugging on tracked equipment
- Repair to cracks or damaged frames, buckets and blades
- On-site fabrication services
- Welding repair for structures, handrails, and pipes
- Wellhead cutting and capping
- Wellhead removal
- Full service well abandonment
- Trucking and Transport Services
4.1 Pricing Model
Prices are not standardized due to the variety in job type and complexity and variability of needs per job. Some jobs may require all offerings listed, while others may only require one or two. The hourly prices for each services are broken down below:
Welding: $140 per hour for labor
Welding Truck and Operator: $140 per hour
Welder Helper: $50 per hour
Crew Truck Operator: $140 per hour
Trailer: $200 per day
230 Backhoe: $250 per hour plus $285 per hour trucking fee
(typically one well abandonment job is complete in one 12-hour day)
Hydrovac/Combo vac/ Straight Vac: $290 per hour
16m3 Water Trailer: $745 per day
6-8 Axle Box Truck: $220-240 per hour
Potable Water Truck: $165 per hour
Truck Rentals: pricing varies
4.2 Competitive Advantage
The company’s competitive advantage is built on the strong capabilities of the Mobile Welding Co. expertise, commitment to customer service, and strong existing industry connections. Founder Pete Gridwall has 20 years of experience in the oil and gas industry, bringing a wealth of experience, knowledge and success from his experience operating Mobile Welding Co.. Pete instilled a culture of service, dedication and passion into Mobile Welding Co., ensuring customers are fully satisfied with the service provided.
4.3 Key Success Factors
Key success factors for this business are determined by the world price of crude oil, world price of natural gas, world price of steel, the value of nonresidential construction, and the Bank of Canada’s overnight rate. The industry has a low concentration of competitors, however many small independent competitors in respective areas compete for the same few large clients. As Canada, and the world shift towards more compressed and liquid natural gas, it is expected that demand for these resources will increase in key areas that Mobile Welding Co. operates.
5.0 Sales and Marketing Plan
The company primarily serves a few key contacts in the North Eastern BC region. The sales and marketing plan will focus on defining those key target customers and contacts, plans for generating customer awareness and consideration of the product, and key performance indicators that track and measure success.
5.1 Target Customer
The company’s target customers are large oil and gas companies that operate in Northern BC and Alberta. This includes Enbridge, Petronas, Keyera, and Canadian Natural Resources (CNRL).
Enbridge: is Canada’s largest natural gas storage, transmission and distribution company based in Calgary, with a more than 170-year history of providing safe and reliable service. The Enbridge Pipeline is the world’s longest crude oil and liquids pipeline system, with 27,564 km (17,127 mi) of active crude pipeline in both Canada and the United States. The company currently has active sites as well as pipeline infrastructure throughout Northern BC and Alberta.
Petronas: is an energy company that is one of the largest liquid natural gas providers in the world. Petronas Energy Canada provides exploration, production, extraction, and transmission services, with operations in Fort St John BC and Calgary Alberta. The company has a number of existing and upcoming projects throughout BC and Alberta.
Keyera: is one of the largest midstream oil and gas operators in Canada. The company services oil and gas producers in Western Canada and transports natural gas liquids such as propane, ethane, butane, condensate and iso-octane to markets throughout North America. Keyera operates within the midstream sector of the industry meaning that it isn’t focused on the production or refining of petroleum. Instead, Keyera serves customers by providing them with the means to store and transport various oil, gas and NGL products.
CNRL: is a natural gas, crude oil, and oil sands mining company that operates in North America. The company’s North America assets consist of conventional and unconventional natural gas, along with projects in light, medium and heavy crude oil, as well as in situ oil sands and oil sands mining and upgrading production.
5.2 Key Channels
The company will use a variety of digital marketing channels to advertise their services. These include social media, Search Engine Optimization (SEO), emailing, and phone calls. Additionally, key personnel from the Mobile Welding Co. team will visit key accounts in person, and use word of mouth marketing to generate organic sales.
5.3 Key Performance Indicators
The company will track the following key performance indicators (KPI’s):
- Profitability ratios
- Gross Profit Margin
- Customer Acquisition Growth
- Website conversion rate
- Relative Market Share
- YOY Sales Growth
- Retention Rate
- Employee Retention and Satisfaction
5.4 SWOT Analysis
6.0 Operational Plan
Mobile Welding Co. is wholly owned and operated by Pete Gridwall. His current staffing requirements range from 5-10 employees, with plans to hire more as the company grows. The company currently provides the majority of its services on-site, but has plans to open a brick and mortar workshop location as well as a staff accommodation facility.
The company will offer services to customers who will pay through 30-60 day net terms. Typically Mobile Welding Co. customers will contract the company for a number of jobs on site, and will pay as they are completed as per the terms of the contract.
6.1 Health & Safety
Mobile Welding Co. has a $5M liability insurance. The company is ISNetworld Certified, and the company carries CWB Certification. All employees are trained in H2s. First Aid Level 1, TDG, WHMIS, Ground Disturbance, Fall Arrest, Confined Space, ATV, Aerial Platform, Skid Steer, and Telehandler operations. All welders require a journeyman ticket and related CWB, and pressure piping certifications. All employees are required to undergo pre-employment drug and alcohol testing. The company also plans to hire a dedicated Quality Control and Safety Officer to ensure operations are held to a high standard of safety and compliance.
6.2 Equipment & Inventory
With the River Nation Business Loan, the company plans to acquire a new work vehicle, lease a brick and mortar shop, and certify Mobile Welding Co. through CWB and Technical Safety BC.
The company is registered at 778 Milwaukee Ave. in Kelowna, BC.
6.4 Risk Analysis
The oil and gas construction and maintenance industry is closely tied to the oil and gas industry, as well as the overall economy. The main risks associated with the oil and gas industry sector are as follows:
Residential Construction Rates: Oil and gas infrastructure is inversely impacted by the levels of residential construction rates. Therefore, if residential construction rates increase, this will result in less funding allocated to oil and gas construction projects.
Resource depletion: As a non-renewable resource, depletion is a major risk that impacts the longevity of the oil and gas industry. As oil wells dry up and sources become depleted, stakeholders and companies may look to other major oil-producing countries.
Political risk: Changing political environments have the potential to impact regulatory requirements for oil and gas production. Increasing public awareness and negative outlooks on the sector can also influence public policy towards more renewable energy sources.
The overnight rate: The overnight rate is a rate set by the Bank of Canada at which major financial institutions borrow and lend short-term funds to one another. When interest rates are low, construction activity typically picks up due to low-cost financing. Conversely, higher interest rates make it more difficult to obtain financing for costly oil and gas construction projects.
The World Price of Steel: Steel is the primary input for pipelines and components used for oil and gas infrastructure construction. High steel prices result in high pipeline and building component prices, which put pressure on the industry profit margin. Although oil and gas infrastructure contractors can pass along some costs to downstream operators, rising steel prices typically lower industry profitability.
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7.0 Management Team
Owner and Operator
Pete Gridwall proud, River First Nations Band member with 20 years’ experience in the oil and gas industry. He is a highly qualified, motivated individual. He strives for efficiency, quality, and integrity, with safety being my utmost priority. He has owned and operated his own business for the last 10 years which has been instrumental in gaining extensive knowledge and capabilities within the oil and gas sector. Pete has his Level 1 Welding Inspection with CSA, BCP 100 Alberta Level Welding Ticket, A and B Level Welding Ticket, and is CWB Certified for SMAW and FCAW for all positions. He has worked on jobs with companies such as Gaslink Industries, Triple J Pipelines, IPAC Services and Keyera Corp as a prime contractor and welder. Pete is experienced and prepared to lead the Mobile Welding Co. team forward to success.
7.1 Key Personnel
Operations and Sales Manager
Salary: $120,000 annually
- Managing client relationships through all the stages of the sales cycle
- Locating prospective customers, generating them into leads, and converting them to customers
- Meeting or exceeding weekly, monthly, and quarterly sales quotas
- Using strong research skills and deep product or industry knowledge to answer any questions about the product
- Preparing and submitting sales reports to management
- Keeping contact lists and following up with current customers to continue building relationships
- Become a subject matter expert in operational policies and procedures;
- Assist in the development of company guidelines and policies (office policies, operational policies, internal policies, expense policies, office guidelines);
- Assist with developing processes that enhance accuracy and streamline processes while ensuring that regulatory compliance is met;
- Liaise between advisors and custodians to research potential issues within client accounts;
- Build and maintain strong working relationships with internal team and external business partners
- Assist in helping with manual Operational processing (working with backoffice on setting accounts, open accounts, process accounts and fund accounts)
Salary: $84,000 annually
- Collecting, interpreting, and reviewing financial information
- Predicting future financial trends
- Reporting to management and stakeholders, and providing advice how the company and future business decisions might be impacted
- Producing financial reports related to budgets, account payables, account receivables, expenses etc.
- Reviewing, monitoring, and managing budgets
- Developing strategies that work to minimise financial risk
- Analysing market trends and competitors
- Conducting credit checks on new and potential customers.
- Implementing debt collection policies and regulations of the company.
- Implementing deadlines for invoicing and payment collection.
- Monitoring the invoicing and money collection processes.
- Ensuring the timely collection of payments.
- Preparing monthly feedback reports on payment collections.
- Keeping records of invoices, deposits, and all correspondence regarding payment collection.
Salary: $240,000 per year
- Determine and define scope of work and deliverables
- Predict resources needed to complete project
- Obtain necessary permits, approvals, and other regulatory prerequisites
- Draft and submit budget based on scope of work and resource requirements
- Manage costs in order to meet budget
- Provide direction over contracts and subcontracts
- Manage construction schedule and activities
- Issue progress updates as needed regarding costs and timelines
- Ensure work is done in compliance with all relevant building and safety codes
- Select and manage subcontractor and supplier relationships
- Coordinate efforts across entire project between all involved parties
Salary: $120,000 annually
- Supervises and coordinates activities of workers
- Requisitions supplies and inventory
- Inspects work to maintain specified standards and quality.
- Trains workers in operation of equipment.
- May set up machines or make trial welds to make test runs and experimental products.
- May supervise brazing and soldering operations.
- May supervise fitting and assembly of structural frames.
- Important variations include location of workers supervised, such as in-plant, job-shop, construction site, or oil sand.
Salary: $78,000 annually
- The preparation of the companies QA manual control and supervision of all amendments and revisions
- Control and the distribution of all the companies quality documentation
- Monitor all quality related activities on the project
- Perform all internal and external audits on behalf of the companies management
- Verify contractor quality requirements are specified to vendors and contractor documentation submittals.
- Attend all pre-bid meetings and coordinate all project requirements with the project bidders.
- Attend client quality management meetings
- The preparation and control of project quality system management documentation prior to project commencement.
- Review quality inspection personnel qualifications and training requirements
- Monitor the disposition of all issued nonconformance reports.
- Monitor the progress and effectiveness of the project quality management system. Recommend and implement improvements when required.
- Coordinate all QA/QC activities with the site QC manager
- Coordinate all QA/QC activities with the site QA/QC procurement manager
- Coordinate all quality related correspondence with the customers representatives.
- Monitor statistical method reporting.
- Action and close all customer complaints
- Control all achieved documentation upon the completion of the project.
HSE Safety Officer
Salary: $78,000 annually
- Administer First Aid to personnel for designated jobsite
- Promote a culture of safety within organization and on jobsite
- Support the enforcement of safety processes, practices and safety management plans
- Manage return to work program for site staff
- Coordinate with WorkSafe BC regarding site specific injury management
- Monitor compliance of company health and safety policies and procedures
- Ensure a safe working environment for all personnel and third parties
- Raising health and safety awareness and reporting on key issues
- Advise on provisions to minimize safety risks
- Enforce OHS policies (e.g. accident reporting process)
- Collaborate with managers to ensure site complies with relevant safety legislation and regulations and identify safety issues
- Liaise with and report to official regulatory bodies on OHS matters
- Attend, participate and / or facilitate safety meetings including Safety Committee meetings and Toolbox Meetings
Salary: $78,000 annually
- Consult with employers to identify needs and preferred qualifications
- Interview applicants about their experience, education and skills
- Contact references and perform background checks
- Inform applicants about job details such as benefits and conditions
- Hire or refer qualified candidates
- Conduct new employee orientations
- Process paperwork
- Plan and coordinate the workforce to best use employees’ talents
- Resolve issues between management and employees
- Advise managers on policies like equal employment opportunity and sexual harassment
- Coordinate and supervise the work of specialists and staff
- Oversee recruitment and hiring process
- Direct disciplinary procedures
7.2 Recruitment Plan
The company currently operates between 8-10 employees based on demand and ongoing jobs. As the company grows, Pete plans to hire an operations and sales manager, financial officer, project manager, welding supervisor, HSE Safety Officer, and a Human Resources personnel.
The company will recruit on traditional platforms including Indeed, Workopolis, and Glassdoor. Additionally, the company will look to its network and contacts to source staff with sound experience and a strong reputation.
8.0 Financial Plan
8.1 Capital Requirements
8.2 Income Statements – Year 1
8.3 Cash Flow Statement – Year 1
8.4 Balance Sheet