Years ago, the majority of sheet metal contractors were involved in just residential work. In recent years, the trend has been toward the residential contractors doing light commercial and light industrial work. This is because manufactured sheet metal fittings, ductwork and specialty items are available today. Since many of these sheet metal specialty items are available from manufacturers, you need less equipment and machinery today to enter the heavy industrial and commercial market.
To some extent this is good because all your jobs are not tied up with one market. If there should be a slowdown in one type of work, you still have the other types of work to do since you are established in the other markets. For example, if interest rates go too high, less homes are built.
List your shop objectives and the type and amount of work you do. Then consider if you will be going into the other markets, or possibly you are going to expand your present operations so that you can do a larger volume of the same type of work.
Generally the minimum requirements for machinery for the one to three man shop doing residential and light commercial work include:
Shops that have a larger volume of work are faced with higher overhead — as your volume of work increases, so does your overhead. To remain competitive, you must have as much power equipment as possible, or as much as is available.
In some parts of the country, sheet metal work is not so competitive because there are not many sheet metal shops. In other parts of the country, there are many sheet metal shops, which makes a much more competitive market. What type of area you are located in will, in part, help to determine the amount and type of machinery and equipment you need. Regardless of your size, you must be able to remain competitive in your market. Frequently, this requires additional machines, depending what your competitors are doing.
In the last decade, more and more HVAC sheet metal contractors have completely automated their shops. To invest a large sum of money in this highly sophisticated machinery, it is obvious that a large volume of work must be done each year. When your volume increases, you cannot afford to handle ductwork operations piece by piece, particularly if there are quicker methods available that are being used by your competitors.