Do you know block molding is a very lucrative business? Do you know that to solve the Nigerian housing deficit of over 22 million housing units. Over N6 trillion will be spent? That’s how huge the potential of the housing project in the country. And blocks make up about 60 percent of building materials needed.
You can become a major supplier of building blocks for new house owners by starting your own block molding industry anywhere in Nigeria. A single one storey of four bedroom duplex with sitting room, dinning area, kitchen and store room might require an average of 3,500 of 9 inches hollow blocks.
The price of 9 inches hand mold block is N170 per block. While the cost of the vibrated or machine mold is N190. You might want to ask what’s the difference? The vibrated or machine mold is more stronger and it’s the builders choice.
It also makes profit sense in block molding business. Apart from molding blocks more faster when its machine mold, it saves you manpower, can reduces cement waste, presses the block hard enough to make it more glued together and stronger.
Introduction to Block Molding Business
Block industries are businesses that mold blocks for house construction. There are manual Block industries and there are also machine Block industries. You can choose to start as either of them or both of them.
You can use manual when your machine is faulty. But I recommend you have machine molding as your main work strategy. Machine molds are stronger and faster. Most builders prefer machine molds for their construction. It saves them loss of too many broken blocks.
However, the competition in the Block industry is also stiff, considering the number of them around and the ease of startup for Manual block molders. But by leveraging the mobile Block industry method, you are where more Block buying customers are located.
Other Types Of Block Molding Potentials
When we talk about Block Molding Business, it’s not limited to just blocks alone. Remember, you are an industrial company, don’t limit yourself to just one product. Explore other products in the Block industry sector.
Here are some of the opportunities you should explore:
- Paving blocks
- Lawn stones
- Roof Gutters
You will also need different molds for each Block type. It’s advisable you know the type or mold design customers like or better still get different mold designs of each Block type to give customers varieties.
However, you should only explore this opportunities if you have demand for them. You can make samples to display to enable you advertise and attract potential customers. You should also partner with builders and give them commission to recommend you to their customers or buy directly from you.
How Block Molding Industry Works
Block making, which is commonly known as block industry business is a lucrative venture. Don’t dwell on the idea that block molding is a vocation for the uneducated and unskilled. It’s now a lucrative business that can be scaled to become a large employer of labour.
It doesn’t matter either if you are a school dropout, a graduate, a professional or a retiree looking for profitable business to invest. Block molding is one investment opportunity to consider.
The block molding business is growing rapidly now.
Mobile Block Industry Model
While this article looks into the general strategy for starting a Block industry, you can also tweak the concept a bit with this mobile idea. This concept targets new and developing areas.
Once you identify a new area where new building are spreading up, like estates, you setup a mobile Block industry closely.
A mobile Block industry is a small and accessible unit to your target customers. This should be a rapidly developing area, with lots of construction work ongoing. It will ensure regular demand for blocks and easy delivery of blocks to your customers as well.
Average Retail Prices Of Blocks
There are two main Block sizes used in house construction, whether you are building bungalows or storey buildings, you will need either one or two of these Block sizes. The 6 inches and 9 inches blocks. It can come in hollow or solid form.
225mm, 9-inches Hollow Block
Vibrated – NGN 190
Hand Mould – NGN 170
150mm, 6-inches Hollow Block
Vibrated – NGN 180
Hand Mould – NGN 160
150mm ,6-inches Solid Block
Vibrated – NGN 210
Hand Mould – NGN 190
125mm ,5-inches Solid Block
Vibrated – NGN 180
Hand Mould – NGN 150
Estimated Profit And Cost Of Block Industry
We are using 6 inches Block for this example. Also note that some prices may differ with what is obtainable in your city. But this example is to help you understand the cost implication and profit potential of Block industries.
The average number of 6 inches blocks you can get from a bag of cement is 50 blocks. If you mold 15 bags of cement in one day, that will be 750 blocks. In 26 days, which is the number of days your Block industry would be operational in a month, that will give you 19,500 blocks. That’s not a standard number. Your demand should determine your numbers.
Requirements for Block Molding Includes the Following:
- Sharp sand
- Bag of cement
But in order to get an accurate profit and cost estimate, we will use estimate for a full double tipper load of sharp sand. That will help us estate number of bags of cement needed and cost of labour to come to our cost estimate for each Block.
- Double tipper sharp sand cost: N22,000
- Bag of cement cost: N2,500
- Labour cost: N700 per bag
- Cost of water won’t count Vince you require to have a borehole on site.
To mold the double tipper sand will be:
- Sand cost: N22,000
- 15 bags of cement: N37,500
- Labour cost: N10,500
- Total cost: N70,000
Profit Estimate For 750 Pieces of Blocks
From our average retail price of 6 inches blocks we have N150 for machine mold. And that will be:
- 1 Block price: N180
- 750 blocks: N135,000
- The estimated cost of making 750 blocks is: N70,000
- The retail value of 750 blocks is: N135,000
- That leaves us with an estimate net profit of: N65,000
And if you divide the production cost of N70,000 by 750 blocks you will get the actual cost estimate of making one 6 inches Block, which is N93 And that gives you a profit of N87 per blocks you sell.
Note: I didn’t add cost of operating machine. You can deduct that operational cost from your net profit and also depreciation cost.
Classification of Block Making Machine
There are 3 best known types of Block making machines.
* Laying machine
* Stationary machines
* Automatic stationary machines
The laying machines comes in two variants. The hydraulic and manual types. And each of them can make both the hollow and solid blocks.
The Hydraulics are wheeled machines that produce blocks and place the blocks on a concrete floor and then move to the next position where the new blocks will be placed. This process eliminates the need for wooden or steel platforms. The mold and piston move through hydraulic cylinders, and this creates a much stronger block. It equally allows the molder to use less concrete.
The Manuals on the other hand are manually executed machines that produce blocks at low cost. It is ideal for most start-up of small-scale block industry. The blocks are placed on a concrete floor and the machine is moved by the operator to the next laying. This procedure eliminates the need for block handling platforms and manipulators that usually move the green blocks and machine platform before the next blocks can be manufactured. Any type of mould can be mounted on the machine.
The stationary machines comes in three different variants. It has the hydraulics, manuals and manuals with vibrators.
The Hydraulics are stationary machines that makes blocks, while the blocks are placed on a wooden platform and then moved to the floor by the workers. The mould and piston move through hydraulic cylinders. Any type of hollow blocks can be molded.
The Manual machines produce blocks at low cost. The blocks are placed on a wooden platform and then transferred to the floor by the operator.
The Manual with vibrator of 1 or 2 Molds are manual machines that produce blocks of 1 or 2 moulds. The vibrator improves the quality of the blocks. The blocks are placed on a wooden platform and then transferred to the floor by the operator.
Automatic Stationary Plants
This machine have batch processing, automated concrete mixing and pressing systems. The transfer of the blocks is carried out by a transfer system, usually through conveyors.
The productivity of these machines, depending on the block type, can range from 12.000 to 20.000 blocks in 8 hours. Human effort is minimal. These are the most expensive machine but the most productive.
Effective Marketing Strategy For Block Molding Industry
If you make heavy investment in Block Molding Industry, take marketing seriously. The usual strategy for most Block industries is to mold Blocks and hope builders will come patronize them. And in some cases they do patronize them. But that’s not a sure way to get rich in Block Molding Business.
I believe you started the industry to make plenty of money. And if so, you need to make marketing the most important part of your business even than just molding blocks. What’s the use of molding blocks if nobody is buying them.
You need to develop more effective marketing strategy. In Nigeria there are so many graduates looking for jobs. You can empower these graduates by hiring them as marketers. Having up to 3 to 5 effective marketers will ensure your Block industry doesn’t lack customers to sell blocks to.
Don’t worry about how they will be paid. Imagine how much business they could bring to you that you may never have gotten in the first place. However, you don’t even need to pay them salaries. They will be employed on commission basis. You give them a commission from any business they bring to you.
That way, who is not working doesn’t get paid. And if you hiring effective marketers they too will be making enough money to motivate them to hunt for bigger clients. This strategy is the most effective in turning your Block Molding Business into a money making machine.
Action Points For Block Molding Industry
Starting a Block Molding Business would require some basic materials and accessories. The major challenge however is finding the right location to site your Block Molding industry. That’s the major investment cost in starting a Block Molding Business.
However, you can also rent am empty space for this business if you can’t afford to buy one yourself. There are mostly empty lands along major roads that you can rent from the owner to start the business. The owners won’t mind renting it out since Block Molding industries don’t usually build permanent structures.
Apart from the land, the other major cost requirement is the Block molding machine and the main raw material, which is cement. Although, when it comes to exact cost to setup a Block Molding industry, one can give you exact costs because the costs vary due to factors like location and your own sourcing abilities.
Step One: Get Land Located Strategically
The first important decision you make when starting a Block Molding Business is your location. You will need a land that is strategically located. You can choose to buy the land or rent it, if you cannot afford to buy.
But having your own land will also be an added investment. The location of Block industries are usually along accessible road. Having a real estate property in a good location might become a huge Assets in future.
And ensure the location has access to water. Your source of water is important too. Some places their water dry up during the dry season. While in some places you cannot drill borehole because water cannot be found in their ground.
Verify all that before tutting down your money on the piece of property. The location should be a dry land to avoid flood destroying the blocks and other raw materials during rainy season. So, check for both commercial and technical viability of the location.
Step Two: Buy And Install Your Machines
The most important machines you will need includes:
* Power Generator
* Block molding machine
* Cement mixer
And depending on the type of Block Molding machine you want to use will depend if you would buy a mixer separate. There are Block machines that automate the process from mixing to molding. You put the required bag of cement and sand. The machines takes in water itself like a washing machine, does the mixing and sends the mixture to the mold.
Your type of machine should be determined by your capital and how big you want to make it. If you are setting up in a small town if you go bigger you usually attracts all the businesses to yourself. People in small towns like to deal with the big companies.
Step Three: You Will Need Accessories And Materials
Here is where you acquire all the accessories and materials you might need for the Block Molding Business. These are just for startup, you may need to buy them more as you may need them in the future.
You need some wooden pallets. These pallets is where your blocks stay to dry out after moulding. You can get this from your local timber market or ask a carpenter to make them for you. You can start with a few hundred pieces, like 500 to 1,000 units.
You will also need:
- 1 Cement mixing machine
- 1 or 2 Wheel Barrow
- 2 or more Shovels
- 2 or more big tanks to hold water for your machines during molding
- Security chains to secure blocks when you leave site if the site is not fenced. But I recommend that you put up some fence around the site, preferably wire fence so that the activities of the Block Molding industry will be seen by those passing or driving pass the site.
Step Four: Get Cement Distributors License
One of the major products you need in molding blocks is cement. You will be using much of cement as a Block industry. While it may okay to start by buying from local stores around you, but as the business grows you have to look beyond that.
Dangote and most of the cement companies can sell you cement directly. Let even assume you use at a least 500 bags in a month. Dangote can sell you 600 bags at just 1,300 per bag. And let you pay transport cost at 500 per bag. That would save you up to 600 from regular price.
Step Five: Construct Office/Storage Space
I usually don’t see anything wrong in having an office space. Don’t use shanti space for office. And don’t ignore creating an office. There is nothing wrong in building an office area if you own the land.
But you can start off with a moveable office space. In case the location is not attracting the customers you can move your Block industry to a much lucrative location without costing much cost.
I advise you use one of two of disused shipping container and convert it into an office. You can even create an eating area for your workers. The containers can be made comfortable as you choose including fixing air conditioners,
Step Six: Daily Operation
You must learn to harness your must important operational requirements to get the most result. There are factors you must consider in your daily operation. Factors like:
Your location is an important key to your Block business. You must consider it as priority when starting your block industry. Also, note that season may affect sales of blocks. Construction works slows down during raining season. That means you will sell less blocks. So don’t mold much blocks at this time excerpt on demand.
You should also consider inflation. When a bag of cement rises or falls it affects your ability to mold and customers ability to build or buy blocks for doing so. And remember you are trading with cash. Avoid tying down most of cash. Liquidity is important in business.
Mold more blocks only when there is demand for it. And since you know the capacity of your Block machine, you should know how long it can take you to product any quantity required by customers. Plan wisely.
The Block Molding business is one lucrative business any day anytime. As long as you are well located it doesn’t stop making you money. Nigeria has high building deficit. The high demand for blocks will never stop so soon.
Imagine all the people you even know who may want to build their own houses. And everyone of the would need blocks. That’s how high demand for blocks are right now.
But the right way to beat your existing competitors is not to start beggarly but to start big time. Build the most advanced and mechanized block making industry. The bigger you go the more attractive and that’s how many customers will talk about you.