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"Plywood Production Business": How to Get Started

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The plywood is a construction material for many applications, ranging from lining roofs, flooring, and even used in furniture manufacturing.

Plywood is produced by gluing several layers of thin woods together and can be made from both hardwood or softwood.

Producing plywood, contrary to popular belief, is relatively easy, and won't require a huge amount of monetary investment. Thus, it's possible to start this business as a home-based business, provided you got a big enough spare space in your household. Plywood has a stable demand throughout the year, and this business can be a very promising one with high earning and sustainability potential.

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Interested to start this business? Here are some tips to help you get started.

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1. Startup Investment
You will need a relatively large space to store the logs as the main raw material of your business. If you have a large enough spare space in your house, you can utilize it to eliminate the need to rent a space. Otherwise, renting a space will be necessary, and the rental cost can vary depending on your location.

Other necessary investments you will need are tools and equipment such as steam kettle, condenser, receiving tank (30HP and above), vacuum pump, boiler, and supplies such as the woods, glue, and ply.

You can safely start with around $40,000.

2. The Process
The bark is removed from the wood log, and then the log is cut to the desired length before it is steam-heated to soften the surface. The wood veneer is made by either sawing, slicing, or rotary cutting depending on your needs.

Sawing the logs produced more fine-finished wood, while sliced logs are more appropriate for furniture and wall panels. After they are cut properly, dry, trim and apply a thin layer of glue to each ply.

Squeeze the plies together by hydraulic pressing it to apply both heat and pressure.

3. License and Permit
You might be needed to apply for a zoning permit before you can engage in this business. However, it may vary depending on your location. Consult your local authorities to get a better information regarding the legal requirements of your location.

Insurance might also be a legal necessity for your business. But even when it's not, insurance is a good investment to protect your business from future accidents and contingencies.

4. Marketing
Your target customer will most commonly be construction companies, builders, furniture manufacturers, and construction material shops.

Approach them with your business proposal, showcasing your products and your price range. You might need to invest in a good salesperson if you're not one yourself.

Earning Potential

Plywood can be sold with an average price of $18 a piece. Thus, producing just 30 a day will net you an earning of $16,200 a month, or $194,000 annually.

Maintaining production efficiency, maximizing capacity, and building your customer base will be the keys to success in this business.