How do I assess a welding shop’s stock of steel, gas and consumables?

Walk the shop with the inventory list in hand. Steel that has sat outside may have rusted, offcuts may be too small to use, and some stock may have been bought for a job that never happened. Ask how the seller values it and whether the numbers reflect what is actually usable. Then ask what is committed to current jobs.

Consumables need a different eye. Wire, rod and abrasives wear out or go stale, and the shop may carry plenty of one kind and none of another. Ask how reordering works. Is it a person’s judgment, a minimum level, or a standing order? Find out how much the shop spends in a typical month so you can see what a working stock looks like.

Gas cylinders are often rented, not owned. Ask which are the shop’s, which belong to the supplier, and what the rental arrangement says. Also ask whether any steel on the floor belongs to customers waiting on work. Your accountant can review how stock is recorded, and your lawyer can confirm what transfers with the sale. Finally, ask who controls the stock room. When anyone can take material without a record, counts and job costs become hard to trust.

Key takeaways

• Sort steel into usable, aged and committed to jobs before accepting any total.
• Ask which cylinders are owned and which are rented.
• Check whether any material on the floor belongs to customers.