The machine is fed with from the wire stand through 2 sets of rollers, vertical and horizontal, which straighten the wire, and another set of rollers which pushes it into the right position for the head to be formed.
The grip dies then close and hold the wire very tightly while the punch, attached to a punch box driven back and forth by connecting rods from the crank shaft, hits the wire end to form a nail head.
The punch then moves backward, the grip dies open, the wire moves forward to a desired length, and two opposing cutters cut off and point the nail. The finished nail is ejected through the chute to a container on the ground. The cycle is continuous.