After purchasing the old Blaisdell shipyard site from William Donnell in 1896, Percy and Small built the blacksmith shop as their first building there. It was equipped with forges, bellows, and anvils to produce large quantities of ironwork for vessels, and one section served as a machine shop. The boiler for the steam box used in steam-bending wood was also located there. The shop had a clay floor for fire resistance, the yard's only water hydrant to supply quenching barrels, and 500 feet of fire hose, but it nevertheless burned to the ground in 1913. A rebuilt blacksmith shop remained in use until the yard closed in 1920, and it was dismantled in the late 1930s.