The Blacksmith wants a proper shop to smith and work in. Once he is sheltered inside his workshop, he can craft more items. A Workbench, some Building Blocks and a Construction Hammer are needed to build a shop for the Blacksmith. You will first need a Workbench. Craft and place a Workbench from your Manual Crafting tab. Crafting a Workbench requires String and Wood Logs.

The Workbench can be used to craft many rudimentary items. Use it to craft Rough Wood Blocks or Rough Stone Blocks for the Blacksmith. These building blocks are necessery to build a shop for the Blacksmith.

The new building blocks can be placed with a Construction Hammer. The Construction Hammer can be crafted in the Manual Crafting tab or with the Workbench. Placing the building blocks is necessary to build a shop for the Blacksmith. Once the Blacksmith is sheltered inside the workshop, he will be able to craft more equipment.

The Construction Hammer can be used to construct a shop for the Blacksmith. Once the Construction Hammer is selected, the desired Blueprints and Materials can be chosen.