How to Start and Grow a Concrete Business

How to Start and Grow a Concrete Business

Written by Deepak Bhagat, In Business, Published On
February 8, 2023

The use of concrete or structures made of it is the basis of any construction since for the construction of buildings it is first necessary to equip the foundation, which will become a reliable support for walls made of natural material. Accordingly, concrete production is a promising and demanding business, regardless of the region.

How to Start and Grow a Concrete Business

How to Start and Grow a Concrete Business

Specificity of production, implementation

Ready-mixed concrete is a cement-based mixture prepared under industrial conditions with subsequent delivery to construction sites. A concrete mixer truck is used to deliver concrete to the site.

The properties of ready-mixed concrete do not allow transporting the mass over long distances (over 50 km), therefore, for high-quality transportation, you should buy a high-quality concrete mixer truck.

Demand for concrete begins in mid-April – early May. The recession comes in October. Thus, it is optimal if the new plant will operate at full capacity in the spring. In this case, there is a chance to get the maximum profit.

You need to analyze:

  • what productions (factories-competitors) are already operating in the region;
  • what prices and for what products they offer customers;
  • Are there raw material suppliers nearby?
  • which of the local firms may be interested in buying ready-mixed concrete, to what extent, perhaps, large-scale construction is planned in the region;
  • whether it is possible to buy a used concrete mixer truck and other equipment.

Process description

The technological cycle begins with the delivery of raw materials and acceptance of quality control. Further, the components are fed for processing, which includes:

  1. Preparatory stage – The cement is ground, the necessary plasticizers are selected, water and aggregates are heated to a technologically justified temperature.
  2. Dosing of components – The components are weighed and fed into the receiving hopper in a given sequence with constant stirring.
  3. Getting concrete – With the help of a gravitational concrete mixer (for coarse-grained compositions) or a forced-action installation (for fine-grained ones), the mass is mixed to a homogeneous state and sent to the place of use.
  4. Delivery is carried out using concrete mixer trucks with the option of heating in the winter. There are two types of concrete. The entire production cycle of prefabricated concrete is carried out at the enterprise, and the rotating hopper of the concrete mixer truck is necessary solely to prevent the mixture from delamination and hardening.

A niche in the concrete business, the cost of entering which is quite acceptable, is the rental of concrete mixer truck. The purchase of such machines, even if used, will allow you to get acquainted with the concrete business and give impetus to further development. concrete mixer truck can be rented out, and later even put up for sale.

Among the advantages of the solution:

  • relatively fast payback;
  • compactness, a small amount of working composition;
  • economical energy consumption;
  • availability of winter and summer configuration options;
  • the ability to set up a mobile line when production equipment is installed at a construction site.

The cost of self-registration in this case will be $10,750 – $19,400

Necessary equipment

The choice of equipment should be based on a clearly defined production cycle. Without fail, you will need to buy several concrete mixer truck for delivering concrete to facilities,, a front loader, vehicles for administrative needs and some other equipment. All this must be included in the business plan.

An example of a convenient concrete mixer truck at a good price:

For Liebherr conveyors, the maximum reach length is 16.2 m, which allows the mortar to be delivered to any place on the construction site.

Profitability assessment

The terms for the return of investments and the return of production to profit are determined by the size of investments according to the following points:

  • purchase or lease of land;
  • construction, repair or modernization of industrial buildings;
  • acquisition, commissioning of RBU;
  • purchase of related equipment and truck mixers, used or new;
  • expenses for registration, certification;
  • supply and connection of communications;
  • payment of rent and utilities;
  • tax payments;
  • purchase of raw materials;
  • employee salaries;
  • the cost of repairing equipment, components and consumables;
  • payment for advertising services;
  • unexpected expenses.

To calculate the cost of a cubic meter of concrete, it is also necessary to take into account the schedule of daily work (one or two shifts, around the clock), as well as the proposed algorithm for the sale of the product. Taking into account all these factors, it is possible to determine the average amount of working profit.

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