Concrete production business plan: market analysis.
Business plan for the production of aerated concrete blocks - the current direction of investment. Modern construction technologies are constantly increasing the proportion of monolithic construction and the use of precast concrete structures, as well as increasing the consumption of various building blocks based on concrete.
The business plan of a concrete plant allows us to assess the feasibility of such activities, and we want to consider the pros and cons of commercial production of ready-mixed concrete and concrete products.
Market features
Market analysis
Modern construction technology does not do without concrete work and the use of concrete products. Even wooden houses and frame-shield structures are on concrete foundations, and many multi-storey residential and commercial complexes are built using cast-in-place technology.
In addition, building blocks made of aerated concrete, expanded clay concrete, foam concrete and other similar materials are increasingly being used, and almost no one can do without all kinds of concrete products - concrete balusters, slabs, rings, stairs, fences, ceilings, etc.
Considering this trend and the general growth of the construction market in Russia, the production of ready-mixed concrete and products from it can be called a promising direction for business development.
Also noteworthy is the growing popularity of finishing materials made of concrete - artificial stone, tiles, various imitations of brick, sandstone, and other materials. Not less popular are new types of concrete products - eurofences, gutters, canals, septic tanks and other products.
Specificity and logistics
The business plan for the production of concrete must take into account the specifics of this market segment.
It consists in such features:
- Concrete is one of the most transport-dependent and hardly transportable goods, as it has a very short lifespan and cannot be delivered to remote locations. An international market for the supply of this material does not exist; the market consists of regional, individual and quasi-independent enterprises serving local consumers;
- Since the concrete solution can not be stored, its production is highly dependent on the activity of the construction market. The surge in such activity falls on the period from the end of April to the beginning of November due to the climatic features of our Motherland, and this seasonality should be kept in mind;
- Due to the listed features of the product, the manufacturing company must have an efficient delivery and logistics service, since the consumer is very sensitive to the terms and schedules for the supply of raw materials to the object and may incur losses if the supplier is not punctual;
- For the transportation of ready-mixed concrete, special equipment is used - automixers and concrete pumps, without which it will be impossible to deliver to the object. This technique should always be in good condition, since breakage on the way is fraught with freezing of the concrete mix and related problems. This requires a repair shop and a staff of auto mechanics;
- To reduce the degree of dependence on seasonal work, it is advisable to combine the production of ready-mixed concrete and products from it. A joint business plan for the production of expanded clay concrete blocks or a business plan for the production of concrete rings, various products such as fence fabrics, slabs, etc .;
- For smaller investments, you can consider a separate business plan for the production of aerated concrete or other finished material, the delivery of which can be carried out without the involvement of special equipment or by the buyer, in addition, blocks and concrete goods can be stored and sold in remote regions or other countries;
- The possibility of cooperation with manufacturers of related products and non-competitive services, such as cutting reinforced concrete with diamond circles or diamond drilling of holes in concrete, grinding floors, selling or renting formwork, vibrating tools, fittings, etc., should be considered.
Note! If in your region the business line under consideration is poorly developed, then local consumers will have no other alternative than ordering products from someone who will open a concrete plant in the 70-km accessibility zone, since delivery over long distances is unprofitable.
Competition and pricing
Competition in the segment of ready-mixed concrete is also peculiar: the products of different plants have no significant differences, since the product is strictly regulated and standardized according to GOST.
The demand depends on the degree of availability of the plant and the compliance of the delivery service with the requirements of the client, as well as on the existing relationships with developers and contractors. Classic competition is practically absent here.
Also, pricing does not affect demand activity, since the total amount of financial costs for concrete during construction usually does not exceed 3–5% of the total budget, and demand is dictated by current technical need, not price fluctuations.
Financial and technical and legal side
Production stages
Now consider in more detail what constitutes the production of concrete mortar.
It includes three main stages:
- Storage and preparation of raw materials. This refers to the storage of rubble and sand, grinding of cement, heating aggregates, if necessary, and the preparation of chemical additives;
- Dosing of mixture components. In stationary production using weighing feeders, which are more precisely volumetric. Be sure to take into account the moisture content of components, especially sand;
- Mixing components. Here, various concrete mixing machines are used, both gravitational and forced.
Technical base
In addition to dispensers and mixers, devices such as feed and return conveyors (returnable), elevators, loaders, cement silos, augers, control panels, protective automatics, equipment for heating components, a conveyor belt and a descender will be needed.
The price of the listed equipment is quite high, but with proper economic planning it quickly pays for itself, for a period from several months to a year.
You will also need a warehouse and industrial premises with heating, electrification and water supply, a loading ramp and parking for vehicles.
Note! Modern lines are fully automated and require minimal staff. Maintenance of conveyor and production equipment of high qualification of the staff does not require.
Legal aspects
It is important to consider the legal aspects. As a rule, for registration of the company choose such a form as a limited liability company (LLC), since it is safer and easier. The tax payment system can be general or simplified depending on the annual income of the enterprise.
It should also be borne in mind that serious construction is carried out in accordance with accepted norms and rules (SNiP), the instruction of which does not involve the production of concrete with your own hands, since it is difficult to achieve the qualities specified in the project in this way.
Conclusion
The business plan of an asphalt concrete plant, a plant for the production of ready-mixed concrete or concrete products can be confidently called a promising direction for the development of commercial activity in Russia, provided that there is a market for the sale of the mortar in close proximity. The video in this article will help you see this production with your own eyes.