Profiting from producing by ProQuest

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									PLANT MATTERS



                                                                  Profiting from
                                                                     producing
                                                                                 Adding or expanding
                                                                               asphalt production may
                                                                                   produce quick ROI




T
         om Petty got it right with       some waiting of its own. After all,         be delivered to the site.
         his lyrics, “The waiting is      work can’t progress without the hot             And there’s the inconvenience of
         the hardest part.” And while     mix, so the crew is stalled until the       having to travel miles away from the
         his song may not have been       truck arrives. Yes, when it comes to        site just to get to the nearest asphalt
         speaking directly to asphalt     paving, the waiting is indeed the           plant. Finally, don’t forget the costs
paving contractors, any company that      hardest part.                               associated with having multiple
receives hot mix asphalt from a com-         Unfortunately, endless waiting           asphalt transportation trucks.
petitor’s plant knows it’s the truth.     isn’t the only frustrating aspect. First,       While all of this may be frustrat-
   The truck driver must wait, some-      there’s the actual cost of the asphalt,     ing, does it justify purchasing an
time for hours, to receive the hot mix.   something the receiving companies           asphalt plant? It’s a serious purchase
Then he must make the trip back to        can’t control. Then there’s the loss of     that requires serious thought. Sev-
the worksite, which could be several      productivity the crew experiences           eral factors need to be considered
miles away, where the crew is doing       while they have to wait for asphalt to      when deciding if owning an asphalt

50   asphalt contractor • June/July 2009
                                         Market characteristics                     new producer will need to estab-
                                            Perhaps the first factor that should    lish trucking provisions to transport
                                         be looked into is the market size.         material from the plant to the jobsite
                                         Not only should one determine the          if it hasn’t already been set up.
                                         total amount of asphalt being used,            One final factor that will impact
                                         but potential customers who could          the location of the plant is the type
                                         drive the demand up should also be         of plant that will eventually be pur-
                                         considered.                                chased. Plants are either portable or
                              
								
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