Concrete contractors tend to bid very competitively. It’s a great way to get new clients, but this practice also tends to force profit margins down. As a result, many of today’s concrete businesses are struggling just to get by, let alone increase profits.
While just bidding higher isn’t generally an option, there are other ways for concrete contractors to increase profits. Read on to find some tips for how to cut costs without cutting corners and increase company profits even in a competitive market.
Reduce Material Waste
Material waste is a big problem in the concrete industry because ready mix concrete will only maintain its quality for a certain period. Arriving late to the job site as a result of traffic, truck problems, or poor communication can lead to entire truckloads of concrete being wasted.
Using Concrete Dispatch Software is the best method for avoiding this common and quite costly problem. By improving the efficiency of a company’s drivers, companies avoid unnecessary downtime and ensure compliance with state regulations.
Invest in Workers
This may sound counterintuitive, but concrete companies that want to improve their profit margins should be spending money on hiring and training quality workers. The problem is that working with concrete can be quite challenging. Workers need to understand specifications, mix designs, reinforcement needs, fiber and mesh reinforcements, and other industry standards.
Money spent on hiring and training a workforce will provide an excellent return on investment. Trained workers are less prone to human error that can lead to costly mistakes. They’re also more efficient and better able to account for important factors like water-cementitious material ratios, cement composition, admixtures, and temperature changes.
Plan for the Unexpected
Most concrete pours occur outside, which means there’s always the possibility that Mother Nature will throw a wrench in the works. Concrete is uniquely susceptible to even small weather abnormalities like changes in temperature and moisture levels. Just paying attention to the weather forecast isn’t enough. There should always be a backup plan in place, whether that means adjusting admixtures or having a backup date for the pour set up in advance.
Offer Specialized Services
In competitive markets, offering specialized services can pay off handsomely. For some contractors, that might mean selling precast decorative concrete pavers, while for others it might require investing in a concrete pump and targeting construction projects that require working at heights. The key to increasing profit margins through specialization is to find a service that no one else is offering.
Don’t Give Up
Implementing concrete industry software, hiring and training highly skilled workers, and obtaining the equipment required to offer specialized services can all require initial investments, and it takes a while for any of these improvements to pay off. Don’t give up if the business doesn’t become a resounding success overnight. It takes time, hard work, and appropriate resources to grow a concrete business and increase its profitability. Keep finding ways to reduce costs while simultaneously improving the company’s reputation and attracting new clients.
