Concrete contractors must find ways to increase their productivity and profitability with thin margins. Concrete contractors can complete jobs on time and without cutting corners by identifying and working on productivity improvements. But this is not easy, as many factors influence final bid costs. But there are also a few things concrete contractors can do to make these improvements.
Firstly, learn more about the industry. You need to understand the different components of concrete, which can make or break a concrete contractor’s profit margin. Secondly, you need to know what is driving the market. The market’s growth is mainly because concrete has become an essential component of building infrastructure.
Managing concrete jobs requires an organized system. It is vital to monitor each career stage because each phase is highly interdependent. Using a project management software system will help you keep track of the progress of each step and reduce costly mistakes. It will also help you track the field crew’s performance. For example, a sound system will allow your foreman to create daily reports that capture photos, labor, materials, and issues.
Streamlining business processes will help you increase profits. You need to make sure you have clear communication with your contractors. This will increase the number of concrete projects you can complete every year. You also need to ensure you are communicating effectively with your clients. This is crucial to improving productivity.
Lastly, you must know the market. The concrete industry is a very lucrative business. The U.S. concrete industry is estimated to be worth over $65 billion. The average cost of labor for a concrete project is about $5 per square foot. If you can provide these services at a fair price, this will give you a margin of at least 20%.
An accurate job cost accounting system will enable you to estimate your costs accurately and hit your profit margin goals. It is also essential to consider each project’s risks and build a contingency line to the bid. With accurate job cost accounting, you can avoid the mistakes made by many contractors.
Whether your concrete project is small or large, varying the size of your aggregates will make a difference in the final price. Variable-size aggregates require less binder, which decreases your cost of concrete. The height difference is crucial, as a minor total tends to fill in the gaps between larger particles. Adding decorative stones to concrete surfaces is a popular method among landscape designers.
Besides reducing costs, alternative materials will also improve the quality of concrete while reducing waste and enhancing sustainability. These are important in the context of the Circular Economy aspects of the construction industry. As the demand for concrete is increasing globally, so is the need to mitigate its impacts on waste generation, landfill practices, and air quality.