Understand your total concrete production cost
As for cutting your costs amid a recession, one place to look for savings is the use of materials and resources used in the production of concrete. Step 1 is to examine your procurement practices in order to identify where you can save money. A great way you can do this is to analyse the total cost per m3 associated with your overall concrete production process.
As you can see from the example in figure 1 the main cost driver for this customer is cement at 33% of the cost per m3.
Need help evaluating the numbers?
The team at fibo intercon can help you generate a bespoke ROI calculation for your next project.
Fig. 1 is an example of a Fibo Intercon customer’s total costs per m3 of concrete.
The future of the economy
The prospect of a global recession has many economists forecasting slowing economic growth. In the European case, The Organisation for Economic Co-operation and Development (OECD) has issued a warning that many European countries could face a recession.
Currently, consumer prices are on an upward trajectory, with more increases expected shortly. this could be devastating for households and businesses if they start to use up their cash reserves to pay the high costs of services like gas, electricity or petrol which in turn affects all prices in the entire consumption chain.
Will the recession affect your construction business? – Not if you take these measures
Specialists in the construction industry are advising that the sector should be prepared when it comes to economic recessions. The construction business has always been exposed to risks that can easily jeopardise your company’s survival in a downturn, no matter how big or small you are.
Companies must remain flexible and open towards different processes and technologies so they can better adapt when conditions change while decreasing risks associated with operating in an economic downswing.
There are several measures that you, as part of the industry, can take. Such as maintaining or even increasing the marketing budget, ensuring liquidity, and most important one: cutting expenses.
Evaluating the alternative procurement options
Take the most expensive contributing cost (in most cases this will be the cost of cement). Consider, alternate methods of procurement for example buying in larger quantities or from a different supplier. Many suppliers will offer up to 29 tonnes of bulk-bagged cement in one delivery alone.
Make your process more efficient
A final step would be to look at ways to make your mixing operation more efficient and less wasteful. Can you ensure that you only use the exact amount of materials needed? One great way to do this if you use a batching plant is to look into pre-weight cement.
“Pre-weighing cement involves weighing in before dosing. Using pre-weight means the cement can be batched at the same time as the sand. The computer already knows the weight of the cement and makes calculated allowances. Using pre-weight cement improves the batching accuracy from +/- 3% to +/- 1%”.
How modern concrete mixing technology can help you to save money
In the construction industry, concrete is the most necessary and frequently used material. However, it can also lead to environmental damage, and waste of material and money if it is not properly managed. The key to saving, keeping and increasing revenue in projects involving the use of concrete, is the utilisation of alternatives like concrete collection or mobile batching plants.
Concrete Collection
The introduction of the ‘Concrete to collect’ concept has grown across Europe over recent years. The concept is simple for the end customer; instead of waiting for a concrete delivery or mixing yourself you can simply drive up and collect the exact quantity of concrete needed for your project. There are said to be 12 important key customer benefits using this method highlighted in the image below.
ECO friendly
I am helping the planet with a more sustainable method
Time-saving
I don't have to wait around, and it's fast to pour
Local
I am getting my product from a local trust ed supplier
Cost effective
I only pay for what I need
Hassle-free
It doesn't take much to organise. I just turn up when needed.
High quality
I can get a quality certified product
Less mess
I am not at risk of making ma mess on site
Waste fee
I am not at risk of creating waste
Convinience
I can collect when I am coming in for other products
Precise
I get the exact volume needed
Recipe variety
I get different recipe types including mortar and screed
Flexible
I am not restricted to a certain time
Fig. 2 The benefits of collecting concrete in the words of the end customer
Traditionally, concrete collection has been offered by large ready mix plants however this model is often exposed to a number of practical issues such as problems switching recipes, issues with waiting times or producing smaller loads.
More recently, we have seen businesses with an existing customer base or easy access to aggregates invest in concrete collection technology. These companies are able to offer their local communities a fibo Collect service which is more economical for the end customer, more profitable for the vendor and better for the environment.
We are proud to introduce our fibo Collect batching plant into the market back in 2021. The fibo Collect solution is a purpose-built self-cleaning, self-collection batching plant that allows customers to collect fully certified fresh concrete at the push of a button.
