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Updated: July 13th, 2009 11:24 AM EDT

Profiting from Producing

ROI1
ROI2
The process of purchasing or upgrading an asphalt plant requires thorough research, thought and consideration, but will be worth it, as most owners see a return on investment within a few years.
ROI3
Asphalt plants are no longer considered to be a threat to the environment. Modern plants burn much cleaner and newer components provide superior emissions control and dust handling.

By Asphalt Contractor Staff

Information provided by Asphalt Drum Mixers.

Tom Petty got it right with his lyrics, "The waiting is the hardest part." And while his song may not have been speaking directly to asphalt paving contractors, any company that receives hot mix asphalt from a competitor's plant knows it's the truth.

The truck driver must wait, sometime for hours, to receive the hot mix. Then he must make the trip back to the worksite, which could be several miles away, where the crew is doing some waiting of its own. After all, work can't progress without the hot mix, so the crew is stalled until the truck arrives. Yes, when it comes to paving, the waiting is indeed the hardest part.

Unfortunately, endless waiting isn't the only frustrating aspect. First, there's the actual cost of the asphalt, something the receiving companies can't control. Then there's the loss of productivity the crew experiences while they have to wait for asphalt to be delivered to the site.

And there's the inconvenience of having to travel miles away from the site just to get to the nearest asphalt plant. Finally, don't forget the costs associated with having multiple asphalt transportation trucks.

While all of this may be frustrating, does it justify purchasing an asphalt plant? It's a serious purchase that requires serious thought. Several factors need to be considered when deciding if owning an asphalt plant will meet an individual company's ROI expectations and if it will do so quickly enough.

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