The aggregates industry is a $2 trillion global industry that supplies materials and services to a wide range of customers, including governments, businesses, and consumers. Aggregates are used in a variety of products, including building materials, asphalt and concrete, and plastics.
It is an important and necessary part of the construction process. The industry produces the materials used in building and paving roads, bridges, and other structures. The industry is made up of many companies that produce various materials, including sand, gravel, crushed stone, and asphalt. The production of aggregates is a major industry in many countries.
The Aggregates Industry Today
Aggregate and ready-mixed concrete companies need to think of ways to improve their performance in a market that grows medium term for small and large companies.
Although big companies have already implemented the right strategy in business acquisition, along with new upstream and downstream activities, cut overheads, and implemented structural management changes, there is still room for improvement.
This is all due to the fact that the continuation of the existing strategy’s performance for the long or medium term is questionable. There is an increased focus on operational excellence and a reduction in the number of vertically integrated companies.
In other words, smaller companies should focus on maintaining good reserves and ensuring a spread of operations across different markets rather than trying to expand into new markets. This will give them the flexibility to respond to local markets and take advantage of development opportunities.
The increasing scarcity of aggregates in local markets offers both a threat and an opportunity for all companies. This is because companies that run out of reserves first will be at a disadvantage. Still, they also have the opportunity to purchase from competitors or bring in their aggregates from elsewhere.
It would be more efficient for aggregated companies to supply products directly to customers rather than going through independent merchants. This would eliminate the need for the products to be double-handled. Companies should consider siting the operation at a recently closed quarry to be close to a population centre and have access to a range of transport.
When markets were much higher, the industry did not have to worry about the small-loads market, but now that markets have fallen, there is a gap between general builders’ merchants that stock a limited range and aggregates companies that concentrate on full loads to the major end-users. This sector is likely to grow as supplies of local aggregates are exhausted, and more materials are imported from other extraction areas.
Some companies probably have locations that would be great for collecting higher-margin materials. This is likely because of the location and/or the quality of the materials. However, it needs to be clarified if this is because of a marketing campaign that offers a broader range of materials or if it’s just luck. It is unclear if there are any sites that are specifically geared towards the small-loads and collect market, but there could be up to 100 such sites operated by other companies.
For major companies, trialling an operation before being rolled out later at other sites is a good move. Also, an alternative is to acquire an existing business.
What to Know Before Hiring an Aggregate Supplier
When it comes to hiring an aggregate supplier, it’s important to know what you’re getting into. Here are some things to keep in mind.
1. Determine if They Can Deliver to Your Area
The first thing you’ll want to do is make sure that the aggregate supplier can actually deliver to your area. This may seem like a no-brainer, but it’s worth checking into, nonetheless. Some suppliers may only be able to deliver to certain areas, so it’s important to make sure that they can actually get the product to you.
2. Check Their Availability
Another thing to keep in mind is the availability of the supplier. You’ll want to ensure they can provide you with the product when you need it. Some suppliers may only be able to provide you with the product on certain days of the week, or they may have a limited supply. It’s important to ensure you can get the product when you need it.
3. Ask About Their Pricing
Of course, you’ll also want to ask about the pricing of the product. Some suppliers may charge more for the product than others. It’s important to get an idea of the pricing so you can budget accordingly.
4. Know How Extensive Their Inventory Is
When planning your upcoming project, it is important to ask your suppliers about the different types of aggregates they have available in their inventory. This is because there are many different aggregates, such as sand, ash, crushed stone, gravel, and coal.
By asking your supplier about the different types of aggregates, you will be able to ensure that you have plenty of options to choose from. Additionally, it is important to make sure that your supplier has enough of the aggregate that you need so that your project can proceed according to schedule.
5. See If They Prioritise their Customer Service
One of the most important things to consider when choosing a supplier is their customer service. Do they prioritise their clients and work to meet their needs? Or are they more focused on making a profit?
It’s important to ask your supplier about their customer service policies so that you can get a sense of how they will approach your project. Some suppliers may be more willing to work with you if you have a longer project timeline. However, others may be more willing to work with you if you are more aggressive with your deadlines.
6. Know Their Level of Experience
When you are choosing a supplier, it is important to know their level of experience. Do they have a lot of experience working with projects of a similar size and scope? Or are they newer to the industry?
It’s important to ask your supplier about their experience so that you can get an idea of how they will approach your project. Additionally, it’s important to make sure that your supplier has the resources and manpower to handle your project.
The Bottomline
In conclusion, The aggregates industry is a critical part of the construction sector. It provides the materials necessary for projects ranging from small-scale repairs to large-scale infrastructure development. The industry employs a significant number of people and makes a substantial contribution to the economy. However, it is also a highly regulated industry with strict environmental controls.
Hire a skip today. Enviro Skip Hire is a skip hire and aggregate company servicing Staffordshire. Check out our wide range of skip sizes and aggregates today.
