Not a single construction site has done without such material as crushed stone. You can make good money on it if you start a business. True, you should know that crushed stone production It has its own nuances that should be considered before proceeding with the implementation of the project.
Features and nuances
Firstly, it is advisable to start a business where there are deposits of granite, limestone (whether abandoned or new). On imported raw materials, a long-term and profitable project may not work. Secondly, these deposits should be examined by specialists. There should be so many deposits that would be enough for more than 10-15 years. Otherwise, it makes no sense to start a project. Thirdly, the area for the placement of equipment for the processing of rocks should be impressive. So, investments will be required capital and astronomical. However, there is no guarantee that they will pay off quickly. The sale of crushed stone is a demanded and profitable business, requiring a thorough study of the demand market.
In addition, if you plan to sell crushed stone to companies engaged in the construction or repair of road surfaces, then all production must comply with state standards. Otherwise, it will be impossible to realize it.
Business investment
The most important expense item is buying a quarry with rocks or renting it out. Amounts vary by region. So, the largest deposits will cost an order of magnitude higher. In addition, the equipment requires special hangars, and this, again, is a large infusion of cash. Depending on the country of the equipment manufacturer, the amounts range from 300 to 700 thousand US dollars. Of course, this is fabulous money. It is also worth setting up a delivery system.
Will you do it yourself? If so, then you will need your own fleet of vehicles with special equipment. Another thing if there are railways nearby. Crushed stone delivery through them allows you to sell your products in any region, whether remote or near. You need to know all these points in advance, because how much money you have to invest depends on it.
By the way, if you wish, you can try to save some money by renting existing fields. Of course, not necessarily there will be first-class equipment, but, nevertheless, at the initial stage of investment can be significantly reduced. All that is required is to pay rent and wages to employees.
There are two types of equipment - stationary factory and mobile mobile. The first is cheaper and easier to maintain, the second is more expensive, but more convenient. The first is more logical to establish where experts have estimated the field at several tens of years (more than 6 dozen). If the deposit is smaller, then its depletion depends on the pace of your work. Here it will be more expedient to buy expensive western mobile equipment, which will allow not to stop the production of crushed stone, even if it will be necessary to change the area of work. In other words, mobile equipment is easier to transfer to a new place where it will work just as well.
In any case, investments are necessary. It is up to you to decide which type is closer: starting from scratch or reworking an existing object.
Payback, profitability, income
The problem with this type of business is seasonality. Usually, the demand for crushed stone is no more than six months. The next six months is a downtime or a quarter-strength job. You need to find "your" buyer, who can sell as many products as possible in the season. By the way, the demand is huge. Limestone crushed stone is especially popular during the construction period.This is due to the unique properties of the material. If you are engaged in it, you can count on stable demand, and hence income.
In general, payback does not occur earlier than after 2-6 years. Such a temporary spread is due to the fact that not all regions can afford this type of activity. In other words, if in your area the only field that you process, you can be sure - pay off quickly. If there are several deposits, but are processed by different entrepreneurs, then due to the competitiveness, the payback period is increased.
The profitability of the project can reach 12-17%. For this type of activity a very good result.
Production technology
The crushed stone production technology is light and simple at the same time. Raw materials (deposits from the field) are processed, crushed, sorted. Ideally: production is needed that allows you to get different fractions of the finished material. This will allow you to sell it to a variety of customers who are involved in a variety of areas. It is convenient and profitable. In any case, your ready-for-sale crushed stone must meet the standards set by the state.
[caption id = "attachment_4634" align = "alignright" width = "300"]
your business: production of crushed stone [/ caption]
And of course, we must not forget that in addition to first-class material, there is also a second-class product for which there is a customer. So, in parallel with the extraction and processing of raw materials, it is possible to deal with the crushing of construction waste or slag. Of course, such crushed stone is of low quality in its properties, but there are always regular customers for it.
It is important that the deposit has a warehouse or hangar where finished products will be stored. This will allow delivering crushed stone not only to regular wholesale buyers, but also to those who wish from the private sector (private workers, individual entrepreneurs and others). In addition, all products not sold during the season should be stored under normal conditions, so that they always have access to it, and also that at the beginning of the season there is no need to “drive” their own equipment at an accelerated pace.
Sometimes, the extraction of raw materials requires specialists in working with explosives. This allows you to extract resources faster. But not always fast means good. Carefully monitor the process.
Pros and cons of developing such a business
Crushed stone production can bring a stable and good income. It is important at the initial stage to carefully plan everything, “probe the soil”, make sure that it’s worth it, that you will pull it. In addition, in order for production to flourish, it is necessary to select good personnel (both those who will be involved in the extraction and development of raw materials, and those who will control the operation of the equipment). Here the experience is important.
The plus of the business is that six months of “downtime” is an opportunity to prepare so many products that it’s enough for the season. Also, this is a chance to find new customers, ways of implementation, develop a plan for the most profitable delivery, and more. That is, the season of work is a stable profit, and the season of slowdowns is a chance to bring the business to a new level.
By the way, crushed limestone is popular not only in Russia but also abroad, which makes it possible to raise dividends quite well. Prices in Europe for crushed stone are several times higher than domestic, especially since delivery can be arranged on special conditions.
The minuses can only be attributed to the fact that not everyone can afford such a business. It requires tremendous attention, tremendous strength, large cash injections. Everything is strictly individual, therefore, thinking about such a thing, it is worthwhile to conduct a thorough analysis of all the areas that are associated with it.
