The cost of crushed stone in the building materials market is among the lowest. However, the crushed stone production business, on the contrary, is one of the most profitable types of business. The profitability of the crushed stone production is 15 percent or more. This is due to the low cost of producing material from practically free sources of raw materials.
The creation of a private enterprise for the production of crushed stone is promising for small businesses, and is often used as a launching pad for start-up entrepreneurs.
Of course, this direction of entrepreneurship has its own difficulties that must be taken into account when creating your own business. First of all, this refers to the correct determination of the demand for future products of the enterprise. Crushed stone is extremely widely used in construction. Any concrete plant consumes significant amounts of crushed stone in the production of concrete. However, crushed stone is also used directly in construction work, and in the construction of roads, access roads, dumping swampy places, and so on.
High demand for products and determines the profitability of the company for the production of crushed stone.
However, high competition in this type of business can cause a situation where the finished product will have nowhere to sell. To avoid losses in the organization of production, it is necessary to conduct marketing research in advance to study demand, identify potential buyers of finished products, and prepare a detailed high-quality business plan.
The second nuance that must be taken into account when organizing the production of crushed stone is the presence of a deposit of rubble stone or granite, which are used as raw materials.
Such deposits are not located in every region, and the production of crushed stone, too far removed from its consumers, can make production unprofitable, since transportation will eat up most of the profits.
And, finally, it is necessary to take into account the rather clearly pronounced seasonality of demand for crushed stone, since in the winter months the demand for these products is significantly reduced.
The crushed stone production technology is quite simple: the mined rock goes through two stages of crushing, and then the stone is sorted according to the desired size. For the first two stages, crushers of various designs are used, and stone sorting is carried out using inertial screens.
When organizing production and selecting specific pieces of equipment, it is necessary to take into account various options in order to optimize the initial costs. If a large stone deposit is used as a base for the development of crushed stone, then it makes sense to build a small stationary plant for the production of crushed stone. This option allows you to purchase production equipment cheaper, but its transportation to another field can be quite a serious problem.
If the field is small, and in the future it is planned to move to other fields, closer to the consumers of products, then it makes sense to rely on mobile equipment, which is more expensive, but will save on dismantling and transportation to a new location in the future.
The cost of stationary crushers ranges from 70 to 80 thousand dollars. Mobile equipment for the production of crushed stone costs from 90 to 120 thousand dollars.
When planning initial costs, it is also necessary to take into account the costs of building and repairing premises, equipping access roads, connecting electricity, and other costs.
The operating costs of starting a crushed stone business will mainly consist of wages, electricity costs, transportation costs, equipment maintenance and repair costs.
If there is a demand for finished products and subject to the conclusion of reliable contracts with consumers, the initial investment in the production of crushed stone pays off within a few months of the first season.
But in order to make the enterprise truly profitable, it is necessary from the very beginning to be guided by a good business plan , which you can order on our website. In it you will find all the necessary calculations and recommendations that are necessary for starting a crushed stone production business.
