Highlights of the Ready Mixed Concrete Industry Data Report

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Highlights of the Ready Mixed Concrete Industry
Data Report

• Presented to the 46th Annual
• Business Administration Conference
• by
• William B. Allen
• Allen Villere Partners

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Benchmarking

• Assists in helping to analyze the cost of doing
  business
• Assists in helping to analyze the efficiency of
  an operation

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Surveys Available

• Industry Data Survey
• Fleet Benchmarking Survey
• Safety Survey
• Wage Benefits Study

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The Industry Data Survey

• Company Size Analysis By Sales -Per-yd
• Regional Analysis By Sales -Per-yd
• Rural, Urban Mixed Area Type Analysis
• Five Year Trend Analysis

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Ready Mixed Concrete Profitability
Per Yard
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Growth ComparisonYTY Change
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Profit vs Sales Price
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Price vs Cost
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Cement Prices vs Ready Mix Prices
1st Quarter of 1980 to 4th Quarter of 2002
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Net Profit as a Percent of Sales by Company Size

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Net Profit as a Percent of Sales by Region
Chart 7 Return on Net Worth (Equity) (ROE) by Region
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Return on Assets (ROA) by Company Size

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Return on Assets (ROA) by Regions
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Return on Net Worth (Equity) (ROE) by Company Size
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Return on Net Worth (Equity) (ROE) by Region
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TABLE 1 Efficiency Ratios by Company Size
Item lt100K 100-299K 300-500K gt500K Typical Leader
DSO 39.7 57.9 47.0 49.7 50.4 49.2
Yds/Hour 2.5 2.6 2.8 2.9 2.9 3.1
Yds/Truck/Yr 3593 4473 5532 5937 5709 5720
Sales/Employee 140k 186k 206k 219k 220k 234k
VarDel/minute .53 .58 .62 .61 .62 .65
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TABLE 2 Efficiency Ratios by Regions
Item NE/MA SE NC SC GL RM PNW PSW Typical Leader
DSO 61.8 46.4 45.1 48.0 63.4 35.6 50.8 42.3 50.4 49.2
Yds/Hour 2.8 3.0 2.6 3.1 2.6 2.9 3.4 3.1 2.9 3.1
Yds/Truck/Yr 4856 5989 4650 6529 4986 5553 4990 7520 5709 5720
Sales/Employee 220k 204k 153k 236k 198k 371k 195k 311k 220k 234k
VarDel/minute .67 .53 .52 .51 .70 .83 .60 .70 .62 .65
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SummaryWhat Can We Do To Improve Our Bottom Line?

• Compare Strengths Weaknesses to Peers
• Improve Your Management Financial Cost Data (Use
  NRMCAs Chart of Accounts)
• Know Your Break-even Point
• Cost Out Jobs (Use NRMCAs Job Cost Program)
• Price Jobs Based On A Desired Return