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Cart-away 1-yard concrete mixer

Solving Short-load Problems

On any given day we receive dozens of calls from some of our 400 partner locations. Most of these calls are requests for maintenance parts or to place orders for additional equipment.  Last Friday we had three successful owners call to report the impact of the ready-mixed shortages in their area.  These Cart-Away operations are taking full advantage of the crisis in ready-mix delivery in the U.S.

The Problem: There are contractors that are being told that they can’t get concrete for weeks and the delivery fees are exploding. These contractors are turning to Cart-Away to get their “mud“.  Short-load solutions like Cart-Away have always benefited from the challenging schedules from big truck delivery. Nowadays the shortages have contractors waiting in lines to get a Cart-Away trailer at one of our locations. Because of the long delivery times from traditional ready-mix, many are turning to Cart-Away to finish jobs as large as 20-yards.

The Ready-mix Sherpa: For the past 28-years we have acted as the “sherpa” to business owners who are adding concrete to their operations. There are a mixture of businesses that do Cart-Away ready mix sales. Some are “Concrete Only”, some combine Cart-Away with Rental, and others do Landscape Materials and ready-mix.  Last Friday we heard reports from the owners at 2 locations in Utah and 1 in California.

  • One location that is exclusively selling ready-mixed concrete reports that he is routinely having 40-yard days.  He has been selling Cart-Away concrete as his only product for the past 20-years. He has 11 mixing trailers and is on a lot that is about 3/4 of an acre.
  • Another location reported that they are so busy with Cart-Away concrete that they had to move their dump truck drivers into the yard to assist with hooking trailers and loading the batch plant. They make more money selling ready-mixed concrete than they do delivering landscape materials. He said that they are now filling their silo with Portland cement every day. NOTE: One silo equals about 90-cubic yards of concrete. This location has a dozen mixing trailers in their fleet. They started business as a landscape supply yard and started offering Cart-Away about 15-years ago.
  • The next location reported that they have purchased 6 portable cement silo-trailers that they stage full to keep their stationary cement silo from running empty.  They drain and fill the cement silo a couple times per day. This location is the highest volume producer in all of our 400 partner locations. He has a combination of big and small ready-mix trucks along with a fleet of 10 mixing trailers. They also offer a complete line of landscape supplies.

We do not have access to these guys books, so we don’t know exactly what their annual sales are from their Cart-Away concrete operation. But we do know that they are all selling a yard of concrete at about $200.  A quick calculation of the volumes that they reported would put all of them with annualized revenues between $2.5 million and $6 million each. And, this is just the revenue from selling ready-mixed concrete.  Each of these operators have mentioned that Cart-Away has become their “golden goose” of profit. Self-delivered concrete is the highest profit margin of all of ready-mix business models.

short-load concrete sales are increasing

Cart-Away Ready-mix Sales Explode

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We pulled some demographic details on each of these 3 locations.

  • Each has reasonable, but not stellar population growth rates.
  • Each has middle-of-the-road household incomes.
  • All have similar home ownership ratios.
  • They all have about the same age distribution.
  • They are all in markets where traditional truck ready-mix is prevalent.

They each have a crisis of concrete delivery that is forcing contractors to explore other options for getting ready-mix when they need it. Because this crisis in not limited to Utah and California, we expect that many areas around the country are finding the same uptick in sales. Local truck delivery is getting difficult to work with, yet Cart-Away allows a customer to drive in and pull away at trailer full of concrete on their own schedule.

Those who are seeking investment opportunities should seriously explore Cart-Away. These three locations are just a small representation of the opportunity that exists in the $50 Billion dollar market.