Ready-Mix Concrete vs. Batch Plant Investment: Which is Right for Your Business?
When it comes to sourcing concrete for construction or manufacturing, contractors and business owners typically face two options: ordering ready-mix from a local production facility or investing in their own batch plant. Each choice carries distinct advantages, costs, and risks. Understanding the key differences can help you make the best decision for your operation.
Ready-Mix Delivery: Third-Party Dependence
Ready-mix concrete is produced off-site at a central batching facility and delivered to job sites or facility locations via mixer trucks. Ready-mix providers handle raw material procurement, quality control, environmental compliance, and delivery logistics. With no need for upfront capital investment or dedicated staffing, ready-mix can be the go-to choice for short-term projects, variable production demand, or lower annual volume demand.
The cost of using a third party for concrete delivery is two-fold. First, is unpredictable delivery scheduling. Most of the time, ready-mix plants are producing concrete for a variety of customers at the same time. Sometimes a pre-caster who relies on ready-mix has to wait longer than expected for a delivery, which in turn impacts their own production schedule and goals. Second, the per yard cost can total more than $150/yard especially when delivery fees and waiting charges are included.
For manufacturers who produce concrete-based products such as underground utilities, culverts, septic tanks, structural elements, and infrastructure products, a ready-mix order could easily equal 100 yards per day or more, costing $15,000 per day. Owning a batch plant may be a more cost-effective option and it eliminates access to concrete as a constraint.
Batch Plant Ownership: Control and Cost Efficiency
For operations requiring large volumes of concrete—such as pre-casters serving the burial, infrastructure, and waste management industries —investing in a batch plant can lead to significant long-term savings. By producing concrete on-site, companies reduce transportation costs, gain full control over production schedules, and can adjust mix designs in real time.
Owning a batch plant comes with an increase in responsibility compared to a ready-mix delivery service. Start-up costs can exceed $200,000, not including land, utilities, and permitting. Ongoing expenses include staffing, maintenance, material sourcing, and regulatory compliance. But once it is up and running, a batch plant will reduce the cost per yard for concrete from an estimated $150/yard to $80/yard.
Mixer Systems Inc. prides itself on being a one-stop resource. We provide advanced product planning, offer state-of-the-art manufacturing, and design and construct concrete batch plants from the ground up. Our product line is the largest family of equipment in the industry, built with American reliability to tackle the challenges of the world of concrete.
A Skid-Mounted Batch Plant, for example, is an economical and flexible option featuring a wide variety of mixers and controls. It can pour concrete volumes anywhere from a few yards to 25 yards per hour. It’s also pre-plumbed, pre-wired and shop-tested for a quick and easy installation. Set-up time from delivery to installation is as little as three days.
One hesitation manufacturers may encounter when considering owning a batch plant is how to operate it. Mixer Systems developed its E-150 batch control system with this in mind. The system features fully automated sequence batching of materials, scales for cements and aggregates, a recordation program for materials use, and remote access for trouble shooting.
Mixer Systems experts are available for any batch system support your team needs, including training, troubleshooting, servicing, and shipping parts within 24 hours. Explore all of our batch system products in our Buyers Guide.
Choosing the Right Option
The break-even volume—the point where a batch plant becomes more cost-effective than ready-mix deliveries—varies by region and costs, but generally falls around 25 cubic yards per day. Business owners expecting lower annual volume and can establish a reliable relationship with a ready mix company could find ready mix a reasonable option. Those with limited scheduling flexibility, higher-volume needs, the capacity to manage production, and the need to control costs may benefit from batch plant ownership.
By carefully evaluating costs, logistics, and operational demands, you can choose the most efficient and profitable concrete sourcing strategy.
Contact Mixer Systems today to calculate your break-even cost.