Is Owning a Ready Mix Concrete Business Profitable?
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 2 min read
The ready mix concrete industry plays a vital role in construction projects across residential, commercial, and infrastructure sectors. If you’re considering starting a ready mix concrete business, one of the first questions you’ll ask is: Is it profitable?
The short answer—yes, but profitability depends on several factors including startup costs, operational efficiency, and market demand.
Why Ready Mix Concrete Businesses Can Be Profitable
Ready mix concrete is essential for modern construction because it saves time, ensures consistent quality, and reduces labor costs for contractors. With steady demand from housing developments, commercial buildings, and road projects, this industry offers strong revenue potential.
Key Factors That Impact Profitability
Launching a ready mix concrete business requires significant investment:
Batch Plant Setup – $300,000–$500,000
Mixer Trucks – $100,000–$150,000 each
Facility and Land – $50,000–$200,000
Permits and Licenses – Varies by location
2. Operating Expenses
Ongoing costs include:
Raw materials (cement, aggregates, water)
Fuel and maintenance for trucks
Labor and training
Insurance coverage for liability, vehicles, and equipment
3. Revenue Potential
Profit margins typically range from 10% to 20%, depending on:
Local demand
Efficient delivery scheduling
Competitive pricing
Quality control
Read More: American Concrete Institute
4. Market Demand
Construction growth drives profitability. Areas with high infrastructure development or housing projects offer the best opportunities.
Insurance and Risk Management
Insurance is critical for protecting your investment and meeting client requirements. Common policies include:
Challenges to Consider
High initial investment
Environmental compliance
Managing delivery logistics
Maintaining consistent quality
Final Thoughts
Owning a ready mix concrete business can be profitable if you plan carefully, manage costs, and secure the right insurance coverage. With strong demand and proper risk management, this business offers long-term growth potential. At Wexford Insurance, we specialize in concrete manufacturing and delivery insurance, helping you protect your trucks, batch plants, and employees.
Ready to get started?
Contact us today.
