In his NRMCA Industry Data Survey presentation at the association's ConcreteWorks conference in National Harbor, Md., in September, Pierre Villere, president and managing partner at Allen-Villere Partners, gave advice to producers on how to manage risk in the future.

  • Don't add to long term debt in the next boom, reduce it. If business is too good to be true, it probably is.
  • Be a contrarian. - Don't expand at the top of the market.
  • Husband you financial resources, keep your balance sheet strong, and spend the money on discounted assets in the next recession.
  • Be wise on capital expenditures and acquisitions. Strong cash flows have a tendency to makes us fall in love with new equipment or acquisitions
  • Review all mix designs
  • Reduce all Fixed Costs by reviewing each line item
  • Cost out all jobs to assure that each one produces a positive Marginal Contribution
  • Maintain a Cash Requirement spreadsheet
  • Reduce DSOs & increase Payables
  • Reduce Inventories to bare minimums
  • Maintain accurate & current Financials
  • Maintain a current Break-Even Analysis

Check out "Slugging it Out" by Pierre Villere from the November-December issue.