Income Statement of a Typical Producer who Responded to Survey: In the last 10 years, a typical read-mixed producer's net sales have increased almost 40% while EBITDA has jumped by more than 64%. At the same time, selling, general, and administrative expenses have fallen almost 10%, reflecting more efficient office and accounting systems and procedures.
Company Demographics By Company Size: The big keep getting bigger. In 1996, the largest quartile of producers manufactured an average of 729,000 yards. Today, the largest sells more than 2.1 million yards. Like 10 years ago, the largest producers have newer fleets.
The Cost of Materials Continues to Rise: Material Costs for producers have risen 69% in the last 10 years. The specific breakdown for 1996 is not available.
How Much Inventory do Producers Hold?The inventory holding period is the number of days inventory will last before reordering. Producers in the 2006 survey carried 1.2 more days of inventory than in the 1996 survey. The more inventory a company carries, the more money it has tied up. This is an area smaller producers should carefully monitor.