$ 3.00 per cubic may seem small but if you look at asx listed concrete suppliers none are making over 5% profit it’s a competitive industry.
If you consider a cubic metre costing $200 then the profit is $10 a $3 saving could potentially be a 30% increase in profit. Of course this is a simplistic calculation, the point being the saving should be looked at as a % of profit not total sale price.
The fact the product is improved and helps the company’s reduce their carbon emissions which are a major focus currently makes it extremely attractive.
The suggestion that a concrete producer would say gee it only saves us 3 bucks sure it’s makes the product better and a little greener but it’s not worth worrying about is laughable. Good management are looking for every saving and method to improve quality and reduce emissions they can find.
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- Ann: Results of Concrete Decarbonisation Study
Ann: Results of Concrete Decarbonisation Study, page-74
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