The construction industry has experienced a favorable growth over the years. This expansion is mainly due to the US government's infrastructure investment amounting $1.3 trillion, rising residential and commercial demands, and the growing emphasis on eco-friendly construction practices. With these facts, it may be a good timing to start your own concrete business.
Whether you have been very passionate about the construction industry or you just want to invest in another profitable business, breaking into the concrete industry might sound intimidating at first. With careful planning, effective marketing, and focused execution, you will be on your way towards a successful concrete company. Take this article as your guide on how to start a concrete business this 2025.
Before you test the waters, it is important to assess important factors that greatly impact your business such as the demand in your local market, profitability, and success rate. Is there a high demand for driveways, foundations, and construction in general in your area? If you see these opportunities exist around you, align your supply and services based on the needs and preferences of your target customers. Make it a habit to research more and be aware of potential challenges you might meet and be prepared for possible solutions.
Latest statistics show that there are 92,904 concrete contractors in the US contributing to the market value of $15.24 billion in 2023. It is projected to reach $25.02 billion by 2031 with a CAGR of 6.66%. Concrete production has even generated an annual revenue of $68 billion in 2024. Despite these promising figures, the concrete contracting market has a low concentration with only four companies who play a major role in the industry. These facts give startup concrete businesses enough encouragement and a chance to achieve favorable success.
Based on market and industry trends, a concrete business can be profitable but it requires a decent investment to start and some time to break even. Typically, the total estimated startup cost ranges from $40,000 to $100,000. This amount can still vary depending on the actual costs of your business licensing, insurance and bonding, tools and equipment, vehicle, office set up, marketing efforts, and initial supplies. To keep costs as low as possible, you can always start small and slow by initially renting tools and equipment until you can afford to scale up.
Depending on your chosen business model, pricing, and local demand, the time to reach profitability also varies. The first few months is expected to be a time for investing in branding and acquiring new clients. By the time your business reaches one year and onward, that's the time you can expect to see net profits with consistent booking of concrete jobs and competitive pricing. Most concrete businesses report a profit margin of 10% to 20%, relatively low compared to other industries.
In general, the success of a business depends on how they manage to overcome the industry's major challenges. Within the 3-year survival period, about 56% of construction firms remain are still running and operating and about 26.6% of these firms remain in business after 10 years. Many concrete and construction businesses fail due to many reasons such as inadequate financial management, poor quality control, and failure to adapt to industry trends.
Just like any other business, this is not an overnight success. Thorough market research and adapting to new industry advancements will help your business push through despite the challenges. Also, don't forget about investing for your branding and marketing strategies. This is crucial for your business to stand out amidst the competitors and attract more customers.
If you are already a skilled mason, then think of yourself as ahead of the game. But if you are still new to the industry, consider taking short courses and getting hands on experience from apprenticeships, trade schools, and on-the-job training with professional contractors. This business requires skill, precision, and a strong understanding of how concrete work processes are being done. As a business owner, you need to have the skills, knowledge, and experience to understand how a concrete business operates.
Basic and advanced knowledge about concrete mixing, pouring, forming, and finishing is non-negotiable. You also need to know about different concrete mixes and their corresponding application. This ensures proper execution and efficiency in handling different projects such as volumetric construction. To keep everyone in your team safe, you need to be familiar with construction safety and local building codes. Spend separate time to train your team about these important protocols to remind them that safety is a top priority in the workplace.
Being educated and experienced is a must in the concrete industry. Knowing the craft helps you handle your team and troubleshoot possible challenges better. If you are already confident about your skills and knowledge, it is time to proceed to securing legal requirements for your business.
A business plan doesn't need to long and complicated. It only needs to have the important details that are useful as it serves as an overview of how your business operates. Spend enough time to know more about the industry and align your goals with the recent trends and customer preferences. The competitive market calls for enough understanding and preparation for what's about to happen, so make sure to include these important parts of a comprehensive business plan:
Starting a concrete business is never easy, but if you come prepared and fully loaded with what you need, you'll have high chances of surviving the challenges brought by the competitive market.
Obtaining all the legal requirements is important for any business to operate legally. This is the first step to gain the trust of your target customers and establish credibility for your business. Depending on the state where you are located, there are different regulations and state-specific permits that you need to comply. Here are 4 basic legal requirements that you need:
In the construction industry, investing in the right tools and equipment is as important as having practical skills and knowledge to do the work efficiently. The list of essentials you need might be long and overwhelming but you do not need to acquire everything all at once. As you learn how to start a concrete business, prioritize the most important ones that you need to start gradually.
These tools and equipment may consume a huge part of your startup cost but these are essential to provide exceptional services and the best customer service. If you need additional funding, contact banks and investors that offers low interest or installment rates for construction businesses.
Your branding creates the first impression for your business, so make sure to come up with a name and logo that is relevant and easy to remember especially when you are trying to build your online presence. In this modern world, people mostly rely on the internet to find products and services they need. This is where the importance of having an optimized website and an updated social media account comes in.
Having a professional website can do wonders for your concrete contractor business. It helps you stand out among the many competitors in your area through ranking on top of search engine results. The main goal is to attract more of your target audience and convert them into paying customers. That's why it is crucial to make your website user-friendly and well-organized. Ensure that all important details about your business is accessible, making it convenient for all people who visits your page. In order to be more virtually visible, appropriate SEO techniques should be utilized.
The right SEO techniques will benefit your business by making it rank on top of search engine results which boosts online visibility, attracts target audience, and generates leads. It is considered to be the most cost-effective marketing strategy that offers long-term results compared to paid ads. Aside from these benefits, SEO practices can provide insights on consumer behavior by tracking traffic and user engagement. Here are 5 techniques you can use for your business:
Facebook and Instagram are popular social media platforms wherein you can enhance brand awareness by running paid ads and campaigns so that your business can reach your target customers easily. Posting relevant content, reels, and promotions can encourage engagement and gain more attention. If you want to reach a broader audience, utilizing different social media platforms to advertise your business is also a cost-effective way.
Profitability can be easily reached when you have priced your concrete services competitively. Avoid underpricing as it devalues your efforts and does not work long-term. Also, overpricing can push customers away. Approximately 20% of construction firms reportedly fail in the first year, and 50% stop their business operations after 5 years. This is mainly due to poor financial management and over expansion without proper resources. These can be avoided if thorough research and planning has been done beforehand. Analyze how your competitors price their services and make it a basis for your pricing.
To stand out among your competitors, focus on a certain niche that aligns with your expertise. Be clear about each service you offer and set transparent prices to avoid confusion. Many concrete businesses offer free quote before a customer books a service so they will have time to prepare their own budget and funding options.
Starting a concrete business is more than just the skills and physical work. It requires planning, securing business licenses and permits, complying to local regulations, and implementing cost-effective marketing strategies to make your business thrive. Aside from these, you also need enough funding and resources to start your business. Tools, equipment, and machinery takes up a large portion of your startup fund but it is very essential to boost productivity and efficiency in every construction project you tackle.
Following these steps on how to start a concrete business will help you prosper in the challenging construction industry. With continuous learning and determination to succeed, you will be able to create a solid client base and make a name in the industry.
Ronald Osborne is an Australian entrepreneur and experienced business coach. With over ten years of business and mentoring experience, an MBA specializing in Finance, along with launching/partnering with over 10 of his own companies around the globe, he has been able to achieve his version of success. Ronald has been able to help large telecommunication companies, law firms, trade businesses, and everyday business owners improve their business and take it to the next level.
