1. Highlights of the Ready Mixed Concrete Industry Data Report
Presented to the 47th Annual
Business Administration Conference by
William B. Allen
Allen - Villere Partners
October 17, 2005

2. Benchmarking Assists in helping to analyze the cost of doing business
Assists in helping to analyze the efficiency of an operation

3. Surveys Available Industry Data Survey Fleet Benchmarking Survey
Safety Benchmarking Survey
Environmental Costs Survey
Compensation Survey

4. The Industry Data Survey
Company Size Analysis By % Sales & $-Per-Yd
Regional Analysis By % Sales & $-Per-Yd
Rural, Urban & Mixed Region Analyses
Five Year Trend Analysis

8. Ready Mixed Concrete Profitability
$ Per Yard
The profitability of the industry has changed as well; The 2001 NRMCA Financial Industry Data Survey shows that pretax profit on a yard of concrete has risen from 5 cents per yard in 1991 to $4.27 in 2000; demonstrating that the industry has improved its understanding of business operations.

11. Growth Comparison YTY % Change

12. Profit vs Sales Price

13. Price vs Cost

14. Profit includes $0.17 Net Other Income

15. Profit includes $0.25 of Net Other Income

31. SP up $0.83
VC up $0.94

34. TABLE 1: Efficiency Ratios by Company Size
Item
<100K K K
>500K
Typical
Leader
DSO
43.2
49.9
46.8
52.2
51.6
43.3
Yds/Hour
2.2
2.1
3.0
3.2
Yds/Truck/Yr
3,415
4,892
5,186
5,976
5,779
6,112
Sales/Employee
$160,416
$195,036
$233,996
$227,896
$225,230
$244,609
VarDel/minute
$0.57
$0.47
$0.69
$0.66
$0.65
$0.62

35. TABLE 2: Efficiency Ratios by Regions
Item
NE/MA SE NC SC GL RM
PNW
PSW
Typical
Leader
DSO
63.2
45.1
45.0
51.3
65.3
38.3
58.7
45.8
51.6
43.3
Yds/Hour
2.7
2.9
3.5
3.2
2.6
3.8
3.0
Yds/Truck/Yr
4,771
5,937
4,892
6,662
4,767
6,192
5,489
7,010
5,779
6,112

36. Summary What Can We Do To Improve Our Bottom Line?
Compare Strengths & Weaknesses to Peers
Improve Your Management Financial Cost Data (Use NRMCA’s Chart of Accounts)
Know Your Break-Even Point
Cost Out Jobs (Use NRMCA’s Job Cost Program)
Price Jobs Based On A Desired Return