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Concrete Industry: Supply Chains or Buying Local?

As anyone who has watched the news in recent months is aware, supply chain issues have been taking center stage since the beginning of the pandemic. Early in 2022, there are still shortages of consumer products, the cost of freight shipping has skyrocketed, and the intricate network of carriers that transports goods around the world is still badly damaged. As a result of the stress placed on global supply chains and the increasing cost of transporting goods, now is a better time than ever for all contractors, including those in the concrete industry, to start buying locally produced products.

Concrete as a Locally Produced Material

Concrete is a mix of aggregate and a binder. In almost all cases, the aggregate, which is usually made from a mix of sand and gravel, is locally sourced. The same goes for the small stones added to decorative exposed aggregate products. That said, it’s still wise for concrete contractors to make good use of construction material tracking software, since ready-mix concrete has a very time-sensitive application window.

Keeping Cement Supply Chains Short

Unlike aggregate, the cement typically used as a binder in modern concrete is not a natural material. It’s manufactured using a combination of eight primary ingredients, which must be manufactured from organic materials like limestone, chalk, clay, shale, marl, sand, bauxite, and iron ore. Keeping cement supply chains short means working with a vendor that sources these materials from as nearby as possible. 

In some cases, sourcing cement for use as a binder may still require purchasing either the finished product or the unrefined materials used to make it from another country. However, working with companies that extract materials from nearby neighbors instead of nations half a world away can still keep supply chains short and costs low.

Concrete As a Time-Sensitive Product

Ready-mix concrete can’t be shipped halfway across the world before it’s put to good use. Once water or cement has been mixed with aggregate, the concrete must be discharged within 1.5 hours to avoid slump loss. Although some experts believe that the 90-minute time limit for ready-mix concrete is too conservative and should be adjusted, it remains the current standard across the industry.

Because ready-mix concrete is such a time-sensitive product, it cannot be sourced via complex global supply chains. Concrete companies may order component parts from nearby states or countries, but contractors will always have to work with local suppliers.

Buying Local Keeps Costs Down

Sending back batches of concrete that have exceeded the 90-minute time limit in the truck only accounts for some of the increased costs of building with this material. Supply chain issues account for much of the rest of the increased costs. They also contribute to missed deadlines and over-budget projects. The best way to avoid these issues is to work with a supplier that sources as many materials as possible locally and keep careful track of timing.

The Verdict Is In

When it comes to answering the question of whether to engage with international supply chains or purchase concrete locally, the answer is clear. Concrete contractors who work with suppliers committed to buying locally can usually get better prices while simultaneously reducing waste, avoiding project disruptions, and preventing unnecessary ecological impacts. Even once the supply chain disruptions caused by the pandemic have been resolved, contractors will still be better off buying locally sourced products.

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