Economic downturns challenge construction businesses to find new revenue streams or risk closure. For material producers and contractors, one of the most effective strategies involves expanding into crushing and recycled material markets. As explored in a case study of Riverside Sand Company, the right Commercial Fit Out Trends may shift during recessions, but the demand for processed aggregates and reclaimed materials remains strong. This article examines how crushing and screening plant investments enable construction businesses to diversify, reduce costs, and build resilience against market volatility.
The Business Case for Crushing and Screening Diversification
Companies that rely on a single material stream face existential risk when that market contracts. Diversification into crushing and screening operations offers a proven hedge. The experiences of aggregate producers who added asphalt and concrete recycling during the 2008 recession demonstrate that portable crushing plants can open entirely new revenue channels while the core business faces headwinds.
Why Single-Market Operations Are Vulnerable
A company that processes only one material type faces several structural risks:
- Demand concentration in a single industry sector that may decline during downturns
- Limited ability to serve adjacent markets without additional processing capability
- Dependence on virgin material extraction, which faces increasing regulatory and environmental constraints
- Underutilized equipment and labor during slow periods
Riverside Sand Company operated for more than 25 years processing sand and gravel for brick production, playgrounds, golf courses, and concrete precasting. The company also ran a trucking division, which provided the only diversification in its portfolio. Vice President Wade Norris recognized that this narrow focus could prove dangerous over the long term and began researching expansion options before the recession hit.
Market Timing and the Rise of Reclaimed Asphalt Pavement
The timing of Riverside’s diversification proved fortuitous. Just before the economy declined, Norris purchased an IROCK RDS-15 closed-circuit plant. This allowed the company to process reclaimed asphalt pavement (RAP) and recycled concrete, two markets that grew rapidly during the recession as public agencies and private contractors sought cost savings.
The RAP market expanded from 56 million tons in 2009 to 62.1 million tons in 2010, a growth of 6.1 million tons in a single year. This surge occurred because the residual liquid asphalt within RAP, typically 3 to 5 percent, makes road building more economical. When budgets tightened nationwide, RAP became an essential material rather than an optional alternative.
Key Numbers From the RAP Market Shift
| Metric | 2009 | 2010 | Change |
|---|---|---|---|
| Total RAP usage (million tons) | 56.0 | 62.1 | +6.1 |
| Percentage of asphalt mixes containing RAP | ~68% | ~75% | +7% |
| Cost savings per ton of RAP used | $15-$25 | $18-$30 | +20% |
| Riverside daily asphalt crushing (tons) | N/A | 950 | New market |
Norris explained, “We could not continue to put all of our eggs in one basket. Expanding our services to include crushing concrete and asphalt gave us another avenue of income when the sand business was down.”
Closed-Circuit Crushing Plant Technology and Efficiency
The technology behind modern closed-circuit crushing plants made Riverside’s diversification possible. Understanding how these systems work helps contractors evaluate whether similar equipment suits their operations.
How Closed-Circuit Design Improves Production
A closed-circuit crushing plant combines both a crusher and a screener on a single chassis. After the initial round of screening, the machine automatically returns oversized material from both decks back to the crusher for additional sizing. This automated recirculation eliminates the need for a second piece of equipment and additional labor to handle oversize material.
Riverside’s previous stationary impact crusher required an extra person and an additional loader or excavator to pick up oversized materials and manually refeed the crusher. The closed-circuit design eliminated this bottleneck entirely.
- Automated recirculation: Oversized material returns to the crusher without manual intervention
- Single-chassis design: The crusher and screener travel together as one unit
- Reduced labor requirements: No dedicated operator needed for oversize handling
- Consistent product sizing: Multiple screen decks ensure uniform output specifications
Production Metrics That Matter
The RDS-15’s closed-circuit configuration delivered measurable improvements over Riverside’s previous setup. With 5/8-inch screen on the bottom deck and 1-1/2-inch screen on the top deck, the plant produces 100 percent 5/8-inch-minus material. This consistency is critical for asphalt producers who require tightly graded aggregates.
The production increase reached 20 percent, which translated to:
- Greater output in less time per shift
- Lower labor costs per ton produced
- Reduced fuel consumption from eliminating a second loader
- Lower overall operating expenses across the crushing operation
Norris calculated that in a 10-hour day, an employee earns about $200. Adding the cost of running, fueling, repairing, and maintaining an additional piece of equipment, which averages about $100 per hour, the total savings reach approximately $7,200 in a six-day workweek. These figures demonstrate that closed-circuit efficiency improvements have a direct and substantial impact on the bottom line.
Portable Versus Stationary Crushing Operations
One of the most significant decisions when investing in crushing equipment is whether to run a stationary or portable operation. Each model suits different business goals, and many successful operations use a combination of both.
The Advantages of Portable Crushing Plants
The Rapid Deployment System (RDS) on the IROCK RDS-15 makes the unit exceptionally portable while remaining quick and easy to set up. This allows a crew to relocate the plant to customer sites where material has been stockpiled, rather than requiring all material to be transported to a fixed location.
Riverside’s mobile crew and machine travel to sites within two hours of the home base, where contractors have stockpiled anywhere from 20,000 to 35,000 tons of material for crushing and sorting. The customer base became substantial enough to keep the traveling RDS-15 away from home year-round, with routes that repeat annually along the North Carolina coast.
Comparing Stationary and Portable Setups
| Factor | Stationary Plant | Portable Plant |
|---|---|---|
| Initial investment | Lower equipment cost | Higher per-unit cost but multifunctional |
| Site flexibility | Fixed location only | Move to customer sites |
| Setup time | Permanent installation required | Hours, not days |
| Transport requirements | Material must be hauled in | Plant travels to material |
| Revenue potential | Limited to one location | Multiple contract sites per year |
| Labor efficiency | May need extra handling equipment | Closed-circuit reduces labor needs |
Norris noted, “This plant is the whole kit and caboodle on one chassis. We can drag it down the road, pull into a customer’s site and set up. We do not have to haul the crusher with one truck and a screen with another. It is all right there together.” This matters because the traveling operation requires nine total loads of equipment. Eliminating even one load saves transport time and fuel.
Dual-Plant Strategy for Maximum Utilization
After the used RDS-15 proved successful, Norris decided it would serve as a backup while a new RDS-15 became the traveling machine. Just three months after buying the used unit, Riverside closed the deal on a new crusher. This dual-plant strategy kept both machines running steadily, with the stationary unit handling home-base production and the mobile unit capturing contract work across the region.
For businesses considering a similar approach, the dual-plant model offers several advantages:
- The older plant provides redundancy if the primary unit needs maintenance
- Both plants can run simultaneously during peak demand periods
- The stationary plant handles consistent base-load production
- The portable unit opens new revenue through contract crushing services
Implementing a Diversification Strategy for Crushing Operations
Adding crushing and screening capabilities requires careful planning. The following framework helps contractors evaluate whether this diversification makes sense for their operations.
Step-by-Step Evaluation Process
- Assess local demand: Identify markets for crushed aggregates, RAP, and recycled concrete within your service area.
- Evaluate customer relationships: Existing customers may be your first market. Residential builders, commercial contractors, and Setting Out Building Plan On Ground crews all use processed aggregates.
- Research equipment: Compare closed-circuit portable plants against stationary systems with Rapid Deployment features.
- Calculate operating costs: Factor in labor, fuel, maintenance, transport, and screen replacement against expected revenue.
- Plan mobile operations: Map service radius, transport logistics, and seasonal demand patterns for contract crushing.
Infrastructure Considerations for New Crushing Operations
Setting up a new crushing operation requires attention to several site and equipment factors. Proper planning prevents costly delays and safety issues.
- Site access and layout: Ensure adequate space for stockpiles, equipment positioning, and truck loading. Portable plants need clear routes for relocation.
- Power requirements: Closed-circuit plants may need diesel or electric power. Evaluate generator capacity for remote sites.
- Dust and noise management: Plan for water spray systems, dust collection, and compliance with local regulations.
- Material handling equipment: Excavators, wheel loaders, and conveyors support the crusher. Factor these into the equipment budget.
One often overlooked consideration is managing vegetation and root systems around material processing sites. Trees and root growth can damage road bases, drainage systems, and septic fields adjacent to processing areas. For facilities near residential or commercial zones, strategies for Keeping Tree Roots Out of Septic Systems Prevention and other underground infrastructure protection should be incorporated into the site plan.
Maintenance and Longevity of Crushing Equipment
The used RDS-15 that Riverside purchased had been in operation for nearly two decades, demonstrating that well-maintained crushing equipment can provide many years of service. Norris maintained a close relationship with the IROCK team for parts and service needs, which proved essential for keeping an older machine running productively.
Proper maintenance practices extend equipment life and protect the investment:
- Inspect screen decks daily for wear and replace as needed to maintain product quality
- Monitor crusher wear parts including impact bars and liner plates
- Check conveyor belts for alignment and tension before each shift
- Maintain proper lubrication schedules for bearings and drive components
- Keep spare parts inventory for critical components to minimize downtime
Protecting Processing Infrastructure From Site Damage
Processing sites face unique challenges from heavy equipment traffic, material stockpiles, and weather exposure. Proper drainage away from crusher foundations prevents settling and structural issues. For operations on sites with existing buildings or drainage systems, proper installation of water diversion features such as kick-out diverters protects foundations from erosion. Guidance on Bigger Flashing Solves a Persistent Problem Installing Kick Out Diverter systems can help prevent water damage around processing plant foundations and adjacent structures.
Scaling the Diversified Crushing Business
Asphalt rose to the top of Riverside’s production list, now accounting for about 60 percent of the business with an average of 950 tons crushed per day. The remaining capacity serves concrete recycling and sand and gravel processing, maintaining the diversified portfolio that protected the company during the recession.
For contractors considering this path, the key lessons from Riverside’s experience are clear: invest before the downturn, choose equipment that offers both efficiency and portability, maintain strong manufacturer relationships, and be prepared to scale when the market responds. Diversification through crushing and screening is not just a survival tactic. It is a growth strategy that positions construction businesses to thrive across economic cycles.