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The Economy of Recycled Aggregate Materials
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Webinar Recording
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Hello and welcome to today's webinar. Our speaker today is Paul Smith from Rebel Master. Before I turn it over to Paul, I'd like to let those of you who are live with us to know that you may submit questions during the webinar via the Q&A tab at the bottom of the screen. This webinar will also be recorded so that you may re-watch or watch on demand at your convenience. With that, I'll turn it over to Paul. Thank you, Karina. Good morning, everybody. Thank you for attending today's webinar. She mentioned my name is Paul Smith. I work for Rebel Master. I've been in the industry since 1989, so I've earned my silver a little bit, so to speak. I'm very excited to share with you a business venture aimed at helping heavy equipment dealers and their respective customers diversify their business models in a manner that has proven to increase top-line sales and profits through their existing organizations and customer bases, while at the same time providing a valuable contribution to the communities we all serve. With that, I will embark on the presentation. One thing that we see a lot of in today's world is a lot of the infrastructure and a lot of the construction in our society has started to age. We see a lot of demolition going on, a lot of old airports, a lot of bridges, a lot of parking lots making way for the new Amazon distribution centers, etc. This generates a lot of activity surrounding construction and demolition, which generates quite a bit of material. If I take a look at some of the research on the internet, I did a quick Google search last week just to get my arms around how large this market is. There's over 55 billion tons, or rather 55 billion dollars of industry opportunity associated with C&D waste. We expect that trend to continue to grow over the next seven, eight years by a rate of over six percent per year. This is definitely a market that is increasing in size, not decreasing. Of those materials, asphalt tends to be the most popular, prevalent recycled material being used. If we think about all the roads, all the highways, all the interstates that were paved back beginning in the 40s and 50s, a lot of those highways are starting to now age. They're starting to be rehabilitated. They're starting to need to be replaced and upgraded with safer roads, with roads that have been rutted need to be upgraded, things of that nature. So when I look at our highway system, I look at all that material out there. I don't see so much as a highway system as much as I see a potential reserve of materials which we can harvest and make available in our industry. For every mile of highway or roadway that is laid down, there are about 38,000 tons of aggregate in each mile. That's quite a bit of material. So if we think about all the miles associated with our highway system, there's a significant amount of material that's being both consumed and is already baked into this opportunity. If we look at it from a consumer standpoint, every American citizen consumes or uses about 22,000 pounds of aggregates per year. One of the things we've seen is a lot of growth in terms of urban sprawl, in terms of community growth, things of that nature. Obviously that consumes a lot of materials, generates a lot of roadways. With the increase in population, increase of number of households, things of that nature, obviously we need to adjust for the amount of congestion in terms of traffic, in terms of people being able to get from where they need to be to where they need to go. All that generates quite a bit of activity and ultimately a lot of demand for more materials. When we're talking about demolition, we have to do something with that material. Now the traditional way of disposing of that material was to literally haul it from the job site, put it into a truck, haul it to a landfill someplace and bury it underground. Obviously there's a cost associated with doing that. Recently we just take a look at a snapshot of some activity up in New Jersey. We saw that for every load of disposable, it was about $600 per load just to haul that material away. To bring in base materials, so let's say we're taking material out and then we're having to bring material back in. For example, in some of the southern states in the coastal area where aggregate resources are a little further away, we would see up to $24 per ton just to bring material back in. As we know in some of the urban areas where the cities and the metropolitan areas are starting to spread out, that's starting to push those deposits where we used to get material, those material deposits are either becoming depleted or they're being pushed away due to permitting, due to environmental considerations or due to just local community pressure. So that increases the amount of cycle time the truck has to go just to go to the mine or to the gravel pit to bring in fresh virgin material so that it can be used on the new job sites. Same thing with the quarries. More often than not we're seeing quarries getting pushed further and further away from the cities. They're getting harder to permit, harder to access and just increases the cost associated with bringing in quarried materials. This puts a lot of pressure on the producer or the contractor in terms of costs, obviously. We've seen a lot of inflation as we all know associated with just general inflation, also increasing wages, increasing fuel, increasing transportation. We're in a very peculiar environment here so not everybody can absorb all that simply through traditional price increases. One of the methods we use to try and mitigate cost increases is to raise prices. However, sometimes that's not an option to do that 100%. So we have to look for opportunities to both, well, we have to look for ways to reduce our costs and one of the ways we can overcome the rising transportation costs is to utilize these materials that we used to get from traditional quarries. One of the other things we're seeing, again due to the sprawl, is that where we used to have a lot of space to work within a community to do the work on site, these job sites are getting smaller and smaller. The footprints that we're able to work within are getting more constrained either due to physical space or due to permitting associated with noise, associated with fuel emissions, things of that nature, dust, etc. So there's more pressure on our industry to work in a smaller, tighter footprint. If we take a look around at all the customers, all the end users, all the contractors, we see a lot of this type of material. We see people that have brought in millings from pavement jobs, things of that nature. We see a lot of this kind of material. Everybody has to deal with it one way or another. There's quite a bit of this material. Sometimes we see mountains of this material. I don't know, I can drive around any community and I'll see a mountain of concrete, broken concrete. I'll be driving down the highway and I'll look off to my right and I'll see a pile of broken concrete or asphalt just sitting there. It kind of looks like an eyesore to some people, but I guess to some people it also looks like a pile of money that could be a, we could turn a waste product into some sort of a saleable product so that we can sell it to somebody else. We have to do something. We have to process this material. It's pretty much worthless until we actually process it, but once we do process it, then it becomes something of value. So we can take something that has no value and turn it into something that has value. There are a few different ways we can go about this. On-site recycling is a big one. I used to live in Seattle back in the 90s and we crushed down the Kingdome. I think it was right around the turn of the century. There was the old Seattle Kingdome. They crushed, they demolished that Kingdome to make way for the new stadiums and at the time there was a big debate whether they should haul that material to a landfill or crush it on-site and reuse it as a sub-base. Ultimately, that's what they did. So they brought in a crushing facility on the job site where they demolished the building, reprocessed the material on-site, then reused that material as a sub-base for the new stadium. Again, that really mitigated a lot of pressure on the community, a lot of congestion on the highway system, a lot of costs associated with transporting the material away, as well as a lot of cost of bringing in virgin aggregates. Often people, out of necessity, might bring in a small crushing plant to process their own waste material that they generate from their own job sites and what they find is that once they acquire a crusher like that, their neighbors and their peers start to call them up and ask them if they can come out and do crushing for them. Sometimes getting into this kind of a machine does take on a life of its own. We have many examples of producers and customers of our own who acquired a small crusher and then realized they could develop a new silo within their operation and ultimately start custom crushing. We've even seen some that have pivoted away from their core business and just became full-time custom crushing people. We know people that were in the junk removal business, for example, or people that were in the trucking business. They acquired a crusher just to deal with a problem. Next thing I knew, they were really in the crushing and screening contracting business. Another area that we can service is in the aggregate production area. Traditionally, the aggregate production facilities would use fixed plants, stationary plants. However, a lot of these plants are aging. A lot of them aren't very efficient. A lot of them require a lot of staff to maintain them, which are getting harder and harder to fulfill those positions. People that are skilled maintenance workers on crushers are becoming few and far between and the cost of hiring these people is increasing. Some of these facilities where we have a large million plus ton per hour, ton per year facility, it might make a lot of sense economically to run a stationary fixed asset like that. But more often than not, what we see are a lot of facilities that are underutilized. We might see a rural community, for example, where they service two or three small towns out of a gravel pit, but they only might need to process 100,000 or 200,000 tons a year, not a million tons a year. In those situations, producers are often left with the choice of either bringing in a portable system or a mobile system or hauling material from one spot to another spot just to process material, again, which does inflate the trucking costs. This is just a model. Now, these numbers can vary depending on your local community, so feel free to argue with them or feel free to do some math on your own with your own local numbers. We just took a look at a snapshot of one installation. This particular contractor that we work with, every time he would haul material away, he was costing him about $90 per load just to haul that material away. On top of that, he'd have to pay a tipping fee of about $60 per load just to tip that material at wherever facility he was taking the material to. Then he would have to bring in new material. For example, if they did a demolition job, they haul away the old material, they bring in new base material, they're costing around $160 a load for that material. The trucking costs associated with that would be about $90 per load. That all equates to about $400 per load. That would be about a one-hour cycle time. They'd have to manage that into the project and they would have to pay their own trucking and maintenance fees on their own hauls and that kind of thing. One of the things that happened around the turn of the century, as I mentioned, is the introduction of mobile crushing plants into the market. When I say mobile, they're track mounted, they're self-contained with their own power units, they can be set up on site. One of the nice things about systems like these were in the past, when I first started the industry, there was a lot of what I call tribal knowledge associated with aggregate processing. For example, the operator needed to understand that they had to feed the center of the crusher to get the best balance and the best wear utilization and the best performance through the crusher. They had to realize that transition points had to be a certain way so they didn't have spillage and they didn't generate dust. They had to make sure the angles of conveyors were at the right angle so they wouldn't have material rolling back and jamming up pulleys and things of that nature. Of course, then there's the guarding, the safety, the MSHA part of it. One of the reasons that's really driven the popularity of these plants, and we've seen year-over-year growth of this type of equipment in the industry when you look at the data, is because a lot of that art has been engineered into the science of the technology of these machines, making it a lot easier and a lot simpler for somebody with minimal experience to be able to operate a machine like this successfully. As I mentioned earlier, that tribal knowledge is getting lost. People of my generation and older are starting to leave the workforce and we're having to replace it with people that aren't as experienced. Sometimes we have people that have very little experience with this equipment. They might have language barriers to overcome. They might have all kinds of issues, but the nice thing about these systems is they're designed to be simple and user-friendly and safe so that a producer can bring in an asset and be fairly successful the minimum amount is possible. On-site recycling, as I mentioned, is a big driver in the popularity of this technology. As I mentioned earlier, this happens to be a job site out in New Jersey in the Newark area where we took a photograph. This person, they demolished an old apartment building, and again, they didn't have the opportunity to dispose of this material. There's really no place that would take it anymore. They can't go to landfill with this stuff. As a matter of fact, most people are having to go in and reclaim landfills these days rather than bring material to them. So they brought in a machine on a small job site right within the community, re-crushed the material right on the job site. That eliminated the hauling costs. That eliminated the cost of bringing in virgin aggregates and things of that nature, and it was just good for the environment, good for the community in terms of traffic congestion impact of the community that way. So again, we're talking about taking something that's considered waste or worthless material, processing it at a minimal cost, and then turning it into a material product that has real value and real usage. We looked at earlier on this demolition job where we're spending about $400 a load. We take that a step further. If we take that a look at 30 loads, which would be a typical small job, now some of them get a lot larger than that depending on where you're at. We have a project in Cincinnati, for example, where they're demolishing a huge warehouse facility, a storage facility, and it's going to be about a two-year project. So they'll certainly be looking at a lot more than 30 loads of material if they were to truck that material away. But just taking a look at an example here of 30 loads, and again, play with the numbers however you'd like, but if we dollarize that single load by over 30 loads, now we're looking at over $8,000 or more. If we compare that or contrast that to bringing in a crushing system to do it on site, the cost to mobilize the machine, let's just pick a figure of $1,000 to bring the machine in. The setup cost, you know, the cost of crushing might be about $6,600. The extra operator machine, another $900, and then we have to prep the material. By the time we add all that up, that still leaves a significant profit opportunity of over $8,000 as opposed to hauling that material away and disposing of it and then replaced with virgin aggregates. Let's take a look at the aggregate space for a little bit. As I mentioned earlier, a lot of larger facilities are very economical with a fixed asset, such as a stationary plant with three stages of crushing, five or six sizing screens, etc., etc. But very often what we see in the rural communities especially, or the surrounding communities in Ohio, places like that, we see producers that really only need to produce maybe 100,000-200,000 tons a year. And that same producer might operate in four or five different facilities where it really doesn't make economic sense to bring in a fixed plant or a fixed asset for each facility. Rather, what they like to do is be able to take a portable asset or a mobile asset and move it from site to site. Instead of bringing the material to the crusher, they take the crusher to the material so they can operate in a lean manner and just produce the material that's required at that time. Bring the crusher to the material, produce the material as needed, and then move on to the next project. That allows these producers to service multiple facilities with one asset and operate in a lot leaner method without generating a surplus of material. If we think about some of these other types of systems, the cost just to set up these plants generates fixed costs that must be absorbed by selling material. As we'll get into in a little bit, a mobile system like this has a very low fixed cost base that must be absorbed. This model here, again, we can play with some numbers, but I pulled off the Google machine the other day. The cost of running an excavator for an hour is about 100 bucks, it ranges from 75 to 150. I just picked $100 round number, but we can play with that. One of our smaller crushers compact machine, which we call an arm 90, which would be about a 36 inch wide impact crusher, a lot of people make something like that. We believe that by the time you bake in the cost of fuel for the engine, dollarize the service schedule, the maintenance schedule, do some math on hammer wear, blow bar, consumable wear, screen wire, rubber belting, things like that. And that ended in the labor two guys at 100 bucks an hour labor, which is plenty, I think for an operation like this, the cost to run that machine would be about $350 an hour. And then on top of that, if we add in the screening plant, so we can split the material into three sizes or scalp out some dirt, like that, we're looking at another 50 bucks an hour to run the screen plant. So when we go all in, we're just under $500 an hour operating costs to run a system like this crusher screen and excavator. That type of system, if we assume that we're going to produce 70,000 tons per year with a system like that at each facility, over the course of 350 hours run, well, that's actually 350 hours, not a full year's worth of production, but 70,000 tons over 350 hours, the cost of running that system would be about $175,000. When we spread that out over the tons produced, it's about two and a half dollars per ton to process that material as an operating cost. What does that compare to the sale value of that material you're producing? Is it $10 a ton retails at $15 a ton? Again, there's should you know, you can play with the numbers a little bit. But obviously, what it's telling us is there's an opportunity to process material of a much lower cost than there would be to dispose of it and bring it in. If we assume a system like this would be just shy of a million dollars, and we make some assumptions on the value of that material at 150 ton an hour, if you just do the math on that, we think the system like this would be able to pay for itself in under two years, which is very kind of feedback we're getting very frequently. Now let's contrast the mobile track system with a wheel system. The traditional way of doing this when I started was with wheel rubber tire plants. The thing about a rubber tire plant, though, is that they typically need to be cribbed up with cribbing timbers, they need slings and chains to elevate stuff, they need to be connected with transport conveyors, which increases the distance between the machines as well as increases the number of transition points which need to be managed and installed properly, etc, etc. Power cables need to be run from an MCC to each individual machine. And typically, what you're going to see is a much larger footprint. I just took to 150 ton an hour systems and made some assumptions. And again, we can argue about the numbers here. But I know, for example, the mobile system, by the time you bring in the excavator, maybe a loader to clear the material and then the three systems, you'd be looking at five loads to bring in that type of system on a track unit, or the traditional wheel when you add in the stacking conveyors, a transfer conveyors, etc, etc, you're looking at about 12 loads. So you're more than double the loads, when you dollarize that freight cost per mile, and using a model of 50 miles between the job sites, you can see that your transport cost is less than $800 for a mobile track system and about $1,900 for traditional wheel system because of the higher number of loads. We take that a step further. Now let's look at the setup time. Track system, one of the nice things about them is they're really designed engineered to be able to, with the engine on board, just drive them right off the low boy, use hydraulics to unfold the conveyor and the hopper walls and things like that and have the machine available to run within an hour. A traditional system to set up a three stage plant with conveyors, etc, might take three, four or five days to set up a system like that because it just takes more time to physically unload the conveyors, set them into place, make sure all the transition points line up, connect all the plants with all the cables, etc, etc. Some guys can do it a lot quicker than that. Some guys it takes a lot longer than that, depending on where you're at and who you're working with, obviously. But if we take the assumption of the setup hours over the same number of moves at the same labor rate, now you can see the charge to set up a track system every move is 75 bucks, whereas with a traditional wheel system, you're looking at just out to $5,000. When you add that into the freight costs, now you're looking at just under $5,000 per move for a mobile system, and about $16,000 for a wheel system. Is there a crane required with a track system? Absolutely not. Would there be a crane required with a traditional wheel system? There might be, it depends on what you're doing. If you need to unload conveyors off low boys and things of that nature, definitely it absolutely could require a crane. What's the cost of running a crane on an hourly basis or a daily basis? That needs to be baked in as well. I didn't add that in here for the purpose of this exercise. Some people might argue, well, a traditional wheel system, because you're not constrained by the tracks in the engine compartment, you can get away with larger equipment, therefore you can get more production. That's absolutely true. Well, just to be fair, I assumed that we'd have a 410 an hour system here versus a 510 an hour wheeled system. Every time we move that system, because we're only losing an hour's worth of reduction, we lose 400 tons every move. If we lose 64 hours of production with the wheel system, we're losing 32,000 tons every time we move and set up the plant. If we dollarize that at $10 a ton, now we're losing $4,000 per move, lost revenues with the track system, we're losing over $300,000 every time we move the traditional and set up the wheel system. You know, we add the tons to that if we figure at 410 an hour times, you know, the number of moves per year, we're losing 2,400 tons of lost production, we're losing over 192,000 tons for those six moves with a traditional wheel system. We dollarize that at $10 a ton, you can see the math there, we're losing almost $2 million in lost opportunity just associated with the downtime or the indirect cost of setting up a traditional wheel system where the track system sets up very, very quickly. If we dollarize the revenues, now obviously, because we're producing more material with a wheel system, we're producing $9 million worth of revenues per year, versus $7.2 million with a track system with a lower production rate. But if we back out the trucking costs, the hauling setup costs, the recapture of the lost revenues, now we're about on par with a wheel system. So what we're really saying here is the track system is much leaner, it's much more available, it's much more nimble, and it's just, you know, you save a lot of downtime. If you have a producer who is blown and going all the time, and they need to go from site to site and put as much material on the ground as fast as possible, which is pretty common, by the way, a track system makes a lot of sense. And again, I would argue that's one of the drivers and the popularity of this technology over the last 15-20 years. We've seen a significant amount of growth for people that use via a wheel system or a traditional stationary system are now turning towards the mobile systems because of the availability that these plants offer. The other thing that isn't on here, but if we think about the cost to set up a wheeled asset, now we're looking at something like, you know, $15-$20,000 just to set up that asset, whatever, I guess we're saying it's $10,000. So we have to absorb that fixed cost every move for it to be economically feasible to actually set up the plant. For example, if a producer says I need 25,000 tons of material, the contractor might say, you know what, it's not worth it, because it's going to cost me $16,000 just to set up the plant, but I have to bake into your 25,000 tons of material you want. That's going to drive the economics out of whack. Therefore, traditional oil plants typically require a minimum production run much higher to be able to absorb the fixed costs associated with setting up. The track system, very minimal setup costs that you have to absorb. So people that have these track systems can take their plant, go in and crush 5-10,000 tons of material, be much more nimble, create a new niche for themselves. And you have a competitive edge over somebody that has a wheeled system that has to generate a lot more volume to be able to absorb the cost of doing that. So again, that's one of the drivers and popularity of these types of systems. What does that mean for the dealers? Well, I would argue that one of the things that we're seeing, especially with compact systems, you know, there's a lot of larger machines on the market, but when you get into the compact system, what we're seeing is there's less competition out there. So what does that mean? That typically results in higher margins, especially when we contrast if you're a Caterpillar dealer and you're selling cat equipment, or a John Deere or Komatsu dealer or Case dealer selling that kind of iron, there's a lot of competition for loaders and excavators. We typically, the feedback we get is the margins aren't very high with that stuff. They're really looking at the volume business. And they're looking at the parts business, supplement the lack of margin that they're seeing on the capital transaction. The same feedback we're getting from a lot of those same dealers, this is the margins on the processing side and typically are much higher because they don't have the same level of fierce competition that we see in the loader market in the yellow market. Again, as I mentioned earlier, the nice thing for a dealer is that they already are calling on these people, they don't have to go out and mine harvest new customers, or necessarily increase their sales for us, they've already got the right type of people engaged, they're already calling on these people, they're already out talking to the agri producers are talking to the municipalities are talking to the contractors, they're already well, you know, equipped to understand the economics of these operations. So what it does provide is the ability to grow without having to increase your cost base with adding a bunch of resources to your company just to be able to handle a line like this really does allow your customers to grow their businesses as well. If you have a small demolition contractor who traditionally hasn't crushed, all of a sudden that that customer brings in a crushing plant and now he's able to diversify his business that helps that customer grow as well. The parts business associated with crushers and screens is significant. One of the drivers that dealers like to get into this business is to take advantage of the parts business they generate with new transactions, but also the service existing installed base. And chances are, if you're selling rubber products, can bear belting, etc, engine filters for one brand of equipment, you can probably service other brands of equipment as well. So the savvy dealers who really do a good job with product support and service, have an opportunity to increase their revenues, billable service hours, parts revenues, things like that by servicing other brands of equipment already out in the field as well. One thing we hear quite often from a lot of the dealers we work with is that, for example, a case dealer might have a hard time penetrating the Caterpillar customer. However, when that Caterpillar customer is exposed to that case dealer, through the support they receive on the crushing and screening side, sometimes that creates an opportunity for that customer to look at exploring other lines as well that they traditionally might buy from another dealer. So it has, again, if I use the example of the savvy dealer who provides excellent parts and service support, the CAD customer may not may not realize how good a service he could be getting from that other dealer. But once they're exposed to that, it does give them a chance to expand their market share with other lines they represent, not just crushing and screening. I like to say that this time of business is to a degree recession proof because when people start putting their hands in their pockets due to recession, and they start backing off on capital expenditures, typically what we see is an increase in operating expenditures, more rental opportunities. These machines generate a significant amount of rental cash flow when they're utilized highly, which is often the case when we come into a slow economy where people quit buying stuff and start renting stuff. Savvy dealer who has the inventory typically sees an increase in cash flow associated with the rentals. A lot of the lifecycle that we see typically is somebody might start out with a smaller crusher, use that machine successfully pay for it within two or three years, and then decide they want to increase their opportunity by going to a larger crusher. So they trade in the old crusher for a new crusher. What that does is it gives the dealer the opportunity to sell a used machine to somebody else who's wanting to enter the market. So used equipment market is very active, it's very attractive, the margins typically are higher. And it does allow that dealer to now increase their footprint in their market new startup new to crushing types of customers. The machines we're talking about for the most part would be mobile crushers. Typically impact crushers are very common because they're very versatile for both recycled materials and aggregates. Although there are other types of machines out there as well jaw crushers, for example, as a primary pressure, inclined screens are used primarily in the aggregate applications or as a secondary machine behind the crusher, so that they can take the material that's come through the crusher and then split that into two or three size products. For example, if somebody wants to make 57 aggregate concrete rock, or they want to make asphalt, and or they want to, you know, make manufactured fines or something like that these screens can be paired up with the crusher and use it as a system to both increase capacity and increase the product mix. scalping screens are very popular because they can take very large feed size, they can go into a landfill, for example, reclaim the soil out of there, they can be used in wood waste applications where you've got tree stumps, things of that nature, they can be used in overburdened scalping applications at the quarry where they can screen off the dirt and the large rocks so they can get access to the rock that they want to drill and blast. They can be used in topsoil, they can be used, I have an example of a Department of Defense renting one of these so they could screen their firing range material so they could recover the lead in the firing range. So out in Kentucky, we have people using machines like this to screen hay and straw from their horse stables to get the manure. Wide variety of slag applications, glass, I mean, there's so many different ways you can use these tools, not just the traditional aggregate or recycle applications. Stacking conveyors are nice because from a rental standpoint, when a customer has a machine like this, they typically have to work their loader pretty hard just to keep the material from burying the machine where with a stacking conveyor, they typically stock a day's worth of production so that it does relieve the burden on the loader operator to have to maintain the area around the crusher itself. So these are just some of the types of machines I'm talking about for this type of business. One of the great things about these systems as well, as I mentioned earlier, they're engineered so that you don't have to worry about the art of processing that's already been engineered into the technology. And the other thing is the safety aspect. Safety is a big buzzword, more so of the producers, maybe than some of the contractors, yet we all want to be safe. These machines are guarded to known MSHA standards. They have protection in place, walkways, access ladders, things of that nature, remote greasing, so that people aren't having to interface the equipment any more than absolutely necessary to maintain and support the equipment. So they do provide a work, a safer working environment. The future of this technology is such that we'll be able to deploy drones over the job site. So if the drone senses somebody's getting too close to the machine, it might signal a warning signal or something of that nature. There's all kinds of opportunities when you when you couple one of these machines with a PLC. Now you have telemetry opportunities so that the dealer can monitor the condition of these machines from a control room or command center at the dealership, be able to go online and troubleshoot what's going on with these machines. As an owner operator, you can find out which operators are more efficient than others so they can manage their workforce a little better. They can tell they can plan ahead proactively for service intervals, things of that nature. So these machines really do take a lot of the guesswork out of the operation where in the past we were really relied on the skill set of the operator. That's kind of my spiel. I know that was a lot of information real quick. And I just want to thank you again for participating today. My contact information is here. If you'd like to learn more about this industry have any questions about the type of equipment, whether it's our brand or somebody else's, feel free to contact me. I've been in the industry for over 30 years. And I really enjoy working with people that are interested in this type of business. So with that, I thank you for your time. And I would welcome any questions anybody might have. Okay. Thanks once again. With that, I will leave you guys. Have a great day and a great weekend.
Video Summary
In this webinar, Paul Smith from Rebel Master discusses the business venture aimed at helping heavy equipment dealers and their customers diversify their business models. The focus is on the construction and demolition waste market, specifically the recycling of materials such as asphalt. Smith highlights the increasing demand for recycled materials due to aging infrastructure, urban sprawl, and the need for more roadways. He explains the traditional method of disposal, which involves hauling waste to landfills and bringing in fresh materials, and the associated costs involved. Smith then introduces on-site recycling as a more cost-effective and environmentally-friendly solution. He discusses the use of mobile crushing plants that can be set up on-site and the benefits they offer in terms of reducing trucking costs and increasing efficiency. He compares mobile track systems to traditional wheel systems, highlighting the advantages of the former in terms of setup time, transportation costs, and production capabilities. Smith also emphasizes the potential for dealers to enter the crushing and screening market, as there is less competition and higher margins compared to selling traditional heavy equipment. He concludes by mentioning the future possibilities of using drones and telemetry to enhance operations and productivity in the industry.
Keywords
webinar
business venture
recycling materials
on-site recycling
mobile crushing plants
crushing and screening market
drones
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