Mark Reinhart, vice chairman of gross sales and advertising and marketing at Cemen Tech, shares his perception into the state of the concrete business and the challenges contractors are managing day by day. Concrete Contractor linked with Reinhart in June 2025. Cemen Tech is a producer of volumetric combine vans.
Q. What have been the tougher points for concrete contractors this 12 months? How have these challenges impacted contractors?
Mark RinehartCemen Tech
The fabric prices should not taking place, by any means, and that is the identical with concrete. Concrete supplies proceed to go up in sure areas. In some areas, when there is no residential work, possibly the ready-mix guys have dropped their costs some, however all of the enter prices are nonetheless excessive.
I believe [contractors] have gotten to be combating that, simply not figuring out what the economic system goes to be like. There is a new headline every single day about what is going on on. Are we going to enter a recession? Are we not? As a producer within the concrete business, contractors have been staying on the fence, that means they don’t seem to be pulling the set off on stuff. Many of the guys I talked to have loads of work and have a superb backlog, however they do not know what’s coming subsequent so that they’re somewhat hesitant of shopping for a brand new truck or a mixer till they’re extra snug with what the economic system goes to be like.
Q. In years previous, I’ve been advised that contractors saved a backlog of about six months to a 12 months. Has that modified? Are contractors taking part in somewhat bit nearer to the chest?
I believe it has. Earlier than it was 8 or 9 months, I believe it has lowered rather a lot. Quite a lot of that revolves round residential development being gradual in a majority of the areas as a result of often that may tie up different contractors and ready-mix guys. When that work isn’t there, all of them go searching elsewhere. Now they’re competing with extra individuals in several jobs that you could be not have battled with earlier than. I believe, finally, there’s much less work. For instance, consider what number of contractors are concerned in a housing improvement. If they don’t seem to be in an space the place they don’t seem to be constructing new homes, these guys have to search out work someplace, and it turns into extra aggressive.
The primary problem for these I talked to is discovering drivers for his or her concrete vans…however that is not a “this 12 months” downside — that is been a “final 5 years” kind downside.
Q. What perception do you’ve gotten on contractors managing expert labor challenges?
In our case, the primary problem for these I talked to is discovering drivers for his or her concrete vans. [Cemen Tech] may in all probability promote 100 extra vans if I had 100 individuals who may drive them proper now to divvy up over our contractors, however that is not a “this 12 months” downside — that is been a “final 5 years” kind downside. The onerous half proper now could be that I do not know the place we’ll discover extra drivers. We will should make autonomous concrete vans or one thing to recover from this subject.
Q. What’s the business doing to counteract the difficulty?
It is rising the advantages to attempt to get the great workers they’ve to remain and never depart for an additional $0.50 to an organization down the street. Various our prospects have employed ex-cons/felons out of jail who by no means would have been employed earlier than, however these prospects discovered success by giving them a possibility. They’re grateful for that chance. They preserve the vans clear, attempt to preserve their head, be concerned, and out of hassle.
We’ve got different prospects that may use firefighters as a result of they’ve their CDL licenses. They’re off generally three days of the week to rent them to come back in and drive.
Q. The place have we seen optimistic development within the business?
We have seen probably the most in infrastructure initiatives. Utility work, street and bridge initiatives, and restore initiatives for municipalities are the three areas the place we have seen the most important improve in enterprise. Hopefully, it’s sustainable for the subsequent 3 to five years. Municipalities appear to have cash proper now all throughout the nation, so that they’re in a position to get extra work performed now with their budgets being stronger than they’ve up to now.
Q. What kind of concrete work are municipalities ?
What we see on our aspect is curb/sidewalk restore work. Each metropolis has concrete breaking every single day — going out and fixing these with small batches of concrete are good for our prospects and ready-mix too. There’s all the time going to be work within the cities.
The street infrastructure is horrible just about all over the place. It looks like these patch jobs are infinite proper now.
Q. Is that this an after-effect of the Infrastructure Invoice funding?
I believe loads of it’s. The municipal works fluctuated somewhat bit with COVID with budgets coming down nevertheless it’s now again up — that work has all the time been there.
The infrastructure work, the bridge resurfacing, the underground water, and new water techniques being put in and improved — loads of that’s from that invoice.
Q. Do you assume that this can monitor into 2026?
I believe we must always have somewhat runway with these varieties of initiatives for in all probability, no less than, (hopefully) one other 3 to five years.
I believe it is one other up-and-down a part of life as a contractor. It’s by no means simple. It by no means has been simple.
Q. You talked about earlier that contractors are bidding much less far upfront than years previous. How else have you ever seen contractors dealing with financial challenges?
Actually, I believe it is one other up-and-down a part of life as a contractor. It’s by no means simple. It by no means has been simple. You run with it when it isn’t, like 2 to three years in the past, and make the most effective out of it. However now, it is again to being extra aggressive. Hopefully, subsequent 12 months or sooner it goes again up, and everybody begins going “full bore” once more, however I believe it is the lifetime of a contractor. They should cope with it and combat by way of it every single day.
Q. What technological areas do you see potential for innovation? What points do you see options addressing?
Something that can provide [contractors] extra data to make higher choices with an AI and digitizing the jobsite/venture extra to allow them to analyze how they’ll minimize prices and scale back labor, goes to all the time be necessary.
Development has all the time been the bottom of the industries of know-how. Now, with the sources out there to gather the information and analyze elements just like the time ready for concrete, these options will assist contractors make higher choices. Perhaps even assist them with schedules with going to at least one venture earlier than one other.
The flexibility to have knowledge to help that carnal data they’ve all the time had about issues ought to assist make these choices somewhat bit higher.
Digitizing the development course of can all the time assist, resembling understanding materials utilization, what their loss is on supplies, and elements that they do not take into consideration as a result of they are going 100 miles an hour. Having alerts and options that perceive conditions like having a forgotten piece of apparatus out on lease that has been sitting in some man’s yard for two weeks. It’s robust to do when you’ve gotten 100 items of apparatus or 50 vans operating round.
Q. How far behind would you say the development business is on high-end know-how?
With AI, the business ought to be capable to catch up.
ERPs and bidding software program for contractors are beginning to combine AI into their options. I don’t know if it exists but or not, but when there was a approach contractors may enter their data right into a customized AI that would really analyze it from a development perspective could be “subsequent degree” for contractors, whether or not you’re pouring concrete or placing a increase.
What’s thrilling to me is seeing all of the completely different supplies on the market and the way they’ll actually profit or probably change the business.
Q. What do you count on the challenges for contractors will probably be in 2026 and past?
Staying on prime of what’s coming. The [need of] drivers might be all the time going to be an issue within the human facet of it, however looking for out what know-how matches your enterprise the most effective.
The stuff that I am enthusiastic about is the brand new varieties of completely different supplies popping out now which can be going into concrete and the way these may have an effect on jobs, bidding on jobs, and getting several types of initiatives.
For instance, certainly one of our contractors in San Francisco was in a position to pour virtually 100 yards of portland-free cement. These kind of supplies, addressing them, and figuring out when it’s best to begin wanting into that work. From a concrete perspective, what’s thrilling to me is seeing all of the completely different supplies on the market and the way they’ll actually profit or probably change the business.
Q. What’s happening at Cemen Tech?
We’re making an attempt to get our palms round the entire knowledge facet so prospects can perceive what our vans are doing, the place they’re at, what materials they’re utilizing, by way of our ACCU-POUR software program suite.
As a result of we are able to make a brief batch, now we have an ideal know-how for introducing and testing these new supplies, admixtures, or chemical substances. For instance, we’ve been testing with a buyer utilizing graphene, and Iowa State has a venture from a grad scholar who’s placing shredded wooden and different recycled supplies into concrete. I am excited to see how that performs out.
We’re additionally working with universities to check the validation of our know-how and the way we combine vs. a barrel truck.
The opposite factor is doing bigger pours with our vans. We have all the time been considered doing the small batch jobs. We’ve got quite a lot of prospects now which can be doing 1,000 yards a day with 2 vans. I believe that is thrilling from our standpoint of steady pour initiatives.
Q. Any improvements on the market caught your consideration?
Concrete printing is tremendous cool and continues to develop and increase. Having the ability to construct a home with decreased labor, decreased supplies, and fewer waste are elements that [the industry] wants to determine as a result of, once more, we will not discover individuals to do these kinds of jobs. Something that we are able to use robotically to assist, I believe, is tremendous cool. I am excited to see how that business continues to develop.
