Why might contracting out your dredging be a good option for YOU?
The ability to control where you focus your time matters to your bottom line.
Dredging can bring a lot of obstacles, and when you have a lot of other things to deal with it can be nice to eliminate one thing off your plate, so that you can focus more on production and sales, while letting us worry about how to get you your material.
Maintain your cash flow and debt ratios by not investing in more heavy equipment.
One of the biggest reason that I have found why some companies prefer contract dredging with us is that if you buy your own machine (one of the three main systems) the upfront costs of these machines are very high. The problem here is once you make this investment, if it doesn’t dig as good as expected, or if for some reason the market drops like it did during the Great Recession, then you are still stuck with a machine that theoretically needs to produce a certain amount of material to pay for itself.
By contracting our company to dredge your material, all of the pressures from that expensive upfront purchase and ongoing yearly debt is eliminated. This allows you the flexibility necessary to control your cash flow by having the freedom to increase or decrease your expenditures accordingly. And that puts you in the driver seat, because you only purchase the material you need for that given year. By being able to do that you can stay competitive with your prices no matter the market.
Allows you to invest in an Asset that appreciates in value instead of equipment with limited capabilities.
J.D. Dredging gives you the ability to invest your money directly into an asset that makes you money — your gravel.
Why invest in a machine that is just going to cost you money in the end, especially when the three main styles of dredging equipment are so limited with their capabilities. A high cost investment, with limited outcome equals high risk.
On average, to purchase a suction dredge that can dig 42ft and can produce upwards of 3000 tons a day costs around 1.5 million dollars, and that is not factoring in the additional costs of the support equipment that will be needed as well. If you went with J.D. Dredging instead of spending that money on a depreciating machine, you would instead be investing your money into nearly 900,000 tons of profitable material! Factoring in the initial cost of purchasing a dredge, along with the cost to operate that dredge, it would take you nearly another 9 million ton to make up the difference created with initially investing with J.D. Dredging.
The other big plus is you get a 100% tax write off going with J.D. Dredging, instead of just being able to depreciate your machine.
So I guess the question is do you want the headache of keeping a machine up and running, or would it be more cost effective to deal with one person year after year, so that all of your focus can be directed towards your true business goals.
Less employees means less paid out in training expense and wages.
In addition to the costs associated with the machine itself there is also the issue of operators to run the machine. As we all know, a good dredging operator is worth his weight in gold, and a bad or inexperienced operator can cost you all of your gold.
With J.D. Dredging, you never have to worry about losing your experienced operator, or having to hire more staff just to have to train them in this specialized field. We will always be there with dedicated employees that have been trained to perform at a high level. This allows you to not have fluctuating costs, as well as not having to mess with timely and costly training process.
Maximize your pit locations, and the costs associated with their operation.
Another benefit to you is that our machines transport easily and affordably for as much material as they can produce. This capability is a definite plus for companies who have several pits, or a road construction company that needs to extract the gravel close to their road project so they can eliminate those costly long truck hauls.
Also, if you do have multiple pits, our style of dredging allows you the option of eliminating the need to own multiple big stationary screen plants and crushers that are associated with suction dredges and clamshell systems, and allows you instead to have one or two mobile plants.
Utilize the pit locations you are already permitted for.
With permitting as hard as it is these days for starting new gravel pits and other mines, being able to obtain the material under the water table is becoming a must, and by working with J.D. Dredging as a contractor, it allows you the option of not having to go through that long permitting process to acquire a new pit, as well as not have to make that big investment in one of the other systems.
Thank you for your time. I hope this information was helpful in helping you to make your decision on whether or not to contract out your dredging. Please feel free to call for your free consultation.