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Allison Saeng on Unsplash
Allison Saeng on Unsplash

Scorching heat and hard labour are not the only pressures on asphalt construction; rising material costs also weigh heavily on the industry.

With material expenses skyrocketing, construction companies face a dilemma that threatens the very foundation of their operations. MR-ROADS, the leading construction organisation in Queensland, Australia, has devised a plan of action to respond to this industry-wide plight.

The Challenge of Escalating Material Costs

In recent years, the construction sector has experienced a sharp increase in material expenditures driven by supply chain disruptions, rising demand, and inflationary pressures.

For MR-ROADS, whose core business revolves around asphalt production, these challenges have been particularly acute. For Daniel Mikus and James Rolph, co-founders of MR-ROADS, this matter requires a long-term solution.

"The cost of raw materials has gone through the roof, putting immense pressure on our bottom line. Fortunately, despite these roadblocks, our team has managed to stay on top by being proactive about every aspect of the business. Much like most situations in business and life, we need to adapt to prosper in our environments," shares Rolph.

Statistics from 2023 paint a stark picture of the situation. According to Mikus, the price of an asphalt binder, a key component in asphalt production, surged by over 30% in the past year alone. This trend shows no signs of slowing down, making it a significant threat to the viability of construction projects nationwide.

MR-ROADS' Adaptive Strategies

As a solution to escalating challenges, MR-ROADS has adopted a provident approach. From renegotiating contracts with suppliers to exploring alternative sourcing options, the company leaves no stone unturned for cost containment. Mikus explains, "We've had to rethink our procurement strategies and find innovative ways to manage costs without compromising quality."

The same concept applies to its approach to sustainability. As it maps out new plans for optimised spending and sustained quality, MR-ROADS also focuses on remaining committed to its eco-friendly business practices.

Commitment to Excellence

Even with the hurdles caused by rising material expenses, MR-ROADS remains true to delivering excellence in road construction. As Rolph emphasises, "Our goal is to provide our clients with the highest quality workmanship, regardless of the challenges we face. In times of adversity, true resilience shines through. We may face drawbacks today, but I do not doubt that we are emerging from this stronger and more resilient than ever."

With a feasible and optimistic approach, the company stands ready to work through the turbulence expertly, retaining its position as a leader in road construction and infrastructure development.