CECL SWOT ANALYSIS

STRENGTH

Diversified revenue streams – crushing plant

Batch Plant -Ability to control costs in Asphalt  as opposed to drum mix that all competitors have

– High output per hour which is more than any other plant around us

Own Quarry -We are one of the few quarries that own both an AC plant and a quarry which gives us a distinctive advantage in the supply
chain and transfer pricing with ability to increase margins .

Best Quality -batch plants allow us to supply Our clients with the best AC quality mix with the ability to tailor the product to the distinct
requirement of the customer. Our competition who all have continuous mix plants which offers no flexibility.

State of the art technology -The recently installed VSD machine combines efficiency and quality output to give us a distinct market advantage.

Chipping The VSI allows us to meet all the government standards for chippings, currently we are the only plant in the region that has this
ability..

Pricing: We are competitive and all our deliveries are weighed at the weighbridge thereby ensuring clients get the exact value for their payments.

Good community relations through CSR programs

Best quality in the region

WEAKNESS

Aggregate/asphalt supply is done using third party trucks which eats into profitability.

  • Lack of an enabling financial package due to closure of our bank not allowing us to operate efficiently. Due to the resultant financial constraints we have to do:
    Piecemeal drilling/blasts
  • Use hired trucks for delivery
  • Rely on middlemen for raw material purchase
  • Unable to have better pricing for cash purchase

OPORTUNITY

  • To increase profitably with a supportive financial package
  •  Ability to make quarry sand which is set to replace normal sand (other quarries can’t do this except for one other but demand is
    high)
  • Flexibility of design mix and production
  • Our corporate image and infrastructure gives an upper hand in dealing with private organizations compared to our
    competitors.
  • Batch plant- Non of our competitors can match our quality and production capacity.
  • Mobile plant- Our plant is fully mobile and therefore be moved closer to production site significantly cutting transport cost.
  • Land with rock- we own vast plots with large rock reserves providing good opportunities for expansion and
    production security.

THREATS

  • The ability of other contractors to risk being unethical in winning contracts.
  • Selling without VAT- as a practice some firms take to lower cost and win tenders/contracts by not charging VAT
  • Lack of a financial package: inadequate working capital is locking us out of potential road works tenders and thus reducing our market
    prospects.
  • Lack of payment by government to contractors