If you've been in the business for a while, or if you did your own asphalt maintenance a few years ago and you're surprised at how much more it is costing this year, you might be wondering: what is causing the recent run up in sealer and crackfiller pricing?
A number of factors are contributing to rising asphalt and sealer pricing. First, the price of raw asphalt has increased almost 65% year to date.
In 2017 US domestic production of asphalt permanently decreased by almost 10%. Added to that permanent decrease was an explosion at Husky Energy's Superior, Wisconsin asphalt refinery, taking one of the major asphalt suppliers offline indefinitely.
What does this mean to you?
- Replacing asphalt has become even more expensive than before. Asphalt is usually a property's second-largest single expense (after the roof) and now it is positioned to become the biggest expense.
- Repairing and maintaining asphalt has become a critical job to save money by keeping the foundation in good shape.
If you are a property manager, start filling cracks immediately and don't let them get deep or spread too far so that potholes start and your asphalt's foundation erodes: this leads to the necessity of replacement. Learn the steps you need to take to maintain parking lots yourself.
If you are a contractor, explain to your customers about the rising costs of raw materials and the fact that these are not temporary increases: the longer they wait to perform annual maintenance tasks, the more expensive the supplies are getting.
Want to know how to make your asphalt maintenance business inflation-resistant? Then check out this piece we wrote to help contractors like you stay afloat as prices rise. We also have a free asphalt contractor pricing course that gives you spreadsheets and cheatsheets on how you can survive through recessions.
In a volatile market like this one, procrastination doesn't pay! Remember, asphalt maintenance business is full of opportunities. Take care of your asphalt today.