Coming to a conclusive answer on which asset generates more revenue or a better ROI between an ADT (Articulated Dump Truck) or a mobile crusher, has many variables which come into play such as the market conditions, demand for materials and the utilization rates of each. Here are some of the factors to consider:
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- Market Conditions and Demand for materials: The demand for certain materials such as aggregates for construction, crushed stone and sand, which are produced using a mobile crusher have an important role to play in revenue generation. If the market ahs a high level of demand for construction materials in the market then a mobile crusher may have a higher potential for greater revenue generation and these produce the materials which are in demand.
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- What is the utilization rate of the equipment: The utilization rate of each of the assets is very important when looking at the revenue generating potential. Is the mobile crusher is consistently operating and producing materials, then it is likely to have greater potential to generate more consistent revenue as opposed to the ADT which may be used only when transporting the material.
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- Pricing and Profit margins: Materials produced through a mobile crusher often have higher selling prices for the materials produced, meaning greater revenue when comparted to the revenue generated by transporting the material. The capital costs for each asset will vary significantly in the same was as the output revenue potential by the asset. The operating costs and the associated maintenance expenses of each asset must also be considered when evaluating the revenue potential.
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- Operational Efficiency: One would need to evaluate the operational efficiency of each piece of equipment. A very well maintained and efficiently operated mobile crusher produce a large volume of product in a short period of time compared to material being transported by an ADT. These high production rates can lead to an improved ability to generate revenue.
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- Market Dynamics and Competition: Consider how competitive your market is as well as the market dynamics for the region. If there are high levels of competition in the material transport sector with many ADT operators, then the revenue potential of the ADT might be affected. Conversely, if there are only a few mobile crusher operators in the market and strong demand for the product, then the revenue potential for the mobile crusher may be higher.
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- What is the long term outlook: Look at the long term outlook for the construction and mining industry in your region. Think about factors such as the infrastructure development potential, population growth and other economic trends that might have an effect on the demand for material and also the revenue potential of each asset.
In conclusion, the asset that can generate the most revenue will really depend on a combination of all the factors discussed which are specific to your own business, your market, the market conditions and the operational considerations.
