Are Dump Trucks Profitable and a Good Investment?
Have you heard of the garbage truck law? The law says that many people run around full of garbage – anger and disappointments. As their garbage piles up, they need a place to get rid of it. This is the reason why dump trucks are made. The moral lesson of the law is: “Life is 10% what you make and 90% how you take!” To put this lesson in reality, dump trucks are a good investment.
Even though they’re associated with garbage and waste materials, dump truck owners know its big profit potential. The market size of the dump truck industry is $19.3 billion and it’s expected to grow by 3.7% this year. Are dump trucks profitable and a good investment? Let’s see.
Startup Cost of a Dump Truck Business
Starting a dump truck business is challenging but there’s money to be made when operating it. We recommend you start with one dump truck first and possibly to be the driver and operator. This is for you to know the ins and out of the business. Plus, you’ll have the chance to pool target contacts and clients. A new dump truck typically costs $100,000 to $150,000. Used dump trucks cost around $30,000 to $40,000. The average insurance cost is $6,750 annually. You’ll also need to pay for the following estimated one-time costs:
- Dump truck registration = $1,600
- Marketing materials = $1,475
- Office supplies = $150
- Permits and licenses = $200
- Estimated sales tax = $2,700
So, in total, the estimated startup cost of a dump truck business is around $137,875 for a new dump truck or $47,875 for a used dump truck.
Whether you choose a new or used dump truck, you can get financing assistance to stretch your budget. This can help you further consider the cost associated with operating a dump truck. These include fuel, maintenance, and tires. Dump trucks typically consume a gallon of fuel for every six miles. So, if your dump truck travels 3,000 miles every week, it will consume around 500 gallons. If you’re not familiar with dump truck engines, you should ask a mechanic to inspect it monthly. This usually costs $300 tops. Dump truck tires last between 2,000 to 10,000 heavy rigid hauling trips. This is affected by the operation and work conditions. A dump truck tire costs $1000 and up and each truck may have 4 to 18 wheels depending on their size and type.
Pros and Cons of a Dump Truck Business
Dump trucks are a profitable and good investment. It’s because removing dirt, gravel, rock, and sand is common among communities. A dump truck is needed to transport these materials to designated sites. Compared to other trucks, a dump truck hauls within a 20 to 30 miles radius. This means the trip is shorter and you can go home daily. You’ll have more family time than that of other truck drivers. There’s also not much fatigue as longer trips. The dump truck industry in the U.S. is also a stable investment. Its hauling service has a steady demand every season of the year.
There are also downsides in working with the dump truck industry. Dump truck hauling tasks are repetitive. So, it results in boredom and loneliness. After picking up your haul, you’ll get in line on the dumpsite. Then, you’ll wait for it to unload. Afterward, you’ll return to the dig, load up, and wait again. The only human contact you may have during a shift is the traffic hand signal of a dumpsite boss. Another downside is being at work in all kinds of weather. This means encountering the challenge of extreme heat, freezing rains, and mud. There may also be times when the dump truck business is slow. But this normally happens during recessions.
How Does a Dump Truck Business Make Money?
There are two ways for a dump truck owner to make money. The first way is to be the driver of the dump truck to earn a salary. The second way is to lease the dump truck for an hourly fee. Dump trucks are commonly used to haul:
- Bulk construction materials
- Demolition materials
- Mining aggregates
They are also in demand for off-road infrastructure and mining.
The common cost of dump truck services is around $40 to $60 per hour on top of the machine rate. The machine rate differs based on the type of dump truck but can be more or less $150 per hour. For a dump truck driver, the common hourly salary is $18.00 to $19.00. As of October 22020, the average annual income of a dump truck operator is $137, 073.
Are Dump Trucks Profitable and a Good Investment?
Indeed, dump trucks are a profitable and good investment. Starting a dump truck business is challenging. But the growing U.S. economy offers a lot of potential income to the dump truck industry. Infrastructure is everywhere. As this industry needs dump truck services, dump trucks can also be anywhere they’re needed. So, if you’re thinking of getting a dump truck, go ahead and reap the profits.
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