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To: Mike 2.0 who wrote (7326)5/26/1999 3:29:00 PM
From: Bob Rudd  Respond to of 78625
 
Mike (My opinions *only*): One of the main barriers for an aggregate co like Florida Rock is shipping costs. Competitve suppliers can't ship aggregate or any real heavy, low-cost stuff very far and still remain competitive to local supplier. It's like Carmike Theaters or early Walmarts in small towns. Once there's one there, it's tough to justify another and not cost effective to attack from a distant location. The risk is that the demand shifts....tough to turn an aggregate plant into a strip mall or warehouse.



To: Mike 2.0 who wrote (7326)5/26/1999 6:20:00 PM
From: James Clarke  Respond to of 78625
 
Florida Rock is not what Dan and I were referring to. That may very well be a good, well protected niche business that makes money. We're thinking steel, which has barriers to exit. Of course it also has the ultimate barrier to entry - nobody in their right mind would enter the business (although some government subsidized third world company always does).


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