This study intends to answer the two questions pertaining to sand and gravel in Sault Ste. Marie, Ontario and the utilization and selling of sand and gravel within the Northern Ontario and to the Southern Ontario.
Question # 1
There are numerous operators of sand and gravel in Sault Ste. Marie, Ontario that sell most of their products within their own territory that is Sault Ste. Marie. The sand and gravel are used throughout the Northern Ontario for the purpose of rehabilitation to end uses such as the forest production, infrastructure, wild life habitat, land and water based public recreational uses and so on (Bauer, 1970). However, there is a great opportunity for these operators if they sell sand and gravel in the Southern Ontario as because the area is densely populated and contains the majority of cities, major road infrastructures and institutions as compared to Northern Ontario. The Southern Ontario has the total population of people around 13.2 million as compared to approximately 1 million of population of Northern Ontario. There is more likely to have growth chances of these operators in Southern Ontario as there is an ongoing need of construction or infrastructure where the sand and gravel can be used to construct perfect roads with hard, smooth and waterproof surface which can resist wear and tear of traffic and it is smooth enough to prevent the wear on vehicles as well as to prevent the undue strain (Kerrio and Mogford, 1987). Hence, the sand and gravel are the fundamental elements for the construction industry therefore; the operators of sand and gravel have the scope in southern Ontario as well.
The sand and gravel operators do not use trucks to sell their products in the Southern area mainly due to the escalated costs associated with the truck in terms of labor costs of drivers, cost for driving activity, costs for loading and unloading time, wage burden costs, fuel costs, and other costs such as maintenance costs in case of purchasing the truck, repair and tire cost, registration and license fees and so on (Transport Canada Economic Analysis Directorate, 2006). As the level of cost is elevated or influenced with the distance, hours and tonnage associated with the haul. However, the hourly wage system or the mileage wages for the loading and unloading activity including with the overall driving and fuel costs reflect the average consumption levels for the escalated cost of transferability of sand and gravel to one place to another.
The trucking fleets are not as much in the quantity as compared to other fleet such as buses hence, trucks are generally not held qualified for discounts which overtly discourage the sand and gravel operators to think about selling of their products in the nearby regions especially in the Southern Ontario. However, the miscellaneous costs include the cleaning, operating, special pumps, hoses, safety equipment, chains and cargo heaters and ...