Anyone have experience with stone fabrication?

July 17, 2025

by a searcher from Loyola College in Maryland in Washington D.C., DC, USA

Hello, I am looking at a stone fabrication company. For context, my background is not in construction. I have sales management and leadership experience and experience in the data and analytics space. Looking for anyone who has owned and operated a fabrication shop that can share their experience owning / operating. They are between 5-10M in Revenue. 16% EBITA margins. ~1x inventory on hand. Heavy inventory on hand - the owner states this is their competitive advantage. ~30+ employees. - Shop - wet saws, water self containment system -90% residential, with repeat clients through designers, contractors, bath and kitchen etc - subs install the work Couple questions/ concerns: - concern: tied up cash with inventory. has anyone else used high inventory as a competitive advantage? Is it necessary or is it an outdated strategy? - concern: environmental component. since silicosis is such a high risk here - does anyone have advice for a first time buyer? What are the horror stories here Thanks

Reply by a searcher
from University of Cincinnati in Long Beach, CA, USA

Horror-stories are everywhere in this category "2025 Penalties for OSHA Violations" Silica-related violations fall under OSHA’s general penalty structure, which includes: **Serious Violations: Up to $16,550 per violation **Willful or Repeated Violations: Up to $165,514 per violation **Failure to Abate: Up to $16,550 per day beyond the abatement deadline These fines are adjusted annually for inflation in 2025 and apply directly to silica safety violations among others. Another interesting link https://bandwcompliance.com/recent-osha-activity-in-the-stone-industry/ Even with wet saws in place, the legal exposure is severe, especially for shops specializing in quartz / engineered stone. Good luck -gw

Reply by a searcher
from University of Florida in Washington, DC, USA

Haven't worked in stone directly, but a lot of work in metal roofing, and the "inventory is our competitive advantage" is a common line for that building product as well. E.g. 3 gauges of steel, 2 thicknesses of aluminum x 40+ colors across various paint systems. When I've dug in, which with your data analytics background, you'll be able to do, there's almost always the###-###-#### pareto that you'd expect...yes, some customers love that they don't have to special order this one random thing, but the vast majority of inventory that actually moves is a small portion of the total list. That said, I'd also approach it as an opportunity...could be a consignment play, supply chain in general is getting more nimble, etc, where you could potentially replicate a similar level of service with less working capital tied up. Obviously also a risk of obsolescence...I know several metal roof manufacturer that had a good supply of "mossy oak" on hand that they thought people would love, but they end up selling at a deep discount after sitting on it for years. Might be a tough sell, but you could try to negotiate that the seller holds inventory in effectively a consignment agreement to manage some of that risk. If after xx months or years you haven't used it, they could have the option to seek a third party buyer.

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