Asphalt Paving vs. Concrete: Which Business to Start in California?
- Nate Jones
- Oct 27
- 2 min read
California’s booming infrastructure and real estate markets offer strong opportunities for contractors—but choosing between starting an asphalt paving or concrete business can be challenging. Each has its
own startup costs, market demand, and insurance needs.
At Stonepoint Insurance Services, we help new contractors across Los Angeles, San Diego, San Jose, San Francisco, Fresno, and Sacramento make informed decisions and protect their investments. As a California independent insurance agency, we represent multiple carriers to find the best coverage for your business.
Here’s a side-by-side comparison to help you decide which path is right for you.
1. Startup Costs
Asphalt Paving:
Asphalt paver: $100K–$300K
Rollers & compactors: $20K–$70K
Dump trucks: $50K–$150K
Sealcoating machines: $5K–$15K
Total: $175K–$500K
Concrete:
Mixers: $30K–$100K
Forms & finishing tools: $5K–$15K
Trucks: $50K–$150K
Pumps (optional): $20K–$60K
Total: $105K–$325K
Both require equipment coverage, which Stonepoint Insurance Services can tailor to your budget and risk profile.
2. Market Demand
Asphalt Paving:
High demand for driveways, parking lots, and road resurfacing
Faster installation and lower upfront cost
Popular in commercial and municipal projects
Concrete:
Preferred for sidewalks, foundations, patios, and curbs
Longer lifespan and durability
Common in residential and structural work
Consider your target market—urban vs. suburban, residential vs. commercial—and align your services accordingly.
3. Licensing & Insurance
Both businesses require:
CSLB contractor license (C-8 for concrete, C-12 for asphalt)
Local permits and environmental compliance
Essential insurance policies:
Umbrella Insurance (recommended for larger contracts)
Stonepoint Insurance Services helps you stay compliant and protected across all California cities.
4. Profitability & Maintenance
Asphalt:
Lower material cost
Requires regular sealcoating and maintenance
Faster turnaround = more jobs
Concrete:
Higher material cost
Minimal maintenance
Longer curing time = fewer jobs per week
Profitability depends on your pricing strategy and operational efficiency. Stonepoint’s blog on pricing asphalt jobs offers helpful insights.
Final Thoughts
Both asphalt paving and concrete businesses offer strong potential in California. Your decision should depend on your budget, target market, and long-term goals. No matter which path you choose, Stonepoint Insurance Services is here to support you with comprehensive business insurance. As a California independent insurance agency, we serve contractors across Los Angeles, San Diego, San Jose, San Francisco, Fresno, and Sacramento with customized coverage and expert guidance. Contact today!
Comments