NAICS 324121 Quarterly Industry Report
Asphalt Paving Mixture and Block Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 324121Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 324121 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the asphalt paving mixture manufacturing sector, drawing on data from the U.S. Census Bureau[5] and Federal Highway Administration[8] infrastructure spending data. Additional data is drawn from Bureau of Labor Statistics[9].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 324121 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the asphalt paving mixture and block manufacturing industry.
Industry Definition & Overview
Asphalt Paving Mixture and Block Manufacturing (NAICS 324121) encompasses establishments primarily engaged in manufacturing asphalt and tar paving mixtures and blocks from purchased asphaltic materials. Hot mix asphalt plants heat and blend liquid asphalt cement with graded aggregates to produce paving mixtures consumed by highway contractors, municipal road departments, and commercial site developers. According to the U.S. Census Bureau[5], approximately 300 establishments operate in this sector employing nearly 15,000 workers and generating annual revenues tied directly to road construction and maintenance spending levels.
Production is highly seasonal in northern states, with peak output concentrated during warm-weather construction months when road paving projects can be completed before freezing temperatures limit asphalt placement. The Bureau of Labor Statistics[6] reports production roles including plant operators controlling aggregate drying, asphalt metering, and mixing processes, quality control technicians testing mix design compliance through Marshall and Superpave methods, truck dispatchers coordinating delivery to active paving projects, and maintenance workers servicing drum and batch plant equipment.
Government infrastructure spending drives the majority of demand, with federal highway funding, state transportation budgets, and municipal road maintenance programs determining annual production volumes. Per the SBA Office of Advocacy[7], asphalt plant operations frequently serve as divisions of larger highway construction companies, though independent merchant plants sell paving mixtures to multiple paving contractors within their local delivery radius.
What's Included in This Industry
- Valuation multiples benchmarked to asphalt paving mixture plant operations
- Revenue and EBITDA trends for domestic asphalt production facilities
- SBA lending data and financing terms for NAICS 324121
- Comparable transaction data from recent asphalt plant acquisitions
- Industry risk factors including liquid asphalt pricing and infrastructure spending cycles
- Workforce composition and labor cost benchmarks for asphalt plant operations
- Regional market analysis covering asphalt production by geographic area
- Capital expenditure benchmarks for drum plants, batch plants, and aggregate handling
- Growth projections tied to federal highway funding and infrastructure investment programs
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Petroleum and Coal Products Manufacturing | 324 |
| Industry Group | Petroleum and Coal Products Manufacturing | 3241 |
| NAICS Industry | Asphalt Paving, Roofing, and Saturated Materials Manufacturing | 32412 |
| National Industry | Asphalt Paving Mixture and Block Manufacturing | 324121 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 237310 | Highway, Street, and Bridge Construction | Highway, street, and bridge construction contractors representing the primary customer base consuming asphalt paving mixtures for road construction and maintenance projects |
| 324110 | Petroleum Refineries | Petroleum refineries producing liquid asphalt cement as a refining byproduct that serves as the primary binder material in asphalt paving mixture manufacturing |
| 324122 | Asphalt Shingle and Coating Materials Manufacturing | Asphalt shingle and coating materials manufacturers consuming similar asphaltic feedstocks for roofing and waterproofing product manufacturing operations |
| 212319 | Other Crushed and Broken Stone Mining and Quarrying | Sand, gravel, and clay mining operations providing crushed stone and graded aggregates that compose 90 to 95 percent of asphalt paving mixture by weight |
| 236220 | Commercial and Institutional Building Construction | Commercial building construction contractors purchasing asphalt paving mixtures for parking lot, driveway, and site development paving applications |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 7.6% | 106 |
| 2 | Pennsylvania | 7.6% | 105 |
| 3 | Texas | 7.4% | 103 |
| 4 | New York | 7.3% | 102 |
| 5 | Ohio | 6.2% | 86 |
| 6 | Georgia | 5.3% | 73 |
| 7 | North Carolina | 4.3% | 59 |
| 8 | Illinois | 4.0% | 55 |
| 9 | Massachusetts | 3.7% | 51 |
| 10 | Tennessee | 3.7% | 51 |
% Of Establishments
0%
8%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
80
Total SBA Loans
$56.6M
Total Loan Volume
$708K
Average Loan Size
10 yrs
Average Loan Term
9.94%
Average Interest Rate
664
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Asphalt paving mixture manufacturers seeking SBA financing typically qualify under the SBA size standards[10] for NAICS 324121, which set the threshold at 500 employees for small business classification. The SBA 7(a) loan program[11] provides up to $5 million for plant acquisitions, drum dryer replacements, and working capital for liquid asphalt and aggregate inventory. Industry CDC/504 loan program[12] offers long-term fixed-rate financing for new plant construction, emission control upgrades, and aggregate processing equipment. Lenders evaluate plant proximity to paving markets, aggregate source access, and government contract pipeline when underwriting asphalt plant transactions.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Midwest Regional Bank | 8 | $40.0M | $5.0M |
| 2 | Northeast Bank | 16 | $6.1M | $381K |
| 3 | Cadence Bank | 8 | $2.8M | $350K |
| 4 | CommunityWorks | 8 | $2.0M | $252K |
| 5 | TD Bank, National Association | 8 | $2.0M | $245K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for an asphalt plant?
Asphalt plants typically trade at 4x to 7x EBITDA, with premium valuations for operations with permitted locations near growing metropolitan markets, long-term aggregate reserves, and diversified customer bases. Per U.S. Census Bureau[5] data, plant permits and environmental approvals represent significant intangible value given the difficulty of obtaining new plant permits in populated areas.
What SBA loan options are available for asphalt plant operations?
The SBA 7(a) loan program[11] provides up to $5 million for plant acquisitions and equipment, while the CDC/504 program[12] finances plant construction, emission control systems, and aggregate handling equipment. Asphalt plants with strong government contract relationships and permitted locations typically receive favorable lending terms.
How does liquid asphalt pricing affect paving mixture margins?
Liquid asphalt cement represents 20 to 30 percent of hot mix asphalt production costs and is priced based on crude oil markets, making it the primary variable cost driver. Per U.S. Energy Information Administration[13] petroleum product data, asphalt prices track crude oil with a lag, and most paving contracts include price adjustment clauses that partially protect producers from rapid feedstock cost increases.
How does federal highway funding affect asphalt demand?
Federal surface transportation funding authorizations set multi-year spending levels that drive state highway department project pipelines and asphalt consumption. Per Federal Highway Administration[8] obligation data, infrastructure legislation including multi-year surface transportation bills provides budget predictability that supports capital investment planning for asphalt plant operators.
What environmental regulations apply to asphalt plants?
Asphalt plants must obtain EPA[14] air quality permits governing particulate matter, volatile organic compound, and sulfur dioxide emissions from aggregate drying and mixing processes. Emission control systems including baghouses and blue smoke capture equipment represent standard compliance requirements, with newer warm mix asphalt technologies reducing both emissions and energy consumption.
What is the SBA size standard for asphalt paving mixture manufacturers?
The SBA[10] classifies businesses with up to 500 employees as small for NAICS 324121 asphalt paving mixture and block manufacturing. Most independent and contractor-owned asphalt plants operate well under this threshold, qualifying for SBA lending programs and government contracting preferences.
How seasonal is asphalt plant production?
Production is highly seasonal in northern states where freezing temperatures prevent asphalt placement from approximately November through March, concentrating over 80 percent of annual output in warm-weather months. Per Federal Highway Administration[8] construction data, southern and western plants maintain longer production seasons, creating more stable annual revenue patterns for operators in those regions.
What are key factors in asphalt plant acquisition due diligence?
Critical factors include plant permits and environmental compliance status, aggregate source access and reserves, proximity to growth markets, equipment condition, and customer concentration between government and private sector paving work. Per U.S. Census Bureau[5] industry data, permitted plant locations near growing markets represent the most valuable and difficult-to-replicate asset.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]Federal Highway Administration highways.dot.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
- [13]U.S. Energy Information Administration eia.gov
- [14]EPA epa.gov
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