Cambridge Pavers business plan paints bright hardscape product prospects as outdoor living areas garner a greater slice of the American Dream dollar
A recent National Association of Home Builders Best of American Living Awards showcase leads off with “Emphasis on Outdoor Living,” where “winning designs highlight the importance of providing spaces to promote relaxation, communication, and entertainment. Cozy firepits, conversational areas with comfortable seating, and outdoor activities guarantee serene areas to work or relax.”
Award sponsor sentiments reinforce the top Concrete Masonry & Hardscapes Association 2024 Hardscape Production Report takeaway: U.S. and Canadian market shipments of concrete paving stones eclipsed 1 billion square feet for a third consecutive year in 2023. The 10-digit watermark surprises none at Cambridge Pavers Inc., one of the forerunners in the North American concrete hardscape units. In Concrete Products’ last visit to the producer (February 2019, “Contractor’s Champion,” pages 40-45), crews were moving a new South Amboy, N.J. paver and wall unit line into high gear. The $26 million investment tracked market conditions leading up to 2018, a year for which the ICPI Industry Sales Profile—CMHA Hardscape Production Report predecessor—measured U.S. and Canadian concrete paver shipments pacing 750 million square feet.
“In this industry, we hear talk of too much paver and wall unit capacity, and too many contractors and installers,” says Cambridge Pavers Founder and CEO Charles H. Gamarekian. “In reality, there is not enough production to replace the wood decks built or on order, or to build the walls that accompany patios or outdoor living areas. The concrete paving and wall stone business is still in its infancy.”
That confidence is based on Cambridge Pavers’ growth every year since its 1995 founding, coupled with a post-2020 market shift propelling the New Jersey producer to seven hardscape unit plants between South Amboy, Lyndhurst (headquarters) and Lakewood sites. “When Covid came, we saw unprecedented demand for paving and wall stones,” recalls Vice President Christopher Gamarekian. “More homeowners than ever came to realize that outdoor living features were an investment, extending the use of their home from inside to outside.”
“The outdoor living model builds on itself. A homeowner might start with a 10 x 10 patio, then add a kitchen a year or two later, followed by a pavilion. We’re in the Northeast. People used to think outdoor space was for Memorial Day to Labor Day. What we are looking at now are areas that function year-round,” he adds.
On the heels of solid CMHA Hardscape Market Report figures showing annual paving stone shipments climbing 250 million square feet from 2018 to 2023, Cambridge Pavers is applying the South Amboy plant model to a new $30 million production line about an hour south in Lakewood. The template for both facilities entails a 50,000-sq.-ft. enclosure for a production line centered on a 1,100- x 1,400-mm board machine and four-mixer batch plant with upward of 2,000 tons of aggregate and 450 tons of cement storage.
The South Amboy line, or Plant 5, was built adjacent to a Capitol Ornamental Concrete hardscape unit facility, Plant 4, that Cambridge Pavers acquired in 2014. The latter helped ease demand on the producer’s flagship in Lyndhurst, located just over the Hudson River from New York City and home to Plants 1, 2 and 3. Cambridge Pavers acquired the Lakewood operation—one machine in a 110,000-sq.-ft. building—in 2021 from Clayton Cos., the Garden State’s top ready mixed concrete operator. Lakewood is home to Plants 6 and 7, respectively housing the legacy and new production line.
“The Lakewood property marks another opportunity to increase capacity and introduce new products while meeting demand from existing or new dealers. We feel we can apply our South Amboy and Lakewood new-plant model to any market in the country,” says Vice President Charles Gamarekian, Jr., who aims to match at Plant 7 the successful Plant 4 ramp up he managed in 2018. “Our success in New Jersey sets the standard for what we aim to replicate wherever we expand. Over the past decade, we’ve demonstrated our ability to swiftly identify and capitalize on opportunities, efficiently close deals with urgency, and enhance facilities to align with our strategic needs. Once these foundations are in place, we focus on what we do best—producing the highest quality paving stones and wall products in the industry.”
The main mezzanine is positioned between the aggregate bins and the cement silos. The Oxerra Granumat Color Systems are located here and are comprised of a standard Granumat and a MAXI Granumat located under one shared seven-color Oxerra pigment racking system. The two systems are engineered to weigh, blend and transfer precise doses of granulated pigment to two cyclone receiving vessels for each twin face and base mix mixers. The Oxerra Granumat System controls are the next generation, Movicon based interface utilizing Siemens Tia Portal PLC programming, which are integrated via a network with the Egan IntelliBatch Controls. This provides precise color formulas and batch reporting for real time consumption data of individual colors.
HARDENED PARTNERSHIPS
A sign marking the Lakewood site service road announces the producer’s brands, Cambridge Pavingstones with ArmorTec & Wallstones, but concludes in bigger lettering: NOT OPEN TO THE PUBLIC. “We are unlike any other hardscape unit producer in North America: ALL Cambridge products must be sold through our dealer network,” Charles H. Gamarekian stresses.
That commitment is two-way. Of the producer’s 350 dealers in 23 states—including one in Mississippi and one west of the Mississippi—nearly 125 sell Cambridge Pavingstones with ArmorTec & Wallstones collections exclusively. Another 50 or so have similar programs with a high percentage of Cambridge brand sales, plus limited hardscape units from plants closer to their stores, yards or showrooms. Cambridge Pavers views its dealers not merely as customers, but as integral partners in their shared success.
Value chain loyalty runs downstream and upstream for Cambridge Pavers, whose long-standing, principal vendors are Pathfinder Systems (Tiger Machine big board models, wet and dry side transfer and finishing equipment), Standley Batch Systems and Teka USA, plus admixture and pigment suppliers Sika Corp. and Oxerra America. Among privately held, independent hardscape unit producers, Cambridge Pavers has the largest fleet of Tiger Machine board models (six) and Teka plant mixers (19) the world over.
“Partnerships we have with equipment and material vendors are key reasons for our success,” says Director of Operations Jeffrey Martin, who has been molding concrete paver and wall products alongside Charles H. Gamarekian for 40 years, the first 10 with New Jersey’s Grinnell Concrete Paving Stones. “A lot of concrete producers try to take advantage of their vendors. We treat them differently, more like equal partners.”
THE PRODUCT PAYS
ArmorTec, Cambridge Pavers’ signature value add, is a face mix technology requiring tight cement and fine aggregate quality control, along with precision pigment dosing. The producer trademarked the ArmorTec process as competition claimed the face mix approach would result in a delamination-prone top paver layer. Three billion Cambridge Pavingstones with ArmorTec unit sales later, competitors have come around on face mix offerings, but none for 100 percent of paving stone output.
“We differentiate with hard facing, a method that European concrete paving stone producers have embraced for eight or more decades,” explains Charles H. Gamarekian. “Hard facing allows you to make pavers without larger aggregate in the top surface, increased cement percentage as well as color loading. This leads to ArmorTec pavers remaining recognizably smooth and exhibiting dense finishing with rich color.”
“Our company and dealers are committed to ensuring that homeowners’ investments are fully realized, avoiding situations where a $100,000 outdoor living project leads to dissatisfaction years after installation,” he adds. “When homeowners invest in their backyard, they expect vibrant paving stone products that stand the test of time.”
At Cambridge Pavers, manufacturing products of the highest quality is a cornerstone of the culture. That commitment is proudly reflected throughout the New Jersey operations, where the iconic Henry Ford quote, “It’s not the employer who pays the wages. Employers only handle the money. It’s the product that pays the wages,” is prominently displayed. For over 30 years, Cambridge Pavers has upheld the Ford philosophy, driving excellence in every aspect of their work. Cambridge Pavingstones with ArmorTec & Wallstones collections encompass more than 650 stockkeeping units—a very ample offering to cover a payroll across seven production lines.
The “product pays” premise especially underlies the Tiger machines and Oxerra granule stock at South Amboy and Lakewood, which position Plants 4 and 7 as the only North American concrete hardscape production facilities with automated six-color pigment systems. Cambridge Pavers pushes the envelope beyond color ranges, as shown in its newest product: Omega Natural Wall, a unit with textures on three sides from a first-of-its-kind mold, crafted with heated, hydraulic sidewalls.
COMMONWEALTH ACCOMODATION
Plant 7 ramp up is of essence as another project beckons about 440 miles to the south in Pittsylvania County, Va., where Cambridge Pavers has committed to a two-phase, 150,000-sq.-ft. hardscape unit production facility in the Ringgold East Industrial Park. Phase one represents a nearly $48 million outlay and is scheduled for completion by late 2026.
“Cambridge Pavers’ decision to establish its first manufacturing facility outside New Jersey demonstrates the Commonwealth’s competitive advantages for manufacturers,” said Governor Glenn Youngkin, announcing the project in December 2024. “This investment will create valuable job opportunities for Virginians while strengthening our advanced manufacturing sector. Cambridge Pavers joins a growing roster of companies choosing Virginia for our strategic location, world-class workforce, and pro-business climate.”
The Virginia Economic Development Partnership (VDEP) worked with Pittsylvania County and the Southern Virginia Regional Alliance to secure the project, for which Governor Youngkin approved a $220,000 grant from the Commonwealth’s Opportunity Fund. Support for Cambridge Pavers’ job creation will be provided through the Virginia Talent Accelerator Program, ranked the No. 1 Customized Workforce Training Program in the United States by Business Facilities in 2024. Created by VEDP in collaboration with higher education partners, the program accelerates new facility startups through delivery of recruitment and training services fully customized to an employer’s unique products, processes, equipment, standards and culture.
“This expansion represents a significant milestone in the evolution of Cambridge Pavers, reinforcing a commitment to innovation, precision, and excellence in every aspect of our business,” affirms Charles H. Gamarekian. “With the integration of cutting-edge technology and a dedicated team of professionals, we are poised to elevate production and further strengthen our ability to serve customers with our eighth facility. We are actively looking for our next major acquisition and are thrilled to connect with manufacturers across North America to explore dynamic opportunities for growth and expansion!”