Market is Hot for Concrete Homes

Rather that butting heads with builders content with wood, successful concrete homes promoters have focused most of their time and efforts on creating consumer demand.

Youve heard the statistics touted before. ICFs will be the fastest growing method of concrete construction in the above-grade, single-family residential market over the next two years.

By 2003, according to the Portland Cement Association (PCA), 25% of the above-grade, single-family residential market will be concrete with 13% masonry, 9.5% ICFs, 1% AAC, and 1.5% other concrete building systems, mainly cast-in-place.

Based on projected housing starts in 2003, the organization forecasts an estimated 96,000 ICF starts compared to about 131,900 masonry starts.

If thats the cast, where are we now? According to 1999 estimates, concrete currently has 12% of the above-grade, single-family residential market. This includes all concrete building systems: ICFs, autoclaved aerated concrete, cast-in-place, tilt-up and concrete masonry. Of that slice of the pie, 10.5% of the market is concrete masonry, 1.3% ICFs, .017% autoclaved aerated concrete (AAC) and .017% tilt-up, precast and other concrete building methods. National Association of Home Builders (NAHB) figures there were over 125,000 concrete masonry homes and 15,500 ICF homes build last year.

Okay, so where s all this action taking place? Marketers along coastal regions such as the Carolinas as well as the Mississippi Gulf region, New Orleans, Florida, and Texas are apparently getting the bulk of the business these days, says Jim Neihoff, PCAs program manager of residential promotions. Adrian King, residential manager for the Concrete Promotions Council of Texas, insists concrete homebuilders in San Antonio and Austin have more business that they can handle. "Our strong regions are the Midwest, Ohio Valley, and parts of the Northeast and Rocky Mountain States," says Ed Storm, president of Reward Wall Systems.

So why the sudden flurry of activity in these areas? For one thing, most of the promotion groups we spoke to reported discovering specific market characteristics they have been able to capitalize on. Rather that butting heads with builders content with wood, they have focused most of their time and efforts on creating consumer demand. "Its a very consumer driven market," explains Philip Troutman, vice president of construction for Seacoast Communities in Myrtle Beach, SC. Bill Argent, Carolina Ready-Mix Concrete Association, agrees. "Once you build a permanent house in a subdivision, the only way for other builders to compete is to also build concrete," he explains. "Now that there are more ICF homes, it is more difficult for builders to say they dont want to build them also. They have to jump on the bandwagon, or they lose business."

Louisiana is a prime example of a market influenced and changed through promotional efforts. The South Central Cement Promotion Association (SCCPA) began an aggressive media and advertising campaign before any builders volunteered to build poured concrete wall there. Now, says Michael Young, SCCPAs executive director, 96% of New Orleans consumers know about ICF construction.

In truth, while these concrete promotion experts are enthusiastic about their efforts and successes in promoting concrete building to the public, they are collectively stumped when it comes to providing actual data from the state and local level. They know theyre busy, but just how busy remains a mystery.

"We have a very simple way for builders to report the use of ICFs in residential buildings, but getting them to fill out the form is like pulling teeth," exclaims Patrick Reardon, Northeast Cement Shippers Association (NECSA). He says that for every project he adds to the database, there are probably ten more he doesnt know about. There is cooperation between national associations and major ICF manufacturers, but the basic problem is getting the information from those who are actually building the homes. Builders and distributors who do not differentiate between above-grade and below-grade construction are throwing off the numbers too. Lacking hard figures, most regional promoters can only speculate on where they rank in the big picture.

Even so, all these promotional groups are discovering consumers are becoming more educated as to what concrete homes provide. Energy efficiency definitely sells a concrete house, theyve discovered, but in the hottest concrete building markets, many more consumers are sold on safe shelter benefits when natural disasters threaten. As the demand for concrete homes increases, consumers will focus their attention more solidly on locally perceived benefits that match local conditions, they say. If their predictions are on the mark for that market, the future of residential construction is indeed paved in concrete.

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