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November/December 2005

Market Share Maintains Positive Trend

Portland Cement Association recently released the above-grade, single-family detached concrete wall market share numbers. Based on data provided by NAHB, concrete’s share of the homebuilding market increased to 16.3% in 2004. While the 0.2% increase pales in comparison to the 2% increase seen in 2003, it continues the streak of positive market share gains that have occurred every year since tracking started in 1993.

For individual concrete building systems, results were mixed. Masonry saw a 0.7% decrease in market share, but still remains the most widely used concrete homebuilding system, with a 9.2% share. ICFs saw a strong gain, surging up 0.7% to an overall share of 4.7%. AAC held steady at 0.2%. The “Other” category, which includes removable forms and precast, jumped to 2.2%, an increase of 0.2%.

"These numbers will, by and large, not contain any of the rebuilding needed in Florida after the four hurricanes of 2004," said Craig Schulz, market director of PCA. "We should start to see those numbers reflected in the 2005 market share."

Jason Kruger, co-chairman of the ICF committee for the Aggregates and Ready Mix Association of Minnesota (ARM), shared this perspective on Minneapolis-St. Paul. “The ICF home market increased roughly 20–25% in the Twin Cities area from 2003 to 2004. Initial indications are that a similar increase could occur from 2004 to 2005.”

Kruger, who is also a market manager for Holcim, said, “Promotion is being done by form manufacturers and distributors, ready mix producers and, here in Minnesota, ARM. These combined efforts have not only increased consumer awareness, but also the interest of wood-frame homebuilders.”

He feels there are two key market factors in the Twin Cities. “Demand for new traditional homes may be down by as much as 20% in this area, so wood-frame builders are finding more time to train their crews in a new construction method.” However, Kruger says there is no problem with the strength of the concrete homebuilding market. “Homebuyer demand for concrete homes is already there, and if home heating costs increase by the 70% figure predicted by energy experts, this will increase concrete home demand even more.”

Over the past 10 years, concrete home market share has increased over 1% on average every year. Concrete homes only made up 3.5% of the single-family detached market in 1994.