December 4, 2008

CHBC Chairman
Jim Niehoff

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  Builder Starts with Concrete, Never Looks Back

This month's 10 questions take us to the world of residential concrete construction. Those involved know it is a market segment with rapid growth. We asked builder Kyle Smith of E3 Homes in Minneapolis how expanding into the residential concrete market has helped his business, and the concrete marketshare in his backyard.

1. Systems-Buit Advantage: How did you get started in the home building industry?

Kyle Smith: It was a fluke. In 1999 as a commercial contractor, I was  engaged in a project that demanded a frost footing that could be quickly built in very inclement weather without the need for excessive weather protection. I was searching concrete forms and fell onto insulated concrete forms. I discovered that entire homes were being built from these forms. Concrete is a great answer in a state like Minnesota because we experience such a wide variety of harsh weather.

2. SBA: Why did you switch to concrete construction, in particular ICFs?

KS: At the time we chose to switch to residential construction, mold and stucco issues were really forefront. Using cement-based wall systems above grade was a way to enter the residential market without the immediate exposures to litigation for interior mold and exterior cladding failures that was prominent in our area at the time.

3. SBA: What are the benefits of residential concrete construction versus traditional “stick frame” construction?

KS: The basic benefits of cement based construction are strength, durability, and energy efficiency. Today's consumer is very educated and is intensely searching for products that will offer a return on their investment. Combining the cement-based shell with other building systems offers benefits for both the contractor and the client that reach far beyond that of standard construction methods.

4. SBA: The residential concrete construction industry is growing and gaining market share.  Why?

KS: Home buyers everywhere are looking for well designed and constructed homes. Recent mold issues, front page construction litigation, rising cost of fuels and the ever growing green movement have created a client that is demanding proven construction systems. Concrete is a building system that offers the highest levels of strength, durability and energy efficiency in residential construction. 

5. SBA: What are the biggest myths about building homes with concrete?

KS: One myth was cement-based homes are square, bunker-like structures without design character. I think the work of design professionals and contractors have produced beautiful, complex concrete homes that have debunked the myth. Another myth is that  concrete is too expensive. What most fail to realize is that the added expense is generally limited to the exterior structural shell. The added expense gives the builder an advantage on the primary sale and even offers the home buyer a guaranteed advantage in the re-sale market.

6. SBA: What is the single biggest hurdle residential concrete construction has to overcome?

KS: Education. From design and installation methodology, to selling the vast benefits of residential cement based construction, most homes are moved to market as a spec and the sale is left to someone other than the builder. Until recently, the front line of our sales professionals had very little concept of building systems, energy efficiency and calculated rates of return on those elements. (Read a testimony from a Realtor on the benefits of marketing and selling a concrete home)

7. SBA: Why should a custom builder try building one home using above grade concrete wall systems (ICF’s, masonry, cast-in-place concrete, etc.)?

KS: A custom home builder should always aspire to different building methods. Custom home building can go much further than counter tops and cabinets. Energy efficient cement-based shells are the perfect match to custom interiors. Look to complimentary systems like cement-based siding and ground source geothermal that will maximize the benefits of the cement-based shell for both energy efficiency and maintenance free performance.

8. SBA: What advice would you give to someone looking to diversify into residential concrete technologies including both above grade wall systems and concrete applications (decorative concrete, pavers, segmental retaining walls, concrete tile roof tops, etc.)?

KS: Try something different.  Your clients will quickly see the potential in owning a home that will be mold free, maintenance free, and built from the most sustainable material available. Again, compliment the structure with lasting products such as tile roof systems, stamped or polished concrete flooring and long-lasting concrete pavers. But, do the research and get the education first.  My suggestion would be to make the best of the down time and take advantage of the many educational courses and seminars offered by the NAHB. Consult with your architect and staff. Make the experience as rewarding for the builder as the end product is for the homeowner.

9. SBA: Where do you see the future of above grade wall concrete construction going?

KS: I see cement-based above grade wall construction being a prevailing building system in the near future. Many municipalities affected by severe weather are already considering code-compliant measures that utilize cement-based systems for a majority of the residential structure. Increasing fuel and electrical costs will continue to drive the consumer need for higher standards of energy efficiency. Cement offers the maximum in thermal mass of all building products available which is a major factor in HVAC efficiency.

10. SBA: What does the industry need to do to ensure it gets there?

KS: Continue to educate. The industry must continue to pull all of the necessary elements together to present integrated building systems. The sale of cement products alone will likely not sell a cement-based home, but an educated approach to a system which includes all of the compliments including inspiring design, mechanical systems and exterior claddings will.

SBA: Kyle, your 10 questions are up. Thank you for your time and insight.

Builders interested in learning more about residential concrete construction are encourage to sign-up for the "Connect with Concrete" luncheon at the 2009 International Builders' Show. Go to www.nahb.org/concretelunch.

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