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Builders Turn to Concrete as Alternative to Volatile Lumber Prices

Faced with soaring and fluctuating building material prices and a shortage of skilled craftsmen to finish his new homes, Buddy Hughes, principal of Hughes Construction, a Lexington, NC-based residential and light commercial builder, found that absorbing the cost increases and weathering the storm was just about all that he could do.

But that was nearly 10 years ago, and since then he reports that he has found a long-term solution.

After some experimentation, he switched from stick building to building with Insulated Concrete Forms (ICFs) in 1996 and hasn’t looked back. “It was a very easy conversion that I absolutely recommend other builders consider in their business,” Hughes said. “Concrete prices aren’t volatile and as a builder, it allowed for time savings and reduced cycle times.”

Hughes cited the relative stability of concrete prices as a primary reason for using the material in his new home construction. Information from the Bureau of Labor Statistics indicates that while steel and lumber prices have fluctuated wildly in the past four years, concrete prices have experienced relatively little movement — within 10% — and since November 2001 have barely registered any movement at all.

Hughes’ decision reflects a growing trend across the country. Many residential builders have discovered that using concrete in residential construction makes the building process more efficient and cost-effective.

Eight years ago, when Hughes first converted to ICF construction, 7% of all homes featured above-grade concrete walls. By 2002, that figure doubled to 14% and is expected to hit 22% by 2006.

“The price of concrete is very stable and lately, any variance is almost negligible,” said Bronford, CT-builder James Eggert. “As an owner, it’s an advantage to our budgets and forecasts.” In 1997, Eggert built his personal home using ICFs. His home continues to serve as a show home for his construction company.

Eggert and Hughes are members of the Building Systems Councils’ Systems Builders Council (SBC), which represents the interests of builders specializing in concrete, log, modular and panelized homes.

SBC members interested in concrete home building will work closely with the concrete manufacturers in NAHB’s new Concrete Home Building Council to promote the benefits of residential concrete construction to colleagues and consumers. Membership in the SBC is open to any NAHB member interested in learning more about building systems.

For more information about the Systems Builders Council and the Concrete Home Building Council, visit the council Web pages or call 800-368-5242 x8576.

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