As the housing industry started to realize it was headed for a downturn, it appeared no one was immune to the decline. Concrete wall systems were no exception, as 2007 market share dropped to 10.8% from 13.2% in 2006. According to Craig Schulz, PCA Director of Market Research, almost all of that decline can be attributed to the housing market in Florida. Schulz explains, “The share of concrete block systems nationwide declined from 8.3% in 2006 to 5.8% in 2007, a 2.5 percentage point drop. However, in Florida, concrete block maintains about a 70% share and Florida has been especially hard hit by the housing decline. In 2007, Florida single family detached housing starts declined 57% compared to 2006. This compares to a decline of 27% for the rest of the country.” Schulz added, “If you remove the Florida effect, block’s market share would have declined a minimal 0.2 percentage points.”

On a more positive note, insulating concrete form (ICF) systems actually increased market share from 3.2% to 3.4%. While the data show an increase in 2007, the historical data series for ICFs has been adjusted downward, based on primary research conducted by the PCA market research department. “In the past, we have had to rely on secondary sources of information regarding ICF systems,” states Schulz, “and while those sources gave good indications about trends, they were not as good in determining levels. Last year, PCA surveyed homeowners who had recently moved into new homes concerning their above-grade wall systems, and this project resulted in ICF share estimates we are much more confident in,” Schulz added.

A further magnification of the impact of the Florida housing market’s effect on the national numbers can be seen by talking to concrete homebuilders in other areas of the country. Dan Thomas, an ICF builder in North Carolina, felt 2007 was “a very good year for my business.” Approximately half of the homes he built were specs, and the other half were custom.

Brian Bock of DuKane Precast, located in northern Illinois, says that in 2007 “[we] started to pick up some significant multi-family housing projects. Precast is much more advantageous in the multi-family sector.” DuKane did build a select number of single-family homes, all custom, even though “we weren’t putting a focus on that segment of the market.”

The slowdown seen in 2007, the continued housing slump in 2008 and the anticipated low number of housing starts in 2009 offer a glimmer of hope in one regard: more time for builder education. Jim Niehoff, Director of Residential for the Portland Cement Association explains; “I think, regardless of the economic situation, the momentum behind the sustainable movement is here to stay, and whenever the housing market regains traction, homebuyers are going to want homes that are more sustainable than the typical wood-frame house. Concrete homes already provide that; it’s just a matter of educating those builders who now have the time to learn.”

Both Thomas and Bock reinforced those thoughts. When asked why homeowners chose to build concrete homes in 2007, Thomas said, “The main reason was safety from hurricanes and tornadoes.” Bock commented that for precast wall systems, “cost and speed are king, but energy-efficiency is growing in importance and will be a major driver in the next few years.”

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