Concrete inFocus - Winter 2015 - (Page 8)

from the president's desk NRMCA Launches Unprecedented Building Promotion Program Robert Garbini, NRMCA President I am proud to announce that NRMCA is launching a new comprehensive program to promote concrete for buildings, with the primary goal of regaining market share lost to the wood industry. According to F.W. Dodge, concrete's share in the midrise market segment has deteriorated from 30% in 2004 to 22% in 2014, while wood's share has increased from 23% to 40% during that same period. This is especially disturbing since the commercial and multi-family residential market segments comprises 40% of all ready mixed concrete consumption, which translates to roughly 130 million cubic yards, based on 2014 NRMCA production data. What poses the greatest risk for the concrete industry is the formation of the Softwood 8 ı WINTER 2015 Lumber Board in 2012, through which the wood industry has invested at least $33 million over the last two years to promote wood products for low- and mid-rise buildings. And its objective is to continue to invest increasing amounts over the foreseeable future to accelerate the use of wood framing for multi-family and commercial construction. Let me illustrate what this means to a concrete producer by way of a simple example. A typical 200,000 square foot apartment building using concrete frame construction consumes 7,000 cubic yards. However, when the same building uses wood framing, concrete use falls to 2,000 cubic yards. The loss of 5,000 cubic yards for a single project roughly translates to a loss of $500,000 in revenue for a concrete producer. The commercial and multi-family segments offer the greatest opportunity for growth over the next five years. According to FMI economic data, these segments are expected to grow from $431 billion of construction put in place in 2014 to $593 billion in 2019, a 38% increase. In the longer term, Dr. Arthur C. Nelson, professor of urban planning and real estate at the University of Arizona, estimates the U.S. will build 287 billion square feet of new construction between 2010 and 2040, more than doubling the existing building stock. Clearly, the concrete industry has considerable opportunity for growth in these segments but it also has the most to lose, especially considering the resources committed by the wood industry to take advantage of this growth. NRMCA Low- and Mid-Rise Promotion Plan At meetings in September, the NRMCA Board of Directors took decisive action and approved a plan to regain share for concrete in the building segment. The plan builds on existing strategies that have demonstrated success in other markets. In particular, NRMCA's Design Assistance Program (DAP) for parking lots and streets has yielded success rate of over 50% in favor of concrete. The new building promotion program proposes a DAP for buildings whereby NRMCA will provide developers and their design consultants with preliminary designs, cost estimates and operating cost benefits with the purpose of influencing them to use concrete framing for their projects. NRMCA will promote concrete framing systems consistent with the needs of the building owner, including low first-cost and optimized life cycle cost. The program will

Table of Contents for the Digital Edition of Concrete inFocus - Winter 2015

From the President’s Desk
Corporate Suite Column
Enviroscene Column
Smokey Point Concrete
The Right Mix: A Guide to Pervious Concrete Mix Design
Union Threats: The Rules of the Game Have Changed!
Index of Advertisers
2015 Mixer Driver Recruitment and Retention Survey
2015 National Ready Mixed Concrete Association Driver Recruitment and Retention Survey

Concrete inFocus - Winter 2015

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