Cement Consumption Headed for Another Record Year

Cement consumption this year should increase 3 percent and to another record level of 123.4 million metric tons, according to a spring forecast by the Portland Cement Association.

The forecast includes an improved determination of cement intensities, a term which refers tons of cement per dollar of construction activity.

"The underpinnings of U.S. economic growth are solid and will translate into 3.3 percent to 4 percent growth rates in GDP for '05 and '06," predicted PCA chief economist Ed Sullivan.

"Even in the context of rising interest rates, sustained high oil prices, an oversized federal budget and trade deficit, and continued upward pressure on commodity prices, the general economic picture is expected to result in sustained growth in overall U.S. construction," he added.

The favorable competitive position of concrete relative to steel is likely to continue. That scenario, coupled with advantageous construction mix changes, suggests that overall cement intensity will experience moderate growth.

The 50+ Housing Market: Demand Grows in Smaller Cities

The 50+ housing market is transforming the way builders design and develop active-adult homes, according to experts with the National Association of Home Builders' Seniors Housing Council.

Speaking at Building for Boomers & Beyond: Seniors Housing Symposium 2005 in Chantilly, Va., builders and architects say demand is growing for smaller communities with interesting streetscapes and high-end homes designed for individual lifestyles.

When the first active-adult communities were launched in the 1960s, many were large in size, located in traditional Sun Belt states and shared similar community format, design and amenities. However, builders recognize that today's buyers are open to change, demand a variety of choices and are more likely to consider a community close to home.

"For many buyers, the established concept of the active-adult community conjures up images of boring, cookie-cutter neighborhoods with no opportunities for owners to express themselves," said Bill Feinberg of Feinberg & Associates, a Voorhees, N.J.-based architect and designer. "Builders understand that the active-adult industry is rapidly changing. A single community formula will no longer meet the needs of mature consumers."

Feinberg added that main street communities, exclusive enclaves and age-targeted villages within master-planned communities are gaining popularity. In terms of design, Feinberg said, these youthful, individualistic buyers want diversity in street patterns and streetscapes, embrace natural features such as wetlands and open space, and favor smaller, more flexible communities. And they also may not need a large community clubhouse, preferring more informal spaces that offer different experiences and a range of social and physical activities.

While most active adult communities traditionally have been built in suburban locations, urban buyers command a greater share of the market, especially for condominiums, town homes and multifamily apartments. Many buyers are empty nesters who expect a high level of service, spend more on upgrades and are less likely to consider moving to an age-qualified community.

"Boomers are buying lifestyle," said Chuck Covell, president of Greenbelt, Md.-based Bozzuto Homes. "Today's 50+ buyers today are more affluent and crave a sense of lifestyle when buying a new home. They are not buying solely based on price or location."

Covell added that baby boomers will continue to work in some capacity, with many trading their primary careers for a part-time job or a job that is more like a hobby. "Builders must include high-tech offices and media centers in active-adult homes to appeal to these buyers, who see themselves working well past the traditional retirement age," he added. "Baby boomers want first-floor living space, including a master suite, as well as high-end kitchens, luxurious master suites and baths and high-tech media rooms."

Said Mary DeWalt, president of the DeWalt Design Group in Austin, Tex., "Boomers love to socialize, and they want kitchens that are versatile enough for the gourmet chef and stylish enough for entertaining. They also favor a design scheme that blends their 'old favorites' with new pieces."