2007… Stay Focused!

While preparing to write this issue’s message from the president, I took a few moments to reflect on the year that was 2006. As usual the CFA provided a host of opportunities for members to participate and find benefit in the dollars they contribute. I also had the opportunity to expand the companies that I have been introduced to with many new members attending these events.

The year began with a record breaking meeting in January in conjunction with the World of Concrete, and who can forget that ridiculous basement constructed by Balmer Brothers which won the basement of the year award! April came and the Spring Regional Meeting held in Indianapolis was another banner event. Not surprisingly, those who attended raved about that fine Indiana hospitality! Before long it was July and the annual Summer Meeting; this event was all about our associate sponsors. They turned out in record numbers and brought unprecedented opportunities for the contractor attendees to demo equipment and see their products in action. As the year continued, the effects of the national home building economy was no doubt on the minds of many of our members and began changing some of the patterns of interaction in the CFA. The fall meeting held in Hartford, Connecticut was not as well attended as previous events even though the educational and seminar material was up to the usual high standard. Those that did attend found many ideas about leveraging their opportunities in the softening markets.

As we move into the calendar year of 2007, it may be more important than ever for our industry and association to stay focused on the issues that affect affordability and bringing value added benefits to our products and services. We must remain aware of the fact that our consumers are measuring value more carefully than ever before. Many of us have already been asked to take a hard look at our operations and evaluate processes and procedures. There is no doubt that each of us could benefit from a self analysis and an internal assessment of our strengths and weaknesses to expose areas that need attention. As contractors, we should take the time to measure and evaluate our production quality, cost control procedures, estimating processes, and all areas of customer service. This is a great time to not only streamline our individual businesses but also to discover ways to actually improve the products and services that we provide. What better place to start this process than through the networking of the CFA and the many opportunities we are creating here.

I believe that foundation contractors are a hearty group, and I am confident that we will successfully navigate our way through the current market conditions and come out on the other side healthier, leaner, and better prepared than ever before to serve our customers with what they want most.

Brad Schrock, CFA President, Custom Concrete Company Inc.
bschrock@customconcrete.com

When Times Are Tough

The housing industry is in another slump. This is nothing new to those of you who have been around for a few years (since the last slump). The housing industry is cyclical. If it is up, down times are ahead. Fortunately, the opposite also holds true. Believe it or not the causes of these events are beyond the scope of this article (as well as beyond my control).

The first and foremost goal is to survive the current downturn. Your second goal, however, should be to position your company to survive the next one. Anyone (just about anyone) can survive good times but it takes a well-managed, forward thinking company to survive when the inevitable downturn comes.

Your accountant, banker and a wide array of business planners can help you with managing your debt, equity, payroll, and other financial issues. But what about diversification, taking the knowledge, equipment, and expertise that you already have and applying it to other areas of the concrete industry?

Foundation contractors have at least two viable options for diversification. The first one is the commercial market. As is often the case, when the residential market is down, the commercial market is up – or at least steady. One advantage to commercial work is that you can get into it almost immediately. It’s a different world, but one in which you should be able to survive if you know the ins and outs. One of your first contacts should be a general contractor. Drive around and see what type of foundations are being constructed on commercial projects in your area. Find out who is building them. Many foundations on commercial structures are built using site-built wood forms. If that is the case, you can probably save the contractor some significant time and money – two benefits that go a long way in opening new doors.

Another early contact should be other CFA members who have already expanded to include commercial structures. There are some caveats to be aware of such as payment procedures and retainage. You will likely also be working on unique or one-of-a-kind projects. Design professionals such as architects and engineers are often involved. Unions may be an issue. Who better to lead you through the process than a fellow CFA member.

The CFA has added seminars to its regional and summer meetings dealing with issues relating to expanding into the commercial market. Look for the next one in your area and consider attending – if not, give us a call for people outside your geographical area who are involved in commercial projects.

A second opportunity is right at your fingertips – the above grade housing market. Those involved in the above grade market have a considerably greater piece of the housing pie available to them. They need fewer projects (and customers) to create the same revenue stream. However, this is not a market you can decide to get into on Monday and be working on your first house by Friday. It takes considerably more planning and preparation. The time to start the planning is now. If you do, there is a good chance you will have something in place by the time the next downturn occurs. If you start the process, don’t abandon it when the foundation market begins to improve – an easy trap to fall into.

There are ways to shorten the learning curve and perhaps the greatest of these is to network with a CFA/CHC contractor who has been there – who is doing above grade projects. Visit a job site or two, “bend their ear”, that’s one of the biggest benefits of a trade association. Find out what mistakes they made, what they would do different, what has worked and what hasn’t. You need to develop a relationship with a builder unless you are going to develop your own projects. Bring specialty subcontractors into your effort. Since you will be doing more of the project, you will need to develop a relationship with plumbing and electrical subcontractors and other specialty trades. Last but not least, get a project under your belt – and don’t expect to make money on that first job. There is a learning curve and a cost associated with it. If you expect the builder to pay for that experience, you will probably never get your first home (unless its your own). Consider it an investment. Also, the CHC will publish its manual on RCF above grade construction in the first quarter of 2007 – call the CFA to reserve your copy.

By planning now, you’ll be ready for the next market downturn.

Ed Sauter, Executive Director, CFA
esauter@cfawalls.org

The Code Saga Continues

I attended my third International Code Council (ICC) meeting in Orlando, Florida a month ago. For those of you unfamiliar with the code development process, the ICC is the organization that oversees development of the “I” series of codes, including the International Residential Code (IRC), the International Building Code (IBC) and the other Icodes. The ICC was created to take the place of BOCA, SBCCI, and ICBO, three competing codes covering the United States. Code officials met for nearly two consecutive weeks to hear over 1500 proposed modifications to the codes, a process that is repeated annually.

The purpose for my trip was twofold. First, to argue against the modified anchor bolt spacing that was inserted into the 2006 version of the IRC during the closing hours of the last session. Many jurisdictions are currently in the process of adopting this code; and, second, to oppose certain provisions regarding the incorporation of pre-cast systems into the code, namely the construction process that allows their use without footings. The current round of hearings was to determine which proposals will be considered by the full assembly of building officials at next spring’s meeting.

The Portland Cement Association has four employees who work full time monitoring submitted changes and proposing additional ones in an effort to assure that cement-based building systems are fairly represented. It should be noted that the wood industry, the steel industry, actually just about every industry, has a significant presence in this effort – most funded to a much higher degree than the concrete industry.

I timed my appearance, with the help from PCA staff, to appear the afternoon before the issues I spoke on were to be considered (you really never know exactly when a given topic will be considered). The CFA teamed with the NRMCA, PCA, and NAHB to propose wording that would essentially return the code to where it had been in the IRC-2003 – anchor bolts 6’ on center, versus proposed spacings that could be as close as 6” o.c. depending on loading, etc.

Detail on the two proposals affecting our industry can be found on page 7.

There will be another round of code hearings in the spring with many of the same items discussed again. Following those hearings there will be an opportunity for public comment (which is where the anchor bolt concept made it through in the first place). If anyone wants to make an appearance in the future, let me know. Or if you have trouble sleeping, the entire proceedings (two weeks worth) are broadcast live on the web. Just let me know.

Ed Sauter, Executive Director, CFA
esauter@cfawalls.org

CertainTeed to Receive Prominent Exposure

(Valley Forge, Pennsylvania) — CertainTeed Corporation, one of North America’s leading building products manufacturers, will be featured prominently on NASCAR(R) driver Jeff Green’s #66 Best Buy Chevrolet as he races in this weekend’s Bass Pro Shops 500 NEXTEL Cup race at the Atlanta Motor Speedway.

CertainTeed, a team sponsor of the Haas/CNC Racing #66 Best Buy Chevrolet for the 2006 NASCAR Nextel Cup Season, will have its Web site displayed across the TV panel for the race. The highly visible placement is located on the rear of the car above the bumper.

“We wish Jeff the best as he races for another top ten finish this weekend,” says Peter Dachowski, President and CEO of CertainTeed Corporation. “The excellent brand exposure we will gain from this race will hopefully drive viewers to our Web site so they can experience our industry leading product offerings.”

The weekend will culminate at 2:55 p.m. Eastern Standard Time on Sunday, October 29, as the biggest names in racing lay down some rubber for 500 miles in the Bass Pro Shops 500 NEXTEL Cup race. On Sunday, armchair NASCAR drivers can tune their televisions to NBC and join the 250,000 race fans in attendance to watch NEXTEL Cup Series drivers compete for the coveted cup.

ABOUT CERTAINTEED CORPORATION

Through innovation and creative product design, CertainTeed Corporation has helped shape the building products industry for more than 100 years. Founded in 1904 as General Roofing Company, the firm made its slogan “Quality Made Certain, Satisfaction Guaranteed,” which quickly inspired the name CertainTeed.

Today, CertainTeed is a leading North American manufacturer of residential and commercial roofing; vinyl and fiber cement siding; vinyl and composite fence, railing and decking; vinyl windows; residential, commercial and mechanical insulation; PVC pipe; foundations; and access covers.

Headquartered in Valley Forge, Pennsylvania, CertainTeed is a Saint- Gobain company with approximately 7,000 employees and 40 manufacturing facilities throughout the United States. In 2005 CertainTeed had sales of $2.8 billion. For more information visit their website at www.certainteed.com.

Concrete Home Design: Solid As Ever

Gone are the days of over-engineered and overbuilt concrete homes that were a chore to construct and even more difficult to sell. Today’s concrete residential designs, in particular those for homes constructed with Removable Concrete Forms (RCFs), not only offer homeowners a rock-solid, weather resistant and energy efficient investment, these fresh designs yield must-have residences with up-to-date features and amenities.

David Davenport, of Davenport Architecture + Design, Inc., is a Cary, NC-based architect—and Concrete Homes Council member—whose designs generate homes of breathtaking beauty, function and resiliency. He finds the work challenging and rewarding. “It’s great to work with top-notch professionals and build a structure that we know will perform as it should.” Naturally, he’s referring to concrete’s inherent virtues: quiet, environmentally friendly and strong enough to handle harsh coastal elements.

Reviewing Davenport’s concrete home portfolio, we cannot help but be in awe. First, we have The Chateau (pictured at left), an amazing concrete estate home in The Hills of Rosemont, an exclusive neighborhood in Chatham County, NC. A Gold Award-winner and recipient of “The Best of The Best” in the Home Builders Associations of Durham, Orange & Chatham Counties’ 2005 Parade of Homes, this 8,197 square-foot five bedroom residence has a gourmet kitchen and butler’s pantry, exercise and recreation rooms and a four-car garage. Concrete has been utilized for flooring, countertops in a bathroom and laundry room, pool deck, driveway and sidewalks. Adjacent to the Old Chatham golf course (designed by Rees Jones) this two-story home with spectacular views is on the market for $2,250,000.00.

Heading east a bit to Cary, we can view Davenport’s La Maison Be’ton (pictured on next page), a 10,000 square-foot home built entirely of concrete. This manor-like residence features a gourmet kitchen with concrete countertops, wine cellar and tasting room, home theater, covered terrace and picturesque landscaping. Concrete was also used for countertops in bathrooms, floors, decks, driveway and sidewalks. The home, with a blend of traditional and contemporary French interiors, is located in Birklands, one of the area’s premier neighborhoods, and garnered a Gold Award in the Home Builders Associations of Raleigh-Wake County’s 2003 Parade of Homes. Jon Rufty of Rufty Homes, Inc., constructed both of these magnificent homes (www.rufty.com) and Tri-City Contractors was the concrete contractor on both projects.

Currently, Davenport is actively involved with the design and construction of three more impressive concrete homes in North Carolina. The first is an 8,000+ square-foot custom residence in The Hills of Rosemont. This classically designed custom home, sited on a gracious, secluded ten-acre lot, is at the foundation stage of construction (as of this story) and is slated for completion in 2007. Built for an automobile aficionado who cherishes familial privacy, the home has, among other state-of-the-art amenities, a media room, a luxurious master suite and bath, complete with a Japanese soaking tub and, of course, ample space to house his cars. The builder is once again Jon Rufty, Rufty Homes, Inc. working with Tri-City Contractors. Judy Pickett, ASID, of Design Lines, Ltd, of Raleigh, is handling the interiors of this stellar residence.

And if you think that Davenport only designs large homes, think again. He is also busy these days with a 3,600 square-foot beach home overlooking the Atlantic Ocean, shown at left. The four-story speculative home is being built for Ocean City Ventures, a development company out of North Topsail Beach, NC, and represents the best there is in coastal vernacular design. The property includes a concrete tower pre-dating World War II, originally used by the U.S. Defense Department to observe missile testing over the Atlantic Ocean. During the war, the tower served as a lookout post by the military to monitor the Atlantic for German U-boats. The final phase of the project is to convert the tower into a bathhouse for the home’s outdoor pool and sun deck. Like any concrete home built to withstand coastal weather, this house will be loaded with high performance features, such as Andersen hurricane-resistant windows and doors and high-wind construction detailing.

In the near future, Davenport will begin a Mediterranean-style villa on a two-acre site in North Topsail. The permanent custom residence will have seven bedrooms, an exercise studio and lap pool, a movie theater, a pool hall, separate guest accommodations, an interior courtyard and a six-car garage. Working closely with the family throughout the design process, Davenport’s goal is to create a home that can be handed down to generations to come. When the project begins, Security Building Group, of Sneads Ferry, NC, will handle the RCF construction of the exterior walls, floors and ceilings, while Maebuilt Construction, of Surf City, NC, will serve as the contractor of record.

Today’s homeowners want spaces that capture their emotions, homes that are not just well sited and serviceable but beautiful inside and out. Only recently have concrete homebuilders been able to deliver such an all-inclusive package. Davenport explains that trial and error coupled with engineering advances have enabled the industry to go from structurally sound yet aesthetically lacking homes, to homes of impeccable beauty, quality and strength. “We’re learning how to deal with flashings, elevations, slabs, overhangs and balances while using a lighter touch,” he explains. “And it helps that we’re working in tandem with an excellent engineer who knows how to be very efficient with concrete.” Davenport is referring to Ken Theisen of Engineering Tech, P.A. of Raleigh, NC.

Theisen’s expertise comes from successful structural designs of nuclear power plant components, hotels and limited service motels, churches, educational and medical facilities, and large single-family and multi-family dwellings. Many of these buildings required Theisen to engineer and design foundation and retaining walls, yet his work also includes extensive experience engineering insulated concrete homes and all concrete homes, both inland and along the coast.

Davenport draws parallels between the evolution of engineering and designing concrete homes and the automobile. “Originally automobiles were constructed to be very heavy so they would be safe. Over time, automobiles have evolved into something lighter yet even safer than before.” He says the same is true with concrete homes. “We had areas in some of our first concrete homes that were heavy and over-engineered, especially slabs and overhangs. Now we engineer these features, and many other aspects of the home, so they are structurally lighter and visually appealing, yet still extremely strong.”

In addition to collaborating with a knowledgeable engineer, Davenport has taken his design work to the third dimension. He employs the latest technology available to architects utilizing a software program called SketchUp Pro. Developed to combine the elegance and spontaneity of pencil sketching with the speed and flexibility of today’s digital media, SketchUp allows the architect to create, view and modify three-dimensional ideas quickly and easily (www.sketchup.com)

Everyone seems to profit from doing more with less. Of course, builders have always appreciated concrete’s strength and resilience. But now they are discovering that this time-honored material allows them the same flexibility and appearance they can get with stick construction. In addition to the first-class homes they can produce, today’s sleeker designs require less concrete, passing on to builders reduced construction costs, and consequently, greater profit margins. This rewarding collaboration between architect, engineer and builder ensures an end product that any concrete construction professional would gladly add to his or her portfolio.

Solid architectural design—it’s the foundation of concrete home construction. To discover more about the adventure of concrete home construction and how it can impact your business, contact a member of the Concrete Homes Council today.

by Wendy Shannon and Libbie Hough, Op5 Creative, Atlanta, Georgia.

MacGregor Village, 107 Edinburgh South #201
Cary, NC 27511
P: 919.388.9321
F: 919.388.9322
contact@davenportarchitecture.com
www.davenportarchitecture.com

Completing A Foundation In 10.5 HRS!

WHAT THEY DID

In an unprecedented 10.5 hours, Coello & Associates constructed a full 8 foot basement and 850 square foot attached garage foundation from start to finish.

THE CONCRETE WAS KEY

A foundation like the one for this home would typically take a minimum of three days to complete from start to finish. On day one the footings were set up and poured and on day two the same was done for the walls. The walls then sat overnight before the forms could be stripped away. As you can imagine, trying to condense this process into a 12 hour time slot was a challenge. Careful planning was a must, but that was only the beginning.

A proprietary concrete mix supplied by Bend Industries was key to the success of the project. The concrete was designed to reach 8,000 psi after 28 days, which is twice that of the concrete used for our standard foundation walls. Even more important was that the concrete had reached 3000 psi in strength only four hours after the walls were poured. To put that into perspective, the code requires that a foundation wall reach only 2500 psi in 28 days.

This allowed the carpenters to begin quickly decking the home. The foundation was backfilled less than ten hours after the wall pour. When using their standard concrete mix, they recommend waiting a week to ten days before backfilling a foundation for best results.

Coello & Associates’ utilization of Durand aluminum forms with attached hardware also aided in the fast construction of the basement. This advanced forming system helped the crews set the walls both correctly and with extreme efficiency.

While the perfect concrete mix and superior forming system were instrumental in constructing the foundation on time, it also took the determination, skill, and hard work of 36 individuals to truly make the project a success.

WHAT THEY GAVE

For Coello and Associates, it meant 280 man-hours on the site, secretive ground-work, and material donations from Coello and other partner companies.

Following show guidelines, two things had to happen according to Michael Coello, General Manager. First, this had to be a surprise to the family, and second, everything needed to be donated. Sharing this project with only a few key people, Michael got their foundation project organized.

First he went to their suppliers for donations and expertise with the special requirements for the quick-turn-around. Among them were Bend Industries, CertainTeed, Axim, Victory Steel, Tremco Barrier Solutions, and Monarch Windows. In addition to their labor force, equipment and forms, Coello & Associates donated anchor bolts, steel rebar, and foundation insulation.

A foundation this size, completed in a ‘normal’ timeframe, would typically cost approximately $25,000.

Michael called a company meeting and said “We have a tremendous opportunity to change a family’s life, and that it would happen through this show. The employees were tremendously excited to do it. I didn’t have to say another word – no one declined.”

Michael Coello says constant lightning and bad weather threatened throughout the evening. Coello crews started in shifts — staging the first 12 at 4 pm on the 1st, then 3 hours later adding another 11, then 3 hours later adding the remaining group for a total of 35, who all worked until Michael started sending them home after 3 am.

WHAT THEY GOT

On a professional level, the recognition of their company’s role in the project may not necessarily bring them more work, but Michael believes it will help to reinforce their company brand recognition, something they try to work on constantly. Michael also believes this project was a step towards ‘walking the talk’; to show that as a company Coello and Associates can do projects like this that are out of the box and display their ability to work with different specs and standards.

On a personal level, Michael says “We only get so many chances in life to affect other peoples lives. This was our chance. I felt that because they came to us and thought we were the ones that could meet this dying man’s needs, then we were the ones. It gave us great satisfaction and wonder to be a part of this.”

Enjoy these comments from Coello employees who helped with this project:

Tom Poznanski – It was a great honor to participate in an experience which will be televised. It made me feel good knowing that I helped the family/homeowners in a personal way to improve the quality of their home.

Jason Terhardt – My experience was awesome. This job was unique and was a challenge in many different ways. From a timeline that most of us never had encountered to a concrete mix that was such a fast setting product. The whole job site has such a great feeling that it basically gave you a rush from start to finish. To top it all off you have a crowd of people watching you and cameras all over the place making you feel like you are being privileged to be on that particular job site.

Scott Blaskowski – I felt a great sense of pride in what we accomplished. I’m sure it is something I will talk about for years to come. Being able to help this family out and being given the opportunity to work on this project by our boss reaffirmed what we try to do here at Coello & Associates… “Fulfill Peoples Dreams”. Thanks for the opportunity. It was incredible to see what could be done with concrete also. The suppliers we worked with were awesome and the mix design did everything we needed perfectly!!

Keith Mittelstaedt – Not only am I very proud to have helped out in this special project, but I feel very privileged as well. It was a very impressive project with a lot of thought and heart put into it. The amount of good people and volunteers is also overwhelming. So many people with so much skill all brought together to tackle this feat was amazing. I hope I was able to help make a family’s dream come true.

Ben Reinke – I feel that it was a great honor to be able to participate in the Home Makeover project. From start to finish I was filled with excitement and adrenalin just trying to take in everything that was going on around the site. It is truly amazing to see a project like this take place with all the contractors and volunteers working so hard and in sync to accomplish this dream. I will never forget the events that took place that night. Thank you for the awesome opportunity.

John Reuteler – As a fan of the show I know the highs and lows the family feels during this process. It was a great feeling to be part of their high. It was also a new challenge for me personally. It was not the most difficult house but the timeline we had to finish it in was a real challenge. To do a job in under 12 hours that usually takes 3 days was a new high for me.

OTHER CFA MEMBERS

In addition to CFA member Coello & Associates, other CFA members who were partners in this home construction were CertainTeed Form-a-Drain, Durand Forms, LaFarge North America, Tremco Barrier Solutions Horizon, and Monarch Manufacturing.

Steve Gross, Director of Marketing for CertainTeed wrote in to say “We are honored that Coello & Associates recommended Form-A-Drain to help form a solid foundation for the Koepke’s home. Form-A-Drain was chosen because of its unique three-in-one offering, as it served as a sturdy footing form during the ‘Extreme Makeover’ construction, and will provide foundation drainage and radon evacuation benefits for years to come.”

ICC Code Update

Here is how it went.

Those in favor of the proposal to remove the language from the 2006 IRC stated their case (a maximum of 2 minutes each was allowed). I presented facts from our survey of members among other data. Those who opposed the change stated their case (again, 2 minutes each). Each speaker then had 1 minute to rebut the testimony of the other side (both for and against). There may have been a re-rebuttal (I’ve lost track by now). After 5-10 minutes of discussion by the committee, they voted 7 to 4 against our proposed language to return the code to its 2003 version – but its not over yet. The assembly can choose to have the issue considered by the entire group (around 150 – it varies) upon motion. A motion was made and seconded and the assembly voted in favor of the language we proposed. What does this mean? We get another opportunity to argue our case in front of the full assembly.

The pre-cast initiative has a similar result via a different path. The language proposed but the pre-cast industry would allow the prescriptive use of compacted gravel as a footing under pre-cast, and other wall types (which included CIP or RCF construction). Several individuals representing various constituencies argued for, then against the proposal. The committee made a motion to disapprove the proposal but the motion failed. A second motion was made to approve the proposal as submitted and it also failed, thus the provision will not be included – for the time being. The most persuasive argument against approval dealt with the fact that this type of foundation literally turns to mush during a seismic event. Since areas of high seismic activity were not excluded, the proposal was defeated. Expect to see it again in future code hearings with restrictions in high seismic areas. What does this mean for the RCF industry? I think we should consider the development of systems and details for use of RCF’s that do not require footings when placed on compacted gravel.

So it went.

What’s Ahead?

Just recently I returned from the CFA Fall Regional meeting in Hartford, CT. As your president, I am pleased to see we have many exciting projects and activities identified that are sure to continue building value to the membership. As a fellow contractor, however, I share with you a subject that is not quite as encouraging…the sagging market.

During any given CFA event, there are many “networking” discussions, most held “after hours” between a wide variety of members. This time, we seemed particularly centered on the common fact that most residential markets are significantly down over previous years. I don’t imagine this is any secret to those of you who battle these circumstances every day. What you may find surprising, however, is it always seems to help a little when you can share your experiences with others discovering that just maybe you’re not the only one and it isn’t because you are doing things wrong.

It never fails; when production levels are running high our customers seem to line up and in unison tell us that since their volumes are so good that we should be able to offer a better price – “We are giving you so much work you should be able to operate more efficiently” (which is builder-speak for cheaper). Since we all love to build foundations we usually succumb to their pleas, figuring out ways to cut costs and justifying this internally because we have more work…and that’s supposed to be a good thing, right?

Well, now that the cyclical markets are trending downward, is it all that surprising that the message from our customers is surprisingly similar – “We need for you to step up and share our pain”, “Since the workload is smaller the competition is hungrier”, “When everyone needs work this badly, you have to find a way to work cheaper” – Sound familiar?

So, we begin asking ourselves, “How in the world are we going to accomplish this?” We have already tightened the belt as much as we could when things were busy. Ready mix producers are already asking for next year’s price increase and all of our “good” help are expecting raises…(I’m not even going to mention fuel). Who is going to help us share in our pain? We have already read and implemented our “7 Habits”, we have figured out “Who Moved our Cheese”, and long ago we shifted from “Good to Great” What’s left?

What I’m most pleased to report, from Hartford is that for many of us, knowing that numerous others are in the same boat can be a very real help. Some of us have taken bold moves while others have implemented more conservative approaches to deal with today’s issues. I left Indianapolis feeling cornered; I left Hartford feeling encouraged knowing that I have friends and associates fighting the same battles. Their experience, wisdom, and insight has been very helpful. Irregardless of what direction you or I ultimately choose to take, the information that can be gleaned from colleagues is more valuable than anything that can be found in any bookstore. We’re not experts, we just try the little things and look for new ways taken from each other.

When times are a little harder and the talk is constantly about cutting costs and being more efficient, perhaps this is the time when it is most appropriate to invest more time and energy into the things that can make the biggest difference. Perhaps things like the CFA.

Brad Schrock, CFA President, Custom Concrete Company Inc.
bschrock@customconcrete.com

CIFA USA Announces Acquisition of CIFA S.p.A. by the Italian Fund Magenta

Italian private equity fund Magenta today announced the completion of the acquisition of CIFA SpA, the Italian group active in the design, manufacture and distribution of equipment for the mixing, transportation and placement of ready-mix concrete.

Magenta is a new Italian private equity fund, founded by Luciano Balbo, Edoardo Lanzavecchia and Luigi Sala, that together have over 50 years of experience in the private equity industry.

Magenta with other financial investors that include private equity fund Alpha and Banca Intesa, acquired 72.5% of CIFA, with the Cerini – Mutti – Raimondi and other families owning the remaining 27.5%.

“CIFA is an example of an Italian company well know for its successful business worldwide. The company represents a great opportunity and an optimal platform to grow organically and through acquisitions. We look forward to working with the management team to drive the company forward” said Edoardo Lanzavecchia, managing director of Magenta.

Alceste Murada has been appointed CEO, Maurizio Ferrari Vice-Chairman and Giovanni Cerini has been confirmed Chairman.

Alceste Murada has extensive national and international experience, he realized the first European joint venture in the air-conditioning equipment sector between Sanyo and Elfi . He was Vice-President of Carrier Europe, Middle East & Africa (United Technologies Corporation) and CEO of Riello.

Maurizio Ferrari led as CEO several buyouts of Castelgarden/GGP, growing the company to the European leader in the gardening equipment sector.

“This acquisition – says Matteo Rolla Vice President of CIFA USA – is an excellent opportunity for the CIFA Group and particularly for their US based operation.

Beside the extensive knowhow in production and technology still assured by the previous owners, CIFA undoubtedly will benefit from the financial strength and internationally recognized management skill provided by the new shareholders.

I can foresee a great future for CIFA USA and our customers and partners. We will be committed even more than before in delivering high quality product, service and relationship”

Founded in 1928, CIFA designs, manufactures and distributes equipment for the mixing, transportation and placement of ready-mix concrete including mixing plants, formworks, truck mixers and concrete pumps.

Two companies in Geronimo, Oklahoma turn ideas into concrete plans

From The Lawton Constitution, May 23, 2006

by Scott Rains, Staff Writer
srains@lawton-constitution.com

GERONIMO, Okla.— A progressive view of construction must be mixed into the local water supply.

The community supported — by a 71 percent margin — passage of a proposition for a concrete, domed school and gymnasium during a school bond vote earlier this month. Now, the residential development of Geronimo Estates is the testing ground for what could soon be the vanguard of housing especially suited for the needs of Oklahoma homeowners and buyers.

“I think we’re on the cutting edge of something beneficial here and throughout the country,” Alford Hennessee said. Hennessee, owner of Hennessee Realty, is developing Geronimo Estates on the north edge of town. Hennessee and partners Gene Simmons and Mark Simmons have formed Okie Homes.

The first endeavor for Okie Homes is the construction of two insulated concrete homes in the addition. “I must think a lot of this idea,” Hennessee said, “I’ve put a lot of money into it, and I think it’s the way to go.”

Soon the company will have its own crew trained to use cutting edge wall form technology to construct concrete homes for the same cost as a home built from traditional materials such as wood and brick.

Concrete homes are not a new idea. Solid and less prone to structural damage from wear and weather, the drawback for many prospective buyers has been construction costs, which are often twice as much as traditional homes.

Until now.

“Concrete homes have been built for years, but the construction has never been cheap or easy,” Tim Ryan, of Insulated Concrete Structures, said. He has a background in working with engineers and architects, especially in structural construction, he said. In January, Ryan’s design for sandwich wall forms which holds the insulation in place during the pouring of concrete homes was patented. He had been working on the idea for four years, he said. Okie Homes is purchasing some of the forms to begin building the concrete homes.

Taking Western Forms’ standard aluminum wall forms and applying trusses to hold the interior Styrofoam insulation in place, both sides of the wall are poured at the same time, allowing for a quick turnaround in construction. Rebar is set in the 3,500-pound per-square-inch test concrete and, when completed, the structure meets FEMA standards for safety.

“Instead of a safe room, we’re giving people an affordable safe house,” Hennessee said.

Window and door frames are designed into the framed structure before pouring. With housings in place while in the form stage, plumbers and electricians finish all tasks inside the walls prior to pouring. Drywall and exterior finishes may be applied once the concrete has set. Products such as acrylic stucco, drywall and paints are applied directly to the concrete.

“The technology integrates the plumbers, electricians, drywall and exterior finishers into the home’s construction,” Ryan said. “In one pour you replace framing, insulation, sheet rock and exterior board.”

Using this technology makes the cost of building a concrete safe home the same as that of a home built of wood or brick, Ryan said. Gene Simmons concurred, saying the cost is around “$100 per square-foot.” The average turnaround time for a build is “basically eight days,” Ryan said, and includes a crew of between six to eight workers. He believes once the idea catches on with the public, it will spark a new wave in construction.

“Building with an insulated concrete wall using Western Forms aluminum forms allows us versatility in layout of walls, height, thickness and location of windows and doors,” Ryan said. “You can take your floor plan and build it as drawn.”

“It can last indefinitely,” Hennessee said. The end result is a home which is impervious to many of the problems of traditional homes, such as wood rot, termites and even wind damage. Depending on the specs of the project, Ryan said, people “won’t have a clue the house is all concrete” when completed.

That is, until the energy bills come in. The three inches of concrete on either side of four inches of Styrofoam insulation helps the structure to become a geothermal unit with up to 40 percent savings on utility costs, Ryan said.

“Energy prices aren’t going down, and I believe energy savings will play more and more a consideration when people are building a home,” Hennessee said. “Energy has changed our way of life.”

Also, concrete is fire-proof, so lower insurance costs have been cited for these “safe homes,” Ryan said. Tax credits are available to the home buyer for purchasing a concrete, environmentally

As the first home was being completed, and with the second underway, an open house and media day was held on May 23, 2006 at Geronimo Estates to allow the public to examine the end result for themselves.

“Once people, see, feel and touch these houses, they won’t have to sell it,” Ryan said, “They’ll sell themselves.”