Used in Europe and Asia for years, aerated concrete has been slow to catch on in the U.S. The companies are counting on the material's natural appeal to Florida builders, who must contend with hurricanes, termites and other pests, and the high humidity that wreaks havoc on wood and can seep through regular concrete block. Aerated concrete can be used for floors, roofs and load-bearing walls in buildings of up to five or six stories. Builders use it for interior walls in high-rises because it's light, fireproof and has superior sound-deadening qualities.
Ytong Florida already has two years of sales under its belt. In 1998, a shortage of installers limited sales to 31,000 cubic yards, about 70% of the company's target. This year, company officials say, Ytong is on track to sell 90,000 cubic yards, and it plans an expansion of production that in the next 12 months will increase capacity from 117,000 cubic yards to 183,000.
While Ytong aggressively pursues the single-family residential housing market, ACCO has made inroads into multifamily and hotel/motel projects. "It takes virtually the same effort to design a residential project as a commercial project," says Angelo Coduto, director of marketing for multifamily construction at ACCO. "It makes more sense to go after the larger scale."
The biggest marketing challenge for aerated concrete manufacturers is educating builders. "Getting the end-user interested in the product is not a difficult sell," says Doug Crooks, Ytong's vice president of sales and marketing. "The problem at this point is getting the trades people familiar with the proper way to install it."
Aerated concrete comes in either blocks or panels. Masons complain that the blocks require different handling than conventional concrete, forcing them to relearn their job methods, and the panels require cranes to lift them into place.
Coduto says that many of the aerated concrete projects built to date have suffered from the scarcity of workers who know how to handle the material. That can result in structures that are solid but have cosmetic flaws. Some manufacturers have set up training programs for teaching builders how to handle aerated concrete blocks. ACCO installs what it sells, according to Coduto, to minimize the possibility of complaints about the finished building's appearance and to reduce the risk of aerated concrete getting negative reviews from builders and buyers in central Florida.
If aerated sounds too exotic, central Florida homeowners will soon have another concrete option. National homebuilder D.R. Horton picked central Florida to launch its new Epic Wall System, which involves making precast concrete walls specially designed to withstand Florida's weather. Horton's more conventional approach to concrete housing is reminiscent of the tilt-up construction used in commercial buildings for years. It is offering the option at six subdivisions in Clermont, Lake Mary and Oviedo and may roll out the concept nationally.
Like other concrete products, the Epic system provides high structural integrity, wind resistance and energy efficiency. But, unlike aerated concrete, Epic concrete walls are high density, therefore heavier, and require a bigger crane to move and position. Also unlike aerated concrete, which can be produced in block form, Epic's precast walls limit options for such architectural details as curved walls.
Companies with innovative building materials and techniques may be attracted by central Florida's booming residential market. Three years in a row, the number of building permits for single-family homes has increased 10% or more in the Orlando metro area, and last year the area accounted for about 25% of all home starts in Florida.
In the news ...
Kissimmee - The Seminole Indians are planning a theme park on 3,000 acres in Osceola County, but opponents already are lining up to protest the possibility that the tribe will build a casino as part of the project. A newsletter circulated to tribe members indicated leaders were looking to invest
$80 million in a "long-term" project.
Marineland - The nation's first marine-animal attraction has reopened, with what it hopes will be a fresh approach to ensure its survival. In its new incarnation, the 62-year-old Marineland will focus on eco-tourism and education. Also, the park will have fewer employees and shorter operating hours.
Melbourne - Harris Corp. (NYSE-HRS) says it will slash up to 400 jobs and spin off its Lanier business machines unit. In addition, the company plans to sell its power semiconductor unit, which accounts for almost half of Harris' microchip division.
Northrop Grumman Corp.'s Melbourne unit has landed its second $1 billion-plus Air Force contract in the last four months. The unit, which develops and produces the JSTARS surveillance aircraft, employs 1,500 people, all working on the same program.
Paravant Inc. (Nasdaq-PVAT) has agreed to buy Philadelphia defense electronics company General Atronics Corp. for $11 million in cash and a $2 million note.
Orlando - London-based entertainment company Enic PLC paid $11.5 million for the 6.7-acre Church Street Station entertainment complex downtown. The seller, a subsidiary of Baltimore Gas & Electric, bought the property and buildings in 1988 for $61 million.
The door is closing on Atlas Roll-Lite's garage door plant in South Orlando. Clopay Corp., the Cincinnati company that owns Atlas, expects to close the plant and lay off the 120 people who work there.
Marriott Vacation Club International, the world's largest timeshare company, will expand its Orlando call center and add up to 400 positions, bringing the total to 750.
The Orlando Sentinel Communications Co. bought 4.5 acres across the street from its downtown plant from a group of investors that had sued the company over environmental contamination. The company says it has no immediate plans to develop the property.
One of the nation's largest developers has bought nearly 1,000 acres in east Orlando, where it plans to build more than 2,000 homes and a 200,000-sq.-ft. retail/commercial center. Terrabrook, the residential arm of New York-based Westbrook Partners, will have model homes open in about a year.
NewCare Health Corp., the Atlanta company that until recently was running the bankrupt Princeton Hospital, borrowed hundreds of thousands of dollars from the hospital and didn't repay the loans as promised, causing payroll checks to bounce and the hospital to miss bill payments, according to papers filed in U.S. Bankruptcy Court.
SeaWorld released plans for its newest attraction: a 30-acre park that will require reservations and will only admit 1,000 people a day. Ticket prices will be $150 to $250 per person per day. The highlight of the park will be the opportunity to swim with dolphins, but it will also include a chance to snorkel near sharks, sting rays and barracudas - safely behind a glass wall.
Ormond Beach - Halifax Medical Center announced its intention to buy two Volusia County hospitals from Columbia/HCA Healthcare Corp. The proposal instantly brought objections from Memorial Health Systems, which said it would file antitrust complaints over the deal unless Halifax sold Memorial one of the hospitals.
Overheard
Titusville was in the market for a new city manager in May after O. Sam Ackley's surprise dismissal in April. The Titusville city council voted 3-2 to terminate Ackley's contract without notice - a move that could cost the city up to $50,000 in severance fees. Voting for his termination were three council members elected in January. All refused to say why they wanted Ackley out, citing concerns about a possible lawsuit. Space Coast Economic Development Commission chief Walt Johnson says their abrupt decision set back growth efforts considerably. In its April issue, Florida Trend listed Ackley among "People to Watch" on the Space Coast. He was an architect of Transformation Titusville, the community improvement project involving hundreds of volunteers. Crowds of residents turned out to ask the council to reconsider its decision, according to Ackley. He is a businessman and real estate developer, a major stockholder in a small Orlando-area bank, and he runs a credit-card processing company with his wife. ... ... The Legislature adjourned without acting to reform the title-loan industry. Now commissioners in Orange, Osceola, Seminole and Volusia counties are considering local ordinances that cap the annual interest title-loan companies can charge at 30% or less.