Industry Update: Architecture Billings Reach Highest Since 2007

This Summer (June), Architecture Billings Index (ABI) jumped to it highest point since 2007.

If you are receiving reports and permitting data from HBW, you are already aware of the number and type of construction permits that are being pulled this summer.  That being stated, by taking a look at the ABI (Architecture Billings Index) you may also gain some useful insight on nonresidential construction coming “down the pipe”.  The ABI is derived from a monthly survey conducted by AIA Economics Market and Research group and serves as an economic indicator for nonresidential construction activity by 9-12 months.

The ABI Report for June proved to be promising for the construction industry.  From a national perspective, Architecture billings surged… In June, the Architecture Billings Index (ABI) reported its highest score, 55.7, since 2007 which was welcome news in a year that has shown a varying “up and down” cycle; such an increase in architectural and design services, along with recent construction spending and increased employment figures, are strong indicators for a solid year (2015) for the commercial construction industry.

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Blue=Design Contracts       Gray=Inquiries          Green=Billings

The construction sector has added about 140,000 jobs on net as of the closing of June 2015.  This resulted in a decreased unemployment rate of 6.3% in June from a rate of 8.2% one year prior. July 2015 has reflected a continued drop in unemployment in the construction industry with a rate of 5.5%. (Source: Bureau of Labor Statistics)

From June 2014 through June 2015, there has been consistent growth across all regions with firms reporting increased billings throughout the Midwest, Northeast, South and West.

With ABI, 50 represents the diffusion center.  A score of 50 equals no change.  A score above 50 shows increase. 

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South (Blue)=54.9     West (Green)=50.7     Northeast (Red)=50.4     Midwest (Gray)=57.2

In the last 12 months, there has been no shortage in extreme weather conditions throughout the nation. Although such weather conditions have stalled various new construction projects, changes in weather have also increased construction for a number of firms.  On average, there has been an increase of nearly 4% in new work as a result of extreme environmental conditions, with the Northeast showing the highest increase at 9.4%.

Despite the decrease in Multi-family Residential (47.0), all sectors were above 50 for June. The highest demand was reported for Institutional (59.1) and Mixed Practice (54.7) design services. Commercial/Industrial (51.6) finally experienced an increase in activity after two consecutive months of decline.

For more specific activity on construction activity in your area, check out HBW for your next report.  Follow our blog for continued and expanded reporting on industry activity and trends.

 

You Have Leads – Now What?

Leads are key to growing your business.  Make your efforts count.

Everyone knows that solid leads are a key component to expanding your reach and ultimately expanding your business. Before getting started on developing and executing a marketing strategy, you will want to clearly define your target audience and qualify your leads.  Maintaining an accurate and updated database of leads can be time consuming and cumbersome, but it is essential to maximizing the ROI of your marketing effort. When utilizing leads through HBW, you will already have this step covered.  HBW leads will have the most updated and accurate information available on construction permits.

Now that you have a list of qualified leads, here are 5 areas you will want to consider as you get started:

  1. Be Prepared – Once you have engaged your lead, it is important that you are able to provide them with all the information they will need to answer any possible question. You will want to be a few steps ahead by having an updated website, service-related social media posts, easy-to-access brochures/samples and detailed information on the services you provide.  Since we are well into the Digital Age, clients expect quick turnaround time and responses, so make sure you have the bandwidth and availability for communication, site visits, estimates and executing the project.  Make sure you are realistic on what you can offer and your timeline.
  2. Make Contact – This may seem obvious, but there are many methods for making that first point of contact. You may choose to reach them through email, social media, direct mail or phone.  You will want to make sure that the method you choose is the most appropriate method for the client and services you are offering. Once you have made contact, it is important that you nurture your lead. A big part of nurturing leads is putting them at ease; although you may be taking them beyond their comfort zones by offering new and innovative products and services, you will want to make sure they feel secure in what you are offering and that their questions and feedback are valuable.
  3. Stand Out – All of us receive a barrage of advertising appeals on a daily basis; the same is true when it comes to your prospects. For this reason, you will want to make sure that you are authentic in your message once you have made contact.  Your message should include your competitive edge – What makes you different and better than the competition?  What services do you offer that are unique to your business?  You will want to make a statement and impact from the start.  For example, when having updated construction data from HBW, you can easily customize your approach as you will already be aware of their construction needs and interests.  By personalizing your approach and tailoring your service package to your leads’ current interests, you are gaining one step ahead of the competition.
  4. Track Progress – Tracking progress plays an important role in understanding which methods prove to be most effective in reaching and maintaining your leads. At the same time, you will want to have a reliable and user-friendly contact management system in place so that you can track progress with each individual.  Have a schedule and steps established for communicating with your lead.  For example: If a lead initially opens your e-blast and clicks to view certain pages on your website, you should include them in a related follow-up email campaign. Each point of contact you make should be documented in your database so that you know what information they have received and how often they have been contacted.
  5. Follow-up – One email, phone call or mailing will not do the job alone. You must follow-up on every point of contact and inquiry.  Procrastination is not an option when it comes to leads.  Your follow-up should be immediate for inquiries (less than 1 business day); if you do not make contact on your first attempt, follow-up with them through a different communication method.  Don’t let a lead fall through the cracks.  Following up is more than just making a second or third point of contact; it means following through on your message and deliverables in a timely manner.

By focusing on these basic areas of lead management, you can make the most of your time and contacts.  Each step that you take should be aligned with your marketing strategy, and it is equally as important to track the effectiveness of your efforts.  By being prepared and having a system for tracking progress, you can transform a valuable lead into a valuable client.

The Three Biggest Remodeling Oversights

Home remodeling is tough, but these three major oversights can make the process nearly unmanageable.

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Photo courtesy of ZipWall.

No matter how much effort and attention is put into planning the details of a remodel with your clients, builders often have to confront disasters caused because homeowners didn’t factor certain things in to the remodel. The best time to handle surprises like these is before they happen. When collaborating with your clients to plan their project, make sure your clients have answers to these three questions before work begins.

  1. Do they have a contingency fund?

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Photo courtesy of Wikimedia Commons.

Because they are eager to have their dream home, your clients will often budget every single penny of the remodel to be used FOR the remodel. Surprise materials expense increases, accidental damage, weather-related project delays, and unforeseen structural issues that are only revealed when walls are ripped out are only a few examples of situations that cause unexpected cost overruns.

In the midst of a stressful remodel, an unexpected extra thousand in costs can become an unmanageable obstacle for everyone. Keep your project on track by making sure that your clients set aside five to ten percent of their total remodeling budget for contingency expenses.

  1. Have they considered going green?

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Hemp-based insulation. Photo Courtesy of Wikimedia Commons.

Even if the homeowner hasn’t directly stated an interest in making their home more eco-conscious, the financial and environmental benefits of greener homes make this a discussion worth having. The best time to beef up a home’s insulation is when the project already involves ripping into the walls. If the kitchen or bathroom are being remodeled, a tankless water heater, water-conserving fixtures, LED’s, and Energy Star appliances will shrink the home’s energy usage and lower monthly utility bills. Replace the windows and doors with insulated, Energy Star- rated models.

It’s true the going green can cost quite a bit of green upfront. But clients will immediately see a return on their investment when their utility bills start shrinking. Financial benefits will also appear when it’s time to sell the home, as greener homes also retain a higher resale value over time than their non-green counterparts.

  1. Have they thought about the landscaping?

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Ruts left behind after the concrete truck visited to pour the foundation for a new addition. Photo courtesy of seeking-sparkle.blogspot.com

Sometimes the heavy traffic and machinery involved in a remodel means quite a bit of land-scraping, even when the work being done is an interior remodel. The driveway and part of the yard will undoubtedly be part of the staging area for supplies and equipment. The main access to the project may not be the front door, and workers may track all around the house and through the yard to reach the area being worked on. Fences, fountains, flowerbeds, and other landscape features may have to be ripped out altogether so that the contractor can access the area being remodeled.

On the other hand, another reason to consider landscaping is when renovations drastically update the look of the house. Old landscaping in front of a new-looking house will look outdated and sad. This lowers the curb appeal of a house that homeowners have spent heavily to improve in order to have a better sale.

Without doubt the most common oversight homeowners commit is forgetting that their yard needs to be put back in order after the remodel is complete. Often, they don’t even consider it until they see how badly damaged their yard is after the work is finished. Make sure your clients have set aside some of their remodeling budget to restore their yard afterwards, even if they aren’t sure what sort of landscaping needs to be done.

Bait-and-Switch Home Lending Loophole will Close in August

Predatory lending and bad faith contracts will be minimized by changes that are coming in August. Photo courtesy of Wikimedia Commons.

Sign_of_the_Times-ForeclosureEver since bad faith contracts and predatory-lending tactics caused real estate crash of 2008, reforms in the home lending-and-borrowing process have been in the works. One simple, key change going into effect in August will simplify and clarify the financial disclosure process, which will protect borrowers who wish to buy a home.

Phil Reece of the Homestead Funding Corporation identifies the new forms and procedure changes that will change how borrowers see their mortgages. “A couple of documents that have been pillars to the mortgage disclosure process … will be replaced when we go to a new system,” says Reece, The new system combines the good faith estimate and the truth-in-lending disclosure into one comprehensive worksheet.

This document strengthens the good faith estimate that homeowners reference when deciding whether or not to purchase a home. “What the government is trying to do,” Reece explains, “is get rid of the bait-and-switch tactics that certain lenders may have been doing [since] prior to the mortgage crisis … Often there were times where a consumer may get documentation that shows one set of figures and at closing got a totally different set.”

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The real estate industry will benefit from lenders having a  clearer financial picture. Photo courtesy of Trulia.

In addition to making the estimate more consistent, the format of the new document clarifies the financial picture for lenders. According to Reece, the borrower will “have the total interest that the loan will earn over time so they have a clear understanding of what they’re getting into when they take out a mortgage.”

The new document will also incorporate the full payment calculation. “In the past, the good faith estimate didn’t include the full payment over even include their total cash to closing,” Reece says, “so they didn’t know exactly what they’re total cash was if they didn’t keep track of their down payment and closing costs.”

The bottom line is that borrowers seeking to buy a new home will have a solid, clear understanding of the financial details involved in their purchase. The new document is “a great thing for consumers,” because “it gives them more time to get their certified funds for closings, make preparations and have a closing date that is further in advance,” Reece says.

Kalea Bay Kicks off Luxury Construction in Naples

Kalea Bay’s residential tower. Photo courtesy of Soave Real Estate.

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HBW subscribers in Naples already know about the residential construction opportunities available in Kalea Bay, and anyone deeking home building job leads will find this development quite interesting.

After breaking ground on May 18, construction has finally began on the first of five residential high-rises to be built in Kalea Bay, a Soave Real Estate‘s resort-style gated community. The residential tower will be twenty stories high and offer one-hundred and twenty luxury residences.

This upscale, gated community is the first major residential high-rise project to be developed in Southwest Florida since the real estate crash six years ago. Soave VP of sales and marketing Inga Wilson says the real estate market is “bouncing back, prompting the return of not only high-rise construction but also hundreds of jobs.” Soave’s construction of Kalea Bay illustrates their confidence in commitment to the resurgence in luxury development in Naples.

Located along Vanderbilt Drive in North Naples, Kalea Bay offers stunning views of the Gulf of Mexico. The site for the tower, a 20-story, 120 residence building, was cleared earlier so that sanitation, internet, and electric infrastructure could be installed. The tower is slated for completion in Spring 2017.

There are six floor plans available at Kalea Bay. The designs range from three to four bedrooms with three-and-a-half to four bathrooms, and 3,280 square feet under air. Total square footage for the units ranges from 3,755 to 3,921 square feet including atriums and balconies.

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Kalea Bay’s community plans. Photo courtesy of Naplesdwell.com

All homes offer views of the Gulf, a private elevator leading into the residence, tech-ready wiring, oversized walk-in closets in the master suites, nine-foot ceilings, floor-to-ceiling windows and doors, fully equipped laundry rooms with washer/dryer sets, and wood floors throughout, and designatd under-building parking.

Each Kalea Bay high-rise building offers rooftop amenities including a fitness center, sky lounge, community meeting rooms, and pool. The community will feature a clubhouse with an internet cafe, three pools, a pool deck bar, a six-court lighted tennis pavilion, 24 guest suites, and an indoor/outdoor restaurant/snack bar overlooking a large lake.

The on-site sales center for Kalea Bay is located an 13910 Old Coast Road, off of Vanderbilt Drive. Asking prices being at $1.3 million and run to 2.6 million. To learn more about this development, please visit kaleabay.com.

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The view at Kalea Bay. Photo courtesy of Soave Real Estate.

HBW serves builders in Florida, Georgia, Alabama, Texas, and Oklahoma. In addition to our Building Trend Activity for Residential Construction Reports, HBW can create a number of custom reports for any need you might have. We also offer exclusive White Paper Reports to help you market your business. To show you how we can help your business succeed, HBW is glad to provide you with complementary building data report or one of our specialized White Paper Reports. Contact us today and start making your business more profitable!

 

 

Clients Come First in Alpharetta’s Home Services Portal

Homeowners who love to entertain alfresco are discovering that outdoor kitchen and living areas can increase their property values. Photo curtesy of Customer First Home Services.

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HBW subscribers in North Fulton County area will be interested to know about the new Customer First Home Services portal that focuses on Alpharetta and the surrounding areas.

The portal is a clearinghouse for information that educates homeowners who want to maximize their property values through outdoor kitchen and living design. Contractors and service providers are listed on the site, alongside the latest information about design, safety, cost, and insider tips that will save homeowners thousands on their projects.

Very user-friendly and clear, Site visitors will no doubt appreciate the thorough and easy-to-follow user awareness guides. These guides cover maintenance and repair how-tos, the latest information on new materials and design options, and checklists for planning a project and locating the right professionals to put that plan into action. Customer First Home Services will soon update the portal offerings to include community-building and social media features.

Customer First Home Services

Customer First Home Services founder Mike Rivers says that “Our goal is to educate the community on how to get the best results for all their property improvement projects at any budget.” The websites features “informative and professional article sections [that] … help everybody–not just our Customer First Home Services customers. The depth of knowledge and resources at www.customerfirsthome.com is 100% unbiased, concise, and free to all.”

Rivers, a veteran of the landscaping and remodeling industries, decided to start Customer First Home Services to help connect homeowners wanting outdoor kitchens and living spaces with the professionals who can came those dreams a reality. In addition to providing information and connecting homeowners with home service providers, Customer First Home Services also offers design-build services for interior remodeling and outdoor living areas.

HBW serves builders in Alabama, Georgia, Texas, Florida, and Oklahoma. In addition to our Building Trend Activity for Residential Construction Reports, HBW can create a number of custom reports for any need you might have. We also offer exclusive White Paper Reports to help you target your marketing efforts. To show you how we can help your business succeed, HBW is glad to provide you with complementary building data report or one of our specialized White Paper Reports. Contact us today and start making your business more profitable!

WCI’s Luxurious LaMorada Community Breaks Ground in Naples

Homes in the luxurious LaMorada community such as the Martinique model pictured below range from $300k to $1 million. Photo courtesy of WCI Communities.

Artists-rendering-of-the-Martinique

HBW subscribers in the Naples area have already been investigating the opportunities at this stunning new WCI property. LaMorada features 343 home sites arranged in four unique neighborhoods, with an array of customizable floorplans for homebuyers to choose from.

Multi-family Carriage Homes with second floor elevator access and maintenance-free living are available in two- and three-bedroom layouts ranging from 1,710 to 2,376 square feet.

The Grand Villas neighborhood is home to single-family two- and three-bedroom homes that have two- or three-and-a-half bathrooms, plan-specific dens, and living area of 2,201-3,010 square feet.

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The Donatello model. Photo courtesy of WCI Communities.

The Classic Homes neighborhood showcases homes with open access between the den and the kitchen, with an additional breakfast nook and a lanai. These three-bedroom, two- to four-bath homes have conventional dens and foyers as well as guest rooms positioned on the opposite side of the house for maximum privacy. Classic Homes range from 2,556 to over 3,000 square feet of living space.

The most spacious homes in LaMorada, appropriately called the Grand Estates, offer oversized master suites, three or four guest rooms with private baths, and a den. Each Grand Estate has separate casual and formal dining areas and generous lanais, and a three-car garage is standard for each homes. Grand Estates have a living area ranging from 2,904-4,000 square feet.

The show-stopping kitchens of LaMorada luxury residences come complete with granite countertops, fully articulated cooking islands, Whirlpool appliances, and designer cabinets. The spa-like bathrooms showcase Moen faucets, dual sinks, and solid-surface vanities. The sliding doors and windows of each home in LaMorada are made from low-E insulated glass.

LaMorada’s community spirit will be well-maintained in the clubhouse’s great room and adjacent verandah. The 13,700-square foot clubhouse will house a fitness center, theater, outdoor bar, aerobics studio, and resort-style pool and spa as well as tennis courts and a culinary arts center.

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LaMorada has entered the homebuilding phase of development. Photo of initial Phase 2 construction provided by WCI Communities.

To learn more about the building permit and construction activity at LaMorada, contact HBW. HBW serves building trades professionals in Florida, Alabama, Georgia, Texas, and Oklahoma. Building professionals who are proactive and informed can count on HBW’s newsletter to deliver the latest in building trends, construction technology innovation, and regulatory activity. To show you how we can help your business succeed, HBW is glad to provide you with complementary building data report or one of our specialized White Paper Reports. Contact us today and start making your business more profitable! HBW live chat is available to answer any questions you might have, asap!

 

 

 

Merger of Mega-Builders May Reshape the Industry

Standard Pacific has merged with Ryland, a move that will position them to build  homes in 17 markets.

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Pictured; a Standard Pacific home on offer in Winding Creek, Southlake, TX. Photo courtesy of Standard Pacific. 

Whether the reason is competing executive egos or conflicting corporate visions, it is incredibly rare for two publicly-held building companies to go through with a merger.  The impending consolidation of volume homebuilding giants Standard Pacific and Ryland Group could spur a rush of mergers within the volume homebuilding industry.

In a recent interview with Kris Hudson of the Wall Street Journal, Standard Pacific Chief Executive Scott Stowell explains that “industry insiders have often speculated about why there isn’t more consolidation… among homebuilders … For our companies, the time is now for this to happen.”

Two major motives exist for volume builders seeking to consolidate. The first is the scarcity of available land. With the economic bust of 2008 came a drying up of the development pipeline. Builders were liquidating any but the most promising land holdings, which meant a sharp dropoff in the amount of land going through the entitlement pipeline.

Seven years later, there is a serious shortage of undeveloped land that has cleared the entitlement process. Consolidation gives companies access to entitled land reserves and a greater cash pool to bid on highly desirable but undeveloped properties.

The second motive for consolidation is the relatively high number of homebuilding corporations for institutional investors to choose from.  Before 2013, there were already 14 publicly traded volume homebuilders. Eight additional companies went public that year. According to Hudson, that number is too many for any but “the largest and best-run to get the attention of institutional investors.”

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Map for the Standard Pacific-Ryland merger markets, courtesy of Yahoo Finance.

The competition for investors was a major factor in the Standard Pacific-Ryland merger. The new company will be worth $5.2 billion, which will catapult it into a high-capacity builder status. This will almost certainly get the attention of institutional investors.

Builder magazine’s John McManus has followed this merger closely enough to make predictions about which companies may seek consolidation within the coming 24-48 months. D.R. Horton, Lennar, and Pulte are the top 3 builders in the nation, and as such are likely to initiate a merger. Toll Brothers and TRI Pointe would be especially desirable partners, as both companies have been aggressive in their acquisitions and expansion.

UPC, LGI, Taylor Morrison and Century are up-and-coming builders who may be pushed out of the market unless they make some serious acquisitions within the next four quarters. Of the four, Taylor Morrison seems the keenest to grow and the most flush with capital to make a move.

The acquisition strategies of Brookfield Residential, NVR, and Meritage have failed thus far, which may make them cautious about consolidation. Smaller and boutique builders KB Home, WCI Communities, M/I Homes, and William Lyon Homes might be the objects of acquisition bids from the Top 3.

 

Multifamily Development Will Stay Strong Through 2017

Nationwide, developers are focused on building more mixed-use luxury multifamily developments such as this one, currently under construction in downtown Miami. Photo courtesy of Constec Developers.

Constec mixed-use multifamily development in Miami

Urban developers are counting on the demand for multifamily residences to stay strong over the next two to three years, and economists agree that developers have reason to be cautiously optimistic.  Senior economist Ryan Severino of data firm Reis, Inc. says, “The problem is going to be on the supply side of the ledger, not the demand side.”

Excluding the nearly 100,000 government-sponsored affordable housing units built each year, the average number of new apartments over the last few years has leveled near the 120,000 mark. 230,000 will be completed by the end of 2015, with 197,000 more apartments coming available in 2016 and an additional 161,000 to be completed in 2017.

Of the development activity, Severino comments that “it seems like the floodgates have opened,” but “the new supply under construction completely outstrips the demand from [current] demographics.” By 2017, the apartments from 2015 and 2016 will have slackened the market a bit. The projected vacancy rate of about 5.5 percent will be a slight increase from the current vacancy rate of 4 percent.

However, Severino also says that the strong demand for apartments will persist over the next few cycles, helping to fill the new units coming available and ensure a renter pool for future units. The positive demographics that spurred the current multifamily boom will keep it rolling.

Circle-Terminus in downtown Atlanta Lord Aeck & Sargent

Lord, Aeck and Sargent are developing the luxury Circle Terminus residences in downtown Atlanta.

The timing for multifamily is also right, as 2017 will bring buyers back to the market with greater optimism and more cash to spend. It takes an average of ten years, according to Severino, for the market to recover from a major financial meltdown. During the decade afterwards, banks and individuals spend years paying off debts racked up by the boom before a recovery settles in. After six years of recovery, wages are slowly raising and inflation is stagnant, both of which indicate a greater likelihood of renters, rather than buyers, hitting the market in the coming years.

Nonetheless, for developers who are planning to enter the multifamily market in 2016, “it’s kind of late in the party, when all the punch is gone,” says Severino, “We always end up overdeveloping.” Although the demographic data and glacially paced economic recovery indicate that demand for apartments will remain high, the addition of hundreds of thousands of new mixed-use developments has already softened the multifamily market.

Prosper West in North Dallas, photo courteso of Mooreland Development

Mooreland Development’s Prosper West will soon be under construction in North Dallas. Photo courtesy of Mooreland Development.

Those who have recently joined the multifamily boom plan to avoid competition by building in markets and sub-markets that have lower rates of new construction.  The majority of new development planned for 2017 will be high-end class-A condominiums and apartments located in central business districts. These communities will be competing with single-family homes rather than other apartment complexes. The remainder of development will be urban-adjacent along the city outskirts. The lower costs and less prime locations will cater to renters with lower incomes.

Innovative Retrofits Prevent Concrete Catastrophe During Quakes

Concrete low-rise construction is very popular in the U.S., but  older structures pose serious threats during an earthquake.

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An “alarming number” of low-rise concrete structures located in major earthquake zones have not been retrofitted for earthquake safety. Concrete buildings located in areas that were not historically prone to seismic activity but which are now experiencing high amounts of it, such as Oklahoma and Texas, are in especial danger.

Engineer Reginald DesRoches, chair of Georgia Tech’s school of Civil and Environmental Engineering explains that “There are hundreds of thousands of buildings that have not been retrofitted that … [and] are very dangerous.”

These 2- to 5-story structures were built to the code standards of their day, but those outdated standards are nowhere near as safe as today’s building codes. These older buildings were not designed to bend, stretch, and endure seismic shifts like contemporary buildings are. In states like Oklahoma and Missouri that are experiencing an uptick in seismic activity, this lack of seismic retrofitting may prove to be even more dangerous.

These older cement structures are referred to as “non-ductile reinforced concrete.” This means that they are brittle, rigid, and vulnerable to seismic shock. In earthquakes of 7.8 magnitude of higher, these buildings fail catastrophically. For example, much of the damage in Nepal was due to an abundance of non-ductile reinforced concrete buildings. “We know from past earthquakes,” says DesRoches, that “non-ductile reinforced concrete buildings don’t perform well in earthquakes, all around the world … They collapse.”

Nepal depremi. Photo by Hilmi Hacaloğlu, Public Domain.

70% of Nepal’s concrete buildings were built from non-ductile reinforced concrete, which contributed greatly to the death toll of the quake. Photo Courtesy of Wikimedia Commons.

Until 1980, non-ductile concrete construction was prevalent throughout most of the U.S.. The exception was California, which had phased our non-ductile concrete construction in the 1950s in favor of the ductile engineering. While many brittle buildings have been retrofitted to combat seismic shocks, there are hundreds more that have not been and are likely to collapse in the event of high-impact earthquakes.

According to the U.S. Federal Emergency Management Agency (FEMA), these non-retrofitted buildings are “the single biggest contributor” to earthquake damages in the nation. Aging brick structures built with the unreinforced masonry (URM) technique are also extremely vulnerable to seismic shock. In fact, current building codes in many places prohibit new URM in areas of high seismic activity. However, areas that had not experienced historically volatile seismic activity until recently have several URM structures that are perilously close to newly sparked seismic centers.

To combat the fragility of these URMs and non-ductile concrete buildings, there are a number of retrofitting options. Installing concrete sheer walls with closely spaced reinforcements and spiral reinforcement is one method of retrofitting. Adding diagonal steel reinforcements to existing walls is the most popular option. Both options are expensive and time-consuming, which is why many property owners forego seismic retrofitting, despite the incredible dangers.

DesRoches’s team at Georgia Tech is currently studying the best way to effectively retrofit these vulnerable buildings. Last year, they built a non-ductile concrete low-rise parking structure such as those ubiquitous garages built prior to the 1950’s throughout the U.S. DesRoches’ team then subjected the building to a simulated earthquake, courtesy of a mobile shaker borrowed from the Network for Earthquake Engineering Simulation.

Repeated testing confirmed the fragility of unreinforced structures, but also pointed the way to new reinforcement techniques. Carbon-fiber jacket wrapping along each column seems promising, but sealing a layer of grout between the carbon-fiber wrapping and the columns is more promising still. The most promising new technology is the bendable nickel titanium alloy that DesRoches developed. This smart material, which DesRoches calls a “shape memory alloy,” can withstand “a significant amount of displacement and then just springs right back,” DesRoches says.”

 

DesRoches’ team is now analyzing the testing data to determine retrofit options and research-based results which can then be presented to the International Code Council. It is hoped that the ICC and other organizations will confirm the results through duplicate testing, and then use the overall research findings to update the building code.

 

Better, less expensive seismic retrofitting options will enable property owners and developers to make their aging concrete structures safer and more durable. DesRoches thinks that “many people think there’s nothing you can do about an earthquake other than hope it doesn’t happen” while they are lin the building or the area. Testing is beginning to show that, “in fact, there are fairly straightforward ways that you can retrofit a structure to significantly improve this behavior, so that either it doesn’t collapse or even is fully operational after an earthquake.”

 

DesRoches believes that these new retrofitting options will “save lives, but also … keep hospitals, schools and businesses as functional as possible.”