Ed Sullivan, chief economist for the Portland Cement Association, forecasts U.S. consumption of 105.23 metric tons of Portland cement in 2004, up about 2 percent over the last two years. He projects that cement consumption will continue to grow between 2 and 3 percent annually from 2005 to 2007, setting records along the way. By 2008, Sullivan predicts, Portland cement consumption should top 115.13 metric tons in this country.

While Sullivan expects the nonresidential market to account for much of that growth over the coming years, concrete and cement are vital materials in the nation's vibrant housing industry, where sales in both new construction and remodeling continue to climb.

Single-family and multifamily housing starts are expected to total around 1.7 million in 2004, according to the National Association of Homebuilders (NAHB). While that represents a slight easing from 2003's torrid pace, the slack should be taken up by increases in public works construction, income properties and manufacturing construction.

Spending on public works construction should increase by about 2 percent to $80.5 billion this year, according to forecasts from McGraw-Hill Construction Dodge. Spending on construction of income properties such as hotels and warehouses is projected to grow 9 percent to $100.9 billion; a 9 percent gain, to $6 billion, is also seen in construction spending on manufacturing facilities.

Some of the most interesting business opportunities can be found in concrete services.

Remodeling continues to be a particularly bright spot in the overall construction picture. "We anticipate that when the final numbers are tallied, the 2003 remodeling market will close at $182 billion, surpassing the previous year's $173 billion by about 5 percent," Doug Sutton, chairman of the NAHB Remodelors Council, stated in January 2004.

"It has been a banner year for the remodeling industry as a whole, and we feel very good about our businesses as we move into the new year," Sutton said. He added that most industry professionals expect business to stay strong in 2004.

That's good news for those involved in the concrete services industry-and for those looking to start a business there. Concrete and cement are widely used in both new construction and remodeling, and many new applications for this versatile building material have been developed in recent years.

HEAVY USAGE

According to NAHB research, 19 percent of all new single-family homes use cement stucco siding, 13 percent use fiber cement siding and 2 percent use manufactured stone, which is most often made from cement. Some 60 percent of new driveways are made of poured concrete, and the average new home uses some 19 tons of concrete and cement for basements, crawl spaces, foundation walls, floors, footings, slabs, above-grade walls, fireplaces, hearths, chimneys, landscaping, paving and decorative uses.

Some of the most innovative uses-and the most appealing business opportunities-in the concrete and cement industry are to be found in the area of decorative and other nontraditional applications. With today's new technologies, concrete can be made to resemble anything from polished marble to antique brass.

The financial threshold for breaking into this burgeoning market is low, with the minimum investment required as little as $5,000 in some cases. Opportunities in this industry are available in a variety of business formats, including dealerships, distributorships, licensed, manufacturing and franchise. Excellent business opportunities can also be found in more traditional segments of the industry, such as crack repair, concrete resurfacing and waterproofing.

Concrete services businesses find a particularly strong market among homeowners undertaking remodeling projects, and there are many positive trends there that should bode well for the industry.

The remodeling market is well positioned for healthy growth over the next few years, according to an economist with the NAHB. Among the reasons he cites are:

New technologies are enabling an array of innovative applications and uses for concrete.

Growth in the remodeling and construction industry will continue to be fueled by a number of those trends. Increases in the total number of housing units translate to a direct increase in the size of the potential marketplace for remodeling and repairs. A housing stock that is getting older also means greater demand for regular maintenance and repairs, such as painting, roof replacement and concrete repair.

At the same time, owners of older homes are often interested in modernizing them by adding some of the amenities found in newer houses. For example, the owner of a 20-year-old 1,400-square-foot home might want to add a bigger kitchen, additional bathrooms, a new family room or a master bedroom suite.

Those are the types of features that many of today's larger new homes boast. Over the past 25 years, the percentage of new homes built with more than two bathrooms, at least one fireplace, and a two-car or larger garage has been rising dramatically.

TAPPING EQUITY

When the owner of an older home undertakes a major remodeling or addition project, it's not unusual for many other homeowners in the same neighborhood to follow suit, says a regional vice president of the National Association of Realtors (NAR).

Part of the reason for that "follow the leader" phenomenon in remodeling is that owners want to protect the value of their properties. "If every house in the area has two full baths or an eat-in kitchen and yours doesn't, that can be a real obstacle when it's time to sell," the NAR executive says.

Psychology also comes into play. "Keeping up with the Jones" is almost as much of an American tradition as apple pie and the Fourth of July. The thought of adding a backyard swimming pool may never have occurred to one homeowner, but when he sees how much a neighbor is enjoying his, he decides it may be a good idea.

NAHB's analysis of the consumer expenditure data demonstrates that the percentage of homeowners who remodel their homes increases with the age of the head of household and the with the combined household income.

The threshold for breaking into this burgeoning market is low, as little as $5,000.

That means older, two-income families-a description that fits the massive population bulge of baby boomers as they move into middle age and beyond-are more likely than the average consumer to spend money on remodeling their homes.

In 2000, only about 10% of homeowners under the age of 25 undertook remodeling projects on their homes. However, more than half of those aged 25 to 55 remodeled that year. After age 55, the percentage declines slightly but remains high: 51% for those in the 55-65 age group and 49% for those 65 and older.

More of a straight-line pattern is evident in the relationship between income levels and remodeling. Less than 40% of those in the lowest income bracket of homeowners remodeled in 2000, but that jumps to 50% for those in the next-highest bracket. The percentage continues to rise in lock step with income: 54% for the $40,000-$50,000 bracket, 57% for $50,000-$60,000, 62% for $60,000-$85,000, 67% for $85,000-$115,000 and 72% for those making $115,000 or more.

After declining sharply in the early 1990s, the real estate market came back to life in the second half of the decade, thanks to the combined impact of lower mortgage rates and an improving economy. Even with the economy cooling, the real estate market remains strong in many parts of the country. That's good news for the remodeling industry, because turnover in housing stimulates remodeling and construction.

Current demographic trends bode well for the remodeling and construction industry.

The two times when homeowners are most likely to undertake remodeling and repair projects are when they are preparing to put their homes up for sale and immediately after moving into a new home. Substantial home improvements, such as major kitchen and bathroom remodels or room additions, are most often undertaken during the first three years of ownership.

Very often, these turn out to be big-ticket projects. It is not unusual for a homeowner to spend $15,000 or more upgrading and expanding a kitchen in a "minor" remodel. The cost for a "major" remodel can be triple that amount.

Real estate specialists say some of the most popular home improvement projects are state-of-the-art kitchens and bathrooms, family rooms, master bedroom suites that incorporate baths and walk-in closets, decks and extra bedrooms for the "baby boomlet." One improvement that is beginning to gain in popularity is the high-tech media room,wired for big-screen TV, broadband Internet access and multi-speaker sound systems.

For most people, their home is the single largest asset they have, and improvements can add value to that asset. However, they only add value if they are properly done. As real estate agents know all too well, shoddy attempts at home improvement can actually detract from the value of a home.

Although the incident happened years ago, Tim Corliss, a veteran of the Los Angeles real estate business, still recalls the worst home "improvement" he ever ran up against-literally.

The house he was showing had a nice corner garden, but it was surrounded by a rickety fence of corrugated fiberglass panels. Of course, the home owner considered the fence a true work of craftsmanship and even outfitted it with a framed gateway.

Problem was, the gate frame stood about six feet high. Corliss-a former semi-pro football player who stands six feet, six inches tall and weighed about 345 pounds at the time-spun quickly to walk into the garden. Naturally, the gate frame collapsed. One by one, like a line of dominoes, the fiberglass fence panels followed.

SILENT GAPING

Corliss's story illustrates a very important point for home owners: One person's home improvement is another person's eyesore. Anything done to change a house will have an impact on its value, especially when it's time to sell. That being the case, real estate professionals advise taking a long-term approach when it comes to home improvements.

Of course, the most obvious external improvement a homeowner can do is the addition of a room or wing, and this is one area that is fraught with pitfalls. The basic rule that real estate pros offer is, "Don't do an addition if that's what it will look like."

As a group, today's homeowners are very demanding when it comes to quality.

In order to enhance the value of the property, an addition must look as if were part of the original design of the house. "Anything that creates a dysfunctional floor plan or fails to maintain the architectural integrity of the original structure will be viewed negatively by an appraiser," warns a senior vice president and appraisal division manager for a regional West Coast bank

Along with concrete services, there are many other types of business opportunities available in the construction and remodeling industry. As is the case with most business opportunities, previous industry experience is not a requirement.