Wooden houses come of age

Century Homes' founder tells Edward Power about his plans for Britain and the Far East

Gerry McCaughey cares - a lot. The chief of executive of Century Homes, Ireland's largest manufacturer of timber frame houses, runs his company with an infectious zeal. It is not merely an obsession with the bottom line that impels him but a burning conviction that timber housing can measurably cut dependence on non-renewable energy resources, helping the Republic fulfil toxic waste reduction targets under the Kyoto Protocol.

He is also intensely proud that Century has brought jobs to regions otherwise starved of investment. Small entrepreneurs are the lifeblood of rural Ireland, says Mr McCaughey. Modern patriots, he labels them. Men and women often risking their homes and livelihoods to nurture businesses in towns and villages overlooked by larger companies.

This passion may be unusual in a man who sells wooden houses, but it has fuelled a growth curve that has seen Century become one of Europe's three biggest players in the field, with designs on global dominance.

There have been impediments - most significantly opposition from the powerful concrete lobby and Century has had to work hard to overcome hostility to timber-frame construction among the wider building sector. But, with wooden houses currently accounting for almost 25 per cent of new developments, Mr McCaughey believes the industry is on the brink of a new era - where timber framing can mount a serious challenge to traditional brick and mortar.

"People laughed at me when I used to predict that wooden houses would one day account for 50 per cent of housing development. Today, the question is when rather than if this will come to pass," he explains.

Timber houses are, he argues, commonplace in countries warmer, colder, wetter and drier than Ireland. Their unpopularity here is at least partially attributable to concrete lobby clout. Though the cost to the house buyer is the same, timber-frame structures are cheaper to heat, he says. This factor is likely to weigh heavily on the mind of Government as Ireland attempts to reduce fossil fuel dependency in line with Kyoto obligations.

The Century story is a heady rags to riches tale. Having emigrated to Los Angeles after university and established a successful decorating business, Mr McCaughey was convinced timber housing had the potential to become a major industry in Ireland. He returned to Monaghan late in 1989 and set up shop in a dilapidated warehouse. With recession still a fresh memory, interest was muted. The company refused to be dissuaded however - and gradually its message found an audience. From turning a small loss in its first year, it posted a €6.5 million profit in 2001.

Capturing 40 per cent of the Irish timber-frame market has not sated Mr McCaughey however. Moves into Britain, the Continent and the Far East will soon be followed with strategic partnerships in the United States and Canada. Century hopes to ally its high-tech systems - where houses are built in automated plants in much the same way that cars are manufactured - with US marketing savvy. Growth will be a mixture of acquistion, organic expansion and partnerships.

He is mindful of the risk of taking the indigenous market for granted and becomes animated when conversation turns to recent radio commercials extolling the benefits of concrete built houses. "The concrete lobby has paid us the highest possible compliment - they are running scared of us," Mr McCaughey says.

Nor will he countenance claims that timber homes are more expensive to insure and harder to obtain mortgages for.

"Many people are living in timber-frame houses without realising it. Because wooden houses are usually finished with brick in Ireland, it is almost impossible to tell the difference in a finished structure at first glance.

"Wooden houses are commonplace in virtually every country in the west apart from Ireland and Britain. There is no practical reason why this is so. The issue is purely one of perception - something we are in the process of changing."

The other topic which fires his passion is regional development. Headquartered in Monaghan, Century employs 250 across Longford, Dungarvan and a recently opened facility in Tullamore plus 60 in Cardiff and London.

Relocating to Dublin might bring advantages but Mr McCaughey is committed to the regions. Though pitching camp away from the main business hubs occasionally causes headaches, a belief in your product can overcome the most intractable obstacles, he contends.

"We went into business in the middle of a recession. It might sound strange, but in a way, that's probably the best time to start a company. Many of the start-ups that came along at the height of the boom may not have much experience of surviving in tough times. The things you learn when your back is really against the wall will serve you well after the lean times are gone. It has certainly made us a fitter, more determined outfit."