Just two days before revealing it would begin to consolidate operations, Building Material Holding Corp. said its SelectBuild subsidiary will cease residential framing and concrete operations in Tucson, Ariz., effective July 18.

The move will affect 180 employees, who have been notified that operations will stop in 60 days, BMHC said in a statement released today.

BMHC plans to complete all pending contracts during the 60-day period and will continue to provide services for previous contracts from its Phoenix-based SelectBuild location, which will remain open.

Housing permits in the Tucson market fell from 1,349 units in the first quarter of 2007 to just 738 in the first quarter of 2008.

Stanley Wilson, BMHC?s president and chief operating officer, says the decision to close was a ?necessity based on today's challenging business environment? and weakness in the Tucson housing market.

?Tucson has been hit particularly hard by the downturn in the housing market, and we have to realign our operations accordingly," he adds.

Last month, 84 Lumber announced that it was exiting the Tucson market altogether, as part of consolidation plan that included closing 29 other locations nationwide.

On March 12, BMHC said it will merge its BMC West and SelectBuild units in an attempt to streamline services that it estimates will save $20 million to $25 million annually. The San Francisco-based company?the fifth-largest on the 2008 ProSales 100?also reported its loss deepened to $33.9 million in the first quarter vs. $5 million in the same period a year ago, while first-quarter sales sank 37% to $355 million from a year-earlier $559 million.