Wednesday, May 4, 2011

Alabama will rebuild!

I just spent two days in Tuscaloosa, ground zero for one of the deadly tornados which ripped across the South.  The destruction is heart wrenching, but the assistance is heartwarming.  Unlike the Katrina disaster recovery, the Alabama response is more organized and immediate.  FEMA, insurance companies, the National Guard and various non-profits are all on the scene.  Blessedly, the entire local infrastructure was not destroyed.  Most of the businesses and homes in the area are still standing; only those in the quarter mile wide path of destruction were obliterated.

As we consider how to be of service, I draw upon Katrina experience for some parallels:
  •         The quicker things move from temporary actions – cleanup, relief, FEMA trailers, etc. – the sooner the focus can turn to rebuilding.  This takes some time, but Katrina taught us to accelerate the temporary phase.  Not only is the temporary phase emotionally destabilizing, the resources and time spent on temporary actions do not yield long term value.
  •         Some government programs are restricted to temporary relief and can consume resources that are better spent on permanent rebuilding.  FEMA trailers were one such program.  The total cost of the trailers – purchase, transport, setup, maintenance and decommissioning – came close to the cost of a new home.  Wisely, Alabama citizens are already talking about minimizing temporary structures and moving more rapidly to actual rebuilding.
  •         Rebuilding is not replacement of exactly what existed; it involves rethinking the use of land and the structures thereon.  I suspect some areas of Tuscaloosa will morph from their previous land use to a totally different model.  A possible example is migration from residential use to that of a planned urban center.
  •         The timeframe for rebuilding is likely a few years at best.  Even after five years, New Orleans and the Mississippi Coast still have a long way to go.  Granted the tornado destruction is more localized, but don’t expect things to be restored in months.

Our operation helps in the mid and long term, not immediately.  We are truly part of the rebuilding, and this comes only after the cleanup, temporary actions and decisions on how to rebuild.  At this juncture, we are in contact with local builders and realtors to determine the needs.  First actions will likely be new homes in current subdivisions to fill the surging housing demand.  Beyond that, there are needs for multi-family and light commercial structures.

We also look at how we can make a difference.  Key things are:
  •          Rapid response -- the first homes will be on-line this month and can ship in June.
  •          Structural integrity – we build to wind standards higher than normally required.  Although virtually no home is rated for the 200+ mph winds of the Alabama tornados, there is a vast difference between our 140mph design and the typical 90mph design.  And for tornado-prone areas, we can incorporate safe rooms into the home.
  •         Inherently green – all our structures have a very tight envelope and excellent insulation.  Together with our other green items – windows, doors, appliances, HVAC system – they will cost less to operate over their lifetime.
  •         Reduced local demand – the local demand for materials and trades will be very high throughout the affected areas.  When we do jobs in our plant, it lessens demand on the already overloaded local providers.

Bottom line – we are already moving to provide support for the tornado ravaged areas.  We are here to serve.

Dan Hobbs
Chief Operating Officer

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