It almost always comes down to the wallet.
Tim Seims:And the wallet is the motivator.
Tim Seims:People don't wake up in the morning and look in the mirror and say to themselves,
Tim Seims:Everyone in this industry that I've met has good intentions when they go out.
Tim Seims:But then the nuances of the industry just tend to hammer you and beat you down.
Todd Miller:Welcome to the construction disruption podcast, where we uncover
Todd Miller:I'm Todd Miller of Isaiah industries, manufacturer of specialty metal,
Todd Miller:And today my co-host is Seth Heckman, also of Isaiah Industries.
Todd Miller:Our goal here at Construction Disruption is to provide timely and forward looking
Todd Miller:As part of that, we always look at new innovations as well as trends and
Todd Miller:Basically, if we come across something that we think is going to be rising to the
Todd Miller:Pleased that today on Construction Disruption, our special guest is Tim Seims.
Todd Miller:Tim has a great deal of interest in and knowledge of construction.
Todd Miller:Over the last 25 years, Tim has done sales for companies such as Builders
Todd Miller:Tim has also been director of building products, intelligence for the new Home Trends Institute.
Todd Miller:And he is currently self-employed with a variety of projects that he's working on for
Todd Miller:One of his specializations is go-to market strategy for building products
Todd Miller:And what's more, along with Carolina Albano he is also co-host of the
Todd Miller:Tim, welcome to Construction Disruption.
Tim Seims:Seth and Todd, thanks for having me.
Tim Seims:After listening to so many episodes it's exciting to be here with you.
Tim Seims:And I'm having a little bit of microphone envy.
Tim Seims:I'm gonna have to get some mics like you guys have.
Tim Seims:That's really cool setup you have, and I'm really grateful to be here.
Todd Miller:Thank you again for joining us.
Todd Miller:Yeah, I find I can hide behind it or something like that.
Todd Miller:So if I don't shave, no one knows that's good.
Todd Miller:Thank you again, Tim, for joining us today.
Todd Miller:I really can sense that our conversation because of your breadth of experience in this space,
Todd Miller:I just wanna start and ask, what do you really like about the construction industry
Todd Miller:I know some of us were born into it and others just landed there.
Todd Miller:But curious to know a little bit about your own history.
Tim Seims:Yeah.
Tim Seims:When I was growing up, my dad worked with a bunch of remodel companies and mostly did a bunch of
Tim Seims:And I always said, I wasn't going to do that.
Tim Seims:As a young person sometimes were at least I was like, I don't wanna
Tim Seims:And as I'm getting, as I got older, actually.
Tim Seims:Fell into a couple projects.
Tim Seims:And I realized, oh, okay.
Tim Seims:I do like this.
Tim Seims:And it was really cool because then I had even more in common with my dad and
Tim Seims:But that was how I got started.
Tim Seims:And one of my favorite things about the construction industry is the low barrier to entry
Tim Seims:There was a calculator I used to pass around James Hardy because one of the James Hardy things at the
Tim Seims:And the calculator showed , okay.
Tim Seims:During the time when all my friends were in college, as a young
Tim Seims:But I had earned.
Tim Seims:I earned a lot of money during the time they were in college.
Tim Seims:And then I also didn't have any student debt.
Tim Seims:And and I was having a lot of fun.
Tim Seims:I could drive by projects and you could point to it, and say, Hey, I worked
Tim Seims:You can see it from the street, the pro product I installed on the building.
Tim Seims:So I just kinda love the artisanship and the pride that comes from that and how quickly
Tim Seims:If they're interested in it.
Tim Seims:Yeah,
Todd Miller:know, that's a great perspective and I've never really thought
Todd Miller:But yes the ease of getting involved in a, in an exciting industry that always has growth
Todd Miller:I know one of the things I love too, is out traveling in the middle of nowhere
Todd Miller:And I'm always telling my wife, I'm like, huh, I don't remember that project.
Todd Miller:And she's Member all of your projects and I'm really you'd be surprised probably,
Todd Miller:So very interesting.
Todd Miller:So tell us a little bit about build perspectives.
Todd Miller:I know you're you do that with Carolina Albano, who you have been associated with for a number
Tim Seims:bet.
Tim Seims:We originally started recording actually at the behest of Zach and Beth from the
Tim Seims:So it just basically hit record and they sent us a little document that
Tim Seims:And we were AIA and we actually walked by the Rockwell boat booth and anyone
Tim Seims:They have that sound.
Tim Seims:Dead mean tunnel.
Tim Seims:And so we wanted to see what the sound was like, and we recorded like a little test.
Tim Seims:Wow.
Tim Seims:What a difference in the sound.
Tim Seims:And so we're like why don't we talk about that?
Tim Seims:And what talked about how so many people think AIA and these trade shows
Tim Seims:And so that, that's what started it.
Tim Seims:And we had good a good rapport, obviously still do.
Tim Seims:And we both wanted to do the same things and we wanted to get content out there.
Tim Seims:Most of it was around originally about we, we actually called it facades cast in the
Tim Seims:But it turned into more kind of existential information about the industry.
Tim Seims:And my dad had always used this saying that he said that there are four things you can never have
Tim Seims:And I always thought perspective was really interesting.
Tim Seims:So we I talk about that my whole life.
Tim Seims:With the kids, you can't have too much perspective, and try and understand other people.
Tim Seims:And so we thought how does that translate into the industry?
Tim Seims:We got to talking about it and sharing different people's different stories and their linear or
Tim Seims:Different ways to look at our own careers if we're already in the industry and then
Tim Seims:So it's all about.
Tim Seims:Trying to there's a book Chris Vos wrote, this says it's called never split the difference.
Tim Seims:And it's a really a negotiating book, but he talks a lot about tactical empathy in that
Tim Seims:So that's really what we endeavor to do and then share what we find and
Tim Seims:It seems like so far folks have it's a lot of.
Tim Seims:I
Todd Miller:Wow.
Todd Miller:I love that, trying to understand the other person and how life changing that is and how
Todd Miller:But faith love, hope and perspective.
Todd Miller:I've never heard that before.
Todd Miller:I love it.
Todd Miller:Good stuff.
Todd Miller:Tell your dad's a wise man.
Todd Miller:Nice man.
Todd Miller:So I'm curious, switching into the consulting you're doing and the work
Todd Miller:What are some of the projects, or can you share with us some of the things you've done
Tim Seims:find that the consulting field, a lot of times, especially in the building product
Tim Seims:That a lot of times they're purchasing research or getting consulting to
Tim Seims:And so then you're crowdsourcing this information to, to make informed decisions.
Tim Seims:And I love that.
Tim Seims:I love the research and the market sizing and sort of dead aggregation that we,
Tim Seims:But on the other hand, it's all about what people want and need for their business.
Tim Seims:And everyone's trying to grow their business.
Tim Seims:They have, there's all these different challenge there, even more challenges probably than
Tim Seims:So everyone's basing all these things and there is a lot of research out there,
Tim Seims:There's this.
Tim Seims:Illustration in my mind at all times my optics on the industry and anything
Tim Seims:And so a lot of times folks, for instance, wanna go after the biggest builder or the biggest GCs
Tim Seims:So what we try to do is is in my mind, at least when I'm having these conversations
Tim Seims:Where is the company?
Tim Seims:Where are you as the leader of the company as a mindset on the adoption curve?
Tim Seims:Okay.
Tim Seims:And then from a vertical standpoint is finding, okay, here are the targets.
Tim Seims:Here are the segments, here are the targets and here's where you wanna position for growth.
Tim Seims:And the biggest part of that conversation is you could, as a deliverable to the client,
Tim Seims:A lot of times consulting is about delivering the report and saying, let
Tim Seims:But the next step is really to open doors, roll up the sleeves, get the right
Tim Seims:And that's the framework that the conversations end up in.
Tim Seims:And so that's what I find myself doing is making those connections so that
Tim Seims:And that it's so important right now because in an effort to aggregate and streamline
Tim Seims:Actually adding more layers and more complexity.
Tim Seims:So now you have multiple layers in the prefab world where it's actually
Tim Seims:In a lot of cases, it's making things more difficult and it's not the technology,
Tim Seims:And so we're trying to knock down those barriers under the framework, often of NDAs to
Tim Seims:I can't tell you how many times we work on products in this industry where
Tim Seims:Research or voice a customer work.
Tim Seims:But on the other hand, there's a lot of quality work in that regard.
Tim Seims:So just trying to get that information and that framework in the right people's hands and then
Todd Miller:know I love that idea that, Hey, I'm gonna bring people together
Todd Miller:We've talked about that before with other guests also how much more we can accomplish when we
Todd Miller:Great concept.
Todd Miller:Very good.
Tim Seims:I like that silent, siloed and competitive.
Tim Seims:I'm gonna, I'm gonna remember that.
Tim Seims:I was telling prefab.
Tim Seims:Oh, so a volumetric modular manufacturer startup.
Tim Seims:That's a lot of words altogether, isn't it?
Tim Seims:Anyhow, we were talking about different things in the prefab world.
Tim Seims:And one of the big bugga boos with prefab is the building envelope and
Tim Seims:And so it, the, how do we get rid of the boxes, bags and buckets?
Tim Seims:So I try to like group things like that.
Tim Seims:So I can remember with the concepts.
Todd Miller:I love it.
Todd Miller:Boxes, bags, and buckets.
Todd Miller:Good stuff.
Todd Miller:So one of the things I've seen you write about recently, and I think you had also talked
Todd Miller:I'm curious.
Todd Miller:I'd love to hear about that.
Todd Miller:I don't see that happening in our area here in the Midwest yet.
Todd Miller:But would love to see where you're happening and where you're seeing that
Tim Seims:Yeah it's a really interesting category because it's
Tim Seims:Like a lot of other countries have had.
Tim Seims:And I have to say a shout out to Mark Mitchell, and I'm glad he's feeling better.
Tim Seims:And also great friend.
Tim Seims:He's another one who encouraged us to do a podcast, just like he says,
Tim Seims:And so that's what we did.
Tim Seims:And he's been a great positive influence on Carolina and I, and of
Tim Seims:So when we think of the build for rent space, there are some interesting constraints
Tim Seims:And so for instance, with multi-family a lot of times you're dealing with syndicators
Tim Seims:Different in how the capital is stacked and then you have the valuations are different.
Tim Seims:So with and time horizon.
Tim Seims:So with multi-family their time horizon is like a, typically a three to five
Tim Seims:So they sell the, sell it and flip it in three to five years on average, and then
Tim Seims:That's sold, there's a one year warranty.
Tim Seims:If it's longer, it's usually a third party that carries the warranty.
Tim Seims:So the builders kinda out the picture, they also depend a lot on the local cap rate for multifamily
Tim Seims:When you look at single family bill for rent, they have typically those developers,
Tim Seims:It's seven to 10 years if not longer.
Tim Seims:They don't really when and oftentimes they're.
Tim Seims:They're funding it fully themselves.
Tim Seims:So it's a giant fund often a rolling fund or some institutional wealth
Tim Seims:And so they'll buy or build these communities to spec just for bill to rent, but because
Tim Seims:Cuz there are a lot of.
Tim Seims:There's a lot of pressure be when you're dealing with so many investors into the fund to really
Tim Seims:So there's, it's a different mindset with that product.
Tim Seims:When they're coming in, they don't have to deal with typically when they're thinking
Tim Seims:And then also they don't have to worry about appraisals and comps because they're not,
Tim Seims:So they just kinda have a different way of thinking about it.
Tim Seims:And so what that does is it frees them up to try different technologies.
Tim Seims:It frees them up to deploy the capital in terms of asset allocation.
Tim Seims:Maybe spread it to some manufacturing like prefab instead of just site build or take
Tim Seims:Build the properties.
Tim Seims:So they can look at these things a little differently from the lens really is
Tim Seims:And when they, when you're, when they're building something for rent, there's
Tim Seims:The other thing that's important is when they have really durable products, they're not having to
Tim Seims:So when they're thinking that timeframe they don't want to do a capital call to
Tim Seims:They need to have a good set of reserves and also durable products, so that they don't need to do
Tim Seims:Except for just their quarterly normal calls until they sell the portfolio,
Tim Seims:It just, that sort of, they're taking the friction out of that whole process.
Tim Seims:At least that's the goal hasn't been easy because them getting out of the ground
Tim Seims:So that's the highlights of the difference between the three segments and why it's such a fascinating
Tim Seims:Foundations or first floors, they can use mass timber.
Tim Seims:They could use panelized or kitchen and bathroom pods and they can of handle the deployment of when
Tim Seims:But when you're dealing with a fund, you're just telling the investors
Tim Seims:This is what we're doing.
Tim Seims:So anyhow, that those are the biggest differences that I saw.
Tim Seims:And I know it's a long Diri, but it's also a big segment.
Tim Seims:So it kinda deserves a little air.
Tim Seims:You
Todd Miller:No.
Todd Miller:It's very interesting.
Todd Miller:And, so I have a better understanding of it now, again, haven't seen this happen here in our
Todd Miller:One of the questions I was going to ask was, is there any opportunity for
Todd Miller:But it really sounds one opportunity would be for a smaller investor to get involved with a
Tim Seims:could see.
Tim Seims:So there's a big demand amongst the build for rent.
Tim Seims:Institutional money, especially because they're not builders.
Tim Seims:The big demand is for strategics fee builders that are going in on the project with them,
Tim Seims:So there's a lot of flexibility in finding the right fit.
Tim Seims:Some markets, they might have a builder that's just working for them as a fee builder.
Tim Seims:And they're just turning these communities over in another market.
Tim Seims:They might do a joint venture because that's the only way they can get the project done.
Tim Seims:But it's not sustainable for them to just keep buying homes from, for sale builders.
Tim Seims:They're not built to go through thes as a single family rental like a for
Tim Seims:Just cuz it's a, it's not built as a rental.
Tim Seims:So it's that's how people can get it.
Tim Seims:Now there across the country.
Tim Seims:There's a whole, it's been around for a hundred years.
Tim Seims:It's the renovate to rent.
Tim Seims:Segment.
Tim Seims:And that's how some folks get into this space from a grassroots level or Greenfield
Tim Seims:Okay.
Tim Seims:This set that concept's been around for a long time, but they do that 30 times.
Tim Seims:Now they have a portfolio, they do that a hundred, 200, 300 times.
Tim Seims:They may still be building for sale product, but they have this build
Tim Seims:And then they could sell that whole portfolio to one of these bigger companies
Tim Seims:And we've seen that progress by not only nationals, but the regionals and
Tim Seims:So you can literally start with one.
Tim Seims:Older home, fix up, lease it up and then do that a few times.
Tim Seims:You can sell a portfolio as small as 20 or 30 of these homes, even if they're spread out
Tim Seims:It sounds easy.
Tim Seims:There's a lot, there are a lot of moving parts to make that happen, but
Tim Seims:And one thing interesting to keep in mind about that is in Memphis.
Tim Seims:I'll take one example.
Tim Seims:There's a turnkey operation that does this.
Tim Seims:They send out these mailers people probably get 'em all the time.
Tim Seims:You guys might get 'em at your house.
Tim Seims:Like we'll buy your home.
Tim Seims:That's either a house flipper or a renovate to rent operator.
Tim Seims:And in Memphis there's a renovate to rent operator.
Tim Seims:I can't tell you who they are, but basically they have their own lumber yard.
Tim Seims:They have their own pickers and polars.
Tim Seims:They have their own prefab, they have their own procurement people,
Tim Seims:And they go out and they fix up these homes.
Tim Seims:They lease 'em up, they manage the property.
Tim Seims:They get to a certain amount of time when it's stabilized, decide when,
Tim Seims:Sometimes they'll flip it to an individual investor or a portfolio, or they'll just add it to
Tim Seims:But that tells me, that, that lumber yard should know who these people are.
Tim Seims:They may just seem like a remodeler when they come in, but treat them like the
Tim Seims:Yeah,
Todd Miller:Wow.
Todd Miller:That's really been eyeopening for me.
Todd Miller:I've just never thought about those different segments and also about how those different
Todd Miller:Very, just never thought about this fascinating stuff.
Seth Heckaman:just a few years difference in the whole time.
Seth Heckaman:All of a sudden changes the perspective completely.
Seth Heckaman:Yeah, very interesting.
Seth Heckaman:You, one comment you made was traditional construction loans and the schedule and the
Seth Heckaman:Of prefab.
Seth Heckaman:Can you we've had modular construction, offsite kind of construction has
Seth Heckaman:I'm curious.
Seth Heckaman:Tell us a little bit more about that.
Seth Heckaman:And our banks starting to get a little bit more flexible in response to skilled labor
Tim Seims:Banks, aren't that conciliatory to.
Tim Seims:Changing anything with how they lend in and they, frankly, they don't have
Tim Seims:So it's either a self-funded, where basically it's of hard though, if you have 200 units
Tim Seims:So that's why you see people starting rolling funds to be a bridge loan for the manufacturing,
Tim Seims:That's not been their discipline cuz they're manufacturers, but they're getting more
Tim Seims:So they, they need to keep that going.
Tim Seims:And there are new factories coming on board that are also different handled differently.
Tim Seims:Whereas instead of raising, 50 million or getting a commercial loan for part of
Tim Seims:So there's there a lot of different creative things, right?
Tim Seims:The banks, they have their place.
Tim Seims:And I don't think that's gonna change that much, but it's gonna be more private money.
Tim Seims:You could see like a rolling fund or even Dows and specs or looking at how can we get
Tim Seims:With the money, so it's really a fascinating time for finance in the area, but it's still
Todd Miller:know, I, the town I live in is a city of about 20,000 in a county of
Todd Miller:But it was just announced yesterday that the city I'm in the 20,000 is getting a new employer.
Todd Miller:That's going to employ about 1200 people.
Todd Miller:And, I'm thinking about the strain.
Todd Miller:That's gonna put on our housing stock.
Todd Miller:And of these things you're talking about that right now are foreign to me because of this
Todd Miller:So very interesting.
Tim Seims:You might see a play out right in front of your eyes there.
Tim Seims:And I think it's, I think it's important for manufacturers to think about this
Tim Seims:And of course now part EFS, but they still kept their name.
Tim Seims:It's called spin Bernard.
Tim Seims:And one of their sales people really just specializes in working with.
Tim Seims:Prefabs and and that whole, that kind of mindset now, mostly in the custom, but it's even on
Tim Seims:Or you start to see this at events.
Tim Seims:Like I saw advancing prefab in Phoenix last week, where manufacturers building
Tim Seims:Those are so important because of that focus on if everyone's working on it, that's great.
Tim Seims:But you end up getting diluted not diluted.
Tim Seims:And so then and when people have that focus, the company's investing in it, then it's
Tim Seims:And then.
Tim Seims:They're first top of mind person when it comes to actually building the units and shipping
Tim Seims:So I think it's so important in that.
Tim Seims:And I'm grateful that the industry is seeing this as important, where you actually are
Todd Miller:Very good.
Todd Miller:So switching gears here, one of your recent podcasts had a topic that we
Todd Miller:We had a couple of guests, crystal ager, and Catherine Prosci who are both
Todd Miller:And we talked about changing weather patterns and how that's impacting the
Todd Miller:I think it goes.
Todd Miller:Beyond just the weather change.
Todd Miller:That's necessitating that need for resilient construction to the fact that we simply
Todd Miller:Curious is this something you're starting to see a lot of manufacturers
Tim Seims:should.
Tim Seims:Asked right now.
Tim Seims:That's a really important question to ask right now.
Tim Seims:And it's timely.
Tim Seims:People say, oh, it's, it's late.
Tim Seims:The construction industry's lad.
Tim Seims:I've seen fascinating people do fascinating things in the industry.
Tim Seims:And there's a lot of, there's a lot of development and understanding in the building sciences in
Tim Seims:And people like Matt resinger and mark Willy and Dave Cooper have done a lot
Tim Seims:I love their Dave Cooper, mark Willie's show on Friday's BS Fridays about
Tim Seims:It almost always comes down to the wallet.
Tim Seims:And the wallet is the motivator.
Tim Seims:People don't wake up in the morning and look in the mirror and say to themselves,
Tim Seims:Everyone in this industry that I've met has good intentions when they go out.
Tim Seims:But then the nuances of the industry just tend to hammer you and beat you down.
Tim Seims:But what we're starting to see this resilience and hardening of the structure.
Tim Seims:Post construction.
Tim Seims:And before construction and material selection be a more, an increasingly
Tim Seims:And it build for rent comes into this too, because, and multi-family because
Tim Seims:A couple years ago, Moodies acquired 4 27, which is a climate research firm.
Tim Seims:And they do some really quality work, probably not unlike your guests do.
Tim Seims:And that, that re those reports go to BlackRock.
Tim Seims:They go to these big res and they go to the insurance companies mostly,
Tim Seims:Okay.
Tim Seims:And so your rates are gonna be this, or we're not even gonna offer you coverage for that.
Tim Seims:You're gonna have to.
Tim Seims:Ensure that scope folks, aren't gonna do that.
Tim Seims:They're gonna make changes in the material.
Tim Seims:They're gonna make changes in the wall assembly in the in the mechanical systems, whatever they
Tim Seims:These things come into play now and insurance commissioners of the states, attorney generals,
Tim Seims:And the department energy helps a lot with that.
Tim Seims:So you take all this data and this mindset, and now you get money involved
Tim Seims:Now you start to see movement.
Tim Seims:It's not that people didn't wanna do it before, but there was just
Tim Seims:And it's and it just didn't make sense or they just wouldn't build the
Tim Seims:So when manufacturers are working with builders, it should understand.
Tim Seims:And back to that tactical empathy, what the builders and the underwriters are really up
Tim Seims:We're gonna hold it for three years while you put this together.
Tim Seims:So they're factoring in these increases at a certain point.
Tim Seims:It just doesn't pencil anymore.
Tim Seims:So are they gonna sell the land or are they gonna change the product?
Tim Seims:They're gonna change the product, but now they need help figuring out
Tim Seims:Why should they be using it?
Tim Seims:How does it dollarize into the, into their metrics and their figures.
Tim Seims:Manufacturers need to understand that more than ever now.
Tim Seims:And I am seen and folks have these conversations and I love it because it's exactly the
Todd Miller:Curious, what are your thoughts as far as energy efficiency and also solar
Todd Miller:Because for the builder developer, maybe there isn't so much of financial
Todd Miller:Situation there certainly would be.
Todd Miller:But I'm just curious, where do you see the incentives for energy efficiency and solar
Tim Seims:We're not seeing any more energy coming to the grid as of any scale over the
Tim Seims:And then you have electric vehicles, you can see that the market share of
Tim Seims:Just of course is going up month by month at this point.
Tim Seims:So you have all this all this increased demand on the electric grid.
Tim Seims:But no supply.
Tim Seims:Okay.
Tim Seims:So now what do you do?
Tim Seims:You can make a more efficient grid.
Tim Seims:Okay.
Tim Seims:That's happening.
Tim Seims:You can see that in Texas, they realize they had a problem with that storm.
Tim Seims:So they're making a more efficient grid which that's oversimplification as.
Tim Seims:That's the extent of my knowledge about it too.
Tim Seims:But when you talk, when you think about these communities of say, build for rent You and in
Tim Seims:You need a clubhouse, you need an office, you need a maintenance person there.
Tim Seims:You need, you have different parking things that come into play and so forth a pool,
Tim Seims:So you have more understanding at the developer builder level at the same time,
Tim Seims:We need energy storage.
Tim Seims:We need solar.
Tim Seims:We need solar, thermal.
Tim Seims:We need geothermal whatever's right for that project.
Tim Seims:We should be at least considering it.
Tim Seims:Can we underwrite with that in mind?
Tim Seims:Considering we're, if bill for rent, we're paying for probably 30% of the power with all the street
Tim Seims:There are some rebates.
Tim Seims:Could we maybe get some help from the city in terms of offsetting some of these costs over time
Tim Seims:And more real of a conversation by builders.
Tim Seims:You never thought it would have gotten involved with these products and strategies 10 years ago.
Tim Seims:It's now part of the conversation and so different things have come up, like,
Tim Seims:If we're gonna do this can we do solar on sidewall, different things like that, that people
Tim Seims:So I think that it's a good timing for it.
Tim Seims:There are other pieces that come into consideration for the building
Tim Seims:Can it go like mostly off grid can other things that can happen to make these more resilient?
Tim Seims:And then of course the insurance companies love that sort of stuff too.
Tim Seims:So I think there's there a bunch of moving parts.
Tim Seims:It's very exciting because it's gone from being retrofit type conversation to new
Todd Miller:Yeah, it's very interesting.
Todd Miller:So this morning, the Dayton daily news, which is our local big city newspaper
Todd Miller:They were saying as soon as June for folks who are not on some sort of contracted rate they could see
Todd Miller:So.
Tim Seims:Probably see apparel purchases go up because people are gonna a friend of ours.
Tim Seims:She her and her husband keep the house at 55.
Tim Seims:And they're very diligent over the years about that.
Tim Seims:We always thought it was hilarious.
Tim Seims:You'd walk in the house.
Tim Seims:They would give us a blanket.
Tim Seims:We're gonna hang out and visit and have drinks.
Tim Seims:And we're like, okay, it's freezing in here.
Tim Seims:Me may see, have to see more people do that because you have to get the energy from
Tim Seims:So I just said, there's a lot to consider in terms of supply and demand.
Tim Seims:They're gonna get some of it from raising prices.
Tim Seims:So people, are watching their checkbooks more and then they're going
Todd Miller:Yeah.
Todd Miller:Interesting.
Todd Miller:And I lived through the 1970s energy crisis that thermostat.
Todd Miller:Winter was down at 55 at night and no higher than 62 during the day.
Todd Miller:And you adapted
Tim Seims:And there was a lot of energy not nearly as much as should have been
Tim Seims:And energy supply at that point.
Tim Seims:And whether it was old school or nuclear or whatever, there was a
Tim Seims:And then you, when times like this happen you tend to see more investment innovation
Todd Miller:So another area where you're respected and people often go to you is something
Todd Miller:I looked it up and kind understood it, but tell us what mass timber is.
Todd Miller:I can't be the only one.
Todd Miller:Who's not familiar with it.
Tim Seims:You're not, it really is.
Tim Seims:It's much more prolific or prevalent, I should say.
Tim Seims:In Europe and parts of Asia.
Tim Seims:Even in Brazil, there are some sizable mass timber projects, more in Canada.
Tim Seims:And now in the us, you usually see that progress that way, like Northern Europe
Tim Seims:And so you could look back 20 or 30 years, you could see that's where kind
Tim Seims:A glue beam looks like solid on lumber, but it's laid up pieces of basically two by
Tim Seims:And it's laid up in finger joint in layers, and it just makes for a much stronger stable beam
Tim Seims:And they're very readily available.
Tim Seims:There were some catalysts that brought that about you had in the fifties, you resin.
Tim Seims:Innovation that basically made a, we, a weather resistant, a water resistant resident.
Tim Seims:So that, that these beams that are out weather during construction, that they didn't fall apart.
Tim Seims:You had basically span tables, universal span tables.
Tim Seims:So anyone at a lumber Cilla glue land beam.
Tim Seims:And then you had basically that, that, that matriculated outta Europe, into the United States,
Tim Seims:So it's you see the progression.
Tim Seims:Okay.
Tim Seims:So everyone's familiar with those glam beams.
Tim Seims:And so let's take thatam beam.
Tim Seims:That's a vertical rectangle.
Tim Seims:When you look at it from an end view and then just turn it on the.
Tim Seims:If you turn on side and then you imagine these panels that are maybe eight to 12 feet wide,
Tim Seims:They're just solid lumber.
Tim Seims:I say solid.
Tim Seims:It's laid up like a glue, a it's one layer of two by six or two by four is going one direction for
Tim Seims:And then and then wood that's going oriented.
Tim Seims:The opposite direction is alternating that way.
Tim Seims:And there are other ones like Dow laminated, nail laminated, timber.
Tim Seims:So these are diff all under the mass timber and technically the glue lamp beams that we're all
Tim Seims:So we're just saying, like taking that small profile of a beam and making it
Tim Seims:You can see an example of a simplification of this with chase banks.
Tim Seims:So about a third of all new chase banks going in for the retail walk-in
Tim Seims:What is it?
Tim Seims:It's a four foot wide by 60 feet or 40 foot long by six inch deep.
Tim Seims:Beam, but it's turned instead of bean vertical, it's turned on its edge for a sloped roof
Tim Seims:And then you have this just beautiful wood grain.
Tim Seims:When you look up you're in the bank and you're kinda like anxious about what's your balances
Tim Seims:And if you've ever been in an Allwood building, you just very calming.
Tim Seims:But the other part of it that's great is cement often, that's what it's displacing.
Tim Seims:Especially in commercial construction.
Tim Seims:For the floors and the walls and the roof, it, they uses a lot of,
Tim Seims:It's a major carbon footprint issue.
Tim Seims:Cement is okay.
Tim Seims:It's odd, durable.
Tim Seims:Great.
Tim Seims:But it's a problem.
Tim Seims:Whereas trees before they're milled, before the harvested milled, they take in carbon dioxide.
Tim Seims:We all know that from school they take in carbon dioxide, that're out in the
Tim Seims:So it's basically, they call it sequestered in that wood.
Tim Seims:You harvest that wood, you saw it, you put it a building, you now you have a new tree growing.
Tim Seims:That's gonna do the same thing as opposed to concrete and cement that
Tim Seims:Cement carpet and tile are three of the worst for carbon footprint and building materials.
Tim Seims:So we're two of those items are very Grounded in high kiln fired products.
Tim Seims:So you're taking that all off the table and you're at, you're doing it in a wood.
Tim Seims:So it's a double win because you're taking cement off the table and you're taking
Tim Seims:And so that's why you see it becoming more and more prevalent from ESG standpoint.
Tim Seims:It's beautiful.
Tim Seims:People love it.
Tim Seims:It's very, spany compared to concrete construction.
Tim Seims:We see those costs coming down over time, but eventually in order for it to become really
Tim Seims:That's how everything needs to go to single family residential before it can be really
Tim Seims:So it's already starting to happen a little bit in Europe.
Tim Seims:But it's gonna be several years before we see a lot of it in single family here,
Tim Seims:Is this displacing my product?
Tim Seims:How can I make something that would help this product?
Tim Seims:How can I work on connectors or connections or design elements, or
Tim Seims:Is there some way that I can augment that for the project, with my product so that
Todd Miller:Wow.
Todd Miller:Very well, thank you very much for that explanation makes makes sense to me now
Tim Seims:I hope that helped
Todd Miller:to look for it.
Tim Seims:or didn't make it more complicated.
Todd Miller:Nope.
Todd Miller:Nope.
Todd Miller:Helped great deal.
Todd Miller:Thank you.
Todd Miller:A lot of our audience members, we find our younger folks getting
Todd Miller:And what we like to do is keep them on the cutting edge, bring them new information.
Todd Miller:Any advice for them as far as things or people they should be paying attention to, or maybe
Tim Seims:Yeah, there to me, there three entrance points that are pretty big and they're there's
Tim Seims:And there's the counter salesperson at a lumberyard.
Tim Seims:I see that as a kind of a pivotal and key role in the building industry.
Tim Seims:There is the.
Tim Seims:The initial kind of job at a lot of building product manufacturers is
Tim Seims:Or they're calling on lumber yards before they start talking to
Tim Seims:And then there's the entrant into the builder space.
Tim Seims:They're starting out as maybe project engineer, or if they didn't go to college for any specific
Tim Seims:And they're looking at what's my, what am I doing here?
Tim Seims:And I think that.
Tim Seims:A couple things that helped me when I first started in the industry.
Tim Seims:One thing that helped me a lot was pro sales magazine and the articles that, that John and
Tim Seims:And then understanding, really understanding the building product channel, books, like what Mark
Tim Seims:Those are always good.
Tim Seims:But one, one thing I think that is, is interesting and probably has legs that a lot of
Tim Seims:I'll give you an example.
Tim Seims:I went to, this is probably 10 years ago.
Tim Seims:I was at Ginsler office in San Francisco and it was a big presentation.
Tim Seims:It was like the biggest CEU presentation I'd ever done.
Tim Seims:And I walk into one of the little offices and there are a bunch of Legos and there's
Tim Seims:And.
Tim Seims:That's that hasn't changed, so this is a very cool thing for manufacturers and the
Tim Seims:Why don't lumber, billing, product manufacturers have those like rooms in their places
Tim Seims:And then you see the other end of the spectrum where you have Lego and Ikea actually
Tim Seims:Ikea did a.
Tim Seims:Modular joint venture to provide housing where they basically have built F they
Tim Seims:So you start to see this, okay, here's the younger group, here's some of the technology that
Tim Seims:Those are not nothing.
Tim Seims:Those should definitely be on the radar.
Tim Seims:And then you have a people in the industry.
Tim Seims:Then you have the, these sort of a legacy companies getting involved in construction.
Tim Seims:Lego probably should have been doing that 30 years ago, but now they're starting to be like,
Tim Seims:And help young people get more involved in this space.
Tim Seims:And none of these people are talking to each other right now, but the hub of that could be.
Tim Seims:The building materials, the big MBMS and the building product manufacturers.
Tim Seims:And then what makes that even more interesting is some of these big SAS company acquisitions
Tim Seims:So they could really attract more young people by highlighting those things and
Tim Seims:Should we have someone that understands tokenization of building materials and
Tim Seims:Two actual buildings and physical products and what that really means.
Tim Seims:And there's more and more investment into this space than anything of the, the
Tim Seims:So why not make that easier to make that connection and how, what that means to the
Tim Seims:I could drive by one day and show my kids.
Todd Miller:of our.
Todd Miller:S was Travis FOS with helm group hel mechanical and Travis was hired by their company simply to go
Todd Miller:And certainly as a part of that, they're gonna be more attractive to
Todd Miller:Good stuff.
Tim Seims:You look around a job site.
Tim Seims:If you're a young person coming outta school or you're just like goofing off on
Tim Seims:I remember seeing that on social media or on, that looks something I saw when I had my AR
Tim Seims:They're just gonna keep driving.
Tim Seims:But if say they see something that correlates to something they've seen digital.
Tim Seims:Then that, that starts to make a connection.
Tim Seims:And when you have people dedicated, like you were just describing to, to the tech piece of
Todd Miller:has been fantastic.
Todd Miller:We're really getting close to the end of our time here and I appreciate all of your time, Tim.
Todd Miller:Before we close, I do wanna ask you if you'd be willing to participate
Todd Miller:So this is seven questions.
Todd Miller:Some may be a little silly, some are more serious.
Todd Miller:All you gotta do is give us a quick answer.
Tim Seims:You got it.
Todd Miller:Fantastic.
Tim Seims:Here we go.
Todd Miller:we
Seth Heckaman:would it.
Tim Seims:I think I would trade places with.
Tim Seims:Whoever's at the head of Lego.
Tim Seims:And then I would just move way faster on getting involved in
Todd Miller:That is fascinating.
Todd Miller:Good stuff.
Todd Miller:Question number two, your favorite meal.
Todd Miller:Good answer.
Todd Miller:Neat
Tim Seims:Favorite meal is we live in Mexico now and I love tacos.
Tim Seims:But one of my favorite meals, there is a, is a big Italian dish.
Tim Seims:I wouldn't even remember the name of it.
Tim Seims:My wife always orders it and and they nail it like it is so good.
Tim Seims:And it has this big, this beautiful bona sauce.
Tim Seims:And then this bread is so addictive.
Tim Seims:I can only allow them to deliver one piece because I'll eat a whole loaf myself.
Tim Seims:Yeah.
Tim Seims:And, I think the key to that is that whenever you're eating with people
Todd Miller:Ha
Seth Heckaman:Number three.
Seth Heckaman:Do you play a musical instrument?
Tim Seims:I tried to learn guitar.
Tim Seims:I like to ad lib with piano and harmonica, but my main instrument, it whether it's painful to
Todd Miller:good stuff.
Todd Miller:What is one of your best childhood memories?
Todd Miller:Okay.
Tim Seims:always camping.
Tim Seims:So we, yeah, we didn't like a lot of people you didn't grow up with much, but we didn't
Tim Seims:And so camping was huge.
Tim Seims:And then my dad would always bring me to this place in Bellingham,
Tim Seims:I'd give my mom a break.
Tim Seims:And we went to a place called hardware sales in Bellingham and just
Tim Seims:So I gave you two there.
Seth Heckaman:ever been told you look like someone famous?
Seth Heckaman:And if so, who.
Tim Seims:I usually get either Jack Black or Jack Johnson,
Seth Heckaman:Okay.
Seth Heckaman:I see it a little
Todd Miller:I can see that.
Todd Miller:I can see that good stuff.
Todd Miller:Bucket list vacation.
Todd Miller:We
Tim Seims:Iceland.
Tim Seims:We've already been there.
Tim Seims:So I guess so since we've already been there I would have to say now,
Tim Seims:There's I forget what's called it a train you can take that goes to a bunch of the distilleries
Tim Seims:I've only heard tell of this from friends that have gone and I'd love to do that,
Todd Miller:have some friends, they were in Scotland, to go stag
Todd Miller:I'm pretty sure they were scotch hunting
Tim Seims:right.
Tim Seims:exactly.
Seth Heckaman:and they were very successful
Todd Miller:Yeah.
Todd Miller:They were very successful.
Tim Seims:going.
Seth Heckaman:All right.
Seth Heckaman:Last rapid fire question.
Seth Heckaman:Who is the friend in your life that you have had the longest.
Tim Seims:Probably my friends Rob and Amber in Bellingham.
Tim Seims:They're just like, we treasure people like that because they're so supportive,
Tim Seims:And they're just always there.
Todd Miller:Oh, good stuff.
Todd Miller:Thank you again, been a real pleasure and enjoyed this a great deal.
Todd Miller:Been very informative.
Todd Miller:Is there anything we haven't covered today that you are hoping to cover?
Tim Seims:One thing that I think we should talk about more or should be talked
Tim Seims:And I really feel like that.
Tim Seims:And and along with that, little labor shortage.
Tim Seims:Bringing that perspective into industry super important and connected to that is, we have
Tim Seims:Should manufacturers be translating their materials into Ukrainian or Russian more
Tim Seims:And then there's a huge amount of folks on tribal lands that want to work,
Tim Seims:And I like a factory or a mill or something like that.
Tim Seims:There's a lot of untapped resource there.
Tim Seims:So those are all related to.
Todd Miller:Those are all great topics though.
Todd Miller:Yeah.
Todd Miller:Fantastic.
Todd Miller:We'll have to keep those in.
Todd Miller:Or future episodes too.
Todd Miller:Thank you again so much.
Todd Miller:Tim, if folks wanna get in touch with you, how can they most easily do that?
Tim Seims:Most folks just send me a note on LinkedIn and I try to
Tim Seims:And or they can text or call me at (425) 492-0973.
Tim Seims:I get a lot of people just texting me out of the blue.
Tim Seims:So I'm happy to respond on those and connect and help way I can.
Todd Miller:Great.
Todd Miller:Thank you.
Todd Miller:And just as a mention for everybody of course we'll have this in the show notes, but Tim's
Tim Seims:Why should why would we want it to be simple, right?
Todd Miller:That's right.
Todd Miller:And you gotta ha you gotta love the rhyming of Tim Sims.
Todd Miller:That's fantastic.
Todd Miller:Good stuff.
Todd Miller:Thank you again so much for your time today, Tim.
Todd Miller:This has been a great pleasure.
Tim Seims:Thank you for having me.
Tim Seims:I really appreciate the invitation.
Tim Seims:And for all you're doing to make this industry, I love better.
Todd Miller:And thank you to our audience for tuning into this episode of construction
Todd Miller:Please watch for future episodes of our podcast.
Todd Miller:We have more great guests coming up and don't forget to leave a
Todd Miller:Until the next time change the world for someone, make them smile, encourage them very powerful
Todd Miller:God bless take care.
Todd Miller:This is Isaiah industry signing off until the next episode of Construction Disruption