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.

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