We Have a Distribution Problem

“We don't have a resource problem in the world; We have a distribution problem.” – Joe Polish

I get Joe’s newsletter.

“Joe Polish is the Founder of Genius Network?, one of the highest-level groups in the world for Entrepreneurs.” (Wikipedia)

Today, Joe’s message hit hard. Not a punch in the face, but more like a firm, fast pat on the back. It was very reassuring.

Why?

I have been writing recently about The New Model of Distribution of Recaptured Building Materials. This is a distribution problem, possibly the biggest distribution problem in the world.

Construction & Demolition Waste is the largest source of waste in America. (US EPA)

The current old model knocks down whole buildings and throws them away. But waste is not waste until it is wasted. What that means is that we DECIDE to make waste out of what is absolutely reusable. We throw away whole buildings every day.

Lumber, steel, and brick, electrical and mechanical, so very much of what goes to the dump could have another life.

Reuse of the building is ideal, but we are talking here about when the decision has been made to take down the building. What choice do we have?

Demolition-to-disposal is the reigning champ because it is fast and inexpensive and uncomplicated.

Deconstruction takes a building apart, piece by piece, and salvages (saves the life of) the materials.

Midway between those two is a hybrid of processes which disassembles some and breaks apart some, recycling some, reusing some, and disposing of some.

But that is just part of the problem.

The other part goes back to the Joe Polish quote: “We have a distribution problem.” The current old model of distribution of materials that are diverted away from the path to the dump goes into an antiquated system. That system has been very slow to modernize.

It’s not that the people who are in the old model are doing anything wrong, in fact, the simple fact they are doing something positive at all means they are doing something RIGHT. But “how” they do it is not keeping up with the growth of Construction & Demolition. That’s what needs to change.

Like Joe said, “We don’t have a resource problem.” We are throwing away MASSIVE amounts of our resources, so it IS a distribution problem. These materials are being distributed to the dumps of America.

So, we build a New Model! What does that New Model do? What does that New Model look like?

It completes the circle of circularity! Instead of going in a straight path from build -> use -> waste, The New Model takes these materials on an about face and returns them to the cycle of build and use, but not waste. Build -> Use -> Reuse. It’s a beautiful thing.

But what about the COST? That’s the biggest hindrance to this, right? Oh, and the time, too. What about those? Deconstruction costs more and takes more time.

Well, yes, it can cost more and take more time, but what if you could recoup those costs, do things faster and even make more money?

Joe Polish then went on to say, “People have plenty of great ideas and plenty of solutions.” This is SO TRUE!

There are – right now – solutions to both the time and the money issues, and if money is increased to the good, then that helps the time factor to whither, too.

There are plenty of good ideas!

There is technology. There are potential tax deductions. There is the potential of the sale of materials for cold, hard cash. There are efficiencies.

This is what we are now working hard to bring together. We have a system that embraces new technology and different ways of doing things that will allow us to open up the biggest neglected market for these new materials: the AEC community. Architecture, Engineering, and Construction. Add onto that building ownership and developers.

In a Supply and Demand system, when the demand side is satisfied, there is little to do but tweak and optimize. But when you awaken a sleeping hungry dragon of demand, that is a demand that we have previously not been able to serve. Not anymore! We are knocking on the dragon’s door! (Okay, I know, dragons don’t have doors)

Feed that dragon what it needs and how it needs it.

Have you ever heard that a lion will not chase a mouse to eat it? That’s because the payoff does not exceed the effort. It costs more for the lion to chase a mouse than he’ll get from eating it. Same has been the case here… for about 150 years.

This beast needs large amounts of food, delivered consistently, in the timing it wants, in the way it wants it.

We have learned this lesson. Deliver these materials to the AEC community in the timing, quantities, quality, and through the systems they use. Architects specify. Builders buy and build. Owners pay both.

Architects use software. They build 3D models in that software. They pick materials from known, vetted, and consistent vendors. Engineers need to know exactly what things are.

To say that the owners don’t care is too broad a stroke. They may care about the sustainability of the planet and its resources, but they care first about the sustainability of their businesses, meaning their businesses need to profit. If the numbers don’t work, they won’t change the system.

But what if the numbers DO work?

That’s what’s coming. That’s what makes this work. That’s what brings all these things together for a system-wide solution. Stay tuned. A lot is happening. It is all coming together and you can be part of it. Join us.

Larry

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