I awoke the morning of June 24th to news of the Champlain building collapse from my wife, a realtor in Miami. She visited the building recently with her client.
Cited reasons for the collapse will likely involve steel rebar, cement, saltwater, weight variances, and soil stability – in a TBD structural failure scenario. A less resilient building taking an ultimate and tragic toll upon its residents. Bridges and seawalls had safety issues, but few that resulted in lives lost.
The following is a blog by IACMI partner Tyler Krutzfeldt, director of investment firm Mont Vista Capital based in Miami, that appeared on July 1. Krutzfeldt was instrumental in working with IACMI to organize a community forum in the Wynwood neighborhood of Miami on April 18, 2019, titled “Composites Innovation for Resilient and Sustainable Infrastructure.”
By Tyler J. Krutzfeldt, CFA
I awoke the morning of June 24th to news of the Champlain building collapse from my wife, a realtor in Miami. She visited the building recently with her client.
Cited reasons for the collapse will likely involve steel rebar, cement, saltwater, weight variances, and soil stability – in a TBD structural failure scenario. A less resilient building taking an ultimate and tragic toll upon its residents. Bridges and seawalls had safety issues, but few that resulted in lives lost.
In 2018 and 2019, we hosted an infrastructure investment meetup in Miami with IACMI-The Composites Institute, the University of Miami, and Lloyd’s of London to explore the benefits and cost of more resilient materials in coastal cities like Miami prone to sea-level rise and saltwater intrusion. Our team concluded three system-based solutions are necessary:
- Underwriting standards that recognize lower lifetime costs make sense, not only today’s cost to build. Buildings which may last 100 years should be a goal. By including lifecycle cost analysis (LCCA) when infrastructure is financed, investors can make better decisions. Resilient materials that protect our environment and our people need more consideration by investors. Guarantors like Swiss Re and Fannie Mae can shape capital flows with LCCA incentives in deal structures.
- Recognition of lower weight building materials such as mass timber and composite fiber materials in building codes across the nation. Our structural engineers & architects can design cost-effective buildings that rival lightweight electric vehicles that we drive. Imagine resiliency to both earthquakes and saltwater. Our nation’s entrepreneurial zest will shine here.
- Recognition of lower embodied carbon building materials by lifecycle analysis (LCA) will reward first movers. Let’s connect the dots between healthy, resilient buildings and a healthy environment. We did it for fuels. We can do it for our building materials. We need an LCA systems-based approach included in any new federal infrastructure investment. This will guide investment in more resilient products, including concrete.
Impact investors have a strong voice. These environmental-social investment themes above require Board attention, education. Corporate leaders who promote novel and more resilient product development stand to excel! Data-driven ESG investors are beginning to take notice. Product innovation is a winner if supported by LCCA and LCA data with high integrity and compelling outcomes.
It may be too early to opine on solutions whilst families’ and first responders’ weep today. Yet I can’t sleep soundly knowing that we can do better tomorrow. We must do better. DM me for an invitation to our Resilient Infrastructure CEO workshop on October 12th in Montana.