MARCH/APRIL 2007
Sure, the demolition industry knocks down buildings, but it’s just as focused on recycling, safety, environmental compliance, emergency response, urban renewal, and much more. Just ask Mike Taylor, head of the National Demolition Association.
BY JIM FOWLER
Oh, you’re the guys that blow up buildings!”
That’s the reaction Mike Taylor usually gets when he talks about the demolition business with the uninformed. That’s probably the greatest misconception about the industry, says Taylor, executive director of the National Demolition Association (Doylestown, Pa.): “that all demolition is explosives, when in fact the exact opposite is true.”
Implosions account for only 0.5 percent of the U.S. demolition business, he notes, which means that 99.5 percent is done through other means. NDA even has a section on its Web site (www.demolitionassociation.com) that addresses that and nine other misconceptions of the demolition industry—everything from its dangerous nature to its lack of sophistication to its high cost.
One particularly grievous mistaken belief on that list is that the demolition industry doesn’t contribute to the nation’s recycling efforts. In reality, U.S. demolition companies are a “partner” to the scrap processing business, he says, recycling some 80.5 million tons of material each year. Clearly, there’s a lot to learn—and unlearn—about an industry that generates about $4 billion in sales annually and employs 20,000 to 25,000 people.
Here, Taylor reviews the demolition industry’s recycling contributions as well as the challenges and prospects of the business and its trade group.
How much demolition debris is generated annually, and what happens to it?
The United States generates some 115 million tons of demolition debris each year, of which about 70 percent—or 80.5 million tons—is recycled.
We’re only able to recycle those commodities that have a market value. That includes 100 percent of the scrap metal. A huge percentage of the concrete also is recycled, especially in areas where there’s a lot of aggregate demand, such as Los Angeles and San Francisco, and in areas of poor aggregate quality, such as south Florida. In many areas there’s also a demand for wood debris as a fuel supplement, a sludge-drying agent, or a raw material for new wood products such as particleboard.
C&D recycling has been growing steadily over the years. The industry used to generate about 100 million tons of debris and recycle 30 [percent] to 40 percent of it, but that has increased dramatically in the past 10 years.
What would increase the demolition recycling rate beyond 70 percent?
First, markets for demolition materials need to be expanded. This can be done by promoting the materials’ reuse to architects, specification writers, engineers, developers, and government purchasing agents. Just suggesting that some of these materials should be evaluated for certain specific reuses would help move them into the marketplace.
While many constituent materials of a building can be recycled from a technological standpoint, most have little market value now and, therefore, they often end up in a landfill. Asphalt shingles, which have a high oil content, are an example of this type of commodity. Drywall is also plentiful in demolition debris, but no one is recycling large volumes of it.
Architectural debris with lead-based paint, especially painted wood, can’t be readily recycled, even for use as a fuel supplement, because of the lead. Some people think that asbestos presents a problem, but almost all asbestos is abated prior to demolition. The problems you see are often related to undiscovered asbestos-containing material found in concrete that’s going to be recycled.
Second, state and local governments that are promoting recycling need to make sure that various institutional barriers are removed so demolition firms can grow markets for these materials while protecting the environment.
What barriers to demolition debris recycling have states created?
Numerous states have developed successful efforts that have increased the volume and percentage of municipal, industrial, and C&D material that’s recycled. Unfortunately, some states—such as California and Texas—have established institutional barriers that make demolition recycling economically unattractive or even infeasible. Examples of these practices include charging large amounts of money for recycling site permits and licenses, failing to develop statewide permits for mobile recycling plants, developing regulations that severely limit project-site recycling, and attempting to promote local economic development by establishing flow-control ordinances.
NDA wrote a white paper on this issue, urging the federal government to develop a national C&D recycling policy. The government won’t do that because waste management is a state issue, but it needs to at least promote C&D recycling at the state level. It needs to convince architects, spec writers, and structural engineers that this material is good quality. That would be a tremendous boost to C&D recycling.
It’s important to remember that the development of a demolition debris recycling facility can be expensive. The equipment, land, fuel costs, labor, training, and landfill availability for unrecyclable materials make the process capital-intensive. The profit margin on these enterprises is often extremely low, so any institutional barrier or significant regulatory cost can determine whether the facility is developed or not.
How have the hazards facing the demolition industry changed?
Many industrial facilities developed during and after World War II are coming to the end of their useful lives, and demolition contractors in the United States and Canada are running into a lot of contaminated sites. A chemical revolution took place after World War II with the development of plastics and other substances. Some of the facilities that manufactured these products must be approached differently than other structures during the demolition process. Electroplating plants, small chemical manufacturers, and various industrial facilities all have to be researched prior to demolition to determine the safest method, making sure to protect workers, the client’s assets, the environment, and the public.
What progress have you made on improving the industry’s safety?
NDA’s safety program is one of its greatest membership services. We believe safety is what we really sell to our market. As the repository of safe work practices for the demolition industry around the world, our program has to be state-of-the-art to meet the needs of our industry and our clients. Our Demolition Safety Manual, which is correlated to the OSHA construction standard, is the bible of safe demolition work practices. Similarly, the association provides programs on hazard communication, lead-based paint, and safety talks for members and their employees. We have developed a demolition-specific video on new-employee orientation as well as a number of specialized equipment safety videos, available in both English and Spanish. We are also an OSHA Alliance partner and have been working closely with the agency to develop programs to protect our most valuable resource—our skilled workforce.
Demolition is perceived to be a dangerous business. Over the years, however, the industry has become more equipment intensive, which means it employs fewer people and, therefore, it has fewer accidents. Often our state workers’ compensation rates don’t reflect the industry’s actual accident experience. We have few fatalities and tend to have the same type of general construction accidents as every other construction industry subcontractor.
What changes have you seen in the industry over your 15 years as NDA executive director?
Most change in the demolition industry is pushed by two sources: the regulatory community—federal, state, and local government agencies—and demolition clients who are interested in lowering their costs, being more productive, and keeping their investors happy. They want “lean and mean” service providers, and that’s us.
The level of sophistication required in demolition has increased dramatically. As the federal agencies that regulate our industry—like OSHA and EPA—have matured, their standards have become more and more difficult to meet. Demolition firms have had to invest a lot of money in safety and implement NDA’s safety program to be successful.
Government hasn’t been the only one pushing demolition contractors on the safety issue; the insurance industry has been pushing as well. If your demolition company had a lot of losses, your insurance rates went up, and you quickly found yourself noncompetitive.
In addition, demolition clients are saying, “We’re going to get much more involved with quality control and doing the job safely, efficiently, quickly, and productively.”
The other change was the huge revolution in hydraulics in the second half of the last century, a trend that has accelerated in the past 15 years. Prior to World War II, the industry was labor-intensive—wrecking bars and sledgehammers ruled the day. As new technology came online and excavators and attachments became more powerful, the demolition labor force began to drop. What you see today, in general, are fewer laborers and more highly trained equipment operators.
This hydraulic revolution has helped the industry become more productive and more efficient. At the same time, demolition contractors have had to develop more sophisticated skill sets as the challenges of projects get more difficult—the buildings get taller, more complex, and more dangerous.
NDA exhibited at the Brownfields 2006 conference in Boston. Is this a growing area of interest for demolition contractors?
NDA is a member of the National Brownfields Association and has exhibited for years at that group’s convention, which is run in concert with U.S. EPA and the International City/County Management Association. The Wall Street Journal estimates there are 450,000 to 1 million brownfield sites in the United States, such as abandoned gas stations, small industrial plants, dry cleaners, and the like. The federal government authorized $1.2 billion over the six years from 2001 to 2007 as seed money to clean up these brownfields. States also put in some money of their own. Then mortgage banking companies, industrial real-estate firms, and state economic development agencies joined the effort. They pledged to kick in money to clean up the sites if jurisdictions got federal and state funds.
Demolition contractors are involved in this work. For NDA, it’s an opportunity to deal with the issue of sustainable development—of stopping urban sprawl. The U.S. Council of Mayors, the U.S. Department of Housing and Urban Development, and the American Planning Association say we’ve got to stop the creeping of our communities. When we build farther out, we have to create infrastructure and build highways. Meanwhile, the inner cities are dying. Most of the brownfields are in big cities where the public infrastructure already exists. Cleaning up brownfields and reclaiming these sites for productive, economic reuse is a good idea. We believe this is one of the primary future markets for the U.S. demolition industry.
Are there special challenges in recycling materials from brownfield sites?
The EPA has been aggressively promoting the recycling and reuse of materials from brownfields. The agency believes that these recycling opportunities will drive down cleanup costs, leading more sites to be decontaminated for reuse. In many cases, the recycling opportunities at brownfields can be quite good. They are often old industrial sites with a lot of metal ready for the scrapyard. The key issue is always going to be making sure that the material is safe for reuse. Demolition contractors know the stringent quality control requirements set by the scrap industry and other end users. Any products from a brownfield site are going to be completely decontaminated and safe for processing and reuse before they leave the cleanup site.
What is the role of demolition contractors in working with first responders during emergencies?
NDA wrote a position paper in 2004 stating that demolition contractors should be included as first responders. In 2005 we held a training program with the International Association of Fire Chiefs, and it became clear to us that, rather than joining the crowded field of first responders, we should be second responders. The idea is to have the fire chief, who is usually the first responder on the site, evaluate the situation, then call a prequalified demolition contractor and specify what’s needed. We’ll then provide trained people who have the equipment, skills, and knowledge to do this work.
In March 2006, we sent a thousand information kits to fire chiefs in the United States and Canada that included a 15-minute DVD titled “The Role of a Demolition Contractor at a Disaster Site.” The response has been amazing.
Demolition contractors interested in this type of work call on their local fire chief and offer their services. They are then prequalified and must adhere to strict requirements. If a company can’t or doesn’t perform, it won’t be kept on the list.
We’ve also had calls from fire chiefs around the country asking for names of NDA member companies to contact in their areas. We’re working now to develop the infrastructure within the demolition industry to respond to such requests with skilled support people and companies that are qualified to perform this kind of service. I see this as a growing part of our members’ businesses.
What role does NDA play in higher education?
For one, we offer seven scholarships annually that total $31,000.
Also, we have developed with the Purdue University School of Construction Management a sub-major in demolition. Our first class will graduate in May, and each of those graduates will have at least 10 job opportunities from which to choose when they walk across the stage with their bachelor’s degrees.
Purdue has the largest construction management school in the country, and NDA provides some of the funding for the demolition program along with technical information and speakers. NDA started this program because demolition contractors need managers, particularly middle managers. That’s our biggest labor crisis.
We need to develop the next generation of skilled personnel for the industry. While the demolition industry tends to have a lot of family-owned businesses that pass their companies down from generation to generation, the industry must offer programs and educational opportunities to attract others to the business. Our demolition sub-major at Purdue is a good start, but we need to do more to get young people interested in the industry.
On the subject of labor, is the industry struggling with the issue of employing illegal immigrants? Has the association taken a position on the subject?
The industry is aggressive in attempting to comply with the myriad immigration requirements, but that can prove difficult. It’s also important to remember the many contributions that immigrant workers bring to their companies, the community, and the industry. They are hard-working, skilled people who are an essential part of our industry. NDA’s board of directors has been evaluating the issue of immigration reform for a while. Although NDA has yet to develop a position on this vital issue, we are following closely the debate in Congress and will work to make sure any proposed legislation is fair, with no deleterious effect on the industry.
What NDA programs are you particularly proud of?
Our comprehensive safety program is definitely at the top of the list. If a demolition contractor implements that program and puts the will of management behind it, the company will prosper, its insurance costs will drop, and its workforce will be safer and more loyal. The marketplace will also have a more positive perception of the company.
In a relatively short time—a 10- to 15-year cycle—we have aggressively and successfully promoted public policy initiatives that foster the industry’s recycling and environmental efforts. The volume of material that’s reused from a demolished building has increased dramatically. The metal was always reused, but now every other component of the building can be recycled, and there are more and more markets for that material.
And finally, I’m proud of our environmental sensibilities—the idea that we understand the necessity for sustainable growth; that we consider ourselves major players in the larger issue of urban growth and sprawl; that we have been successful in dealing with environmental compliance issues.
The demolition industry is a major part of the American economy because we are constantly revitalizing the landscape. As our motto says, our members are preserving the past and preparing for the future.
How can the demolition and scrap industries work together better?
The demolition and scrap industries are partners in improving our communities, recycling commodities that are a vital part of our economy. We are confronted with many of the same issues, like keeping our workers safe and protecting the environment. We need to expand our efforts to inform government agencies and the public about the economic and environmental benefits our two industries provide.
What are the NDA’s greatest challenges going forward?
In my view, the main challenges are growing the association, expanding its mission, and making sure that every firm involved in any aspect of the demolition industry is a member of NDA or at least aware of the organization.
One of my great challenges is to push the industry to explore these capabilities and say, “This is who we are. We’re proud of the work we do.” We need to shout from the rooftops that we’re an important part of a community’s services.
Building a Demolition Association
The first organization to represent U.S. demolition companies—the National Association of Wrecking Contractors—was founded in Chicago in 1946, but it was short-lived. Fast forward to the early 1970s, when the federal government created the EPA and OSHA, and U.S. demolition contractors saw the writing on the wall—these new agencies would have a huge effect on how they operated their businesses.
As a result, in 1973 a group of forward-thinking contractors formed the National Association of Demolition Contractors. Red Mandell, the association’s first president, convinced his partner, Bill Baker, who owned a Chicago-based brick recycling company, to be NADC’s part-time executive director. The group held its first convention that year in Las Vegas, and Caterpillar Inc.—a major equipment supplier to the demolition industry—published the young association’s magazine, Demolition Age.
Within four years, NADC’s initial membership of 60 firms grew to 360, and its annual convention and exhibition established itself as an essential industry event. Over the years, NADC’s membership numbers and services grew steadily. Baker retired in 1992, after 20 years of service, and Mike Taylor became the association’s executive director soon after.
In 2005, the organization changed its name to the National Demolition Association to “expand the association’s mission and better represent companies involved in all phases of the demolition process,” Taylor explains. “Prospective members who were not demolition contractors thought the association was just for contractors—the name was exclusionary. NDA’s goal is to be inclusive, to provide membership services and technical support to anyone involved in demolition in any way.”
Today, Taylor and two executive assistants work out of NDA headquarters in Doylestown, Pa., serving more than 1,000 member companies in the United States, Canada, the United Kingdom, Peru, Greece, South Africa, South Korea, Australia, and New Zealand. The association also has close ties with the National Federation of Demolition Contractors in the United Kingdom and the European Demolition Association in the Netherlands.
TAYLOR'S TALE
Mike Taylor became executive director of what was then the National Association of Demolition Contractors in late 1992, but his involvement with the industry began years before that.
Born in Philadelphia in 1948, Taylor graduated from St. Joseph’s College in 1970 with a degree in international relations. He continued his studies at Temple University, where he earned a master’s degree in public administration. He did postgraduate work in environmental planning at Drexel University and is completing his doctorate in Central and Eastern European studies at LaSalle University.
Taylor’s first job out of school was serving as assistant township administrator of Brick, N.J. After a stint in a similar position in Princeton, N.J., and a seven-month period as a cab driver in Philadelphia, he joined an engineering company in Fort Washington, Pa., which first exposed him to the demolition industry.
At that time—in the early 1970s—NADC received one of the first New Directions grants from OSHA: $650,000 over four years to develop a safety program for the demolition industry and aid in the development of the association. The engineering firm where Taylor worked was the successful bidder for the NADC contract, and Taylor assumed the task of writing the safety manual, which required him to attend NADC board and safety meetings.
In 1980, two large demolition contractors invited Taylor to join the industry as a partner directing his own company, Hazardous Materials Contracting. The company, which he owned for eight years, bid on large asbestos-abatement projects, a topic he had learned about while writing NADC’s safety manual.
After Taylor sold the company to his partners in 1988, Bill Baker, NADC’s executive director, asked him to take over the NADC magazine, Demolition Age. When Baker retired in 1992, the association hired a Washington lawyer to run the association. He lasted only three months. Later that year, NADC offered the job to Taylor. “They gave me specific guidelines as to what they wanted me to do,” he recalls: “grow the organization, improve our relationship with the federal government, and expand the level of membership services.”
Now, 15 years after taking the helm, Taylor has a unique perspective as one who has both worked in the industry and served as its principal advocate. Does he miss being in the demolition business? “Yes, I do,” he says, “especially in good economic times, but I’m better at this. I’m more service-oriented than I am a classic entrepreneur, so running the industry’s association is a terrific fit.”
Jim Fowler is retired publisher and editorial director of Scrap.
Publisher’s Note: Contact NDA at 215/348-4949 or www.demolitionassociation.com.
Sure, the demolition industry knocks down buildings, but it’s just as focused on recycling, safety, environmental compliance, emergency response, urban renewal, and much more. Just ask Mike Taylor, head of the National Demolition Association.