DOLLARS AND SENSE SALVAGE Spawning Economic Development from Material Recovery

On average $1.6 billion dollars is spent on disposal of construction debris. 53% of that is directly from demolitions. The process of demolition creates no new jobs. 75%-98% of all materials from a demolition are recyclable, or reusable. Municipalities spend approximately $50,000 per demolition. Demolition and disposal are the end game, all materials reach end of the cycle at the land fill.

Typically any building built prior to 1972 is 75%-98% recyclable, or reusable. Deconstruction and salvage on average creates 1 to 10 jobs directly to each project. While a deconstruction project may bid higher than demolition, it is on the reclamation of materials that deconstructions are often 40% or more cheaper than demolition and in some cases generate a large profit in the longer run. Not all buildings are candidates for deconstruction but all are candidates for salvage.

Demolition is quick and dirty. Deconstruction is slow and clean.  A typical demolition through a municipality will often skirt environmental requirements by applying the label of emergency. The process to completion is 3 to 5 days.  A typical deconstruction and salvage will take 30 to 90 days to complete and embraces environmental requirements by working closely with inspectors, asbestos and hazardous material handlers for a controlled and systematical disassembly of structures, creating jobs opportunities.  Demolition disturbs neighborhoods and creates unsafe environments until completed.  Deconstruction and salvage has minimal impact on neighbors and there is virtually no environmental issues in regards to noise, dust exposure or property damage.

By utilizing salvage and deconstruction historical, architectural and unique features can be preserved and reused to restore other structures in the region. Development of reuse centers in the recent years has created niche markets for theses items in local economies. Nationally it is estimated that the knobs and knockers market generated $100 million to the economy since Demolition will typical only recover high value items. Meaning copper, aluminum and other metals that are easily scrapped, the rest is sent to the landfill. No additional dollars generated as a result. With demolition there is missed opportunities to reclaim lumber, gypsum, shingles, flooring and sometimes even fixtures. All of which have a high market value if it was handled properly.

Job creation through salvage and deconstruction. Entry level laborer positions in deconstruction and salvage pay an estimated $20 to $30/hr. Spurs development of craftsman skills through the process of deconstruction and understanding of old building techniques. Development of material based businesses or service offering enhancements to existing businesses: New business demands of:  Shingle, gypsum and lumber recyclers.  Lumber, millworks and materials reuse.  Restoration material providers.  Material repurposing Current businesses restructure by:  Utilizing current equipment or expanding to offer onsite services.  Offering deconstruction at a lower cost to demolition.

Municipalities can drive the change from demolition to deconstruction and salvage by:  Change RFP’s to require specific materials or a percentage of the material in the demolition bid to be recycled  Change legislatively laws to require demolitions to recycle a specific percentage of total materials.  Regain control of landfill use.  Encourage deconstruction and salvage through the use of their Economic Development, IDA’s and Land Banks.  Develop deconstruction and salvage policies at the code level as well as train staff to the process and procedures of it.

Deconstruction in dollars and cents (Case study 1): Deconstruction Project Warehouse 9200 sq/ft wood structure Expense: Labor - $33000 (5 $32.00/hr) Equipment and waste disposal-$12000 Administration (inspections, permits, insurance) - $8000 Total Expense: $53000 Income from sale of lumber: $43000 NET COST: $9340 Demolition Bid Total Expense: $16800 NET COST: $16800 This was an actual project at the Presidio of San Francisco, done by a for profit business: Beyond Waste, Inc. The project took a crew of five, four weeks to dismantle the building and 87% of the building salvage for reuse, including board feet of Douglas Fir and Port Oxford Cedar. Over half of the material was sold on site while the remaining materials were moved to a retail and storage facility. The demo bid included no salvage and provided no new employment opportunities. In the end the cost was 45% less than the demolition bid. This was done in 1996 and the estimate today for this demolition would be approximately $50000, yet the deconstruction would roughly remain the same (+ or - $5000 in administration costs) other than the income for the lumber which currently would bring in around $52000.

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