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Resiliency in Construction: Better Materials & Methods for High Performance — Transcript

by Matt Risinger · 11,935 words · 1,824 segments · language en · Watch on YouTube

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0:00All
0:05>> [music]
0:07>> right, my friends. Welcome back to
0:09another episode of the Build Show
0:13webinar. That's right. This is our time
0:15to get together and go deep on a
0:17particular topic. And we are talking
0:19today about resiliency. And I'm going to
0:22show you a wall concept that I bet
0:24you've never seen before. I met these
0:26guys at the International Builder Show
0:28and it was a display very similar to
0:31this that I kind of ran across and I met
0:34Todd, the founder and the COO of this
0:36company and Todd and I immediately hit
0:39it off. I fired off a hundred questions
0:41that he answered right away and I was
0:44like, man, this is really, really
0:46compelling, especially with this theme
0:48that we're talking about today, disaster
0:50resilience. So Todd Wright, founder and
0:52CEO. I've also got with me uh Kyle
0:56Hintan. Hintley.
0:57>> Yeah, you said it right. It's a tough
0:59one, but he's our sales guy. He's going
1:01to help you out in the future when
1:02you've got some sales uh that you want
1:04to talk to these guys about.
1:06>> But on this theme of resilience that
1:08we're talking about today, this is a
1:09really big deal nationally for us, Todd.
1:12And it's a big deal because of this
1:14slide right here. I mean, this stuff is
1:16happening and is in the news all over
1:18the place, isn't it?
1:19>> Yeah, it is. I mean from California to
1:21Florida, we've had Palisade fires, we
1:24have hurricanes constantly um in Florida
1:27and also here in Texas. So, you know,
1:30we're just plagued with uh all kinds of
1:32issues from mother nature all across the
1:35country, earthquakes, fires, hurricanes,
1:38etc.
1:39>> For sure. And if you look at this mockup
1:41wall that we put up here, that is what I
1:43would consider traditional framing. I
1:45mean, this is how we've been building in
1:46America for hundreds of years. is maybe
1:49not with 2x4s for hundreds of years, but
1:51with wood construction since our log
1:53cabin days.
1:54>> My [clears throat] cousin owns a 250y
1:56old log cabin. By the way,
1:57>> wow, that's But you know, we've been
1:59building with wood for a long time. And
2:01wood is great
2:02>> except for when it isn't. Except for
2:04when there's a fire or except for when
2:06you've got some mold issues or mold size
2:08of clients or except for when the
2:09termites come uh for that house. So,
2:13with that being said, Todd, uh let's
2:15actually show these guys, jump right
2:17into the mockup because what you guys
2:19have done is very different uh than what
2:24most people think of. And actually, I'm
2:25going to hang on one sec. One quick sec.
2:27Will you guys meet me over at the uh at
2:29the display here? Sure. Cuz I want to I
2:30want to start with this demo of how your
2:34system holds up against uh fire in
2:38particular. So, let's actually roll this
2:40video as we're coming out here.
2:41>> Yeah. So, what are we looking at on this
2:43video, Tob?
2:45>> So, this is a fire test that we did last
2:47week uh at our uh location in Florida.
2:51>> We essentially took a frame pretty close
2:53to this one right here. We wrapped it in
2:56MGO inside outside full credo system and
3:00then uh we put about 10 pallets inside
3:03and outside around the around the
3:05building
3:05>> and you could see the fire burning
3:07raging fire inside and outside on your
3:09wall assembly, isn't it? It was was
3:11actually pretty hot. We were a little
3:12over 100° that day and uh the fire uh
3:15got to about 1100°.
3:17>> Oh my gosh.
3:18>> And um we let it run for about an hour
3:20and and then we put it out. But uh
3:22>> and then part two of this video that
3:24we're playing now is after how long this
3:26video is playing?
3:27>> Uh this is about I think 48
3:32maybe 48 to 55 minutes or so.
3:34>> Okay. So about an hour later.
3:36>> Yeah.
3:36>> Yeah. We're ready to do some barbecue in
3:38there. Don't you think? It looks like
3:39you're ashed over, but it looks to me
3:41like your wall is also solid still. I'm
3:43just still standing.
3:44>> Yeah. Yeah, it is. Um, you see that back
3:47wall inside, you know, that was engulfed
3:49with flames.
3:50>> Mhm.
3:50>> And um unlike a typical fire, we've got
3:53flames on the inside and the outside of
3:55the building simultaneously. So, we
3:57really, you know, we're putting it to
3:58the test.
3:59>> Yeah, you were big time.
4:00>> Yeah. So, that particular uh
4:02configuration has a 12-in webbased floor
4:06system.
4:07>> Okay. made of cold form steel. It has an
4:09MGO uh subflooring. It has half inch MGO
4:13on the inside and then it has the MX7
4:16board on the outside of the building.
4:18>> Okay. So, now that you've seen that
4:20demo, let's show you a very similar
4:22mockup to exactly what you saw in that
4:24fire test a second ago. And and just for
4:27the uh the understanding of some of the
4:29logos and such, let me let me explain to
4:31you real quick. Uh their company is
4:33called Performance Building Solutions,
4:35right? So when you look at their
4:36website, performancebuilding solutions,
4:38but Kratos build and the Kratos wall is
4:41what exactly, Todd?
4:42>> Yeah. So it's really our building
4:44system. U we branded the product
4:47separate from the company, right? So
4:49>> um the Kratos wall is what we're looking
4:52at here, which is your exterior wall.
4:54>> So when I look at this, I think this
4:56looks like a lot like a commercial
4:58building to me, right? We
4:59[clears throat] we're building with
5:00platform uh concrete platforms and then
5:03we've got infill between the red iron.
5:05This is what I would see. Steel studs.
5:07>> Exactly.
5:08>> And something that's fireproof on the
5:09outside.
5:10>> Exactly. That's what we've done. We're
5:11essentially taking commercial grade
5:13construction, best of breed materials,
5:16and then bringing that to the
5:17residential market,
5:19>> but doing it in a way where we're doing
5:20it in a factory, right, which is
5:22industrialized construction.
5:23>> So, in other words, this is in effect a
5:26SIP panel. You know, when I think of
5:28SIPs, I think of the acronym structural
5:30insulated panel. And so, their company
5:33builds these panels in a factory. We're
5:35going to get into that in a minute.
5:37Ships them to the job site and you put
5:39them together. Uh, no organics. You're
5:42going to not see any wood in this system
5:44at all. And in fact, there's not even
5:46any paper facing as well cuz they've
5:48used this magnesium oxide board on the
5:50inside and the outside. But also what's
5:53different about this than a traditional
5:54SIP is your cavities are open like
5:57you're seeing on this back wall. Right.
5:59>> Right. Right. I mean that's if you've
6:01worked with SIPS, which I know you have
6:03in the past. Right. Couple of the few u
6:05couple of the issues that we run into
6:07with SIPS is that we get a lot of
6:09complaints from the trades, all the MEP
6:11trades, the inspectors can't see in the
6:13wall. Connections are an issue. So, um,
6:17we set out to try to achieve what was
6:21already achievable with the SIP panel by
6:24eliminating the thermal bridging, which
6:25I know we're going to talk about, but at
6:27the same time address the issues and
6:29challenges that we have with traditional
6:31SIP. Yeah.
6:31>> So, this is like a hybrid ZIP. We call
6:33it a CIS, which is a structural
6:35insulated system. Gotcha.
6:37>> Because we don't just sell wall panels,
6:39>> right? We're trying to um do a holistic
6:42design and engineering of the entire
6:43building.
6:44>> I like it. So the Kratos the Kratos wall
6:47is the exterior wall but the Kratos
6:49build is the entire structure. So that's
6:51your exterior walls, your interior
6:52walls, columns, beams, floor trusses,
6:54roof trusses, flashings, fasteners,
6:57sealants, the whole thing essentially as
7:00a kit, right, that you're going to tilt
7:02up wall in the in the field.
7:03>> Gotcha. Now steel framing obviously
7:06moldproof, obviously termite proof, very
7:09floody, right? And if I had a flood that
7:11occurred in this wall back here and you
7:14see I've got some closed cell foam, all
7:16I'd have to do is pull that cavity
7:17insulation out. And if this is a
7:20magnesium oxide board, will you hand me
7:21that board right behind me? By the way,
7:23uh this is also one of their products.
7:26This magnesium oxide board won't absorb
7:28water. Uh it's naturally mold resistant
7:30because there's no organics. I could
7:32actually remove that panel, dry out the
7:36cavity, and move on. Well, not only we
7:39were in the ninth ward of Louisiana, we
7:41could survive, right?
7:42>> Exactly. We actually had that happen to
7:44a house there, but uh
7:46>> uh the other important aspect of that is
7:49you can actually put the same board back
7:51on.
7:51>> Oh, how about that? Yeah,
7:52>> that's awesome.
7:53>> Yeah. Yeah. So, you're not sending all
7:54that, you know, like you would typically
7:56gut the entire thing and send that
7:58chipboard to the landfill, right?
7:59>> So, it's a very lose it structural
8:02abilities by getting soaked or
8:03underwater for a day or two.
8:04>> No, it's not. We've had these panels
8:06outside for over a year at our factory
8:08just sitting outside being rained on
8:12constantly. So, we should send you a
8:13couple of those samples so you can look
8:15at it. Yeah.
8:15>> Now, here's the downside of steel in my
8:17mind, though. I'm worried that if I get
8:19air leakage in here, especially if I'm
8:21building a house in the south. You know,
8:23you guys are based in Florida. I'm based
8:25here in Texas. If I'm building a Florida
8:27coastal house with this, it's often hot
8:29and humid out. I'm worried if I get any
8:31air leakage in this cavity, this steel
8:33is going to be the same temperature as
8:35my air conditioner. Uh, and I'm going to
8:37have some condensation issues. But
8:39you've addressed that. How, Todd?
8:41>> Well, the first thing that we have to
8:43address is the thermal bridging, right?
8:45You I mean, you flew all the way to
8:47Australia, right?
8:48>> Saw steel framing steel framing and I
8:50was sure worried about it.
8:51>> Exactly. No, it was a great point. Uh,
8:53so I I I love that uh that episode. So
8:57one of the one of the first things that
8:58we need to do is we need to eliminate
9:00the thermal bridging right so that's
9:02going to eliminate that cond you know
9:04that temperature variation and the and
9:07the uh uh the condensation to form
9:10>> and there's you know for a long time
9:12there's been a lot of conversation about
9:14breathable walls right hey those walls
9:16need to breathe we see those comments
9:18all the time
9:19>> but in reality the walls need don't need
9:21to breathe people need to breathe right
9:23so what we need to do is we need to make
9:26that there is a way for that wall to um
9:29exchange humidity, right? And that's
9:32inside. So by, you know, there's a
9:35saying, right? Build tight, ventilate,
9:37right?
9:37>> That's right.
9:38>> Right. So that's what we're trying to
9:39do. So we want to stop that air
9:41infiltration or leakage on the outside
9:44and let the wall breathe inside with the
9:47controlled humidity
9:48>> and air conditioning inside the house.
9:50And the other thing you've done with
9:51this assembly is this magnesium oxide
9:54board that's bonded to insulation is
9:57their product. They call this the MX7
10:00panel. So this sheathing that's on the
10:02outside is mag oxide. And that sheathing
10:05is bonded to, in this case a half inch,
10:07but it could be greater if you wanted
10:09to. Uh EPS foam. So now when you look at
10:12this sandwich, actually Kyle, will you
10:13help me rotate the wall here a little
10:15bit?
10:15>> Absolutely. You're going to notice that
10:18that sandwich is actually glued on to
10:21the assembly. Okay, that's probably good
10:24for now because I want to be able to
10:24share this side. So, this sandwich is
10:27actually glued on. And you can see a
10:28little bit of that glue right there.
10:31It's probably, I would guess, a
10:32polyurethane glue. They have a patent on
10:34this, so we probably can't tell you all
10:35the secret sauce. Uh, but that assembly
10:38is glued on. And then if you look in the
10:40back here, then at the factory, they've
10:44sprayed in a couple of inches of closed
10:47cell foam on top of that. So that whole
10:50assembly is a structural panel. It's
10:53been insulated and it's got a thermal
10:55break at all these steel studs. But the
10:58cool part about that is I've got an open
11:00stud bay that I can bring the
11:02electrician in. I can bring the plumber
11:04in and run all those services inside of
11:06that service bay. And then if I want to
11:08add additional insulation, you see he's
11:10got some rockwool bats in here, let's
11:12say, or that could be fiberglass. That
11:14could be whatever you could add more
11:15spray foam if you want. Then I could add
11:17additional cavity insulation. But what's
11:20cool about this now? Let's complete the
11:22rotation cuz I want to show them this.
11:24>> They can actually go right over top of
11:26this mag oxide board with what, Todd?
11:30What are we looking at here? This green
11:31face.
11:32>> Uh, this is a synthetic elastoic struck
11:36uh stucco. Mhm.
11:37>> Um it's what we call direct apply. We're
11:39all familiar with the EF system.
11:41>> Uh so this is called the DEF system,
11:44direct apply finish system, DFS.
11:46>> And um with the MGO board like
11:49cementitious type board, we're able to
11:51go directly to that substrate.
11:54>> Uh the in this particular case,
11:56>> so in other words, this isn't
11:57traditional L and plaster stucco. This
12:00is basically something that's adhering
12:02right to that cementitiousbased board.
12:05>> That's right. And it becomes the air
12:06barrier to the water barrier and you've
12:09got a sanded kind of coat with an
12:11elasame paint in the front. That's
12:12right.
12:13>> So that's your finish as well.
12:14>> Right. In fact, it comes in color.
12:16>> So with this this particular
12:18application, your Let's talk about the
12:20layers, right? So your first layer of
12:22course is the boards already part of the
12:24panel. When you tilt that wall up,
12:26you've already solved seven issues or
12:28seven trades.
12:29>> Okay. What are those?
12:30>> That's that's why you have the seven,
12:32right? So, you have your there's
12:33actually a few more, but essentially
12:35you've got your structural frame,
12:37>> you have your insulation, you have all
12:39your hold downs, okay? You have your
12:41exterior um continuous insulation, your
12:45CI,
12:46>> you've also got your exterior sheathing.
12:48>> You've got your fire rating.
12:50>> Okay. And
12:51>> what is the fire rating on this?
12:52>> So, this particular uh panel is the 1 in
12:56MX7.
12:57>> We rotate.
12:58>> So, it's 1 hour.
13:00>> It's a 1 hour. 1 hour. Yeah, the 1/2 in
13:02MGO is a 1 hour.
13:04>> So, you know, I actually have a big
13:06lighter over here and I was thinking
13:08about uh you know, putting this big
13:10lighter. I don't know if this is legal
13:11at the
13:12>> Oh, no. No. To see if this would
13:15actually catch fire.
13:16>> No, no, we don't want that. We want
13:17this.
13:18>> Oh, what do we got?
13:20>> Come on.
13:21>> All right. So,
13:22>> let's crank it up. So, we got the MX
13:25panel
13:26>> and we've applied it to wood framing
13:30instead of uh steel studs.
13:34>> Yeah.
13:36>> Check that out. That's pretty legit.
13:40>> It's up full blast.
13:43>> So, we're I don't know 1,000° or so on
13:46that magnesium oxide board. But you
13:49notice this is this is being applied to
13:51standard wood framing which they'll sell
13:53you just the magnesium oxide board.
13:55>> Wood's not going anywhere right in the
13:57Northeast everybody's using wood frame.
14:00>> Very little light gauge steel going on.
14:02Um
14:03it's it's coming down the pike but it's
14:05not there yet. So this is a great option
14:07here. You have your continuous
14:08insulation MGO panel. So you have your
14:10fire rated panel. You have it's water
14:13resistant. It's uh pest resistant. It's
14:15mold and mildew resistant. So, allin-one
14:18and your continuous insulation.
14:19>> It's pretty compelling.
14:21>> And Todd, when I met you at the
14:22International Builder Show, you had a
14:24sample uh of this MX7 board going with a
14:28torch that it looked like it had been
14:29sitting there for a while. This wasn't a
14:31two-minute demo like this.
14:33>> Yeah. In fact, we brought it with us.
14:35So, this ran about 3 hours. Uh what's
14:38impressive about this is that um it's
14:41only the half inch version. So, it's
14:43only rated to an hour. So you started
14:44this at 1, you know, 130, let's say, ran
14:47it for 3 hours, and that's how much
14:49damage was done to the face. It does not
14:51look like this has been structurally
14:53damaged.
14:54>> A little charring. You can
14:56>> And this is um
14:58>> Yeah. So this is
14:59>> technically this is only a 1hour fire
15:01rated wall, though.
15:02>> Right. Right. Technically,
15:03>> and part of that is because a little bit
15:04of the heat transferred through, right?
15:07>> And the EPS foam a little bit on the
15:09back melted. Now, not very much,
15:11frankly, and not a lot of damage.
15:14But that's not bad for three times what
15:16it's rated life at.
15:17>> Yeah. Yeah. And what I thought was
15:18interesting was one, you know, the EPS
15:21has air bubbles in it, right? So there's
15:23no offging or anything like that, but I
15:26thought it was interesting that the size
15:29of this area pretty much matched.
15:31>> Yeah. This,
15:32>> you know, so we didn't have a lot of
15:33propagation
15:35>> of the heat beyond the the the initial
15:38or direct impact of the flame. I thought
15:40that was
15:40>> was kind of interesting. Now, that
15:42coupled with wood framing is going to
15:44meet your, let's say, 1 hour rating if
15:46you're in a WOOI zone. Um, but we can
15:49also meet two or three hour ratings by
15:51doing what, guys?
15:52>> Well, so you have different thicknesses
15:53of the boards, right? So, you can go
15:55from/ inch to 5/8, right? Uh, and then
15:58you can also get a higher R value if
16:01you're doing EPS foam on the back if
16:02you're using the MX7 board. And you can
16:05do/ inch, 5/8, all the way up to an
16:08inch,
16:09>> three up to 3/4 in ongo.
16:11>> And do you guys have Oh, okay. So So we
16:13could go even a 3/4 MGO board.
16:16>> And so you guys in other parts of the
16:17world, didn't I hear you have an islands
16:19project going that has a three-hour
16:21rated fire?
16:21>> Yeah, we do. Yeah, we have a we have a
16:23project right now in the Bahamas that
16:25requires a three-hour fire rating
16:27because of the proximity of the
16:28buildings, uh, according to the Bohemian
16:30building code.
16:30>> How about that? So they're limited in
16:34being able to build with wood maximum
16:37two stories. Gotcha.
16:38>> And then they were limited to building
16:39with the CMU block and cast in place
16:42because of the cost and the weight.
16:44>> And so the light gauge steel system fit
16:46perfectly because it's non-combustible.
16:48We could go up to four stories
16:50>> and um also provided three-hour
16:53firewall. So looking at all the
16:55different building technologies, we
16:57really fit, you know, perfecting
16:59>> for that particular build. Now, let's uh
17:02explain to these guys from the bottom to
17:03the top real quick.
17:05>> Sure.
17:05>> Uh what you've got going on. So, first
17:07off, this floor framing system is also
17:10[snorts] like gauge steel and comes out
17:12of your factory.
17:13>> And what are we seeing in here when we
17:15look in this cavity?
17:16>> Yeah, we wanted to leave it open so you
17:17could see one I mean whether you're
17:19using a mineral wool or a bad insulation
17:21really, you know, doesn't matter. But if
17:23you look back in there, you'll see a
17:24solid sea joist.
17:26>> Okay. So we have equipment that can take
17:28the coils of steel and uh either you
17:32know roll stud or truss profiles or deep
17:34sea joist
17:36>> um you know which are
17:38>> well right and the nice thing about it
17:39when you do the rim tracks with the sea
17:41joist
17:42>> you can typically span a little further.
17:44>> Yeah.
17:44>> Um you don't have the assembly aspect in
17:47the factory so they're a little less
17:48expensive.
17:50>> Uh but on the other hand they're
17:51restrictive in that we really can only
17:53go 14 in. So 14, 12, or 10.
17:56>> Okay.
17:57>> So when we're looking at maybe a floor
17:59system that needs to be 24 in or even
18:02greater depending on the span, we'll
18:04need to uh resort to the web based
18:07>> trusses. Trusses.
18:08>> Yeah. Gotcha. And then what is this
18:09subfloor that's on top of this?
18:11>> This is a 3/4 in uh tongue and groove
18:16uh MGO board.
18:17>> Ah, so we also have a fire rating with
18:19that as well.
18:20done in condos or
18:22>> multifamily or mixed use residential
18:25commercial. This would also help us with
18:27our fire.
18:28>> Right. Right. And the interesting thing
18:29about this, this is a a product also
18:32that we make with one of our partner
18:34companies
18:35>> uh called Q Rock. And essentially what
18:36we're doing is we're marrying the
18:39acoustic mat to the underneath of the
18:42MGO board.
18:43>> Got it. So it's a little hard to tell,
18:44but this is actually an acoustic
18:47>> mat right in here. That's that comes
18:50already pre-applied to the
18:52>> already pre-applied
18:52>> and is gonna separate thermally and more
18:56more importantly acoustically. That's
18:58right.
18:58>> From this subfloor. So impact noises and
19:01other sound is not going to vibrate this
19:03like it would if it was mechanically
19:05attached MGO to steel.
19:07>> Y that's really smart.
19:08>> Yeah. And the other nice part about this
19:10is that you see it's underneath the
19:11subflooring where traditionally they'll
19:13install it as a separate process or a
19:15separate step with another crew when
19:18they install the final flooring.
19:19>> So here we're protecting that mat in a
19:21single install.
19:22>> That's pretty cool.
19:23>> Same concept as this MX7 board, right?
19:25We marry two products that are already
19:27going to go together
19:28>> together and we reduce our labor and our
19:31waste.
19:32>> I'm noticing that I've actually got a
19:34hold down in that cavity. Did that come
19:36from from your factory as well?
19:38>> Yeah. What we will typically do is is we
19:40will pre-install all the hold downs,
19:42clips, and connectors that go in the
19:45exterior wall in the factory. So that
19:48way we make sure that one they don't
19:50miss it. You know, a lot of times in the
19:51field
19:52>> there'll be an installation and they'll
19:53miss a hold down or a clip or some sort
19:55of connector
19:56>> and then of course the inspectors come
19:58and it's not there. So, um, we will, as
20:01a standard practice, pre-install all of
20:04the hold downs in those walls and even
20:07the X-racing as well.
20:09>> That's pretty awesome.
20:09>> Yeah.
20:10>> Now, isn't it a pain though for trades,
20:12Todd, cuz I got to drill this stud, then
20:15I got to find this plastic connector and
20:17I got to figure out where all my wiring
20:19and my electrical goes. Talk to me about
20:22transferring from a wood-based
20:24construction process to a steel-based.
20:26How hard is it?
20:27>> [snorts]
20:27>> Well, actually what we're what we're
20:30able to do is reduce about 50% of the
20:32labor
20:33uh with the MEP trades, especially the
20:36plumbing and the electrical by pre-
20:39punching all the service holes in the
20:40factory.
20:41>> Ah, so this actually comes from the
20:42factory.
20:43>> That's right. That's right. So unlike,
20:45you know, going to some sort of source
20:48for generic stud and track material
20:51that's generic, you have the same issue
20:53that you would if you're working with
20:55wood studs, right? you're having to pull
20:56through that, you're having to cut it,
20:58>> and you're having to drill all those
20:59holes. So, uh, one of the nice things
21:02that we can do to help the builder is do
21:06what we call value engineering. So,
21:09you'll see here these noggin
21:12uh here and here as an example. You'll
21:13see the noggin.
21:14>> So, the horizontal cross bracing is
21:16called a noggin.
21:17>> Yeah, it's called a noggin. So,
21:19>> so in other words, this noggin that I'm
21:20seeing here was pre-applied at the
21:22factory. That's right. Right. So, the
21:23electrician only had to just drop his
21:25box in there and screw it down. It's
21:26done.
21:27>> Yeah. Or if we know precisely where the
21:30boxes go, we can pre-install those as
21:31well.
21:31>> Is that right? Okay.
21:32>> Yeah. Wow.
21:33>> We usually like to stay inside the
21:34cavity.
21:35>> Very cool.
21:36>> Um but at least we resolve one of the
21:38dimensions.
21:39>> Yeah.
21:40>> Right. So, you're cutting the
21:41dimensioning by 50%. All they got to
21:42figure out is one, they got to know
21:44where that box goes
21:45>> and then they just need to figure out
21:47the horizontal dimension.
21:48>> Makes a lot of sense. But uh you know
21:50you get into production builds where
21:51you're building the same house or models
21:54over and over again hundreds or
21:55thousands of times. It would make sense
21:57to go through the value engineering
21:58process, determine where every box goes,
22:01every switch, every outlet,
22:03>> every cold and hot water routing, and
22:06pre- punch all of those.
22:08>> When I was a production builder back in
22:10the old days, uh there was a couple
22:12models that were real popular uh in the
22:14community that I was building. I was
22:16building for one of the top 10 national
22:17builders. I remember, for instance, the
22:19Chesterfield model. I could just about
22:22build that house in my sleep. I could
22:23walk into any room blindfolded and I
22:26could tell you where all the outlets
22:27were going,
22:28>> uh, exactly what that room looked like
22:29cuz we built that house
22:31>> uh, probably hundreds of times over the
22:33course of a couple of years.
22:35>> Sure.
22:35>> And so it really think I think to
22:38myself, hey, if you're watching this and
22:40you're a custom builder like me, you
22:42should get your production builders to
22:43watch this. I would think that you guys
22:45would be an absolutely bomber perfect
22:49fit for any production builder that's
22:51building anything uh on a repetitive
22:53basis or a large basis and certainly
22:57custom builders that are in any zone
23:00that's a disasterprone zone. I mean,
23:02when I look at the bones of this
23:04structure and I think about flooding and
23:07I think about tornado alley and I think
23:09about coastal builds that have
23:10hurricanes, this is pretty bomber. This
23:13is pretty impressive.
23:15>> Yeah. I mean, you think about what the
23:16cost just at the national level is,
23:19right? For us to build to code.
23:21>> Yep.
23:22>> All right. And not to build performance.
23:24I mean, you're looking at somewhere
23:25anywhere from 130 to$ 160 billion
23:27dollars
23:28>> a year is our cost at the national
23:31level. Wow.
23:32>> For, you know,
23:34>> all the rebuilding for disasters, fire,
23:36termite, mold, etc.
23:38>> Let's actually go back to that slide
23:39while we're talking about it.
23:41>> Yeah. I mean, it it's crazy how much
23:43time we spend on uh on rebuilding. And
23:46I'm going to back up to that slide just
23:47to uh show it right here. Um but this is
23:51the slide that we started out. And
23:52that's that's the number that Todd just
23:54referenced right there. 130 billion
23:57dollars annually and basically disaster
24:01rebuilds that [snorts] if we built with
24:03a system like yours, we wouldn't have
24:04to. Now, we might have to redo some
24:06finishes or some claddings on the
24:08outside, but the structure would be
24:10perfectly fine there.
24:11>> Yeah. I mean, and not only that, but
24:13just the long longevity, right? We're
24:15we're here today to talk about
24:16resiliency, and part of that really is
24:18the durability of that building to
24:20extend the life of it.
24:22>> So, you look at a traditional wood frame
24:25house today,
24:27>> um you know, you're looking maybe 60, 70
24:29years of a lifespan. Yeah.
24:31>> Based on the quality materials that
24:33we're using.
24:33>> Crazy. So we really need to look at um
24:37the building holistically as a system.
24:39>> Mhm.
24:40>> Uh from the HVAC to the exterior thermal
24:43bridging making that thing perform
24:45better. Um but also you know back to
24:48that slide we've seen the human cost of
24:50that as well. just in fires per year, we
24:53lose about 2,600 lives here in the
24:55United States. By essentially removing
24:58the organics out of the building and
25:01focusing on the bones of the structure,
25:04uh we can make a huge difference in the
25:06long-term value
25:08>> and performance of that structure. It's
25:11going to, you know, perform better and
25:14it's going to last two times minimum two
25:17times longer.
25:17>> And speaking of bones, check this out,
25:19guys. This is really compelling. This is
25:22a 3D model uh of all the structure that
25:26would come from their factory to your
25:29job site. They're able to model
25:31structurally the interior walls, the
25:33exterior walls, the rafters. You know,
25:35in this case here, like [clears throat]
25:36for instance, this X bracing went a
25:38little too fast flying through the
25:40building. That X bracing was there on
25:42purpose as additional shear value that
25:44the engineer put in. And if I zoom into
25:47this floor cavity, uh, let's see if I
25:50can do it well for us, Todd. We can see
25:53that these trusses have been lined up.
25:56And I could actually fly through that
25:58truss bay if I was good enough with my
25:59mouse to show you that it would
26:02[clears throat] be really easy, let's
26:03say, in this bay right here to route our
26:06uh HVAC system that we pre-planned to go
26:09into that system. So the uh the amount
26:12of forethought that's done uh with your
26:16system so that I can as a builder
26:18understand what I'm about to build is
26:20amazing. But that also yields some
26:22additional benefits which I think are on
26:24this slide right here. Let me go back to
26:26the slideshow presentation. U by the way
26:28I forgot to say this at the top of the
26:30hour. If you guys have questions and
26:32you're watching this live, I know a lot
26:34of you are going to watch this later.
26:35I'm sorry you missed the live version.
26:37Uh, but if you're watching this live,
26:39there's a Q&A tab. I'm looking at the
26:41Q&A's here. We're going to leave some
26:42time at the end uh to make sure we
26:44answer your Q&A time. So, throw your
26:46question there. And if you're not
26:48watching this live, be sure to ask uh
26:50for the link below for our newsletter
26:52that you can sign up. That's how you
26:54know when we've got these live webinars
26:55going on. But back to that, uh Todd,
26:58talk me through what we're seeing here
26:59in terms of the challenges that we face
27:00today and how you guys meet those
27:02challenges. I know that you probably
27:04know more about these challenges, you
27:06know, than than we do because you're on
27:08a daily basis. You're in the mix on a
27:09daily basis. But, uh,
27:11>> yeah, I mean, we've had a shrinking
27:13workforce. We've got a workforce that is
27:15not as as qualified, right? We in
27:18general, you know, when you look at the
27:20journeyman and the different trades,
27:22especially in the MEP trades,
27:24>> we're losing four to seven
27:28uh workers in those trades compared to
27:31one journeyman coming into the trade.
27:33So, all those trades are shrinking,
27:35right? So, we ought to do more with
27:37less. Y
27:38>> and part of the way that we can um
27:40address that particular challenge is by
27:42moving the fabrication of the shell to
27:45the factory where we can control
27:48>> u not only the products we can control
27:50waste we can work three shifts right
27:52under a roof
27:54>> uh we're not worried about the weather
27:56>> and so um we can minimize the amount of
28:00labor that's required in the field
28:02>> by up to around 50% as far as putting
28:04the shell up because as I mentioned
28:06earlier earlier when you tilt that wall
28:08up, you've you've already resolved many
28:11many um other uh aspects of that of that
28:15shell building. That's right.
28:16>> So,
28:17>> so then let's go to answering this
28:19question, which is really in general,
28:22why steel? And uh what's the difference
28:25on your system compared to let's say
28:27standard wood framing and the systems
28:29that we've been using for decades?
28:30[clears throat]
28:31>> Yeah, good question. Um, essentially
28:32what we're trying to do is we're trying
28:34to eliminate the organics out of the
28:36building, right? The organics really are
28:39the fuel and the food for all of the
28:41problems that we have. So if you were to
28:43try to do a, you know, a root cause
28:45analysis, right? What is the cause of
28:48all of the issues and challenges that we
28:49have today?
28:51>> So besides building in the field field,
28:54we have the materials that we're using.
28:55So it goes back to materials and methods
28:58and that's really our focus. Let's use
29:01best of breed materials. Let's use more
29:05um you know efficient methodologies
29:09and try to remove those things where we
29:11have a lot of waste in the field to the
29:13factory where we control them better. So
29:15that's really what we're trying to do in
29:17essence is remove the organics out of
29:19the building. And you start with the
29:21bones.
29:22>> Now cabinets, those can be swapped out.
29:25Flooring, you can swap those out. You
29:27can paint the walls. You can fix all of
29:28those things later. But to change the
29:31bones of the structure, it's not not
29:33going to happen after it's built, right?
29:34>> No, it's not going to happen.
29:35>> So,
29:36>> and this cutaway is kind of a compelling
29:38one with with your system.
29:40>> Uh really just reviewing what we talked
29:42about already with strength and
29:44performance and uh disaster mitigation.
29:47But let's let's actually talk about your
29:49value proposition and where you guys
29:52stack up uh in terms of uh building with
29:55you versus building with traditional
29:57materials. If you look at that slide,
29:59you'll see we have the same components,
30:01right? We still have operational cost,
30:03we have waste, we have labor, um, and we
30:05have the actual building materials. Uh,
30:07but again, by changing our focus to
30:11using highquality materials and
30:14industrialized construction, we're
30:16basically um, Robin Peter to pay Paul,
30:19right? We're pulling money out of the
30:21other line items in that construction
30:22budget and we're moving them to the
30:25material side because we're able to pay
30:28for them that way
30:29>> uh for the better quality of materials.
30:31>> Yeah. In effect, you're taking the best
30:33of the commercial construction world and
30:36bringing it to us in the residential
30:38world.
30:38>> And speaking of the residential world, I
30:40mean, this is a pretty typical Did you
30:42take that picture, by the way?
30:43>> Yeah, I took I took it last week.
30:45>> What do we see there? [laughter]
30:47It's it's you only see about half of it,
30:49but it's uh dumpsters and uh concrete
30:53materials and trusses and a whole lot of
30:57wood um strewn over the job site.
30:59>> All out on the weather too of the
31:01Florida coast where it's raining a lot
31:04and it's always wet during construction.
31:06>> Not treated, right?
31:07>> Yeah. Some of it is and some of it's
31:08not, but the trusses are not right. And
31:10so in Florida, we have this was just
31:12down the road from where I live in
31:13Orlando and and um you know, I'm
31:16visiting this job site on a on a daily
31:20week, you know, daily basis almost. And
31:22um I I took those I took that photo
31:25because, you know, here in a termite
31:28region, we have both, you know, the
31:30underground and also the hardwood,
31:32right? So,
31:33>> and a lot of people don't think about
31:34that.
31:34>> Exactly. From the ground and the air.
31:36>> Yeah. And they they lay their eggs
31:37there, right? And then you put the
31:38trusses in and now all of a sudden, you
31:40know, you've moved
31:42>> uh termite eggs into your building. So
31:44>> So give me the the direct comparison on
31:46this slide then. What what is it steel
31:48versus wood in terms of these direct
31:49comparisons?
31:50>> Well, what we're trying to do is really
31:52look at the key characteristics
31:55of the actual material, right? So wood,
31:58of course, it's organic, so it's subject
32:00to, you know, the mold, fire, rot,
32:04>> uh breaking, twisting. Um so that
32:08affects the dimensional stability that
32:09we were talking about in that particular
32:11slide. It also is heavier. So the
32:13strength to weight ratio of steel is
32:15much greater than wood.
32:17>> Yeah.
32:17>> Um it's always a balance um looking at
32:21the mass of the building uh as well
32:24because steel will outperform
32:26any other material in seismic activity,
32:29>> right? because it doesn't propagate the
32:31harmonic um waves
32:35>> of of seismic activity absorbs it.
32:37>> So it will it will sway a little bit and
32:40it will absorb that not propagate it
32:41through the building.
32:42>> Interesting.
32:43>> Uh so steel's really great in seismic
32:45but then again you look at the
32:46lightweight of steel. Well in hurricanes
32:49I need more mass right? So in some cases
32:52you need the mass in some cases you
32:54don't.
32:54>> Yeah. you know, so it's it's always a
32:56balance, but essentially, you know, the
32:58steel being inorganic material, we don't
33:01have any issues with moisture, mold,
33:03mildew, fire, any of that. So, you know,
33:05back to the bones again, right?
33:07>> Yep.
33:07>> Build build better with better
33:09materials.
33:10>> Now, I do think though with steel, I'm
33:12worried about that thermal bridging,
33:13right? I'm worried about that
33:14conductivity because it's way more
33:16conductive. I don't do frying pans out
33:19of wood. I don't do electrical wires out
33:21of wood for a reason because it's not
33:23very conductive.
33:24>> So, how do we get away from that
33:26downside of steel?
33:27>> Yeah, that's a great point. It's really
33:30uh the number one challenge with uh
33:32adoption of light gauge steel framing
33:35>> uh in in the industry
33:36>> and it's one that we, you know, focused
33:38on, right? Because that was back again
33:40to the root cause analysis why people
33:42aren't using like gauge steel framing.
33:45>> So, we have to create a thermal break. I
33:48think we all know that. We've been
33:49talking about it for a long time. And
33:52the interesting thing is is that we do
33:54have some thermal loss with wood, but
33:56not as much with steel. So that slide
33:59really was to show that if we're not
34:03applying a thermal brake, we can lose 60
34:05to 70% of our R value. M
34:07>> so you go put for example any type of
34:10wood or OSB type of material on a steel
34:14frame and you're not applying that CI on
34:16the outside
34:18>> you're you're that building although
34:20it's built in steel framing is not going
34:22to perform well
34:23>> right
34:23>> and so the energy bill is going to be
34:25high you have to have that
34:27>> right we got to look at the building
34:28holistically right as a system and we
34:30have to address all these issues
34:31>> and that's where your sheeting comes in
34:32which is something I'd never seen before
34:34that MGO board bonded to EPS PS foam
34:38that in your system is actually glued
34:40onto the wall. So there's no fasteners
34:42on that. So as we showed you that stucco
34:44wall, uh, you know, there's there's
34:46nothing in that wall, Kyle, in terms of
34:49fasteners, right?
34:50>> Yeah, that that's a pretty amazing part
34:52of the MGO panel and the Kratos system.
34:54Uh, you know, when we're at the IBS
34:57show, a lot of people are like, "How's
34:59it adhered? How does it work?" Um, and
35:01it's all from the the close cell spray
35:03foam, right? all adhering together
35:05>> uh and curing and and what what's the
35:07time? I think it's minimal time. I I
35:10don't know the number, but
35:11>> yeah, from the time that it's sprayed
35:13within a few minutes, you can move the
35:15walls. It's it's pretty pretty hard. But
35:18it does have a 24-hour
35:20>> curing and offging period. Yeah.
35:22>> Which happens in the factory and out in
35:23the yard before it gets to the job site.
35:25>> I mean, every builder is familiar with
35:26the uh with the Gorilla Glue analogy,
35:29right? You know, we all used tight bond
35:30for years, but then when we switched to
35:33Gorilla Glue, we're like, "Wow, this is
35:34so much stronger." And the same is true
35:37with for our wood-based framing, right?
35:38We've used polyurethane based glues
35:41forever now because it yields a
35:42squeak-free floor. So, when we use that
35:45polyurethane based spray foam and adhere
35:49that uh MX7 sheathing uh and then spray
35:53on the inside, we've got that structural
35:55benefit of that spray polyurethane foam
35:59uh to besides the Xracing that's already
36:02in there, really lock that building in
36:04place so that when it actually gets
36:06bolted onto that foundation, it is not
36:08moving.
36:08>> Yeah, that's a good that's that's a good
36:10point. We're using that foam really for
36:12for a variety of of of reasons, right?
36:15It serves a few purposes. So, you have
36:18the structural aspect of it.
36:20>> Um, you have the insulative aspect of it
36:22as well.
36:23>> But also past one and a half inches,
36:25it's impermeable.
36:26>> So, now people will ask a lot of times,
36:28hey, we got to wrap that building,
36:30right? With with [clears throat]
36:31building wrap. Well, when you look at
36:33the the composition of that composite
36:36wall,
36:36>> we're going through MGO, through EPS
36:38foam, and through one and a half to two
36:40inches of close vapor drive through
36:42there.
36:42>> Well, there's zero. Yeah. I mean, we've
36:43done all the testing in the lab, and
36:45there's absolutely zero perance. I mean,
36:47it's it's it's tight. The whole, you
36:49know, build tight, ventilate, right? We
36:51we got the build tight part down pat.
36:54So,
36:54>> and the beauty of that closed cell foam
36:55too is that it's it's correct vapor
36:58barriers on both sides
36:59>> because it's an impenetrable uh spray
37:02foam at an inch and a half thick. So,
37:04you've got it on both sides of the wall
37:05in the correct location.
37:07>> Right. And we're still allowing the wall
37:08to breathe but inside. Right. That's
37:10right. So, that's that's what you you
37:11want to try to achieve.
37:12>> Talk us through this case study.
37:13>> That was actually a house for my
37:15grandparents. We [laughter] fabricated
37:16that in uh in uh in Florida, put it in a
37:2053 ft drivein and shipped it to Kansas.
37:22How many trucks did it take to get that
37:23there?
37:24>> 2,000 ft. Was that four trucks?
37:26>> No, one 53 ft drive van.
37:27>> Oh my god.
37:28>> Placed very well. Wow.
37:30>> You know, in inside of it. So
37:31>> impressive.
37:32>> Yeah. So that uh it's about 2,000 square
37:35ft um 1600T under air.
37:39>> Okay. So a ranch style house 2,000 ft.
37:41And you actually put the timeline on
37:43what it took to build that thing.
37:45>> Yeah. Very seldom do we get the
37:47opportunity to really follow a build all
37:50the way through to the end because
37:51normally we're just focusing on the
37:52shell
37:53>> and then we don't get to come back.
37:54Right. So this particular build because
37:56it was one for our family. We tracked
37:58all of the cost from beginning to end.
38:01>> So that first photo there, yeah, we had
38:03uh was me, my dad, and four of our Amish
38:06friends come together for the first
38:08time. Never done it before. They'd never
38:10built in uh in steel frame before.
38:12Neither had my my father.
38:14>> That's awesome. And uh we came together,
38:15flew there on a Monday and you see, you
38:19know, the first wall 3 hours later,
38:21walls up. We had the whole entire
38:23structure up uh day one. And then we had
38:26trusses uh on day two and day three we
38:30had um interior walls and the uh decking
38:33on the roof.
38:33>> That's fantastic.
38:34>> And day four uh peel and stick shingles
38:36started and all the doors and windows.
38:38And then Saturday morning, day five,
38:40took a photo and flew back to Florida.
38:42>> That's awesome. And then the other cool
38:43thing about that is you were actually
38:45able to see their energy bills after
38:46they moved in because you have a
38:48relationship with the owners.
38:49>> Yeah, exactly. Yeah. Tracked it for a
38:51full year.
38:52>> Yeah. The first one I think was uh was
38:54uh I think it was 42 $43 right around
38:57there.
38:57>> Oh my god.
38:58>> So yeah, we tracked all the energy
38:59bills, energy consumption cost, kilowatt
39:02hours.
39:02>> That's fantastic.
39:03>> We tracked all the costs as well. You
39:05know, our focus is really about the
39:06shell, right? Because that's what you
39:08know [clears throat] what we do.
39:09>> Yeah. But um so yeah we
39:12>> now Todd as we think about that that was
39:14one small single family. I think when
39:16you start looking at buildings like this
39:18though your system gets extremely
39:20compelling. Talk me through this
39:22workforce housing project.
39:24>> So this building actually was built into
39:26the Bahamas and on that um on that same
39:30lot set a very similar building actually
39:33made in sip panels.
39:34>> Oh really?
39:35>> Yeah. Blew blew away unfortunately. Oh,
39:37>> you know, but uh I mean the SIP panels
39:39are great, right? But the again the
39:41challenge is the connection.
39:42>> Mhm.
39:43>> Um so we actually worked with the
39:45structural engineer on this job to
39:49develop special holdowns that they
39:52wanted to see uh implemented into the
39:55building and um again fabricated in
39:58Florida. Nine containers shipped to the
40:01job site. They poured the slab and then
40:04uh flew there and uh worked with a crew
40:07of 10 who'd never built a house before.
40:09>> Oh wow.
40:09>> And the supervisor and um got that thing
40:12put up in How about that?
40:14>> And yeah, five five weeks.
40:15>> That's very cool.
40:16>> You know what the amazing part about
40:17that was? [clears throat] There was not
40:18one dumpster.
40:20>> They did not use one dumpster because
40:22there was no waste.
40:23>> No waste.
40:24>> That's really
40:24>> Yeah, the waste is usually unbelievable.
40:26>> Yeah, you're right. That's that's a
40:28that's a great point. You won't you
40:29won't see any or very few dumpsters at
40:32our at our job site.
40:33>> That's really cool. And here's the
40:34timeline on that same build. We don't
40:36want to belabor that because I want to
40:37make sure we get we get moving on.
40:39>> But you know, the numbers on this uh I
40:42think really tell a story uh about the
40:45speed, but also I want you to we haven't
40:47gotten to this yet and I'm seeing a
40:49bunch of great questions by the way.
40:50Good job gang. I think we got 30
40:52questions already come through. Tell me
40:54about cost compared to people that are
40:56used to building let's say with wood
40:57framing. How do you end up comparing on
41:00cost or or really we're on next slide uh
41:02address that?
41:04>> Yeah, the next slide will we will
41:05address it fairly well. Um
41:08>> so this is an even bigger project then.
41:10>> Yeah.
41:10>> 528 apartments uh 11 total buildings
41:14more than a half million square feet in
41:17Georgia. Uh and this was being evaluated
41:20with your system versus traditional
41:22state
41:22>> frame. Yeah, it was originally designed
41:24for wood um permitted in wood and we're
41:28going through the process right now with
41:30that developer to to build this actually
41:34in in our system. So what you see with
41:36this slide is the actual construction
41:38budget, the numbers that were provided
41:41by the builder,
41:42>> okay,
41:42>> for us and then we took and did our
41:45internal analysis with our proposal on
41:48our on our part and put them side by
41:51side. I mean, it looks to me like the
41:53budget numbers are darn similar. I mean,
41:55within a dollar a square foot to build
41:58traditionally versus to build Kratos.
42:00But what's really compelling about this,
42:02and it's a little hidden on this slide,
42:04if you look at that green column that
42:06says 24 months Kratos total versus 36
42:10months wood, I think this is really
42:12where the story gets compelling.
42:14>> Exactly. Exactly. Yeah. The the Paul
42:16Harvey rest of the story, right? So, um,
42:19but before we get to that, could you go
42:21back just
42:22>> I wanted to touch on something. So, a
42:24lot of times when, you know, Kyle, you
42:26know, he he gets, you know, beat up a
42:28lot, you know, because we'll we'll
42:30prepare the proposals. We'll send them
42:32out and they'll say, "Hey, you know,
42:33your steel shell package is way higher
42:35than that initial number, right?
42:37>> They're done, right? So, let's look at
42:38that here. So if you look at the metals
42:41in the woods, right, five and six,
42:43you're going to see that the wood model
42:44is about 24.7
42:47million,
42:48>> right?
42:50>> And you look at ours, we're 30 million.
42:53>> So if this client looked at the two and
42:57look, yeah, we're 6 million too high.
42:59Boop. Sorry. Done.
43:00>> Right.
43:01>> But if you go to the next line, go to
43:03the next screen.
43:04>> Okay. you'll see that not only were at
43:07the end of the construction budget, we
43:08were within a dollar per square foot,
43:10but you have to take into account the
43:12opportunity cost because we can close
43:15that project 12 months earlier.
43:18>> So when you look at the opportunity
43:21cost, this is a BTR, right? This is 528
43:24apartments.
43:25>> So now you look at the lost revenue for
43:2712 months, you look at the carrying
43:29cost,
43:30>> right, for that 12 months. I'd have to
43:32think there's a huge insurance
43:34difference, too. I mean, what insurance
43:35carrier would rather have that building,
43:39let's say, on the coast of Florida
43:40framed in wood compared to your system?
43:42They would be crazy to insure it for the
43:44same price.
43:44>> It's about 50 It's about 50% reduction.
43:47It's about 20
43:48>> 20 cents per hundred $100,
43:52>> okay?
43:52>> But versus about 40 cents on a on a wood
43:55frame. So, the builder's risk is is
43:57gigantic. Not only that, but the
43:59operational side after the thing is
44:01built just to ensure the the physical
44:04building, termite bonds and all those
44:06things. So when you look at at, you
44:08know, the rest of the story, you're
44:10looking at almost $12 million in
44:12additional savings.
44:13>> That's awesome.
44:13>> So now when you add not only is it a
44:16dollar less, but you add that savings of
44:18the opportunity cost in there, uh that's
44:20almost $20 a square foot less expensive
44:23for a better build.
44:25>> That's amazing
44:25>> than with with the wood product. So
44:27that's awesome.
44:28>> You know, I guess, you know, the the the
44:30essence of this story is you can't look
44:32at the line item, right? You got to go
44:34to the construction budget and you
44:35really need to look at the opportunity
44:36cost.
44:37>> Yeah, for sure. For sure.
44:39>> It's a long-term play, not a short-term
44:41play. You got to think about the
44:42holistic, not just the first check.
44:43You're right.
44:44>> Right.
44:44>> Yeah.
44:45>> Yeah.
44:45>> Um we'll be quick on this one, but I
44:48think there's a pretty interesting
44:48sustainability story with your product
44:50as well. Do you want to walk us through
44:51that?
44:53>> Yeah. So, we did a little bit of a study
44:54on um you know what the uh what the
44:57recycling is per year in the United
44:59States um if we were to try to fill that
45:04deficit for housing in the US between 3
45:07to 5 million homes and what's that look
45:09like on the macro scale. Right? So this
45:12is just a slide really to demonstrate
45:14that one we're taking we're taking um
45:17recycled steel from primarily
45:19automobiles and appliances which are the
45:21two major categories.
45:23We're converting those to coils of steel
45:26um and then we are converting that of
45:29course to um high durable resilient
45:33energy efficient buildings.
45:34>> It's awesome. And um so that that that
45:37number is actually pretty interesting,
45:38right? Because you look at just taking a
45:41standard 2,000 foot house, that's 6.5
45:44billion square feet,
45:46>> right, of space, the 3 to 5 million. And
45:50um that's 3.2 million houses. If we were
45:54to allocate the 19 million tons of steel
45:57that we recycle every year
45:59>> just from cars,
46:00>> just from cars, we could actually build
46:023.3 million homes with that. Gosh,
46:04that's wild.
46:04>> I mean, that's not going to happen,
46:05right? But if they took a third, you
46:07could build a million houses, million
46:08homes a year.
46:09>> We need that.
46:10>> And if we did that, we could save a
46:12little over 700 million trees.
46:14>> That's wild.
46:15>> Yeah.
46:15>> How cool.
46:16>> Yeah.
46:17>> Uh let's end with this slide because
46:19I've got a bunch of questions for you
46:21and I've got the audience that has a
46:22bunch of questions, too. So, we we need
46:24to keep moving. Um this is a current
46:27project in the Bahamas. Got you got
46:28going on?
46:29>> Yeah. Yeah, we're building multiples of
46:30this of this particular model. Yeah.
46:32>> Very cool. with your full system.
46:34>> Yeah. And this interesting because it
46:36shows the versatility of the system.
46:39We're sitting on a a CMU block, you
46:42know, uh first floor on that connecting
46:46then the second and third stories uh to
46:49that system.
46:49>> A bit of a hybrid system.
46:51>> Yep.
46:51>> Yeah.
46:51>> Yeah. And there's quite a bit of red
46:53iron. There's about 30,000 lbs of hot
46:55roll steel in that building.
46:57>> Wow.
46:57>> As well. So all galvanized. Um, spend a
47:00second talking about that because that's
47:02actually one of the questions someone
47:03asked in here was, you know, what about
47:05coastal builds? Shouldn't I be worried
47:06about rust? Tell us about that. What do
47:09we need?
47:09>> Yeah, I mean that's one of our common uh
47:11our common questions, right? So, uh, the
47:15answer to that is it really goes back to
47:17the hardness and the galvanization
47:20coating of the steel.
47:21>> On all of our coastal projects, we use
47:26G90 galvanized steel.
47:27>> Okay? So, a higher level than standard.
47:29>> That's right. That's right. The G a lot
47:31of the products that you'll find in the
47:33big box stores, the generic studs,
47:35they're a G40.
47:36>> Okay.
47:36>> Most of them and they'll rust out, you
47:38know, in no time.
47:40>> So, we're using um as a standard G60 and
47:44then on all coastal projects G90. Got
47:46>> all the hot roll steel is hot dipped
47:48galvanized. All of the hold downs are
47:51hot dipped galvanized or Zmax. All the
47:53screws are specially coated. So, we
47:56really go the distance to make sure that
47:57every fastener and
48:01hold down clip and the steel is going to
48:04be is coated. Yeah.
48:05>> Yeah. And speaking of which, we I think
48:06I missed this, but I do want to mention
48:08real fast. You know, if we're using your
48:10magnesium oxide board, there is a
48:13fastener story to talk about with this,
48:15right? We don't want to use standard
48:16fasteners on this. What do we need to
48:18know about that, Todd? Right.
48:19>> I forgot to mention this earlier.
48:21>> Yeah, that's a good point. So they're
48:22they're depending on the type of
48:24magnesium oxide board that's used there
48:26there's two basic categories either a
48:28chloride based or a sulfide based.
48:30>> Okay.
48:30>> Um and depending upon the chloride
48:32sulfide content you're going to have a
48:34certain level of corrosiveness. And so
48:36what we need to do is take precautions
48:38>> to make sure that uh one we're using a
48:40G90 grade coated steel and also we're
48:44using coated uh approved coated
48:46fasteners.
48:48uh could be a grabber guard, could be
48:50any type, could be a stainless steel,
48:53various suppliers that make these
48:55fasteners. And um of course you can go
48:58through this board with um
49:01>> uh with pins, nails, shooting them
49:04through, you can use but but primarily
49:05we use screws with it for the most part.
49:07>> Yeah, makes sense.
49:08>> On the roof decking, you're going to use
49:09>> We're going to upgrade to a stainless
49:10product typically when we're screwing
49:12into it, when we're nailing into it,
49:13that sort of thing.
49:14>> Right. Right. Yeah. You want to use a
49:16stainless steel connector. Gotcha.
49:18>> Yeah. So Todd, let me switch gears and
49:20go back to the beginning. Someone who's
49:22interested in using your system, they're
49:24they're uh they're thinking this is for
49:26them. What does the process look like?
49:29Who do they talk to? What does it look
49:31like? You know, let's say they've got an
49:32architect already. They've got a In
49:34fact, someone said, "I've got two
49:35projects in Miami Dade County right
49:37now." Uh you know, how do we how do they
49:40work with you?
49:40>> Yeah. You
49:41>> Yeah. No, so I mean I'm their their
49:43point of contact at that that case. Um,
49:45so they just reach out to me and I can
49:47uh get them all the information. I can
49:49gather their information, their
49:50architects, who they're working with and
49:52um start with the plans. If they have
49:54plans, they can send them to me. We can
49:55look at them together as a team uh and
49:57kind of go from there.
49:58>> Gotcha. And then typically you're going
50:00to have an engineer take the
50:01architecturals and turn it into your
50:03system structurally. Correct.
50:06>> Or they're going to have them.
50:07>> Yeah, you can go either way.
50:08>> Yeah, I could go either way. We a lot of
50:11a lot of customers uh do have their own
50:14architects and their engineers they work
50:15with. We have a library for our system
50:17that we can provide the architects and
50:19the engineers of details and connections
50:21and we'll provide those to them to help
50:22them through that process.
50:24>> Uh if they don't, it depends on where
50:26they are in the process. uh if they
50:28don't have an engineering firm that's
50:31already the
50:32>> EOh,
50:34>> we have variety of engineering firms
50:36that work with across the country and we
50:37can make recommendations for them to to
50:40find somebody.
50:40>> Okay, I like it. [clears throat] Uh
50:42local to Austin builder Sheay uh
50:45Milhauser says, "Does Kratos offer any
50:48MGO either wall or roof sheeting
50:51products that are rated for structural
50:53shear?"
50:55>> Yeah, we we do have that. We have two
50:57categories. We have a Mag Struct and a
50:59Mag Ultra. [clears throat] So, they're
51:01going to have different um physical
51:05structural properties. Got
51:06>> We also have a lightweight version,
51:08which is really more of a gypsson board
51:11um type alternative. You can score it,
51:13snap it, that sort of thing. It's
51:15lightweight. It's considered a
51:17nonstructural board. Okay.
51:18>> But there's no paper backing or anything
51:20like that. So, again, no organics in it.
51:22But yeah, we do have the structural
51:23versions of the boards and different
51:25sizes.
51:25>> Yeah. What are the sizes roughly, Cal?
51:27Someone else asked that question.
51:28>> Yeah. So, we have a 4x8, a 4x10, and a
51:314x12.
51:32>> Okay. So, all the normal like panel
51:34sizes that we're used to working with in
51:36wood. Yeah. Okay. Good.
51:38>> And also different edges, right? I think
51:40>> Yep.
51:42>> tapered edge, straight edge, tongue and
51:44groove, beveled, etc. So,
51:46>> gotcha. My architect buddy Armando,
51:49thank you Armando for all your support,
51:50says, "Can I specify the location of all
51:53the pre-punched service holes or can I
51:55add additional lines of holes?"
51:58>> Yes, please. [laughter]
52:00>> I I think the answer to your question
52:01is, Armando, they want you to integrate
52:03your MEPs as an AR Armono is a great
52:06architect in Dallas, by the way. uh they
52:08want you can integrate [clears throat]
52:09your MEPs to their software so that the
52:12MEP engineer can show all the runs for
52:14the duct work, can show all the plumbing
52:16runs, can show all the electrical runs.
52:18They can pre- punch everything. So the
52:20electrician doesn't have a hole hog on
52:22the on the job to drill anything. He's
52:25literally going to start running wire or
52:27running pipe right from the get- go. We
52:29need to figure all those things out
52:30ahead of time, which I think frankly is
52:32another big benefit of the system that
52:34you're you need to figure it out ahead
52:36of time. Yeah, it would certainly be
52:38beneficial. I mean, we've all been on
52:40job sites where, you know, you're trying
52:42to install a plenum or some sort of
52:44rigid duct work and all of a sudden
52:46there's a truss or some sort of a beam
52:49in the way, right? Or you go to put the
52:50toilet in and all of a sudden it's right
52:52over top of a truss. So, you know, clash
52:54detection is one
52:56>> uh important aspect of the process of
52:58our virtual design and construction. So
53:01we can build it virtually in the system,
53:03that model that you showed.
53:05>> And then ideally, not only are we
53:07looking at the structural aspect of that
53:09model, but we're bringing in the MEP, so
53:12they're in the 3D BIM model as well, so
53:14we can do clash detection. If you,
53:16again, if you're going to do this one
53:18time for a custom home, probably doesn't
53:20make sense. Figure it out on the job
53:22site. But if you're going to build that
53:23house a thousand or 10,000 times
53:25>> or even 10 times
53:26>> or 10 times, it makes sense to figure it
53:28out in advance. And you're going to save
53:30many many hours in the job site as well.
53:33>> Yeah.
53:33>> Right.
53:34>> Here's a Florida question for you. Have
53:36you had any projects in Miami date or
53:38Broward counties? And how do you work in
53:40those uh HVHZ zones, especially with
53:43building departments? Do I assume the
53:45building departments probably love your
53:47system?
53:47>> Yeah, they do. We've built in Miami
53:49Dade. Most of our work is in Florida and
53:51also in the islands, which are all Miami
53:53Dade compliant. So, uh, the the the the
53:59caveat is is that the engineers are
54:02typically doing component level
54:04engineering, right? They're looking at
54:06the steel frame, the X bracing, the
54:08board,
54:09>> and unfortunately, we've had a difficult
54:11time getting the engineers to consider
54:14the structural capacity of the foam
54:16>> because we know that it has a big
54:18impact. That's right. But they're like,
54:19"Hey, you know, and unless we've got
54:21some sort of document that shows that,
54:23then of course they're not going to
54:24consider it." But but yeah, we've done
54:26we've done several projects
54:28>> in Miami Dade, Broward, Monroe County
54:30down in the Keys, which are all Miami
54:32Dade.
54:32>> Yeah.
54:33>> Yeah.
54:33>> If I think about your system, I'm I'm we
54:35have time for one or two more questions,
54:37but but this is just kind of the Matt
54:38Risinger wrap up here. When I think
54:40about building coastal, building in a
54:43hurricane zone, building in a floodprone
54:45zone, tornado alley, wooi zones, the
54:49islands, anywhere where there's termites
54:51or mold issues, this is a bomber system.
54:55But what they don't sell you and that
54:57you really also need to think about is
54:59all of your windows and doors. Because
55:01this incredible system right here, if
55:03you put a vinyl window in and you're in
55:05a woo zone, the window is going to fall
55:07out and your house is going to be
55:08breached, right? Yeah.
55:09>> So, you know, I would tell you that the
55:11weak point of this system is whatever
55:14you as the homeowner, the builder, the
55:16architect specify for the windows and
55:18doors. So, you know, don't do this
55:20system and then cheap out by not putting
55:23Miami date hurricane rated products in,
55:25right? We probably want to do a
55:27structural aluminum. We want tempered
55:29glass. We want laminated glass. We want
55:32to think about all those things that are
55:33going to resist the winds from
55:35breaching. We need to think about our
55:36garage door. uh you know, our garage
55:39door needs to be wind load rated as
55:41well. Uh it's really important to think
55:43of this as a full system, but man, if
55:45you're in any of those zones, you should
55:47be talking to these guys. This is an
55:48incredible system.
55:50>> And if you're a wood builder like me
55:52who's only built with wood, these guys
55:54will talk you through it. I think that
55:56you could do one of these incredibly
55:58successfully for your very first build
56:00out there, having never worked in their
56:02system before.
56:03>> Yeah. Yeah. And that's a good point. I
56:05think you touched on it earlier, right?
56:06I mean, when you think about the
56:08non-combust
56:11steel framing, that's fantastic.
56:14>> But the the MX7 board really provides a
56:17tremendous, I think, advantage to the
56:19wood frame because we're going to wrap
56:21that wood that vulnerable wood frame in
56:24MGO inside and out. We're to protect it,
56:26you know. So,
56:27>> uh, there's like five questions about
56:29cost that I'm going to summarize and
56:31we'll kind of end here. Uh, I think if I
56:34could summarize on cost, if you're just
56:36simply comparing this to a stick frame
56:38build, it's going to be a percentage
56:40more on the actual uh, just steel cost
56:44or Kratos cost compared to your 2x4
56:47cost. I think the big advantage here is
56:49speed, is durability, is resilience, is
56:53actually meeting those one, two, or
56:55threehour fire codes with a product
56:57that's naturally fire resistant,
56:59naturally termite resistant. It's a
57:02really impressive system. So, will this
57:04look on a line item to line item car
57:06comparison more? Probably. But go back
57:09to those slides that we talked about
57:10earlier. I think if you look at this
57:11holistically from a project view and not
57:14just a single line item view, you're
57:16going to find this is a very compelling
57:17system that that could actually end up
57:19being less expensive, not more
57:22expensive.
57:22>> Yeah.
57:23>> How did I summarize it?
57:24>> Yeah, you said that's perfect the way
57:25you just said it.
57:26>> Yeah, it's it's it's a great point. And
57:29and again, back to value ad, I think
57:31that, you know, there's there's been for
57:34a long time this conflict between the
57:37builder's goals and objectives and the
57:39owner operator, right? We want to get
57:41in, build it, get out, you know,
57:43maximize our profits and get out the
57:44door. Where the owner operator, they
57:46want maximum value. They want
57:48performance. They want low energy bills.
57:49They want longevity, low maintenance.
57:51So, there's this constant conflict. And
57:53I think with our system, it really
57:55provides the foundation for us to really
57:57achieve a win-win situation for
57:59everybody,
58:00>> you know, and and not that
58:04>> the builder cannot, you know, has to
58:07sell their house or their services for
58:10the same price either because we're
58:11bringing value at.
58:12>> That's right.
58:13>> Right. So, not only if the cost goes
58:15maybe goes up a little bit, then you can
58:17also sell it for a little bit more, you
58:19know, if the customer is willing to pay
58:20that. So,
58:20>> that's right. Any final thoughts, guys,
58:22before we wrap it up?
58:23>> No, I I mean, I think we touched on
58:25everything. I thought that was great. I
58:27appreciate everything you've done for
58:28us, Matt. So,
58:29>> for sure. How How can people get a hold
58:31of you?
58:31>> Uh, they can email me. Uh, they can go
58:33to the website, performancebuilding
58:35solutions.
58:35>> Performancebuildings.com.
58:37>> Yep. That's it.
58:39>> Guys, really appreciate your time.
58:40Thanks for coming all the way to Texas.
58:42>> Thanks for taking the time with me.
58:44>> Appreciate it.
58:44>> Thank you, man. We appreciate it.
58:45>> Appreciate you for your support. Uh,
58:47this obviously was a live webinar, but
58:50you're probably watching this later. The
58:52way that you can get notified about our
58:54new webinars is by signing up for our
58:57newsletter. We send three emails a week
58:59because we end up having about 20 new
59:01videos a week. If you're watching this
59:03live, this will be sent out as a
59:05recorded version as well. So, if you
59:07want to send this to your production
59:08builder buddy, to your buddy who builds
59:10apartments, you your friend who's
59:11building a house in the Bahamas and
59:13should know about this system, there
59:15will be a link coming out soon if you're
59:17watching this live. But I appreciate
59:18your support, guys. Uh, lastly, these
59:21guys are going to be at Build Show Live,
59:23correct?
59:23>> Yep, we'll be there.
59:24>> So, if you're coming to Build Show Live
59:26in September, you should come talk to
59:27these guys. Todd's a celebrity now.
59:29Everybody knows him. [laughter] And
59:30Kyle, you've gotten to know him the last
59:32hour. So, make sure you tell them that
59:33you saw the webinar and you want to ask
59:36those specific nerdy questions that
59:38maybe I didn't get to today. They're
59:39going to answer those live. Build Show
59:41Live is in San Antonio September 10th
59:43through 12th. Build Show Live for
59:45tickets. And you can see a lot of
59:47incredible companies like the guys, like
59:49these guys, as well as all 20 of our
59:51contributors teaching you how to build a
59:54better, more resilient, more durable,
59:57more healthy house, cuz that's what
59:58we're all about here. That being said,
1:00:00guys, follow us on Instagram, follow us
1:00:02on Facebook or Instagram. Otherwise,
1:00:04we'll see you next time on the Build
1:00:06Show webinar.
1:00:13>> [music]

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Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, translation to 100+ languages, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.