LA’s Construction Industry Evolves 

Pam Sornson, JD on July 15, 2025

Some industries never grow old. While the horse-and-buggy sector faded away decades ago, its replacement—the auto industry—continues to flourish and expand. Likewise, the construction industry continues to evolve as new materials, strategies, and capabilities are integrated into its foundational activities. As the Los Angeles region recovers from the January 2025 fires, it is also deeply invested in building out its infrastructure to meet the demands of the 2028 Olympics. Consequently, the demand for skilled construction workers continues to grow, as more skills are added and more projects are scheduled.

Construction Bolstered by Federal Investments

Unlike the rest of the world, America’s construction industry has remained more resilient post-COVID than most other countries:

  • In China, the building trades remain sluggish as the Government reduces its investments in infrastructure assets. A downturn in the property market sector and growing national debt also contribute to the lethargy.
  • In Europe, economic pressures across the region appear to be dampening industrial optimism:
    • In Germany, both commercial and housing project numbers have dropped precipitously as costs continue to rise.
  • In New Zealand, rising interest rates and higher materials costs add industry burdens on top of the country’s already weak overall economy.

While the U.S. also suffers from these specific industrial challenges, it has also seen significant increases in resources for primarily commercial construction projects, driven largely by federal investment spending. Between April 2020 and July 2024, financial infusions into the sector increased by 41% over the previous period, as economic stimulus funding was released. The $52.7 billion CHIPS and Science Act (CHIPS), the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA), and an additional $369 billion for climate and energy from the Inflation Reduction Act (IRA) all combined to provide builders of all sizes with the resources needed to maintain and grow their market share.

The extra cash American builders received from the Government provided more than just added supplies, however. Perhaps the most important asset attained by those funds was the capacity for flexibility in the face of industrial challenges. Many companies shifted their activities to new markets and regions, while others added residential projects to their primarily commercial asset base, or vice versa. Perhaps the most significant gain was the opportunity for each building enterprise to be truly innovative in its projects. Of the global (non-governmental) investments in construction innovation during that four-year period, approximately 80% were invested in American projects, providing the country with an additional boost to its construction industry evolution.

California’s Construction Industry Evolutions

California has embraced all existing and emerging opportunities to expand its construction capabilities, adding resources and capacities to its already burgeoning foundation. The State has allocated $180 billion of its own money toward construction development over the next ten years. The statewide industry generated $158 billion just in 2023, alone, and the value of its construction industry revenues is projected to reach $172 billion by the end of this year. While much of that investment will be to recover infrastructure lost to fires, floods, drought, etc, California is also investing heavily in innovations and new construction opportunities:

Clean Energy

Climate change is a driver of some of the State’s most severe disasters, including the January fires. To reduce its contribution to that threat, California is investing heavily in clean energy sources, which is boosted considerably by over $1.6 billion in private investment. The clean energy strategy not only promises a cleaner environment but also generates jobs and millions of dollars in personal, regional, and state revenues. As of the end of 2024, California had over half a million workers (544,600) in the clean energy sector (representing a growth factor of 4.1% over 2023), which employed seven times more energy workers than the State’s fossil fuel industry.

Transportation Infrastructure

California’s population of almost 40 million people (39.43 M) needs transport to get around, and the State’s reliance on the auto industry is contributing to its climate change problem. Consequently, the Government is investing in low-emission transportation systems to offer options to the car that are equally effective in moving people around the State:

California High Speed Rail (CHSR)

The State’s HSR initiative will deliver an electric high-speed rail system to connect its ‘mega-regions,’ such as LA to San Francisco, as well as add transport options through the Central Valley, the Kern Valley, and even, eventually, to Las Vegas. Launched in 2022, the strategy has already created over 14,000 jobs, with a workforce primarily comprised of small businesses that hire workers from disabled or disadvantaged populations.

LAX

Coming in at #11 globally, Los Angeles International Airport (LAX) is one of the most traveled airports in the world, and as such, it has experienced a significant level of wear and tear. Accordingly, California is using its own funds and part of its IIJA federal funding to upgrade this critical element of Southern California’s transportation network. At an overall cost of $30 billion, the City of Los Angeles has allocated $5 billion of its own funds to the project as well. Engineers designed the project to address the most challenging aspect of the airport’s current configuration: congestion – on the horseshoe loop, within terminals, and on the airfield. In February 2025, LA City leaders approved its 5-year contract with preapproved engineers and professionals, many of whom are smaller businesses that employ thousands of local workers.

Technology Infrastructure

One glaring concern that came to light because of the region’s recent wildfires is the absence of reliable communications systems in rural and remote areas. Failed power lines and a dearth of internet towers left thousands of people facing the most difficult challenge of their lives having no contact with the outside world. In response, California has invested billions of dollars building a 3,000-mile “Middle Mile Internet” complex that reaches all 58 counties and includes 10 Tribal partnerships and engagements. The finished infrastructure will provide high-speed internet service to millions of people living outside typical urban cities. In addition to facilitating a safe and reliable communications grid where none had previously existed, the technology infrastructure will also support millions, or even billions of dollars of economic growth and development in less populated areas.

Obviously, the true benefit of all this investment in infrastructure is the economic growth it generates for the region. As LA recovers from the fires and prepares for the Olympics, its citizens are finding more work options and better-paying jobs in industries that promise a long and fulfilling career. The construction sector is one of these industries and its activities promise to support the growth and evolution of the LA region for decades to come.

Construction + Clean Energy = Workforce Development

Pam Sornson, JD on July 1, 2025

As has been noted, even disasters can stimulate growth, both economically and industrially. California’s focus on clean energy initiatives has already laid the groundwork for new building and construction practices that promise to reduce greenhouse emissions, enhance resiliency, and drive workforce development. The post-fire recovery process presents a unique opportunity to incorporate these clean energy options into rebuilding projects, ensuring that future communities won’t suffer similar losses when the next fire occurs (which it almost certainly will).

 

California Energy Commission Coordinates Sector Initiatives in Clean Energy

The California Legislature established its Energy Commission (CEC) to oversee the transition of its economic drivers to clean energy sources. Set up in 1975, the CEC initially addressed the fuel availability, smog, and air pollution issues that were then plaguing the nation. As it has evolved over the decades, it is now focused on achieving its assigned goal of carbon neutrality and 100% clean energy sources for all industries by mid-century. The bold goal should be attainable, judging by the individual initiatives pursued by the Commission:

The transportation sector has received particularly focused attention through the CEC’s Clean Transportation Program (CTP). State policy recognizes the connection between petroleum fuels and climate change, so it is modifying its energy usage to reduce or eliminate the threats posed by that man-made phenomenon.

The CTP focuses on attaining and implementing ‘zero-emission transportation technology’ to reduce that State’s contribution to climate change through the development of both zero-emission vehicles and the infrastructure that will support them. These projects span the entire State and encompass all industries; thus far, no state or national emergency has diverted California from its intended path to 100% clean, green energy. Established in 2008, the CTP has recently been extended through 2035.

Zero Emission Vehicles (ZEV)

Managed by the California Air Resources Board (CARB), the ZEV program aims to reduce carbon-based emissions and pollutants from both passenger and freight vehicles in the State. In addition to environmental safety, the CARB has also incorporated equity initiatives into its 2024 Action Plan, recognizing that more vulnerable populations are often forced (by a lack of other resources) into older, less energy-efficient cars. CARB’s strategy toward cleaner, more efficient vehicles continues to evolve. Its Advanced Clean Cars II effort will see even more pollutant reductions beginning in 2026, when requirements for increased ZEV production go into effect and standards for gasoline-powered cars become even more stringent.

ZEV Infrastructure

In early 2024, the CEC approved a $1.9 billion investment in a plan to accelerate the states’ burgeoning ZEV infrastructure build-out. Between 2024 and 2029, California will invest $1.9 billion in the development and installation of 40,000 new ZEV charging stations, bringing it closer to its goal of 250,000 publicly accessible chargers across the State, from border to border. The agency is especially attentive to building out these resources in lower-income and marginalized communities to ensure they don’t continue to bear the burden of excessive car and truck pollution. So far:

  • Of the 96 public hydrogen fueling stations planned, 61 are in use today.
  • A $100 million allocation is dedicated to developing 120 truck and bus charging stations.
  • More than 40 ZEV-related manufacturing projects are opening new training opportunities and jobs to support local, regional, and statewide economic growth.

 

The CEC and Workforce Development

Not surprisingly, the CEC is as focused on the workforce development aspects of its projects as it is on their outcomes. The California Climate Investments (CCI) initiative is responsible for building the workforce necessary to advance the State’s clean energy industries. Through public and private partnerships, the agency works with businesses and higher education facilities to develop training programs that are relevant to these emerging industries. Two notable efforts relate directly to two of California’s now critical concerns: wildfire resilience and support for priority (underserved) populations.

Wildfire Fuels Reductions

The CCI awarded funding to the California Conservation Corps (CCC) to manage its wildfire resiliency projects across the State. These youth workforce development programs provide young adults with exposure to the factors that cause and exacerbate fires, as well as the skills necessary to mitigate or eliminate those circumstances, thereby reducing the likelihood and/or severity of fires that do occur. For example, the CCC Chico Center provided over 2,700 hours of labor toward fire resiliency in the Paradise community, which was devastated by the 2018 Camp Fire, leaving almost the entire area destroyed. The cost of the CCC program to reduce dangerous fire fuels in this rural region (thereby also reducing the likelihood of another fire) between October 2023 and April 2024 was a mere $108,744. The cost of the Paradise fire damage, however, approached $16.5 billion.

ZEV Workforce Training for Priority Populations

In the San Joaquin Valley, transit agencies are working to electrify their publicly owned fleets of vehicles, which, in turn, requires an expanded corps of automotive service technicians competent to repair electric cars, buses, and trucks. The Inclusive, Diverse, Equitable, Accessible, and Local (IDEAL) ZEV Workforce Pilot Project, funded by the CEC and CARB, was introduced in 2023 into three Fresno County high schools. Teachers were first trained on the materials, and the curriculum was then offered to their students in the spring of 2024. In partnership with Fresno City College, the new occupational training will become a dual enrollment option for future high school and community college learners. Additionally, Fresno CC is working with a local action committee, Valley Clean Air Now (Valley CAN), to partner its electric vehicle workforce development efforts with area businesses and civic groups that are likely to work with ZEV fleets in the future.

Disasters – man-made and ‘natural’ – can be helpful for identifying where vulnerabilities lie and suggesting solutions to previously unknown dilemmas. They can also trigger growth and innovation, as is seen in today’s EV and construction industries. As those sectors expand, they’ll need a well-trained workforce to maintain and manage them. And California is certainly intent on ensuring those workers are available and ready to go when that time comes.

 

New Needs Spur Enhanced Workforce Development

Pam Sornson, JD on June 17, 2025

Regardless of the impetus, new opportunities and jobs are constantly emerging, demonstrating a community’s capacity to respond to the needs and challenges of its constituents. While the LA region continues its cleanup after this past winter’s fires, some companies providing innovative disaster responses are also developing new services that will remain viable and valuable after the recovery is complete. The phenomenon demonstrates how successful organizations can master the pivot from ‘disaster’ to ‘debut’ by learning from past experience how to build a better future.

Seizing Opportunities

Disasters of any kind reveal a myriad of facts and data that provide insights into what happened, how it happened, and (perhaps) how to avoid it in the future. In the LA region, fire safety is now a ‘hot’ topic (sorry); experts estimate that the January 2025 conflagrations cost as much as $164 billion. The rebuild will be even more expensive. Looking forward, businesses of all sizes, as well as individuals, families, and industries, are seeking ways to prevent similar losses, and they will need well-trained assistance to develop those preservation and prevention resources.

Beyond firefighting, these emerging occupations will be very popular in the coming years:

Immediate Aftermath Response Occupations:

HAZWOPER – or Hazardous Waste Operations & Emergency Response technicians are in high demand after any disaster involving building or infrastructure loss. The HAZWOPER guidelines, established by the Occupational Safety and Health Administration, provide guidance on activities that threaten human health and welfare during cleanup, corrective, and emergency responses involving hazardous substances.

Debris management is a critical element of the post-fire recovery process. Fires that burn both wild and urban areas generate immense levels of toxins, both natural and man-made. Citing just a few examples and then multiplying those substances by the number of buildings lost (in the LA case, thousands) indicates the vast expanse of the environmental threat of this post-fire detritus:

    • Asphalt shingles,
    • oriented strand board,
    • household chemicals,
    • plastics,
    • vehicle fluids and materials, and more.

These substances melt and meld together into a lethal morass of toxicity that must be safely removed before reconstruction can begin.

Insurance Claims Representatives are also in high demand after a disaster destroys property and land and may take lives, as well. Insureds must collect and present documentation of their losses, and assessments are often required to determine payout values. In many cases, multiple insurers can be involved in a single claim (such as car, home, or property coverages), and the process of determining which company is responsible for what damages can take several months, if not longer.

Disaster Analysis and Prevention Occupations

Virtually every community that suffers catastrophic losses by any cause wants to recover and rebuild as quickly as possible. To do so, however, often requires understanding where and why the losses occurred to prevent inadvertently incorporating those threatening circumstances into the new plan. The following occupations generate the reports and insights needed to ensure the construction of a safe and sustainable new landscape:

Fire Investigators ferret out the critical data that explains where, why, and how fires started, spread, jumped, and were eventually contained. They investigate the cause of the conflagration, looking for arson or natural causes as the ignition point to determine if a crime was involved. Their information assists parallel investigations by law enforcement agencies, insurance companies, industrial companies, and homeowners in determining cause, liability, and, in some cases, criminal culpability for the damages done during the event.

Geographic Technology Analysts create maps, visualizations, simulations, and other informative tools to explain how the physical location of a disaster event impacts the type and level of damages incurred. Their effort is invaluable in explaining how the physical scene of the disaster location contributed to the damages incurred so that those people strategizing recovery efforts can avoid recreating similarly dangerous conditions. They also utilize technology to predict and track weather systems that can trigger natural disasters, providing a community with a warning period before the onset begins.

Disaster Recovery Occupations

The direct losses suffered during any kind of disaster are often immense and require immediate response. In the longer run, however, disaster impacts on systems and infrastructure also require close analysis and evaluation to ensure that they, too, recover appropriately.

Comprehensive Supply Chain Management is foundational to a community’s ultimate recovery. The demand for services and materials related to addressing the challenge rises exponentially during and immediately after the calamity occurs. Food, disaster management, lodging, and transportation systems are often negatively impacted during a crisis and require immediate responses that are directly related to the specific incident. In its aftermath, these indirect response activities grow in importance as the community begins its recovery and seeks new or replacement goods and services in place of those that were lost or are no longer available.

The demand for IT Disaster Recovery services (IT/DR) also rises after a disaster occurs. Especially in the business community, loss of technology can also mean the loss of the company itself. Accordingly, most practitioners of IT/DR services are also focused on preventing losses in the event of future calamities. The IT/DR specialist evaluates the entire spectrum of digital assets within the technology suite, including hardware, software, servers, networks, and compliances. They also investigate for data and process losses, new or newly revealed vulnerabilities, and failures in capacities and capabilities. As the system is rebuilt, the DR Architect will work to bring the enterprise back online while also incorporating resiliency aspects into the new system that will prevent losses and failures in the future.

In addition to needing IT/DR services, most companies also benefit from support from Business Continuity Specialists (BCS), who provide the direction and insights needed to keep a company running during and after disaster strikes. These professionals oversee the development and implementation of disaster recovery (DR) plans and strategies that incorporate all elements of the business, including staff, stakeholders, supply chain participants, and compliance mandates. Organizations that invest in these services will have a workforce that is well-trained to respond during a catastrophic event, as well as to return to action quickly once the danger has passed. The BCS also produces the reports and analyses necessary to justify further financial investments and to back up insurance claims.

 

At this moment, the Los Angeles region is moving forward in its recovery efforts after the January fires. No doubt, there are many disaster-facing professionals at work, assisting all members of the community in their efforts to recover as much as possible their former lives. Also without doubt, more such professionals and specialists will be needed as the frequency of both natural and man-made disasters is expected to increase in the coming years. Individuals seeking jobs with purpose and that offer meaningful public service would do well to consider these occupations as potential future careers.

Unexpected Benefits: Post-Disaster Growth

Pam Sornson, JD on June 3, 2025

Even in the face of devastating destruction, natural disasters also trigger industrial growth and economic opportunities. The investigations that follow every catastrophic event, including fires, floods, hurricanes, and the like, reveal and clarify the specific causes of those damages and often suggest how the extent of their failures could have been reduced or even prevented. As industries evolve in light of the new data, whole sectors frequently change course to embrace new practices. New businesses typically spring up to fill in the recently identified gaps in products and services.

Immediate Demand Triggers Industrial Growth

Analysis of recent catastrophes indicates that several support industries have arisen or expanded in their aftermath. While victims benefit from immediate responses, communities also benefit in the long run from the emergence of new companies developed specifically to address still-existing threats and catastrophe-related consequences.

Restoration Businesses

These service providers are often first on the scene after the safe removal of debris. Where damage is done but structures remain, mold, mildew, and instability arise as concerns for future residents and users. Restoration companies provide the services that remediate these issues, optimally returning the structures to their previous, undamaged state.

As natural disasters have grown more dangerous and caused greater levels of destruction, restorers have often adopted high-level technologies to assist them in their work. For example:

  • Many now deploy sensors to detect mold and mold-inducing environments; the data will direct their next remediation steps.
  • Others deploy high-tech drones to assess affected sites and destroyed areas that were inaccessible before the technology became commonplace. Their data reveals an accurate record of the destruction and often suggests where the next steps should occur. Their use also prevents injury or worse to their operators.

As disasters continue to happen and become more destructive, the restoration industry is expected to grow from US$ 41B in 2023 to US$75B in 2034.

Power Generation Companies

Power is often lost, sometimes for weeks, as a consequence of a natural disaster. Consequently, generator companies frequently experience growth in the aftermath of the event. Home generators are typically the first step toward normalcy after the electrical system fails. As a temporary fix, they keep the lights on, and the heat turned up. These backup support devices are easily accessed and have evolved adaptations based on the nature of their location and anticipated need. More than half (57%) are ‘dual-fuel’ types, for example, meaning they can run on more than one type of fuel, typically gasoline and propane. Studies indicate that two-thirds of the nation’s rural areas and over half of its urban settings (52%) would require such a backup resource in the event of a catastrophe. Demand for these assets is growing, and their market is expanding from US$2.8B in 2024 to an estimated US$7.1B in 2033.

Engineering Firms

Engineering companies also often do well after a catastrophe hits. In most cases, whole infrastructure systems are disabled or destroyed by the event, so even those who haven’t lost a home or business will lose access to critical civic services. This extensive type of damage is particularly important to repair as quickly as possible; a lack of services can sometimes lead to even more damage.

Engineering firms pursue several trajectories in their response to a disaster, and often rely on data collected by early warning systems (EWS). These extensive and comprehensive systems are designed for and implemented in anticipation of a disaster-type challenge. Data indicates that their use can both reduce damages and minimize the loss of life. Some EWS sensors register seismic activity to warn nearby populations of an impending earthquake, while others track water and soil movement in anticipation of a flood or mudslide. These early notifications give people time to evacuate the area before the threats to their lives and possessions escalate.

  • During the immediate aftermath of a destructive event, engineering companies use drones and other technological vehicles to both assess the situation and perform tasks deemed too dangerous for a human to attempt. Robots can capture images from the air to give responders accurate information about the location of survivors; they can also traverse and scan the damaged sites to determine how or if trained personnel can move into the area.
  • Artificial Intelligence is rising as a tool in these instances, as well, as it can provide a clearer picture of where threats might lie in time for communities to take preventative action.

Long-term efforts see property restorers, power source providers, and engineering firms assessing the effectiveness of earlier actions to determine how to improve the recovery phase of a natural disaster. In most cases, innovations improve systems and evolve based on the disaster-management lessons learned in the field, which can lead to stronger, more resilient communities.

Attaining a ‘Functional Recovery’

Over the past several decades, as science has recorded both the causes and effects of natural disasters, the industries that comprise the ‘built environment‘ have been making changes in their activities to reflect the new data. Those analyses have resulted in a new design philosophy that strives to improve building performance standards in response to previous building failures. This new thought process of ‘functional recovery’ looks beyond actual damage to assess the fundamental robustness of the structure itself, as well as the soundness of its safety and operational elements. The purpose of the evaluation is to avoid rebuilding using flawed practices and materials (based on their performance failures during the catastrophic event). Instead, and especially in the engineering discipline, the research suggests how experts can design and rebuild not just for resistance to damage but also for a swift and comprehensive return to function as quickly as possible after the threat subsides.

Currently, two frameworks are used for these investigations: the Federal Emergency Management Agency’s P-58 protocols for earthquake activity (FEMA P-58) and Arup‘s Resilience-Based Design Initiative (REDi) for earthquakes, floods, and windstorms. Pursuing these resilience-focused best practices during the post-disaster rebuild period should set a stronger foundation for a faster and more effective functional recovery after the next catastrophe hits.

Grieving after any calamity that causes human or property losses is expected. Today’s built environment professionals are working to alleviate some of that grief by rebuilding with resilience and loss prevention in mind. Their efforts should give every community hope that it can not just survive a disaster but also thrive in its aftermath.

 

Natural Disasters and Industrial Change

Pam Sornson, JD on May 20, 2025

Change is inevitable in all aspects of life. Even industries change regularly, typically as innovation, culture, and opportunities evolve. Threats can drive industrial change, too, and the threats posed by natural disasters often compel significant alterations to how and why business gets done.

Industrial Evolution: Four Trajectories

Evaluating next steps in industry growth requires the capacity to step back from day-to-day concerns and see the longer perspective. Sometimes, change must occur because the competition is making ‘business as usual’ obsolete. Other times, emerging alternatives offer better opportunities to create improved profitability. Research shows that four evolutionary trajectories drive changes in industries, and that those four courses of action are divided into two camps: those that are driven by threats, and those that are driven by market evolutions.

• Threats to an industry’s core capacities will mandate changes. Until the Internet intervened, car dealerships and salespeople were considered the auto industry experts on what car to buy and why. As the internet expanded, however, consumers embraced the opportunity to research their own car-buying details and data, leaving the showroom floor personnel with nothing to add to the experience except the product itself. This circumstance is an ‘intermediating change’ because the digital innovations challenged the traditional relationship between seller and buyer.
• Threats to an industry’s core assets also suggest altering or eliminating existing practices; over time, almost all products become obsolete as new options offering the same or better services become available. The introduction of the automobile is an early example. That invention, coupled with innovative production capacities, quickly put the horse-and-buggy sector out of business. This circumstance is defined as a ‘radical change’ because the advent of a new and different asset rendered another industry completely moot.

Industries can also evolve without the presence of threats.

• Creativity is a big instigator of industrial change. New employees, for example, often bring insights and imagination to their occupations, seeing the old practices through new eyes. These types of evolutions may result in better versions of the product, as opposed to whole new products. Adding color to motion pictures or using trademarked jerseys to build the presence of sports teams are two examples of ‘creative change’ and how industries can expand without intrinsically changing their product.
• ‘Progressive change’ drives innovation by connecting consumer experience with existing assets to feedback-driven enhancements. Today’s obsession with online surveys and ‘How are we doing?’ quizzes reveals how industries are constantly seeking input from relevant communities to inform and develop their subsequent iterations.

Each of these styles of industrial change reflects how the circumstances occurring at the moment – in the business, the community, or the industry – might impact the industrial organization itself. Corporate leaders who see and respond to emerging influences that suggest viable alternatives to ‘business as usual’ can gain an early lead over their competitors.

Disaster-Driven Industrial Evolution

As tragic as they may be, natural disasters also present opportunities for change that flow from all four types of industrial evolution. As companies evaluate the full extent of losses caused by floods, fires, drought, and other ‘natural’ catastrophes, they may also see opportunities for innovation that can change or modify their past ‘best practices.’

• In some cases, whole corporate divisions may be rendered obsolete if their product or service offers little or no future value in what’s left of the industry. Those organizations will be radically changed by this fundamental change to their corporate structure.
• In other cases, data regarding how the disaster unfolded can inform innovations to existing assets that will enhance their value in the future – entities that are attentive to these factors will effect intermediating change in their evolution.

Each such evolution is driven by the specific factors of the particular cataclysm and how each entity experienced the challenge. Consequently, companies within industries can experience similar impacts and losses due to a disaster, but their unique and individual responses to those deficits can still set them apart from their competitors. Moving through the recovery process, they can implement both creative and progressive changes.

The Construction Industry Offers Constructive Observations

Adaptations within the construction industry offer insights into how foundational industries assess for and embrace new options after suffering losses (from any cause). Today’s construction experts have many tools they can use to improve the quality of repairs or rebuilds of damaged or destroyed buildings. The final iteration after recovery can – and should – provide improved safety and enhanced productivity for the makeover, resulting in both a corporate and industrial evolution. These three innovative assets reflect how the construction industry uses new tools to improve traditional building practices.

• Computer-aided Design (CAD) – Most of today’s built infrastructure was constructed without the use of computer technologies. The emergence of computer-aided drafting, however, suggests that it would be dangerous to approach a construction project these days without using this comprehensive tool to maintain standards and controls. Perhaps its most significant contribution: flagging engineers and builders of discrepancies between design and construction.
• Building Information Management (BIM) – Another technology already informing millions of businesses around the world, BIM capacities provide sensor-derived data that demonstrate where weaknesses lie and offer options to remediate those challenges. In a rebuild setting, the BIM ‘tests’ materials and design against known disaster-type activities, such as high winds, water intrusions, or earthquake-level tremors. In the final build, BIM capabilities track temperatures, energy use, and other processes that impact building performance.
• Modular Construction – ‘Stick-built’ homes and buildings – those that are constructed totally piece by piece on-site – may become obsolete if their capacities to withstand ‘natural’ and environmental pressures can’t compete with modular construction options. Modular buildings are fabricated within environmentally stable facilitities, often using robots and other advanced technologies to achieve near-perfect results. Because they aren’t subject to weather or similar construction-related impediments, these buildings can be completed faster than those done with traditional building processes, and are often stronger, more efficient, and more economical than their stick-built counterparts.

The wildfires in LA, flooding in Kentucky, and tornadoes in Missouri have all altered both the terrain and economies of their communities. As those and other regions consider optimal rebuilding strategies, business and industrial leaders should be looking at how the enforced changes in their circumstances can direct their activities to improve their products and services to keep future generations safe, and ensure that the enterprise can thrive.

 

Rebuilding LA: Examples of Resiliency

Pam Sornson, JD on May 6, 2025

Most likely, the vast majority of victims of the LA wildfires are experiencing their first true ‘catastrophe.’ The scope and extent of the damage done throughout the region are unprecedented, leaving survivors with little or no individual guidance on how to move forward. Even with all the supports provided by local, state, and federal resources, entities – both corporate and human – must still make sense of the unique specifics of their damages and strategize their next steps based on what their needs are and will be. In many cases, the experiences of previous disaster victims can provide invaluable lessons and insights to help those who have lost their homes, businesses, or both.

Lessons from the Past = Plans for the Future

‘Recovery,’ in this instance, refers as much to the community as it does to the individual. Not only were thousands of homes and hundreds of businesses lost to the fires, but local and regional industrial sectors also suffered losses and disruptions. However, both individuals and companies are seeking inspiration and guidance by studying the recovery efforts deployed in other communities. Fortunately (or unfortunately, depending on one’s perspective), there are many examples available to help shine a light on both challenges and solutions.

Early Recovery Stage: Lahaina, Hawaii

Less than 2 years ago (August 2023), Lahaina, Hawaii, was almost wiped off the map altogether because of a devasting fire that demolished over 2,200 structures and leveled more than 2,100 acres. More than 100 people died in the fire, and so far, losses total over $5.5 billion.
Since the conflagration was contained, the city, county, and state have worked to restore as many services and systems as possible, following a protocol that focuses on the resources that are most critical to public health and welfare:

• Lahaina’s sewer system was severely damaged by the fires, raising the threat of contamination by unmanaged toxins released into the environment. After two years of dedicated effort, the town’s sewer system finally achieved 100% restoration as of April 2025. In total, more than 3,500 real property lots have been reconnected to the sewer infrastructure that was severely damaged by the fire. In addition to the sewer lines, the disaster affected three wastewater stations and the sole wastewater reclamation facility. As a bonus, the rebuild effort also included adding new sewer services to neighborhoods that had previously relied on leach fields and septic systems.

• The housing recovery is also ongoing. The Federal Emergency Management Agency, FEMA, is now transferring residents from its long-term housing sites to short-term rentals managed by local agencies. At the same time, the number of building permits filed for new construction indicates that landowners are rebuilding. As of April 2025, 383 permits were issued, with another 301 pending approval. Other FEMA-affiliated assistance measures include groups of modular homes erected on private land – “Alternative Transportable Temporary Housing Units” – to add more habitable space while more permanent structures are built.

While these developments are promising, other challenges encountered in the reconstruction industries have revealed several factors that are preventing a swifter recovery. These concerns are almost certainly impacting the LA region, too:

• Difficult geography – Maui’s geography is posing problems. East and West Maui are 2.5 hours apart and have distinctly different cultures and populations. Pursuing recovery solutions that satisfy both sides is proving to be difficult.
• Economic disparities – Socio-economic divides are also problematic. Low-income residents must contend with decisions made by wealthy non-residents, off-island tourists, and the vacation-rental-owning populations.
• Political differences – Politics, in particular, are getting in the way of recovery-focused efforts. Native Islanders are at cross purposes with wealthy non-native residents in terms of what assets should be recovered, neighborhoods versus resorts, as an example.
• Out-dated zoning laws – Perhaps most significantly, the bickering among residents and agencies is impeding a much-needed overhaul of the state’s zoning laws. Pre-fire zoning restrictions adversely affect virtually every aspect of the rebuilding effort, including water-use rules, environmental protections, and utility ordinances for electricity, plumbing, and road grading processes. Older homes, multifamily dwellings, and historically significant buildings are subject to even more stringent permitting procedures.

All of these factors can be helpful learning tools for any community struggling to recover from any size disaster.

Mid-Recovery Stage: Paradise, California

In 2018, wildfires consumed 95% of the little town of Paradise, located just 12 miles from Chico and 90 miles north of Sacramento. The disaster was, at the time, the deadliest wildfire in California’s history, taking 85 lives while destroying 18,000 buildings (14,000 of which were homes) and scorching more than 153,000 acres. For 17 days, the country watched as the town burned and its residents were forced to flee.

In the intervening six years, progress has been slow but steady in recovering from the flames and rebuilding the municipality.

• It took nine months to remove the debris piles and hazardous materials that littered the streets.
• In the first two years after the disaster, more than 400 new homes were built, including the neighbor-friendly Joylands Candy Shop. That little element of community underscored how dedicated Paradise residents were to staying in place and rebuilding their homes.
• At the five-year mark, more than 3,000 homes and several schools had been rebuilt, and miles of roads were repaved. The building/recovery boom was sufficiently swift to attract returning and new residents, making Paradise the fastest-growing town in the country for the past four years.

More recently, Paradise has focused on protections against future disasters. Its ‘Prepared Paradise’ strategy sets out a step-by-step plan to ensure residents and businesses have the best possible opportunity to survive another disaster:

• Power restoration efforts mandate that all lines be buried underground to eliminate a recurrence of the cause of the 2018 blaze: downed electrical lines.
• The town’s ‘Wildfire Prepared Home‘ strategy mandates vegetation restrictions that prohibit planting too close to walls and buildings. It also requires using ‘ignition resistant’ materials in all aspects of any rebuild project, including ember and flame-resistant vents, and non-combustible fencing and roofing.
• Paradise has also enhanced its early warning system to include 21 new siren towers, five of which are already in play. The new public safety assets are both fire-resistant and satellite-capable. At the same time, while they are hard-wired underground to the electrical grid, they can also default to battery or solar power sources as backups.

For survivors of the LA fires, these examples provide guidance on next steps and ‘best practices’ for recovery. Those who follow them will be able to begin their recovery journey knowing that they are making the best decisions possible for a safer future.

 

Considering Risk: Rebuilding with Confidence

Pam Sornson, JD on April 13, 2025

Historical evidence suggests that LA’s January fires were a predictable outcome of decades of risk mismanagement. Some of the areas that burned are also those that commanded the highest price per square foot. Their proximity to still-raw canyon wilderness and stunning westward and ocean views skyrocketed their value while hampering the effort to make the necessary changes to protect them from fire hazards.

The values intrinsic to those properties also explain the popularity of the communities in which they sit. Not only will people pay top dollar to purchase them, but they’ll also rebuild in the exact location despite the clearly demonstrated escalated risk of loss to ‘natural’ disasters. Homeowners in the affected neighborhoods have been rebuilding on the same sites in Malibu, for example, since at least the 1930s, even though those homes have been decimated by fire at least eight times during that era. Further, if this trend continues unabated, then the communities that have just gone up in flames will again be rebuilt, either by their current owners or by new buyers, only to be lost again under similar circumstances. People remain eager to reap that particularly enticing and very ‘LA’ asset: a view of the Pacific from atop a Beverly Hill.

However, while the risk of loss (to fire, mudslides, and other crises peculiar to the region) remains high, the affected real estate also offers a lifestyle or market sector second to none. Should they choose, current or new owners can mitigate their risk level as they rebuild by embedding resilient design strategies into their redevelopment process. Embracing these strategies requires ferreting out as-yet unseen hazards and removing the blind spots that shield from view the threats that are inherent to these locations.

Seeing the Unseeable – Five Steps to Disaster Resilience

Whether the rebuild project is domestic or commercial, the mandate to fully evaluate potential hazards remains the same. These five steps offer a roadmap through the threat assessment process and provide parameters to clarify and establish protective resiliency strategies:

1. Clarify the extent and context of already-known risks to establish a baseline for their expansion. Whether rebuilding a commercial site or a personal home, knowing how existing risks currently impact the four metrics set out below can inform the emerging risk management process:

a. The physical location often suggests fundamental risk management practices. The potential to experience losses due to fires, floods, thefts, etc., is frequently well calculated by insurance agencies and actuaries.
b. Economic realities and potential losses are often clearly defined and potentially mitigated through contractual terms and appropriate financial management practices.
c. Environmental and social contexts also inform where, when, and how risks might arise. These concerns refer to internal cultural and human activities in companies, communities, and families that may give rise to escalated risks of loss due to human activity.
d. Knowing who is making the risk management decisions for the region is as important as what decisions are being made. Identifying the current ‘governance’ of management authorities will clarify who needs to know what and when the crisis finally hits.

2. Clarify a timeline – Risks often emerge in a cyclical pattern. The rainy season suggests flooding potential, for example; certain building materials are expected to erode and fail within a known time. Establishing a calendar that identifies the details and occurrence periods of known liabilities facilitates an early planning period to reduce or eliminate the threats they pose.

3. Collect and evaluate relevant data. As noted above, it is likely that at least some of the Malibu rebuilders were not aware that the acreages they purchased were at risk of total loss caused by fire. Today’s advanced technologies can provide accurate and detailed data about past events and experiences. Predictive analytics can also elaborate on that data to suggest how future similar events might unfold, and what property owners might do to manage them.

4. These first three steps help to build the fourth: an ‘asset/liability matrix’ of the subject property and/or project. Home or business owners who’ve worked through these principles are now informed about the strengths and weaknesses of their project and can build those realities into their plan of action.

5. Anticipate and plan to mitigate future risks. In addition to alleviating apparent threats posed by fire to real and personal property, LA’s fire-affected property owners can also now extrapolate beyond these known quantities to identify as-yet-unidentified risks and threats that will likely arise from their new risk-informed perspective.

Seeing the Future: Build on New Knowledge

Disasters typically reveal interdependencies among services and systems where unknown risks come to light either during the event or after the crisis moment has passed. Weather-related events, for example, often interrupt multiple systems, leaving victims without access to numerous support and safety outlets. People who seek to rebuild should clarify the extent and context of already-known risks to establish a baseline for their expansion. Whether rebuilding a commercial site or a personal home, knowing how existing risks currently impact the four metrics set out below can inform the emerging risk management process:

a. Utility services such as electricity or water are usually the first systems to fail during a weather-related disaster for those within and outside the danger zones. Lack of light and communications connectedness pose risks of injury and loss even without a natural disaster happening nearby.
b. Road systems, too, can contribute to disaster-related chaos by being too narrow to manage the flood of evacuating vehicles or facilitate the passage of rescue trucks.
c. Communications are also often severely hampered during a disaster. Weather-related disasters frequently take out communications towers and power, eliminating access to critical information by both victims and response teams.
d. Post-disaster periods also threaten home and business owners directly impacted by fire or other ‘natural’ disasters:

i. Displaced people who’ve lost their homes often struggle to find temporary housing or shelter while their homes are out of commission. Lack of adequate transportation after the catastrophe can also hamper their efforts to get to safety.
ii. Lack of access to healthcare is also often a byproduct of a natural disaster. Injuries sustained during the crisis may not receive the care they need; ongoing medical conditions may be exacerbated as medication resources dwindle without access to medical personnel.
iii. Post-disaster environmental concerns can also pose significant threats to already ruined properties. In the LA hills, for example, mudslides, landslides, and debris flows typically occur when soils are eroded due to fire, rain, floods, etc.

Thousands of home and business owners have been directly impacted by the 2025 LA wildfires, suffering billions of dollars in damages. Those who are intent on rebuilding on or near their property should note all these existing and potential contingencies as they plan their rebuilding strategy. Doing so will (hopefully) reduce the potential of future similar losses or eliminate those threats altogether.

 

Resilience as a Goal: Rebuilding the LA Region

Pam Sornson, JD on March 29, 2025

Los Angeles is on track to execute the fastest disaster cleanup in history following the devastating wildfires of January 2025. As crews sweep through communities leveled by flames, home and business owners are now looking toward the rebuilding process. They face a myriad of decisions about their next steps: do they sell and move on? Duplicate what was lost? Reimagine their property in a whole new configuration?

For those who elect to stay and rebuild, the choices available are almost limitless for the new construction of a house or commercial site. What should be prioritized, however, is not the design or building specs. Both companies and individuals must escalate their risk management practices to limit or prevent the chance of similar losses in the future. What people need to consider now is their future capacity for resilience in the face of catastrophe.

LA’s Cleanup Efforts

The impact of the billions of dollars invested by the State of California into aid and assistance for the affected neighborhoods is notable. With help from federal agencies, the debris from more than 1,300 properties was removed within the first 80 days. (In contrast, it took over four months to clear 920 properties destroyed by the 2019 Hill and Woolsey fires.)

Support resources for displaced populations have also made a positive contribution to the recovery effort:

• The federal Small Business Administration is overseeing more than $1.8 billion in low-interest loans offered to both homeowners and businesses as they begin their repair or replacement projects. And FEMA (the Federal Emergency Management Agency) has provided almost 32,000 people with over $102 million in financial resources to help them through this calamity.
• California has focused on providing interim support for displaced families, including $24.2 million for urgent housing and shelter needs, $21 million for short-term housing, and more than $73 million for ‘Other Needs’ assistance – financial support to cover medical and dental services, property losses, and other costs related to the disaster.
• Data provided by California government agencies reveals that state-based recovery centers have had more than 60,000 visits related to the fires.

By these accounts, it appears likely that the region will be able to achieve ‘near normal’ activities much sooner than initially expected.

However, what that ‘new normal’ will look like is still very much an unknown. The COVID-19 pandemic and past similar natural disasters all offer lessons on how to recover from these immense devastations. New approaches to living and working can now be incorporated into the rebuilding process to address the weaknesses revealed by the fires. The recovery processes following each individual event – a fire, a flood, or other such calamity – provide insight and instruction for those facing these decisions today. Rising to the top of the ‘consideration’ list: how to enhance risk management to facilitate future resilience.

Risk Management Now = Recovery Resilience Later

Perhaps the biggest lesson derived from previous disasters is that they exposed unexpected hazards and vulnerabilities for which there was no contingency planning. Property and financial losses grew exponentially as established ‘disaster recovery’ processes failed to address the actual damages that were occurring. During the pandemic, for example, restaurants that held comprehensive fire and physical loss insurances had no such coverage to protect them when the coronavirus compelled them to close their doors for an extended period (or, in some cases, forever). While that circumstance was unique even from a disaster perspective, it does illustrate that traditional ‘disaster recovery’ efforts are rarely comprehensive of all potential threats.

Applying that lesson to today’s realities indicates that anyone interested in rebuilding their ‘estate’ – personal, corporate, or both – should expand the scope of their ‘recovery parameter’ to incorporate ‘resilience measures ‘ to guard against losses driven by future crises. To do that, they’ll need to revise their present practices and policies to embrace the four elements of resiliency:

• Agility,
• Responsiveness,
• Flexibility, and
• Predictability.

To achieve these attributes, both individuals and businesses can look to emerging tools and operating models that will help develop, embed, and maintain a more resilient enterprise.

Embrace Technology

Not surprisingly, today’s technology – most notably Artificial Intelligence (AI) – provides significant resources to expose currently unseen threats and develop appropriate, crisis-mitigating solutions to the challenges they pose. AI-enabled predictive analytics programming can now ferret through billions of data bits to assess for hidden risks or systemic gaps. The consequent remediation of these threats both reduces the likelihood of actual failure while also improving current and future decision-making procedures.

Rethink the Workforce

For most occupations, workers are hired to perform a single function or set of functions. They are not typically included in the decision-making process, nor are their perspectives considered in the analysis of enterprise success. This mindset is changing. The pandemic, in particular, was instrumental in removing foregone assumptions of employee values as management and staff worked together to address the unique challenges posed by COVID; the emergence of the janitorial staff as ‘essential workers‘ is just one example. Leaders who want their organizations to excel in the future should be open to the creativity and insights provided by their current workforce to capture more value from that resource than was previously acknowledged.

Acknowledge Sustainability as a Business Imperative

Even with California’s strict and precise urban fire prevention codes in place, the LA region was still vulnerable to extensive fire damage, as was demonstrated by January’s events. In some cases, the failure of home- and business owners to adequately protect their property against fire threats actively contributed to their destruction – and that of their neighbors. Data indicates that these lapses in judgment can affect more than the company’s physical plant. Consumers are actively seeking to do business with entities that take longer-term environmental concerns into consideration in their day-to-day operations. These days, they are choosing to engage with enterprises that demonstrate mastery of both social responsibility and sustainability capacities. Further, companies with the most to gain from embracing this eco-friendly strategy will also engage their entire corporate ecosystem, including their partners and supply chains, to ensure that they retain their customers’ loyalty.

Clearing away the debris and detritus of January’s firestorms is the first step in LA’s rebuilding effort. Incorporating enhanced risk management strategies to reduce or eliminate the likelihood of similar catastrophes in the future should be the first element of that rebuilding effort. Entities that successfully adopt resiliency as a fundamental business tenet stand a good chance of thriving through the current community recovery period and surviving whatever threats are posed by the next disaster.

Industrial Resiliency to Mitigate Disaster Loss

Pam Sornson, JD on March 18, 2025

If past disasters are any indication, it will take years for the LA region’s economic and industrial complex to fully recover from the recent wildfires.

• Immediate efforts are aimed at remediating hazardous waste from burned-out buildings so that each site can be cleared and prepared for reconstruction.
• Ancillary activities include enhancing local services and supplies (retail and services businesses) to compensate for the loss to the flames of impacted resources.
• Agency activities include assessing how the disaster has impacted – and will continue to impact – the regional economy. They need to understand how to best distribute existing resources while also strategizing regional ‘best’ next steps.

While the final tally of losses is still unknown, area experts have compiled initial statistics that suggest:

• Property and capital losses will be somewhere in the neighborhood of $76 to $131 billion.
• The regional GDP for the year will contract by ~$4.6 billion (.48%).
• Workers will lose $297 million over the course of the year.

Those are direct impact losses stemming specifically from the destruction of real and corporate properties.

In addition to those depletions, other losses will be felt in ancillary categories:

• Insurance premiums will continue to rise as insurers incorporate higher risks of fire and related disasters emerging from these conflagrations.
• Rental costs are also increasing as displaced homeowners find temporary housing while their property is rebuilt. That extra population puts additional pressure on an already fraught rental housing market, making it even more unaffordable.
• Health issues are also rising due to smoke and particulate matter released by the flames.

In light of the far-reaching concerns presented by the fires and their aftermath, disaster management professionals are suggesting that more resilience measures should be included as the region rebuilds. In addition to making real property development more fire-resistant, these experts are now discussing the significance of ‘industry resilience.’ Industry resilience embeds into corporate sites and cultures practices that help to mitigate damages and losses from predictable threats such as wildfires, storms, floods, and the like. As climate change advances and environmental disruptions become more likely and more destructive, the resilient business will be prepared to withstand those pressures and recover more quickly and succinctly afterward.

Industry Resilience as a Concept

This emerging consideration – industrial resilience – is defined by the World Bank as “the ability of firms, industrial parks, and manufacturing sectors to increase competitiveness by minimizing losses and damages and by achieving continuity and growth in the face of more frequent and intensifying disasters.” It embraces the reality that businesses and industrial sectors face the same escalating risks of loss due to climate and other social changes just as surely as their human resources do. The COVID-19 pandemic, hurricane and tropical storm flooding, fires, and even political upheavals that recharacterize whole countries have all had an immeasurable impact on how the world functions. Those businesses that survive these shake-ups are the ones that have intentionally built into their practices strategies that will maintain (as much as possible) their security and continuity through difficult times. Their preparations take into account disaster-borne situations that cause supply lines to falter, regulations to fail, and critical corporate initiatives to fall by the wayside. The resilient business prioritizes avoiding unnecessary damages or delays during a disaster so it can recover quickly and completely from the mayhem.

From this perspective, many organizations might consider how a disaster of any kind not only poses risks but also generates opportunities for growth and evolution. And, once they recognize the business value of being better prepared ‘next time,’ they can begin exploring where their vulnerabilities lie and how they can reduce those risk exposures while they have the time and resources to do so. Further, not only would a resiliency upgrade ward off at least a percentage of future losses caused by destructive forces, but some analysts believe it also offers enhanced competitiveness before, during, and after disaster strikes.

Industry Resilience as a Competitive Measure

Enhancing organizational resiliency requires both insight and investment:

• Insight to understand where risks lie and what needs doing to mitigate them and
• Investment of time, financial, and human capital so that business continuity planning (BCP) includes responding to and recovering from disaster-created damages.

Insights:

The World Bank report offers (on page 31) ‘co-benefits’ as a correlate to disaster damages. Co-benefits emerge during both the resiliency planning/development/building stages and the post-disaster recovery phase as each element of each step is thoroughly vetted for its impact on the enterprise. Co-benefits can include social, economic, and environmental aspects that come into existence either as adjuncts to a protective factor or as happy coincidences as activities demonstrate the success of the resiliency measures.

For example, resilient industrial buildings not only protect businesses and people in non-disaster times, but they can also protect communities. When designed with resilience in mind, revamped business sites can offer several benefits to their neighbors, including shelters from climate challenges, barriers to environmental catastrophes (preventing mudflows, i.e., that caused additional damage after LA’s fires receded), and revenue streams by allowing the company to remain operational.

Investments:

Investments in industrial resiliency span all aspects of ‘doing business.’

• Infrastructure – The corporate ‘infrastructure’ isn’t just its physical plant; infrastructure also includes its technology and human resources, supply chains, business partners, and community relations.
• Policy – Investments in both civic and corporate policies are also necessary to sustain competitiveness before, during, and after a disaster. Industrial resilience policies can streamline processes such as permitting, licensing, etc., as well as raise awareness of mitigation practices that can affect the whole community.
• Finance – Disaster risk financing tools add buffers and padding to current accounts to avoid cost overruns and ensure access to funding when catastrophes occur. Policies explicitly dedicated to disaster management reduce reliance on operations funding and fuel a faster recovery when disaster strikes.

Analysis of decades of disasters – floods, hurricanes, fires, and even earthquakes – teaches how to sustain resiliency and recovery options in good times to protect from unnecessary damages in bad. Climate change is driving ever more violent storms, wildfires, and floods. Companies that implement resiliency and recovery strategies well before calamity hits are better poised to survive the crisis, reduce the opportunity for unnecessary losses, and speed their recovery time. Industrial resiliency is the new strategy for any business located anywhere near a potential disaster zone, which, these days, is anywhere on Earth.

 

LA Wildfires – Disaster Recovery Begins

Pam Sornson, JD on March 2, 2025

The flames have been quelled in the LA region, but new challenges are arising in the aftermath of its recent wildfire disasters. The data reveal only a glimpse of the enormous obstacles faced by those directly impacted by the blazes (a total of 16,251 structures were lost) while also suggesting the sizable nature of the impediments to recovery the community now faces. Fortunately, resources are available to assist in strategizing a long-term recovery plan and provide immediate guidance and assistance to those in the most urgent need of both.

Immediate Relief Services for Individuals and Families

All relevant governments – state, regional, and local – are involved in providing recovery resources based on their particular suite of resources and jurisdictions. In March, the following agencies have set deadlines for access to the services they are offering:

• The Federal Emergency Management Agency (FEMA) is available with financial assistance to victims of the fires through March 10, 2025, at one of its two local locations:
• 10850 West Pico Blvd., Los Angeles, CA 90064 and
• 540 W. Woodbury Road, Altadena, CA, 91001.
• Small businesses have until March 12 to seek general business relief and physical property damages from the LA County Small Business Relief Fund. Explore loan options here.
• Wildfire debris removal assistance is available through March 31 through the Army Corps of Engineers or government-approved contractors. Interested parties can either set up entry permits or opt out of the opportunity (see below for more information).

Next Steps for Home and Business Owners

Damage Assessment, Debris Removal, and Site Safety

The thousands of properties destroyed by the fire must be cleared of hazardous materials such as paints, oils, batteries, and pesticides, among others, before non-hazardous items can be hauled away. Property owners can opt to receive help for this process or they can do it themselves. In either case, the EPA must inspect the site and approve the hazard removal result before it becomes eligible for Phase Two: General Debris Removal. The U.S. Army Corps of Engineers is assisting with this effort. Owners can also get help with potential mudflows that often happen when natural barriers and streambeds are destroyed.

The Rebuilding Process

State and local governments have joined together to reduce or eliminate the existing red tape and regulations that would typically impede the rebuilding process. Instead, City, County, and State leaders are expediting permit access so those who are ready to start the rebuilding effort can move forward as quickly as possible. Permitting resources are available based on the location of the property:

• The City of LA
• Pasadena
• Malibu
• Sierra Madre

Additionally, One-Stop Permit Centers hosted by Los Angeles County offer permitting information and support for the region’s unincorporated areas. These sites bring together resources from the departments of Public Health, Regional Planning, Geotechnical Engineering, and Public Works to ensure property owners get the comprehensive assistance they need.

Long-term Recovery Strategies for Communities

While each individual property owner attends to their immediate rebuilding needs, whole communities are also in the process of developing a rebuilding strategy. Taking notes from previous similar catastrophes that wiped out the towns of Paradise, CA, in 2018 and Lahaina, HI, in 2023, leaders are now developing plans that will focus on the three elements of a recovery strategy:

• Assess the disaster’s impact on the community infrastructure;
• Design responses to the challenges arising from that infrastructural damage, and
• Generate recovery projects that both resolve the immediate incapacities while also building in resiliencies that will protect from or defend against future disasters.

Paradise, CA

The small town of Paradise, CA, offers a real-world example of how to manage a community-wide disaster recovery effort. In 2019, residents gathered to discuss not just what needed doing to repair and rebuild the loss of a significant percentage of its resources, but also to formulate improvements over past practices that would benefit the town in the long run. The small population based its Long-Term Recovery Plan on five tenets that would set the foundation for future growth by making it:

1. Safer – by adding prevention attributes combined with emergency preparedness and early warning systems;
2. Stronger – by redirecting utilities underground to protect essential services;
3. Better – by incorporating more communal spaces to foster community and economic growth;
4. Greener – by investing in environmentally safe and stable materials for rebuilding purposes and
5. More Welcoming – by ensuring the inclusion of affordable and sustainable housing, businesses, and public works.

The final version of the plan was in place by 2022, and the 2024/2025 Recovery Action Plan Report revealed numerous successes. Examples include:

• All 21 Early Warning towers were installed and operational by June 30, 2024.
• Implementation of a Fiscal Sustainability budgeting model that extends funding for the local government well into the future and
• Completing the new sewer project design with an eye to contractor canvassing and selection.

Since the 2018 disaster, Paradise has experienced a 35% growth in its population, attracted more than 350 new businesses, and added new schools and recreation areas. It is moving steadily toward a complete implementation of its full Recovery Plan.

Lahaina, HI

The island town of Lahaina, HI, is just two years into its recovery process after a devastating 2023 fire wiped out the entire downtown area except for its famous Banyon Tree. The fire destroyed 2,200 structures, causing more than $5.5 billion in damages. More than 100 people died in the conflagration. In the 18 months since the flames were extinguished, Lahaina has followed a similar path to recovery as Paraside did, and that is anticipated for the LA area, too.

• 100% of both residential and commercial properties are now cleared of debris;
• The Kealamoka Fleming Road Sewer line is 99% repaired, with full completion expected by March 15, 2025, and
• Hundreds of building permits have been issued. As of February 28th, 11 properties have completed their construction rebuild projects.

Like Paradise and (soon) the LA region, Lahaina’s Long-Term Recovery Plan encompasses economic recovery, enhanced housing and commercial development, and better protections for natural and built resources.

LA’s populations – residents, businesses, and industries – are all affected by the fires in one way or another. Recovery resources are available for those who were directly impacted. At the same time, governments and agencies are devising the plans needed to bring the whole community back to – or better than – its former glory. The two towns of Paradise, CA, and Lahaina, HI, are excellent examples of how growth can emerge even from tragedy, giving heart to Los Angeles and all entities that call it home.

 

Pivot: How the Wildfires are Changing the LA Region

Pam Sornson, JD on February 18, 2025

Just as the COVID-19 pandemic reordered the world, so will the LA fires upend Los Angeles and its industrial base. The flames themselves destroyed great swaths of public and privately owned real estate, which may or may not be rebuilt. Beyond the burn zones, smoke and wind influences in far-flung agricultural communities have damaged crops; the economic value of those losses is yet to be determined. Further, many regional supply chains and industrial systems that have survived the fires may experience higher demand for goods and services without the means to respond directly to those requests.

In short, the damage caused by the fires impacts more than just the property owners who’ve lost their homes and businesses. Damages have also been suffered by the city, the county, and all of the Southern California region. Governments, industrial leaders, and companies must now assess where the failures and damages occurred and determine whether to mend or repair them or simply rebuild anew.

Immediate Known Losses. Longterm Uncertainties.

Real Property Losses

The immediate real property loss estimates caused by the fires encompass a myriad of real estate assets:

• Approximately 16,000 homes and business buildings were destroyed.
• The median value of each of these destroyed properties is estimated at $2.09 million.
• Multiplying that figure by a ratio of 2.2, the ‘insured capital’ value (as determined by insurance figures derived from previous fire disasters) puts the estimated aggregate real property loss in the region at ~$74 billion.

These figures apply solely to the buildings that were destroyed during the crisis and may not reflect the total loss to property owners. In some cases, insurance values may be lower or homeowners may have eschewed insurance altogether. In other cases, insurance companies may have dropped coverage for properties in these areas due to heightened risk of loss or damage by any cause, leaving owners with no financial recourse at all. In either of those instances, home and property owners may not collect the full value of their losses.

Ancillary Losses

Other figures suggest a more overarching ‘loss map,’ one that includes the fire’s impact on industrial and public resources, as well as on the community’s health.

Agriculture

California is the country’s top agricultural producer, accounting for as much as 11% of the nation’s aggregate annual output. However, on a smaller scale in terms of actual product, the LA region accounts for a larger percentage of the national food supply, depending on the crop:

• It annually delivers 27% of the country’s fruit supply, including citrus, apples, etc.
• It also provides 24% of the nation’s vegetable production, and
• almost 20% (19%) of the nuts grown in the U.S.

The nine regional counties responsible for the annual and food cash infusions into national coffers are also the most affected by the fires. Los Angeles, Monterey, Kern, Orange, San Bernardino, Riverside, Ventura, Santa Barbara, and San Luis Obispo counties have all experienced adverse effects from the disaster, either directly by fire or indirectly by smoke or ash or both. Smoke from the flames has tainted thousands of acres of agricultural land in the nine most affected counties, devastating this year’s yield. At the same time, ash falling across fields and acreage is tainting the soil, which will affect crop quality for at least another year or more.

In addition to the loss of agricultural resources, many of the ~86,000 agricultural workers are also impacted as their livelihoods literally ‘go up in smoke.’ The aggregate contribution to California’s Gross Domestic Product (GDP) of both agricultural labor and crop production is $10.8 Billion, plus another $9.2 billion contributed by related supply chain industries. The abrupt cessation of agricultural industry activities will significantly impact the state’s budget as a whole.

Supply Chains

Fortunately, no major industrial warehouses were destroyed by the wildfires, although some lost power for a period to reduce the risk of igniting more. However, the extent of the loss of physical and real property suggests that the supply chains that fill those warehouses will suffer significant strains as communities begin their rebuilding processes. And those strains may appear sooner rather than later as communities work to resume their lives amidst the ruins:

• Retail stores (grocery, apparel, home goods) may experience excessive runs on their wares as displaced populations travel in search of resources they’d lost in the fires.
• Building supply stores will almost certainly have to expand their volume of goods as neighborhoods begin the actual rebuilding process.
• Logistics suppliers will also experience higher than usual call volumes as both individuals and companies reach out to replace supplies and goods that were either lost or have already been snapped up.

These phenomena will require attention and resources as the Southern California region moves toward recovery.

Public Health

An additional collateral impact on the LA region caused by the wildfires is that of smoke on the human body. The Environmental Protection Agency (EPA) tracks how various populations are affected by wildfire smoke and uses the data to measure the impacts on health rates in affected communities. The EPA uses an Air Quality Index (AQI) to determine the relative quality of the nation’s air and associates those data with human health impacts and outcomes. According to their research, while inhaling wildfire smoke is bad for everyone, some populations will suffer more – and longer – after being exposed to toxins like those recently released in LA County:

• The wildfire smoke is more challenging for younger and older people. Children can be particularly sensitive; their bodies are inherently more vulnerable and they are often outdoors much more than grown-ups.
• Older adults (middle-aged and beyond) also tend to suffer more significantly from smoke inhalation. Often, there are pre-existing conditions that impair lung and heart functions, both of which absorb much of the brunt of the smoke damage.
• Sick people are often made more sick when exposed to toxic smoke and fumes. Those with cardiovascular conditions such as high blood pressure, coronary artery disease, and cerebrovascular conditions frequently experience additional symptoms when inhaling smoke-tainted air, such as heart palpitations, lightheadedness, and shortness of breath.

Pregnant women, outdoor workers, and those of lower socioeconomic standings are also among individual groups that suffer more egregious injuries when exposed to toxic environmental conditions like wildfire smoke.

It’s been just a few weeks since the fires were contained, and, in many cases, assessments for damages haven’t yet begun. As they commence, they will certainly reveal not just immediate concerns but also circumstances that will have a more prolonged, more profound impact on the greater community. As the region moves into the ‘assess and address’ phase, that emerging data will reveal just how much the fires cost directly, in terms of actual losses, and will cost in terms of rebuilding and recovery expenses.

 

Unlikely Heroes: Incarcerated LA Fire Responders Rise Above Barriers

Pam Sornson, JD on February 4, 2025

Wildfires are very, very expensive. Billions of dollars in damages are lost each year (much of which is borne by insurance companies and their insureds) as well as additional billions of dollars expended to suppress (prevent) and fight (quell and extinguish) them. The recent Los Angeles fires represent a worst-case scenario, where extremely high winds and adverse weather conditions coupled with years of drought generated levels of urban devastation that have not been seen before.

For a remarkable contingent of firefighters, however, the catastrophe was also a truly unique opportunity to do better for themselves. California’s prison inmate firefighters volunteer to put their lives on the line for the very community that incarcerates them. By doing so, they have the opportunity to rise above their situation, contribute positively to their community, and create a chance for a better future for themselves and their families.

California’s Wildfire Statistics

Perhaps not surprisingly, California experiences more, bigger, and costlier wildfires than any other U.S. state (with the word ‘wildfire’ distinguishing the difference between a fire in remote, rural, and forested areas versus fires that occur within urban areas). According to the Insurance Information Institute, of the top ten most expensive wildfires in the United States, nine occurred in California over the past eight years (Colorado’s 2021 Marshall Fire is the only outlier). In terms of most destructive wildfires (most number of acres burned), the Palisades and Eaton fires have already notched up to numbers three (20,438) and four (13,690) on the list, topped only by the Camp Fire of 2018 (153,336), and the Tubbs Fire of 2017 (36,807). These disasters amass a series of staggering losses, from lives to property to memories and histories. Early estimates of the economic losses caused by LA’s recent conflagrations range from $40B to as much as $250B. When final costs and losses are tallied, it is anticipated by some that the Los Angeles wildfires of 2025 will be the most costly disaster ever in the country’s recent history.

California’s Firefighting Resources

Suppression Activities

In addition to the losses caused by fire, other fire management services and activities to prevent fires (‘fire suppression‘ costs) also tack on millions of dollars to state budgets each year. The cost of fire suppression activities in California have been expanding significantly over the past ~four decades:

• Between 1980 and 1985, annual costs to prevent wildfires totaled ~$14M.
• Between 2015 and 2020, that annual figure had grown to ~$685M.
• An estimate for the exact preventative costs for the period between 2020 and 2025 comes to ~$868M, although that preliminary figure has yet to be fully quantified. According to CalMatters, California spent $3.7 billion in fire mitigation costs just in fiscal years 2021 and 2022.

Regardless of the volume and value of suppression investments, however, wildfires still continue to ignite and consume thousands of acres of land and millions of dollars of property every year.

Equipment

The cost of firefighting equipment is also high. Because of the high risk of injury or death for firefighters, their tools and machinery are often state-of-the-art and expensive to purchase and maintain. Thousands of hand tools must be ready to go at a moment’s notice, while other services, such as tanker planes, land-based trucks, and earth movers must be fully stocked and ready to roll at the first sign of smoke. For example, the best-in-class CL-415 water scooper aircraft, one of the best tools for reducing fires in remote areas, costs $13,500 an hour to deploy.

Up through 2024, California invested $2.5 billion in its arsenal of firefighting tools, and Governor Newsom’s 2025 budget adds another $1.5 billion over the next few years.

Human

The cost of maintaining and deploying human firefighters has also risen, and California has increased its standing population of firefighters from 5,829 to 10,741 since 2018. A 2024 $2 billion investment by the state allows for shorter workweeks for all firefighters while adding 2,400 more bodies to the corps.

In addition to its state-based firefighting contingent, other organizations have contributed human resources to engage with and defeat the flames:

• 2,500 California Army and Air National Guard members were on-site in LA during the fires, while
• An additional 500 Marines from San Diego County’s Camp Pendleton were on stand-by (as of January 14) to deploy ten active-duty Navy helicopters over the affected communities.

And California’s prison system has also stepped up to assist in fighting the conflagration. Close to 1,750 incarcerated people were deployed as firefighters during the crisis, voluntarily providing vital services to their community despite their criminal histories.

California’s Department of Corrections and Rehabilitation runs a volunteer firefighter program that trains imprisoned inmates to perform specific firefighting duties in conjunction with professional fire management operations. While some may squawk at the low pay they receive (as little as $10 per day), the opportunity is one of a lifetime for many of the inmates.

Program courses happen in the prison, where inmates and parolees learn to clear brush and create firelines using heavy equipment. They don’t use fire hoses, nor do they run engines or go into buildings. Instead, these workers develop the breaks between burning and nonburning areas, using hand tools and brute strength to clear away the debris and vegetation that pose ignition threats. Their incentives to join the corps are significant:

• While their training occurs within prison walls, they live at an open camp work near the fire.
• Meals are larger and have better nutritional value than those inside prison walls, and
• weight and athletic equipment help them train and strengthen before they enter the fray.
• They work a 24-hour shift and then receive a 24-hour rest day, which is just the same as for all firefighters.

Once the fire is contained and their work is done, the incentives continue:

• They can earn ‘time served’ credits for their efforts, which reduces their overall time behind bars.
• Their criminal history can be expunged after they’ve been released, which allows them to find new work after incarceration that they would not have qualified for otherwise.
• After release, they can attend additional firefighter training at the Ventura Training Center to become eligible for work with the U.S. Forest Service.

Many of the program’s participants say it changed their lives, giving them purpose, direction, and ambition for a better future. For many, the opportunity for a fresh start post-prison is unmatched, and they leap at the chance to make a new start when they exit the system.

So, while the fires cause untold millions of dollars in damage and loss, the opportunity for these brave individuals to fight them while rehabilitating their own lives is priceless. That’s one small bright light in an otherwise dark and dangerous fire-consumed world.

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