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Politicians Get Wind of Contaminated Drywall

chinese-drywall-inspection

As reported on this blog back in February, the problem of contaminated drywall residential home developers, suppliers  and construction companies imported from China for new home construction is growing and the issue is beginning to raise a stink in Washington.  Senators from a number of states are fuming about the extent of the problem.  The use of contaminated drywall in new home construction spans many states.  Florida in particular is reported to be severely effected by this product liability event.  It is estimated that contaminated drywall was installed in over 35,000 homes. Risk mitigation experts believe that it would cost approximately $100,000 per home to remove, dispose and replace  the drywall.  Developers, banks, construction companies and consumers still reeling from the recession and credit crisis would be hard pressed to meet that huge expense.

The problem of contaminated drywall has many dimensions.  It is a product liability issue, ecological hazard and has dramatic contagion capabilities that can effect financial solvency, community quality of life and international trade relations with China.  At its root, the issue of contaminated drywall is a dramatic example of the severity of  the consequences of a poorly managed supply chain.  See our post For the Want of a Nail: Lennar Homes.

The Biz Journal Article can be read here: Senators Outraged Over Chinese Drywall.

More information on Chinese drywall contamination from NACHI

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May 29, 2009 Posted by | environment, manufacturing, product liability, recession, reputational risk, supply chain, sustainability | , , , | 1 Comment