Thursday, November 11, 2010

Thinking Globally, Building Locally

(This article was originally published in the November '10 issues of Merchant Magazine and Building Products Digest.)

The green building movement is rooted in big thinking, but the USGBC is beginning to think small and local. Their mission is to transform the built environment – that’s thinking big with over 125 million buildings in the US, most of which are energy and water hogs. Considering that buildings account for a third of the US carbon footprint, success is of global importance. After over a decade of leading the commercial building revolution, USGBC has become a transformative force with a valuable brand. But there still remain 120 million less than efficient residential buildings, which is where action must now be focused. This is why the USBGC is putting considerable effort into boosting residential green building in concert with local leaders, which is good news for LBM dealers.

In residential building, there was already a green building movement well under way by the time LEED for Homes arrived on the scene two years ago. Local and regional residential programs have existed for years in progressive cities like Austin, Texas, whose Austin Energy Green Building program was the first in the nation. LEED for Homes shares many similarities with these programs, even though each reflects its own local conditions, both in terms of content and approach. In addition, there are alternatives to LEED, including EnergyStar, NAHB’s program, the new, (to the US,) PassivHaus approach, the International Living Building Institute, the NauHaus Institute, and a host of natural building organizations.

Given these realities, I really like the USGBC’s collaborative approach. They recognize that they’re part of a budding community of green building leaders and that there’s more than one way to build a green home. So, rather than attempt to impose their rating system, they launched the LEED for Homes Affiliate Program with the pragmatic aim of forging working relationships with many green building organizations and local green building leaders, thereby promoting the broader movement in the context of local needs.

“We’re market oriented and are looking to support and promote what’s working in each community,” Nate Kredich, USGBC’s VP for Residential Market Development, told me recently. For example, they’ve been working with North Dallas Green Built and the NAHB, developing educational materials for production builders, dealers and distributors. They’re even helping to produce a “mini GreenBuild” in the area. (By the way, USGBC’s GreenBuild is November 17-19.) In Minnesota, they’ve joined a coalition with Minnesota GreenStar, with its new-build and remodeling rating systems, and Minnesota Green Communities, which advocates for healthy, affordable housing. They’ve also launched the Green Home Guide (www.greenhomeguide.com), a website to help connect homeowners, builders and dealers with trusted information, and with each other.

In terms of economic clout, green residential building is only just finding its feet and, in any case, current economic conditions have strangled most building of any kind. But when homes start to be built again, it’s likely a great percentage will be guided by a national or regional program. “We recognize that for green home building to scale rapidly, it’s important that everyone in the value chain understand the rating systems and are well-connected with their local green builders,” said Kredich, emphasizing the value of education. They’re reaching out to support interested independent dealers, like Shaw Stewart in Minneapolis, as well as the big chains. With many more new green residential products and materials coming to market in 2011, it should be easier for proactive dealers and distributors to rise with the green home building market. If that’s true, then the USGBC’s big thinking could very soon be taking root in a community near you.

Wednesday, September 15, 2010

Sorting out the Recyclables

(This article was originally published in the September '10 issues of Merchant Magazine and Building Products Digest.)

Nothing says “green” like recycling, or so many people assume. Since the pioneering programs in the 1970s, it seems that now the habit has become ingrained, collection infrastructure ubiquitous, and recycling is among the greenest of virtues we Americans can claim. However, all is not what it seems. Like most issues in the realm of sustainable business and green building, there are various shades of gray, not to mention green.

In today’s green building and green consumer markets, “recycled” and “recyclable” have become the low-hanging fruit for marketers eager to pin green credentials on their products. But these attributes alone don’t necessarily signify sustainable or green in any meaningful sense. Context is everything. What kind of material? What percentage is recycled, and is it post-consumer or post-industrial waste? How relevant is “recyclable” if in fact the material is not recycled? In addition, LEED guidelines vary by application and product type, so a building material with some recycled content may or may not earn LEED credits depending on how and where it’s used. It behooves the merchandiser to dig a little deeper to determine whether these terms indicate real value or are simply a “greenwash.”

In the LBM and home improvement supply chain, aluminum, steel, glass, plastics, paper and wood are the predominant materials potentially recycled or recyclable. Aluminum, glass and steel can be used again to manufacture the same kinds of products indefinitely and can therefore be truly RE-cycled. For example, products like Maze Nails (www.mazenails.com) typically contain a high percentage of recycled steel, as do most steel products made in the USA. Generally, plastics and paper can be used again to manufacture things of lesser material integrity in a limited number of cycles, and are therefore DOWN-cycled. A great example here is Green Fiber (www.greenfiber.com) cellulose insulation, which is made from over 50% post-consumer recycled paper.

Whether a material is recycled, downcycled, or even upcycled, it’s a good thing, since manufacturing from recycled feedstock is often orders of magnitude less energy intensive than manufacturing from virgin feedstock. So, buying and stocking products with recycled content is a good thing, too, creating a market for such products and keeping the demand cycle going, so to speak.

But when evaluating products, all “recycled” and “recyclable” claims are not created equal. Post-consumer recycled content trumps post-industrial every time. Claims that don’t make this distinction should be assumed, if true, to be post-industrial. Is this still good? Yes. Is it the mark of truly sustainable product? Not always. Post-industrial recycled content is usually scraps and cuttings that may or may not be easily put through the production process again. In some cases, such as “re-grind” in the world of plastics, it’s easily reprocessed and is normal operating procedure. Generally speaking, it’s also harder to earn LEED credits with post-industrial recycled content.

The term “recyclable” is next down the list. In fact, it’s very often misused by over eager marketers and can be deceptive. If the material is recyclable in theory, but not in practice, then the claim is probably not worth the virgin paper it’s printed on. In fact, deceptive claims of this sort violate the FTC’s Guides for the Use of Environmental Claims. Where there is no recycling infrastructure, per se, a manufacturer may have a “take back” program, which accomplishes the same thing.

In sorting out products claims concerning recycled content and recyclability, manufacturer transparency and third-party certifications can help separate the green from the greenwash. It can also help to determine whether the product will meet your customer’s LEED project requirements.

Tuesday, August 10, 2010

Oil Dependency and the LBM Supply Chain

(This originally appeared in the August '10 edition of Merchant Magazine and Building Products Digest.)

The oil spill in the Gulf of Mexico is a huge environmental calamity, but it should serve as a wake up call for the LBM supply chain for another reason. Why? The spill will certainly have an impact on local economies and local LBM dealers. But the spill is emblematic of a much bigger issue, the end of cheap oil. And that will shape the future of this industry, bringing tough challenges and green opportunities.

Many analysts are pointing out that most, or all, of the world’s easy oil has been extracted and what’s left is vastly more challenging, energy intensive, and expensive to get – pumping oil from 5,000 feet deep on the floor of the Gulf is but one example. Meanwhile, according to a US Department of Energy report, new oil discoveries are lagging consumption. And some analysts have pointed out that the point of peak oil production may have been reached, or may be reached soon.

Peak oil, as the phenomenon is known, is based on the work of a Shell Oil geologist, M. King Hubbert, who showed that just as an oil well reaches a peak in production long before the oil deposit runs dry, so too, does an oil producing region have a peak in its production curve. Once the peak is reached, production volumes flatten out, then decline. Add the fact that worldwide demand for oil is growing, (car sales in China and India are going through the roof!), and if we are at or near a peak oil situation, then oil prices will surely rise and perhaps very rapidly.

The LBM supply chain is predicated on cheap transportation costs. When fuel prices rose dramatically during the summer of 2008, many distributors and dealers took hits to their already thin margins. While that price spike was due, at least in part, to Wall Street speculators, it provided a taste of what an expensive oil future will bring – higher transport and commodity costs, and marginal businesses going bust.

So, how can you prepare and create resiliency within your organization? First, start shifting your own product mix. Identify those products most vulnerable to rising oil prices and find better alternatives such as local and green products. This will also help you meet the rising demand for such products as the green building movement continues apace. Look especially at those solutions that help your customers, (or their customers,) become more sustainable or self reliant. Also, find opportunities to supply a greater range of need within your community or operating area. If gas prices rise dramatically, your customers will be looking for one-stop shopping.

Dealers and distributors should also be actively seeking ways to reduce gasoline or diesel use within their own operations. Electric vehicles or diesel trucks that run on locally-sourced waste cooking oil might be viable options. Increasing drop ships, from manufacturer to dealer, or from distributor to end-user, will help, too, but only marginally.

Finally, get involved in community efforts to create local resiliency to oil energy shocks. Transition US, (www.transitionus.org,) is a new and growing network of groups throughout the country – 69 at last count – aiming to find ways within their own communities to reduce their dependence on oil. Groups like these are gaining influence with local policy makers, and their efforts naturally support green building and like-minded local businesses. Your involvement will help you identify emerging opportunities, make important connections within your community, and get support for reducing your own oil dependency.

Saturday, June 12, 2010

Systems Thinking, Green Roofs and Shelter

(This originally appeared in the June '10 edition of Merchant Magazine and Building Products Digest.)

Ultimately, the ways in which homes are designed and built influence the kinds of products and solutions that make their way into the “shelter supply chain.” The green building movement has blossomed over the last ten years, and the thinking at its core has, too. References to “systems thinking” occur more frequently in conversations concerning all aspects of building science and practice. Buckminster Fuller would be happy. But it’s early days and there is much more progress to be made. The carbon footprint of the building industry is still 2 or 3 times above where it will need to be in order to meet whatever carbon reduction target eventually becomes national policy.

The next waves of innovation are pushing forward more holistic solutions, creating new opportunities for the long term. Savvy dealers and distributors could do well to begin making moves in 2011 into green roofs and modular shelters.

A green roof is exactly what it sounds like – plants growing on the roof. The idea is old, but current approaches are based on the latest systems thinking. A good green roof system takes in the entire building ecology and watershed. Storm runoff is managed, perhaps rainwater is harvested and reused within the building. The plants effectively filter rainwater, provide habitat, and maybe even food for inhabitants. The building’s energy requirements for heating and cooling are reduced, as are heat island effects. Organic wastes are composted, loops are closed. The overall CO2 footprint is reduced. A green roof provides many services for the building, its occupants, and its neighbors, what a permaculture practitioner would call “stacking functions.”

The number of green roof installations is growing and there could soon be tax credits to keep it growing. Savvy dealers would do well to start learning about green roofs, visit local projects, and scout products. New product innovations are coming to market that are contributing to better systems with greener materials, built faster with easier maintenance, etc. Consider the whole system and how you might innovate within your own organization to grow this aspect of your business next year. Learn more at Green Roofs for Healthy Cities, (www.greenroofs.org,) an industry association. Most importantly, build relationships with local green roof designers and builders.

The other wave of opportunity is with modular shelters, a perfect example of holistic design that contributes to sustainability and self-reliance. This may not seem obvious, but at bottom, we are really in the business of providing shelter. Rather, the shelter is the continuing service that customers are getting from their building system, the components of which are sourced from various places and assembled by various workers. Why not provide shelter more holistically?

There has been growing interest in green prefabs and modular building for use on homesteads, back yards, and even roofs. New designs incorporate the greenest materials, are solar powered, collect rainwater and even come with a green roof. (For an example, see Tensen Eco Buildings, here www.tensenbuildings.co.uk.) It’s not hard to see the appeal. These products are much less expensive and more feasible than buying a bigger house or financing a room addition. Building permits may not even be necessary. As more people seek to become self-sufficient, growing their food, and simplifying their lives, these cool little shelters are even becoming preferred ways to live.

A hundred years ago, this supply chain sold goods to people with sod roofs and even sold homes. Thinking of your own dealer or distribution business as a member of the “shelter supply chain” will help position it for the inevitable low-carbon future to come.

Wednesday, May 12, 2010

THE Alternative Building Material

(This appeared in May '10, Merchant Magazine and Building Products Digest)

When I began thinking about this article and the various alternative building materials I could write about, several came to mind. But what counts for “alternative,” anyway? For example, there are products that are greener versions of old standbys like triple-glazed windows or FSC lumber. I could write about Serious Materials’ (www.seriousmaterials.com) innovative EcoRock drywall which they claim is 5 times more environmentally friendly than gypsum drywall, or Eco-Panels’ (www.eco-panels.com) super-efficient and well-designed structural insulated panels (SIPs). And then there are materials and methods that have thousand-year histories but aren’t mainstream, such as cob, which combines clay, sand and straw fibers usually sourced onsite. But these kinds of natural alternatives don’t usually require much of a supply chain. Instead, I’m going to highlight a building material that will blow your mind – hemp.

Industrial hemp used to be one of the most important agricultural products in the United States, but its cultivation has been illegal here for decades. (That may change soon - google Hemp History Week to learn more.) The Puritans brought it with them from Europe, many of our Founding Fathers grew hemp, and as recently as 1942, the government actively encouraged farmers to grow it. In those days, hemp was indispensable for making rope, cordage and sail cloth, and it yielded more usable fiber per acre than cotton or flax. Innovations in more recent times have demonstrated its value as paper and plastic feedstock, nutritive food ingredient, and biofuel. Cultivation can also bring benefits to farming communities as it delivers relatively quick, dependable yields without the use of pesticides or synthetic fertilizers.

Absolutely the coolest thing about hemp is that it’s being used to sequester carbon in an innovative new product called Tradical Hemcrete. It’s a combination of hemp shiv, which is the woody core of the plant, and a hydraulic lime binder. The components are mixed at the jobsite and packed into forms to make thermally efficient, breathable walls that could potentially last for hundreds of years. After its first US installation in the NauHaus, an innovative new home prototype designed by building science think-tank NauHaus Institute, (www.thenauhaus.com), there are now several more homes in the works.

Hemp Technologies, (www.hemp-technologies.com,) based in Ashville, NC, is the North American distributor of the product, importing it from England where it was originally developed. Greg Flavell, co-founder and hemp technology guru, said he discovered the product after searching for the most sustainable building material he could find. “I think this is it – it’s zero waste, non-toxic, breathable, mold resistant, durable, and is carbon negative, sequestering about 238 pounds of carbon per cubic yard,” he told me, adding “it’s also cost competitive.”

There are a few limitations, of course. The product is imported from England, where it was originally developed, because hemp isn’t yet grown domestically, nor are there easily sourced quantities of domestically produced hydraulic lime. The system is sold in two bags, Tradical HF and Tradical HB, which must be mixed at the jobsite by company-trained installers, though any contractor could easily master working with the material. In any case, those factors will slow widespread adoption of the material in the near term. However, Flavell says that they’re working on sourcing a little closer to home and developing a new panel system. Panels could dramatically expand the potential applications and make it easier for distributors and dealers to pick up the product. “We’re hoping to have panels available later this year,” says Flavell. If everything goes according to their plans, hemp could very well become less “alternative” and much more mainstream.

Monday, April 12, 2010

For Healthy Walls, Think Plaster

(This appeared in April '10, Merchant Magazine and Building Products Digest)

Whether it’s new construction, remodeling or home improvement, the ultimate goal is to create a healthy, comfortable space for the occupants. It’s an art, of course, but there’s some real science behind understanding how various building components interact to maximize indoor air quality, while minimizing mold growth and energy demand. It turns out that wall “breathability” may be one of the most important components determining long-term indoor air quality and occupant comfort. This isn’t going to be a science lesson. But this kind of thinking is becoming more mainstream, creating new opportunities for dealers to begin supplying solutions.

Interesting thing about walls: they all get covered, coated or stained and almost every dealer in the supply chain sells one or the other or all three. Paint is the most common coating and every dealer who sells paint carries at least one line of “green” paint, or is considering adding a line right now. The number of “green” paint brands has exploded over the last year or two, with nearly all the major national and regional manufacturers marketing some pretty good to great products. The greenest paints, of course, are the ostensibly non-toxic, zero-VOC formulations, coupled with zero-VOC colorants. The demand is there and growing, and the products are easy find, so getting into a good green paint brand is a no-brainer at this point.

But there are limitations with paint and that, in part, is driving more interest in lower impact, healthier, and, surprisingly, more traditional alternatives. Manufacturing paints requires a fair amount of energy and requires lots of chemicals, even for the green brands. Paints have limited durability requiring touch ups and re-application every few years. Paints also seal, keeping moisture out, but also keeping moisture in. They’re not breathable, potentially creating the conditions for mold to grow within the walls, which is one of the main causes of “sick building syndrome.” These factors have contributed to a significant rise in the use of traditional plasters, or more up-to-date versions of traditional plasters, that have relatively low-embodied energy, are non/low emitting, breathable, durable, and have other interesting properties.

One of the best known examples is American Clay, (www.americanclay.com), an interior clay plaster line made in New Mexico. Because it’s breathable, it helps to moderate humidity in a room and allows for air exchanges that reduces or eliminates condensation within walls. According to a company announcement at GreenBuild last fall, the products also exhibit moderating effects on temperature that may lead to lower energy bills. In other words, versus paint, rooms with American Clay stay cooler in the heat and warmer in the cold.

Another modern-traditional innovation just coming into the US market from Japan is EcoDeVita, from Shikoku International, (www.ecodevita.com.) Two products in the line contain diatomaceous earth and have the very unique property of adsorbing formaldehyde and chemically breaking it down, rendering it harmless. Not only does it provide all the other benefits of a traditional wall plaster, but it also cleans the air, too.

Orit Yanai, (www.orityanai.com,) a LEED Accredited Professional and one of the industry’s top experts on plasters, thinks that demand for sustainably produced, multi-functional plaster products like these will continue to grow. “One of the biggest topics in the green building community right now is about breathable walls and the good news is that the solution has been around for thousands of years – plaster,” she tells me. “But having said that, it’s not always easy to source materials for a project.” A few minutes on Google indicates the current dealer mix includes those that specialize in plaster and related products, green-building boutiques, and a handful of more traditional LBM dealers. If there’s growing demand that’s under served, traditional LBM dealers could leverage natural advantages in scale and contractor relationships to make green plasters a healthy new line of business.

Monday, March 1, 2010

Is GIY the New DIY?

(A version of this appeared in March '10, Merchant Magazine and Building Products Digest)

For me, the one phrase that best sums up the ongoing shift in household economic behavior is this: less is more. For anyone who pays attention to the history of this industry, it's a familiar story that comes about with every recession. Folks are doing more projects on their own and the trades are hurting. Mark Twain once said, "history doesn't repeat itself, but it does rhyme," and this time around the return to DIY might be different in some important ways that just might stick.

Most people I know aren't simply doing without, but are discovering new ways to create the lifestyle they want, spending less money and doing more themselves. More households are growing their own food, taking steps to "decarbonize" their homes, and generally looking for simpler, healthier "green it yourself" projects they can take on inexpensively. In fact, the terms "GIY" and "green it yourself" are catching on, appearing frequently in the blogosphere and other media to describe everything from caulking windows with a solvent-free sealant to rigging your own greywater system. In some neighborhoods, if you want to keep up with the Jones, it's not the size and expense of your solar panels, but how little you spent building your own wind generator from an alternator salvaged from Grandpa's old Buick, spare bicycle parts and a plastic milk jug.

On the leading edge of this resurgence of self-reliance and handiness is the rapidly growing permaculture movement. In short, permaculture is a holistic approach to creating household and community-scale sustainability based on modeling and enhancing natural systems. It's deeply green and aimed at creating abundance with fewer inputs - in other words, doing more with less. Typical permaculture projects include intensive food gardens, rainwater harvesting, greywater systems, passive solar, natural building and lots of creative re-use of salvaged resources.

At the community level, this kind of approach, and similar kinds of inexpensive projects, can contribute to greater community resilience, especially in hard times. There are a growing number of non-profit permaculture-based groups, such as City Repair (www.cityrepair.org) in Portland, OR, who are doing just that, rejuvenating the fabric of life in urban neighborhoods. Many of these groups are getting serious funding and are participating in local retrofit programs.

While permaculture is catching on among early adopters, community activists, and even government agencies, it's not mainstream yet. And even though permaculture and GIY projects tend to utilize salvaged, free or otherwise inexpensive resources, there are some good reasons for dealers to pay attention. Becoming knowledgeable about the kinds of permaculture projects happening in your area will likely inspire new thinking around merchandise and promotion. In areas where greywater systems are now legal, for example, stocking non-PVC pipes and fittings might be a good thing. Building close relationships with local permaculture groups and practitioners is even better, and with a little cross promotion can bolster your green reputation. And if permaculture can really help your community become greener and more resilient, you might find that this new kind of DIY is good for you, too.

Tuesday, January 19, 2010

Taking Stock of Your Green Stock

(Originally published in the January 2010 issue of Merchant Magazine.)

There’s an old bit of business wisdom that goes something like, “you can’t improve what you don’t measure.” It seems appropriate to spend a little time thinking about that. For one thing, it’s January, a natural time to assess where we are, resolve to make improvements and chart a course for the rest of the year. For another, it’s a fundamental principle underlying every serious sustainable business initiative. It’s a simple formula: identify the right things to measure, create benchmarks, set goals for improvement, monitor performance, and adjust as necessary. Whether the economy in 2010 comes roaring back or stays about the same, it’s clear that there are revenue-boosting and cost-saving benefits for companies that get serious about sustainability.

As merchants, the core business is all about the product mix with basic metrics tracking sales, velocity, inventory, etc. Assuming staff is trained and products are merchandised well, these metrics can be useful for identifying the poorest performing SKUs to eliminate and which categories to strengthen. But to address the needs and desires of the growing number of “green” customers, these metrics fall short. How many of your products would contribute to LEED credits? What percentage is Energy Star rated or would qualify for rebates? Which products are heavy energy consumers or contain the most toxic chemicals? And where are they manufactured – locally or the other side of the planet?

Some “big box” retailers and major mainstream product manufacturers have benchmarking programs in place and are mobilizing their marketing teams around them. For example, WalMart introduced its Supplier Scorecard a couple of years ago and last year announced its Sustainability Index Consortium, an effort to define standards for a variety of product categories. They’ve also announced goals to reduce packaging and increase the number of green products on the shelves. The Home Depot rolled out its EcoOptions program in 2007 with 3,000 products and announced a goal of increasing that number to 6,000 by 2009. Their website claims to have sold over one billion such products since the program’s inception. Proctor & Gamble also announced an initiative to benchmark chemicals used in their products with a goal of reducing toxics. All of these efforts have garnered positive press and “greened” their respective reputations.

The basis of those kinds of goals and marketing claims are the assessments, but these kinds of programs, and their benefits, are not exclusive to big companies. My firm recently helped a group of much smaller companies create green product criteria against which we characterized about 250,000 individual SKUs. The result is a starting point from which these companies can create meaningful business goals, merchandising programs, and marketing campaigns. More importantly, they now have a new set of metrics that will help them measure performance and progress toward their goals.

Imagine a dealer or distributor who wants to become the energy efficiency leader in their market, but they have no idea how many Energy Star, or other energy-saving, products they already sell. They’re literally in the dark with a meaningless, maybe even dubious, goal unless and until they know their starting point. Only after assessing their product mix, can this imaginary dealer resolve to double the number of Energy Star products, properly train and incentivize staff, and begin to make the marketing claims that would lead them to their goal. For real-world dealers and distributors, the benefits of such benchmarking could lead to greater sales, deeper organizational knowledge, and competitive advantages. By any measure, that’s not a bad way to approach the new year.