The New Paradigm: Zero-Carbon Shelter

(This was originally published in the August 2011 issues of Merchant Magazine and Building Products Digest.)

In this industry, there are three areas of opportunity that remain relatively bright given otherwise stagnant economic conditions.  Obviously, one is green building.  The other two are renewables and retrofits.  These three areas are deeply interrelated and will continue to grow, working to reconfigure the supply chain.  Dealers who ignore this fact, waiting for the old days to return, do so at their own peril.  On the other hand, given the buoyant performance of these sectors, dealers that develop and expand their core competencies to incorporate one or more of these areas will likely thrive.

The question of how one should go about approaching these opportunities remains.  Clearly, the pursuit of these opportunities must eventually translate into products on the shelf, retail floor or yard, or in services.  But should dealers expand current categories, diversify into new categories, or streamline operations down to one speciality?  All good questions every dealer must judge based on their own set of circumstances.  But even more fundamental, dealers must once and for all abandon the old “sticks and bricks” paradigm and adopt a new way of thinking about their business.

I mentioned above that green building, renewables and retrofits represent the brightest sectors in the supply chain.  At the core of each is energy - reduction of energy consumption and/or the generation of energy from carbon-free and renewable resources.  In fact, what they represent is the new paradigm that will dominate this industry for the rest of the century:  zero-carbon shelter.  When dealers comes to grips with what that means in terms of the products and materials they stock, the services they provide, and what their customers need, the proverbial LED lightbulb goes on and the path forward is illuminated.

Translating the “zero-carbon” view into products and services that may benefit dealers and their customers becomes straightforward.  For example, analysts project that demand for insulation and installers is going to grow by leaps and bounds in the coming years, whether or not new homes are built.  The existing housing stock – millions of homes - will remain standing and occupied for decades to come and most need improved insulation in order to survive rising heating and cooling costs, especially in the context of weather extremes. 

There are now many formaldehyde-free, recycled, and natural products already on the market which can be stocked or drop shipped.  Big companies like Johns Mansville, Knauf and Bonded Logic provide a range of these products and will serve the needs of production builders and retrofitters.  For those looking for natural products, smaller companies like Oregon Shepherd and their wool insulation, or Ecovative Design (www.ecovativedesign.com) and their rigid panel Greensulate products, which is made from mushrooms, can round out an insulation merchandise mix. 

Even if demand for insulation is apparently strong, it doesn’t hurt to have the tools to sell it.  Thermal imaging cameras, such as those from Leica and Flir, can be used to create a picture of where a house is leaking valuable heat.  This technology is indispensable for installers and retrofitters, and should be for dealers, too.  Stock these devices; sell, loan, or rent them, and sell more insulation as a result.

There’s much more that goes into a zero-carbon shelter and many more opportunities to expand, diversify or specialize.  In the building shell, super efficient windows and doors are important energy-conserving components.  Inside, LED lighting and ground source heat pumps can also be part of a zero-carbon building system; on the roof, thermal solar and PV.  Of course, sticks and bricks will remain part of the picture, but now the context has changed.