Sustainability and the Green Building Supply Chain

Innovation in Interesting Times

2011-12-20T01:40:00.000-08:00

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

This dismal year is almost over and most people won’t be sorry to see it go. On the other hand, if apocalyptic 2012 predictions are correct, the New Year will see the Mayan calendar coming to an end and so, apparently, will the world. Yikes! There’s a curse, reputed to be Chinese, that goes, “may you live in interesting times.” Well, we’re living it.

But even in these interesting times, I still find reasons to be optimistic. You don’t have to be green to do well in our business, but green dealers tend to do better. That’s encouraging. This year, there were several innovative products and materials that were either launched or found traction in the market. That’s also encouraging because innovation is exactly what the home and shelter supply chain needs – in products, materials, merchandising - the whole package. And it seems to me that’s exactly what’s in the pipeline for next year and beyond. Here’s what I’ve got my eye on.

For several years, we’ve seen small independents roll out green-only retail concepts and doing well in their respective niche markets. But this year Green Depot (www.greendepot.com) took a step into the “big leagues” when they acquired EcoHaus on the West Coast, making them the first coast-to-coast green home improvement chain. They’ve demonstrated that green can scale. Who’s next? It might be new, Austin-based TreeHouse (www.treehouseonline.com). It’s big, well designed, focused 100% on green building, and is an easily replicable concept. These are but two examples of the shape of things to come.

On the product front, it’s hard not to get excited about the innovations in energy efficiency. Perhaps there’s no better way to gauge what’s happening here than to look at the least sexy product category: insulation. There’s a place for mass-produced formaldehyde-free, high recycled content fiber glass, but for a paradigm shift, you’ve got to look at what small companies are doing. For example, we’ve talked about hemp as a building material, but now there’s hemp insulation, too. American Lime Technology’s (www.americanlimetechnology.com) Breathe™ Insulation is made from hemp and flax fibers, is breathable and functional, with obvious green benefits over conventional materials. And then there’s insulation made from fungus and agricultural waste – hard to get greener than that. Designed by Ecovative Design (www.ecovativedesign.com), Greensulate™ is currently undergoing testing and may come to market next year.

If insulation is the least sexy product category, then thermal mass, as such, is the least commercialized. As passive solar designers have known for decades, properly managing thermal mass and solar gain results in efficiency and comfort. For example, a granite south-facing wall absorbs heat during the day, keeping interior spaces cool, re-radiating that heat at night, keeping interiors warm and comfortable.

Imagine if, instead of logistically unfriendly granite, thermal mass was a product that came in rolls, like bubble wrap, that was easily installed in walls and ceilings like, well, bubble wrap. Turns out someone already has. Phase Change Energy Solutions (www.phasechange.com) has developed BioPCmat, a roll of bubble wrap like material that is essentially thermal mass in a roll. Properly installed, BioPCmat can result in 30% energy savings.

Products like these offer radical new approaches to products and materials. And this is just the tip of the iceberg. Philips recently unveiled the Microbial Home design concept including a kitchen that produces its own cooking gas – methane – from bathroom and kitchen waste. Whether these product innovations take off in the marketplace is an open question. But innovation breeds innovation. If this pace of new product development continues, 2012 could well be very interesting, but in a good way.

Made Greener in a Factory Near You

2011-11-16T04:56:00.000-08:00

(This article was published in the November, 2011 issues of Merchant Magazine and Building Products Digest.)

Over the last thirty years, the manufacturing core of the United States has been dismantled piece by piece and shipped off to other countries. Looking for competitive advantage through least-cost labor, brand owners and manufacturers have gradually concentrated in China, which now accounts for a large proportion of product sold through this channel. Even commodity products are very likely to be sourced from China or other faraway places, and not without complications. Has anyone forgotten the drywall controversy?

Low prices are good, or so market logic would dictate, but in a globalized economy there are unintended consequences. Economists have argued that the American middle class, made up of folks who save to buy a house or remodel the one they own, has been significantly diminished by the loss of good paying manufacturing jobs. This has had a devastating effect in hundreds of local economies that still struggle with high unemployment and underemployment. In addition, cheap goods and materials from abroad may have other, hidden costs. Lower quality, for example, can slow productivity or require expensive remediation.

From a green point of view, there’s another unintended consequence. Most imported goods and materials will have much higher embodied energy, in other words, a larger carbon footprint. Shipping goods across the ocean spews tons of carbon into the atmosphere. More importantly, a foreign factory may get its energy from inefficient coal-burning plants, so before the import is even shipped, its carbon footprint may already be wildly off the charts compared with a domestically made alternative. There may be other environmental consequences, too, where factories are located in countries with few safeguards in place against pollution, deforestation, etc.

Reducing the embodied energy in buildings is the main motivator behind USGBC’s LEED credit for locally-sourced goods and materials. This is good, but does it matter? Is anything even made in this country anymore? Yes and yes. Obviously, sourcing goods and materials close to the building site means lower embodied energy, lower amounts of carbon emitted to the atmosphere. It also helps to support local businesses and encourages builders to incorporate local materials. Lumber, stone, strawbale, cob – regional resource strengths will help recreate regional building vernacular, too, providing a welcome break from the homogeneity of mass home production. Shortening the supply chain also delivers strategic business benefits, such as less risk of disruption from overseas events and, potentially, more collaborative relationships between manufacturer and dealer.

And yes, there are still plenty of products made in this country. A Montana builder made news promoting his 100% American built house (www.theallamericanhome.com), demonstrating that it can be done and with little extra cost. It also showed that there’s strong interest from builders and prospective home owners to source their goods closer to home.

So, what’s a good, green dealer to do? Work with your distributors and manufacturers to identify where the products and materials are made, then identify opportunities to make some changes. Shorten the supply chain. Products made closer to home are better or “greener”, theoretically, than those made farther away. For example, qualified products and materials made within 500 miles of the jobsite earn LEED credits. Weigh the costs and benefits wisely – a toxic product made next door is always worse than a green import from Europe. Do work with local manufacturers to green up their product line, if necessary. In the store, develop signage that educates and informs your customers about the benefits of buying local or buying American. Finally, resist the temptation to wave the flag, but do make the case based on quality, economics, and environmental benefits, there’s a strong one to be made.

Hot Cities and Cool Roofs

2011-10-03T04:54:00.000-07:00

(Originally published in the September 2011 issues of Merchant Magazine and Building Products Digest.)

This summer’s heat waves have been horrendous. Hot weather is known as a silent killer and is responsible for more weather related deaths than tornados, hurricanes and blizzards, combined. Summer days are hotter than they used to be, setting all kinds of records, but even worse are the hot nights. Overnight lows are also setting records for high heat, making it much more difficult for at-risk populations, such as the very young and very old, to recover.

In cities, the problem is worsened again by something called the Urban Heat Island Effect. Cities are paved with asphalt and built up with concrete and other materials that absorb solar radiation during the day and re-radiate it during the night. Cities can be 15° F hotter in the daytime and 22° F warmer overnight than neighboring suburbs. More city heat means more air conditioning and more electricity consumed, leading to blackouts and, of course, more carbon emitted into the atmosphere.

The heat island effect has been understood for a long time – I first learned about it in high school. But more recent scientific knowledge indicates that we should expect more extreme heat waves like those this summer. I’ve argued in this column and elsewhere (see our in-depth report, The Future of Home Improvement, here: www.williamverde.com), that dealers and distributors have an obligation to learn to anticipate changing climate and weather patterns in order to serve their communities, as well as boost their revenue. In fact, as purveyors of building supplies, we are in a prime position to take the lead on mitigating the effects of hot summer nights and urban heat islands.

There are a variety of ways we can make our cities cooler, simply and affordably. Replacing high thermal mass materials with trees and green space is one effective strategy and where we need to go, long term. Living roofs are being boosted in major cities for just this reason. But there’s another strategy that can deliver results in the short term, is less expensive, and offers opportunities for most dealers and distributors right now.

Increasing albedo, or the ability of surfaces to reflect solar radiation, using special paints and coatings, or reflective roofing materials can dramatically reduce heat gain and electricity demand. A white roof, for example, can reflect almost 90% of the sun’s radiation, reducing interior heat and the need for air conditioning. And the savings are not trivial. The White Roof Project (www.whiteroofproject.com) reports that about 10% of electricity produced by cities is used to compensate for the urban heat island effect. If enough roofs were painted white, the nation could be saving billions of dollars and hundreds of lives. And dealers could be doing well, while doing good.

Two excellent resources to help you stock appropriate roof coatings for your community, or improve your existing product mix, are Energy Star (www.energystar.gov) and Cool Roof Rating Council (www.coolroofs.org). Keep in mind, reflective shingles and roofing tiles offer effective solutions for residential applications, too. But don’t stop there. Develop a promotional strategy that combines in-store materials with larger-scale efforts in the community. In-store signage should educate customers, highlight rebate opportunities, and promote city-wide campaigns. Get involved and get your manufacturers involved. New York area dealers might ally themselves with the White Roof Project, for example. Dealers in other sizzling cities might think about creating their own “white roof projects” in conjunction with local city agencies or non-profit organizations. Last but not least, teach your staff about the urban heat island effect and the importance of taking measures to reduce it. It can literally save lives.

The New Paradigm: Zero-Carbon Shelter

2011-08-17T04:35:00.000-07:00

(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.

Boosting Sales With Green Paint

2011-08-02T04:48:00.000-07:00

(This article was originally published in the July '11 issues of Merchant Magazine and Building Products Digest.)

The new normal looks to be a mix of fewer home sales, but more remodeling and redecorating. Meanwhile, all indications are that green products and materials continue to enjoy strong demand. And if customers are more discerning when evaluating so called “green” purchases, they’re also looking for more local solutions, or at least made in the USA, too. To me, these conditions paint a clear picture about how to change with the times and boost sales in the second half of the year. Yep, I’m talking about paint.

Let’s assume every LBM dealer sells paint and other brush-on coatings. By now, every dealer should have at least one low-VOC offering – low, as in 50 g/l or less. Nearly every major manufacturer offers at least one line, so there’s really no excuse. But making the minimum effort with one line of marginally “green” paint is leaving money on the table. The industry has matured and there are lots of good options available. Now that economic conditions have made a move toward more sprucing up, it’s also time to spruce up the paint department.

In addition to directly contributing to the top line, a strong paint department can bring in new customers and boost sales in other product categories, too. Therefore, evaluating and refreshing a strategically important category like this deserves an appropriate level of understanding and commitment. And every case is unique. So, there’s much more to say about this topic than I can squeeze into the remaining space of this column.

But with that caveat, there are two things to look at when improving this category: mix and merchandising. The product mix should have a strong anchor brand that will bring in customers and deliver credibility. While national manufacturers may have a quality low or no-VOC line and a suite of economic incentives to close the deal, it might be more beneficial to bring in a strong “green-only” brand, either instead or in addition. Brands such as Yolo, AFM Safecoat and Mythic have steadily built up big reputations with both health-conscious and sustainability-minded homeowners and professionals.

With an anchor established, fill in with niche products. With growing demand for non-toxic, all-natural products, adding a natural or clay paint line could make sense. Earth Paint or Ecos Paint might be good options. And for protecting the natural look of wood, whether walls, floors or exteriors, there are natural options, too. Vermont Natural Coatings, made with poly whey, and Rubio Monocoat, made with flax, are two worthy options, as is Penofin Verde, made from rosewood oil. There are more options out there, including ones from small local manufacturers that might be just the thing for the “locavores” in the community.

As with any good mix of new products, effectively merchandising them is essential. If you’re bringing in a new product line, work with the manufacturer to help with promotional pricing, advertising, and an in-store event. Just as important, make sure all your staff is fully briefed with relevant product knowledge.

Communications strategy is also important. Make sure advertising and promotional messages are aligned with current remodeling and redecorating trends - accentuate healthy living, comfortable home environments, and natural aesthetics. Point out that “green” paints deliver added benefits, such as having low or no odors, which should be important for the pro customer, too. In the store, create hang tags, signage and end-cap displays that get people thinking. And finally, don’t miss obvious cross selling opportunities. For example, put natural paints together with non-toxic putty, reusable drop cloths and recycled paint trays.

Is Less Consumption Good for Retail?

2011-06-15T04:56:00.000-07:00

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

The confluence of the Great Recession with growing awareness of how “consumerism” contributes to climate change, has led to a surging movement of people simplifying their lifestyles and sharing more of the things they need, rather than blindly acquiring more stuff. In other words, more people are becoming more conscious consumers or disavowing the “consumer” label entirely.

This is disaster for retailers, right? Not necessarily. For retailers committed to green business practices, it’s just another opportunity to serve their community. And there are several ways that less consumption can be good for your bottom line, as well as for the planet.

As for the planet, it’s clear that there’s a broad spectrum of negative environmental impacts associated with manufactured products, which the short internet video, “The Story of Stuff” (www.thestoryofstuff.com), does a good job explaining. It takes energy to make things and move them from one side of the planet to the other. Then there’s disposal and the potential for toxic leachates to pollute groundwater. The more we consume the greater the impacts, so obviously, the less we consume the fewer the impacts. That’s the 30,000 foot view.

Understanding this system is the first step in developing green business models that replace these inherent negative impacts with profitable, regenerative outcomes. All well and good, but how can a merchant make money by selling less stuff? One strategy is rethinking goods in terms of services, i.e., selling fewer goods, but selling more of the services those goods provide.

While this has been a recent innovation in industries such as flooring (see InterfaceGlobal.com) or in extended producer responsibility (EPR) policies, the idea’s been around for a long time in our industry in the form of tool and carpet shampoo rental. It makes sense to rent something that won’t get used very often. And growing household preference for just that kind of economic conservatism is reshaping the kinds of relationships people are having with their stuff.

A well known example is Zipcar. For decades, no product/consumer relationship was as intimate (and Freudian) as the one between people and their cars. But today, people are leaving that paradigm behind for the planet-friendly and economical choice of car sharing. It is, perhaps, a new kind of “consumer” status symbol, but it is emblematic of a deeper movement that is redefining the role of manufactured goods in people’s lives and what it means to “consume”.

People are looking to share almost everything: cars, bikes, tools, and even skills. The magazine, Shareable.net, tracks this growing phenomenon and reports about the rise of neighborhood work groups – neighbors organizing themselves to help one another tackle home projects. That kind of thing recalls the days when communities came together for barn raisings. Meanwhile, professional trades people are branching out into new kinds of projects and are looking for short-term rentals of specific tools, rather than having to invest in “retooling”.

If customers want and need less stuff, then retailers must adapt. Begin marketing your rental department’s green virtues. For those not yet renting tools and equipment, now’s the time to start. Talk to your pro customers and ask them what they need. And I suggest diving even deeper. Facilitate neighborhood work groups in your area and help create local tool lending libraries. Rent space in your parking lot for Zipcar or other car-sharing. Think outside the box, too. Rent electric cargo bikes (www.cargocycling.org) or portable solar power generators for off-the-grid construction projects (www.portablesolarpower.net). Getting into the shareable mindset will not only lead to more innovation, but will unlock new income streams and forge new customer relationships.

Adam Smith and Green Capitalism

2011-05-13T12:32:00.000-07:00

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

In this column, we’ve talked quite a lot about the implications of green building and the wider sustainability movement for LBM dealers and distributors. For the most part, the conversation has focused on evolving market opportunities, merchandising appropriate products, and creating operational eco-efficiencies. But are the pursuits of “green” market opportunities and cost-saving efficiencies sufficient to make a business “green” or its leaders green capitalists?

Devotees of Adam Smith might answer, “yes”, as long as such activity maximises profit. It’s the result that counts and if “the invisible hand” does its job, then what’s best for society will emerge naturally through the activities of masses of economic decision makers, each pursuing their own self interest.

Of course, the economic world Smith inhabited was quite different from today’s global corporate economy. But in at least one respect, the reality for a merchant capitalist two hundred years ago is very nearly the same as for many dealers in today’s LBM supply chain. In Smith’s day, the merchant was intimately woven into the fabric of local society and “the invisible hand” operated within an ethical framework that assumed as given the interests of a wide range of stakeholders within the community.

So, was Adam Smith the first “green” economist? No. But notions of green capitalism are becoming just as mainstream, being taught in leading business schools and adopted by leading corporations and green building companies. For locally-focused members of the LBM supply chain, these new articulations of capitalism may already seem familiar. But delving deeper and adopting new approaches to business leadership may hold long term strategic value.

For many, the term “triple bottom line” (TBL) has become the short-hand definition of what a green business is all about. It was coined by John Elkington in the 1990s as a way of joining the concepts of “sustainable development” and “corporate social responsibility”. The idea is that if businesses tracked their performance in the realms of social and environmental impacts, as well as profits, they might then be accounting for their full cost of doing business. And in so doing, would seek to improve where performance lagged, ameliorating social and environmental problems along the way.

Though this sort of formal accounting may be problematic at the moment, there are advantages for LBM dealers who adopt TBL principles or a similar approach. Perhaps the best place to start is with a book that’s required reading for every Green MBA. “Natural Capitalism”, by Paul Hawken (co-founder of Smith & Hawken), Amory Lovins, and L. Hunter Lovins, identifies the four principles of “capitalism as if living systems mattered”: radical resource productivity, biomimicry, service and flow economy, investing in natural capital. In short, by reducing resource use, eliminating waste, rethinking the provision of goods in terms of services, and by treating sources of natural capital (such as local wetlands that naturally purify water, for example) as real sources of wealth to be restored, nurtured and grown, businesses can lower costs, maximise profit, and solve many of the world’s problems.

This alternative vision of capitalism, and others like it, offers a useful strategic framework, especially in light of economic and social challenges we’re sure to face in coming decades. This kind of thinking has already helped companies like Interface in the carpet industry and Steelcase in office furniture, lead their respective industries. In any case, adopting a “natural capitalist” framework will lead a business toward best green and most economic practices as a matter of course. For dealers seeking to win in the green building arena, becoming a green capitalist seems like an important and natural next step.

Practical Green Merchandising

2011-04-09T09:11:00.000-07:00

(This piece originally appeared in the April 2011 issues of Merchant Magazine and Building Products Digest.)

Choosing winning product lines and getting them into the hands of customers is an art that, when practiced well, makes good merchants great. The last few years, there’s been a rush by manufacturers to get their green innovations to market. Many are going to be clear winners and will make a difference in transforming the built environment. Unfortunately, along with the rush has been the slapdash - products presented as earning LEED credits, or being less toxic, or ecologically benign, when they are not. Whether by deliberate deception or honest mistake, green washing has created confusion and skepticism in the market.

It’s not so easy to pick green winners, but there are practical steps that merchandisers can take to reliably evaluate the green-worthiness of any product. In general, the goal is to identify merchandise that meets certain criteria, both yours and your customers’. There are a variety of product certifications and, of course, LEED and other green building rating systems provide relatively clear criteria. But there is no master green products list to go by, and no matter how comprehensive, certifications and building rating systems are not going to cover all the product categories stocked in most stores and yards.

But if you’re willing to roll up your sleeves and “green it yourself”, there’s another way to look at whether the merchandise you choose to sell is green worthy. Start by asking: Does it harm or benefit the environment? Does it pose health risks or promote healthy lifestyles? Are communities positively or negatively affected in its manufacture? Does it work? Will it sell? These questions should take in the entire lifecycle of the product, which includes looking at the impacts relating to raw materials, manufacturing process, distribution, use and disposal.

The broad categories addressing human health and safety, ecological safety, and social responsibility provide the background for more specific product criteria and attributes – a partial list:

Energy – products that conserve energy, produce renewable energy or are made from renewable energy sources.
Water – products that conserve water usage, especially the use of fresh, potable water, also product alternatives that don’t pollute water sources or aquatic eco-systems.
Toxic chemicals – products that are made with non-toxic or least toxic, low risk chemicals and other components.
Healthy and sustainable practices – products that contribute to healthy and sustainable practices, such as rainwater harvesting, composting, etc.

The evaluation process starts with the manufacturer who should provide credible product information, preferably with third-party documentation supporting their green claims. That may not be enough. Consult with independent experts and review third-party information on the internet, too. There are several helpful databases online that will show what’s known about specific chemicals. Comparing products in the same category will help to identify the “greenest” in class. Finally, there must be a judgment about whether or not the product does the job and will sell – get a sample, take it for a test spin.

If the green merchandiser is defined by product selection, he or she is also defined by products not selected. There are plenty of useful products for which there may be better or greener options. But there are also junk products for which the only “green” option is that they simply not exist. Every dealer in this supply chain has experience with junk, if only by accident. These are products so poorly designed, manufactured so cheaply, and are so obviously heading straight for the landfill that they cannot be justified no matter how low the price point. Eliminating the worst junk from inventory is not only practical, it’s also a virtuous step toward sustainability.

8 Great Projects for Greening Operations

2011-04-02T01:08:00.000-07:00

(This article originally appeared in the March 2011 issues of Merchant Magazine and Building Products Digest.)

Want to be leader in the green building arena? There’s no better way than to demonstrate your commitment and know how by actually implementing projects on your own facility. Anyone can stock certified merchandise. And it’s easy to put out a few green hang tags on the shelf or signage proclaiming your eco virtues, too. But to really set yourself apart from the “me too” crowd, build valuable relationships with other leaders in the industry, and save money in the process, you’ve got to walk the walk. These days, it’s a little easier than it used to be. Depending on the type of project there may be government incentives available or a relatively motivated local bank ready to finance something with a solid green profile.

Energy retrofit – Make your facility energy efficient with better lighting, insulation, and mechanical systems. Then add renewable energy generation, too. Undertaking this kind project will pay dividends for decades to come. In the short run, build valuable relationships with those firms doing the work. In the longer term, as energy prices continue to rise, enjoy predictably lower costs.
Living roof and/or living wall – Installing a living roof delivers multiple benefits, including saving energy and giving your team experience in a young, fast growing market segment. Combine with water recycling systems for additional “wow” factor.
Cool roof – If you’re not ready for solar panels or a living roof, think about this: if the roof isn’t white, you’re might be paying too much for air conditioning. Paint it white, save energy – it’s that easy.
Water recycling – At first glance, conventional financial models may not make the quantitative case for water efficiency projects – water prices are kept artificially low. But if you’re operating in a region with stressed water resources, taking steps to reduce your demand can set a powerful example for your community. There may even be rebates available. Install HET toilets, rainwater harvesting and gray water recycling systems, and gain valuable experience you can use to promote these green practices to your customers, too.
Recycling for batteries, fluorescent lights, paint, electronics, etc. – This may prove to be more difficult than it sounds, especially if there’s no local, infrastructure, but will be well worth it in the end. These products contain toxic heavy metals and other components that pollute ground water. There are a variety of programs available benefiting a range of non-profit activities.
Zero waste – Reducing the waste generated at your facility will engage both staff and customers, and may reduce your waste haulage bills, too. Remember the Three Rs will help you get there – Reduce, Reuse, Recycle.
Replace portion of parking lot with community vegetable garden and bicycle racks – Don’t discount this project as being impractical or too costly. There will be plenty of people in the community willing to lend a hand. Encouraging bicycling reduces the carbon footprint associated with your facility. Planting instead of parking does the same and can provide fresh vegetables for employees, customers, or members of the community in need.
Shorten supply chain – Sourcing product and materials closer to home reduces transport costs. Depending on where manufactured, imports may already carry a high carbon footprint because of inefficient coal-fired electricity generation. On the other hand, local products can earn LEED credits for local building projects and, generally, will appeal to a growing number of customers preferring products and materials made in the USA.

Universal Green Product Database? Yes, Please!

2011-02-11T08:18:00.000-08:00

(This piece originally appeared in the February 2011 issues of Merchant Magazine and Building Products Digest.)

I sound like my grandpa, but today’s green merchandisers never had it so easy. Back in my day – 2005 – there were few residential green building programs or product standards to consult. Online lists and databases of verified products were sparsely populated and behind the market. When I was asked to develop a green merchandising program, it was a challenge we met only by doing lots of extra work vetting products ourselves and assembling our own database. Though our methodology would be easy for non-experts to implement, the burden on a typical merchandising department is simply too great.

Thankfully, the last several years have seen tremendous maturation in the green building sector. The trails have been blazed and today’s merchandise managers have a growing number of information resources at their disposal. But trails are trails, and until sustainability is a fully mature, mainstream superhighway, (ironic choice of metaphor, I know), successful merchandisers must still invest time in evaluating their green product choices. There is still no universal green product database. On the other hand, there are a small number of valuable online resources that make the process of identifying “greenest in class” products a little easier.

The GreenSpec database from BuildingGreen.com has been one of the most trusted sources of green product information for years. The editors evaluate products against their own stringent criteria and avoid accusations of favoritism or bias by not accepting advertising or listing fees. It’s not a comprehensive list, but the products listed are often best in class. BuildingGreen offers news and analysis, too, and is a valuable resource that every dealer and distributor in the green building space should utilize regularly.

In the recent past, a common criticism of green building rating systems organizations is that they failed to provide relevant product information, also. Wisely, both national residential green building programs are developing their own green product information resources. The NAHB is creating a database of products that the NAHB Research Center has evaluated and approved for use in their National Green Product Standard program. However, it is virtually useless at this stage with a clunky interface and only a handful of products listed.

Alternatively, the GreenHomeGuide.com, founded in 2003 and acquired by USGBC in 2008, is not a simple directory of products. The site is based on expert advice delivered as focused “Know How” pieces or as answers to inquiries in the “Ask a Pro” section. Providing this kind of contextual information about products and materials can be extremely valuable for gaining knowledge about the category, alternatives, performance, and installation issues that simple databases will not provide. While it offers no product directory, per se, it does link to the GreenSpec directory.

There are other product lists and directories worth a look, too. Product certifying organizations, such as Scientific Certification Systems (www.scscertified.com), list certified products on their websites. But the need for reliable, transparent product information is huge and still largely unmet. New online directories have emerged to try to fill the gap. One of the best designed attempts to provide a LEED-oriented directory of products is EcoScoreCard.com, but it’s still too young to be comprehensive.

Green building culture values transparency and third-party verification, which has led to greater focus on life cycle analysis (LCA) and environmental product declarations (EPD) as a standard method for manufacturers to communicate the sustainability profile of their products. If widely adopted, such standardized product data would make development of a universal database feasible. That’s exactly what’s needed in order to create mainstream scale at the retail end of the green building supply chain.

The Long View

2011-01-17T09:22:00.000-08:00

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

“In the long run, we’ll all be dead.” That unfortunate utterance from a now dead economist has provided a handy excuse for shortsighted business planners focused only on extracting the maximum profit from the here and now. That kind of thinking is responsible for many business failures, yes, but also many environmental problems more daunting even than the federal deficit. Failure to consider the future implications of decisions made today virtually guarantees a legacy of difficulty and hardship for the next generation.

Taking the long view, on the other hand, is at the heart of green thinking. Therefore, this January, I encourage you to forget about 2011’s top trends for a moment and invest some quality time considering the next decade and the opportunities and threats it will present to your business and community.

The best place to start is at the end – what will your business look like in 2020? Has it been passed down to your children? Acquired, shut down or thriving with you securely at the helm? Is it connected to the same old supply chain? Is the local economy vibrant and strong, or struggling along? Most importantly, what do you want your business to look like and what sort of realistic scenarios will lead you there? To answer these questions one must first consider the long term forces reshaping our industry.

The next decade will see plenty of change and probably as many surprises as the last. Obviously, “green building” is on its way to becoming the new normal, whether it’s LEED or another approach, creating new opportunities for growth. Transport fuel prices are trending higher with the very real possibility that periodic episodes of price volatility will devastate marginal businesses. Households, businesses and governments will continue to shift purchasing to less toxic and more eco-efficient products from socially responsible producers. Competition between “big box” chains and independent dealers will continue, with increasing activism from localization groups. The green DIY and urban agriculture movements will continue to take root across the country. And a host of global and domestic macroeconomic factors will attenuate or amplify these opportunities and threats.

But underlying whatever scenario one wants to envision for the next ten years, there is the inescapable reality that the global climate system is changing, most likely due to human activity. The last decade was the warmest on record, but more important to consider are the local and regional impacts. Damaging and costly extreme weather is becoming more common. NASA has published a slideshow depicting the number of temperature anomalies each decade going back to 1880, (earthobservatory.nasa.gov/Features/WorldOfChange/). The trend is unmistakable, which should be cause for concern, especially in the context of the massively destructive heat wave that hit Russia last summer.

Regional climate patterns are changing in ways that dealers and distributors should understand and anticipate. The US Global Change Research Program, (www.globalchange.gov), provides useful analysis for each region of the country. Depending on your location, expect more drought, more fires, more floods, more heat waves and cold snaps, and more precipitation when it comes. And when these “anomalies” occur, they will probably be at the wrong time, disrupting water supplies, agricultural harvests, supply chain logistics and more.

These broad trends suggest that merchandising and business model innovations will be required to sustain a successful business. Households, businesses and governments will be forced to invest in mitigation and adaptation strategies. Dealers will, too. But those long-term planners among them will be prepared to weather whatever the decade has in store, with solutions that will help their customers and communities, too.

Thinking Globally, Building Locally

2010-11-11T11:00:00.000-08:00

(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.

Sorting out the Recyclables

2010-09-15T09:43:00.000-07:00

(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.

Oil Dependency and the LBM Supply Chain

2010-08-10T07:49:00.000-07:00

(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.

Systems Thinking, Green Roofs and Shelter

2010-06-12T09:30:00.000-07:00

(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.

THE Alternative Building Material

2010-05-12T14:59:00.000-07:00

(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.

For Healthy Walls, Think Plaster

2010-04-12T08:55:00.000-07:00

(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.

Is GIY the New DIY?

2010-03-01T10:42:00.000-08:00

(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.

Taking Stock of Your Green Stock

2010-01-19T11:25:00.000-08:00

(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.

Better Living Through (Green) Chemistry

2009-12-13T11:22:00.000-08:00

(Originally published in the December '09 issues of Merchant Magazine and Building Products Digest.)

If you’re like me, that phrase brings back memories of nerdy high school science films extolling the modern marvels of convenience, value and progress, made possible by the Chemical Industry. It was a huge post-war economic engine that expanded its reach into nearly every product category and helped fuel the rise of the American suburb. There are now about 80,000 chemicals on the market, but only a few hundred have been tested for human or ecological safety. One unintended consequence is that many of these chemicals have reached into our ecosystems, including the very top of our food chain – us.

“Body burden” is the term toxicologists use to describe the toxic load an individual might be carrying at a given moment – several hundred substances, some of which will accumulate, others metabolized and excreted. Pregnant mothers will pass these substances to her child. One of the common pathways for exposure to toxic chemicals is through inhaling airborne pollutants. Most people have heard by now that indoor air can be far worse than outdoor air, and that the rise of asthma, multiple sclerosis, and other diseases could be caused by long-term, low-level exposures to the chemicals that surround us in daily life. And of course, we spend most of our time indoors.

The LEED rating systems aim to drastically reduce potential exposures to building occupants by limiting the use of emitting materials in the first place, and promoting active measures for improving indoor air quality. I always recommend stocking products that contribute to LEED credits, especially low-emitting, less-toxic products, that appeal to the green builders in your area. Products like formaldehyde-free plywood and cabinets, formaldehyde-free insulation, zero-VOC adhesives, zero-VOC paints and coatings – the list of less-toxic alternatives is long. But the list of emitting products, products that would not meet LEED’s requirements for indoor air quality, is much longer.

I invite you now to get up (after reading the article first, of course!) and follow your nose around your store. Pick up a few products and pronounce their ingredients. The paints, strippers, cleaners, pest killers, weed killers, plywood and treated lumber – what is the quality of this air that you and your staff breathe everyday? There’s a very good chance that some nasty neurotoxins, carcinogens, and endocrine disruptors are floating around in the mix. Unintended consequences, yes. More importantly, the people who might be exposed to off-gassing chemicals are probably the people you most care about. Swapping out the high-emitting products in your inventory, in favor those with zero or dramatically fewer toxic emissions, contributes to a healthier workplace with fewer liability issues.

In the long run, there are large-scale initiatives underway that will eventually lead to safer alternatives through greener chemistry. The Toxic Substances Control Act, the current federal chemical oversight regime, will likely be strengthened, giving the EPA more power to eliminate toxics and require manufacturers to prove health and safety before bringing new formulations to market. In California, the Green Chemical Initiative is undertaking a range of activities designed to make rapid progress eliminating toxics and stimulating growth of greener alternatives. However, the positive effects of these efforts won’t be felt for years.

In the meantime, the motivated dealer can learn more about body burden, LEED and indoor air quality from dozens of informative online resources – start Googling! SCS, GreenGuard and GreenSeal publish lists of their certified products, and there are other green product databases out there, too. The intended consequences could be felt immediately, leaving those you care most about breathing a little easier.

Community Insulation

2009-11-22T09:56:00.001-08:00

Community Insulation
(Originally published in the November '09 issues of Merchant Magazine and Building Products Digest.)

With the economy still in doldrums and the cold winter months around the corner, I continue to be fascinated with insulation. Not the rebate-earning, energy-efficient, recycled-denim kind your customers will love you for, but the economic kind that will sustain your business through the lean times and propel the inevitable upturn to come. There’s little doubt that energy efficiency and green building will define the shape of this industry for decades to come, so it makes sense for every LBM dealer to bone up on these issues, stock and promote the products, train the staff, etc. But creating sustainable “economic insulation” requires deep community collaboration.

There are good examples of multi-generational, family-owned dealers that are well-placed in their communities, have staved off the “big boxes” and done well, even in hard times. These are good models, but the reality is that these examples are getting harder to find and even harder to replicate. Two organizations, BALLE, the Business Alliance for Local Living Economies, and AMIBA, the American Independent Business Alliance, are focused on helping local businesses thrive, creating new models.

In the Rockies just outside of Denver, sits Big Horn Building Materials, a big local supplier for the surrounding mountain towns and resorts. Founder, Don Sather, has been a big proponent of energy efficiency and green building, walking his talk – the store is fitted with solar panels and is involved with a local non profit studying the feasibility of wind power in the community. He was also one of the founding member of Summit Independent Business Alliance, (SIBA), an AMIBA affiliate. “A few years ago, our community successfully fought off a new 'big box' chain and that really opening my eyes,” Don told me. “One of the most important things about being involved in a local network is getting closer to local officials and educating them about the economic benefits of supporting locally-owned business versus national chains.” Strong relationships with other local businesses and SIBA’s shop local campaigns have kept his business doing well, even though the economy overall has been weak, he added.

Woodland Building Supply, a 9 year-old dealer in Philadelphia, is another interesting model. Larry Reese, president and co-founder, was determined to make Woodland a destination for green building, stocking a wide selection of products, and recently opening a green showroom. “We’ve always focused on the triple bottom line and building relationships with local green builders,” Reese said. They joined Greater Philadelphia Sustainable Business Network, a BALLE affiliate, about a year ago. “It seemed like the natural thing to do. We’ve developed many more strong relationships with local builders, developers, and vendors and, to be honest, they’ve kept our business really busy over the last year.”

Paula Burke of Burke’s Hardware, a family-owned dealer with a 72 year history in Raleigh, North Carolina, told me a similar story. They recently joined their local network, Shop Local Raleigh, and were immediately impressed with the results. “We participated in a Shop Local TV ad, and even though we’ve been in the community for a long time, it was amazing how many people came into the store who’d never heard of us before!,” she said. They were motivated to join the network in part by the down economy, but mostly, she said, “because it was just the right thing to do, to support your community.”

Going Local

2009-10-13T10:07:00.000-07:00

(Originally published in the October '09 issues of Merchant Magazine and Building Products Digest.)

For most of us independent business owners, the idea of buying local is pretty familiar – at least with respect to our own businesses. We know that money spent in our stores, from folks in our own community, tends to stay in the community. A good chunk of our salaries and those of our employees will likely be spent and invested locally, for other goods and services, as well as for local taxes that pay for fire, police and other municipal services. Awareness of these benefits is spreading and giving rise to hundreds of buy-local campaigns which could be an important component of your green strategy.

Recently, the media has covered the growing interest in buying locally produced food as “locavores” seek to reduce the “food miles” and carbon footprint of their daily meals. Right alongside, the shop local movement has been quietly picking up steam. Organizations like BALLE, the Business Alliance for Local Living Economies, (www.livingeconomies.org) and AMIBA, the American Independent Business Alliance, (www.amiba.net), and a few others, are experiencing rapid growth. Combined they represent over 30,000 independent businesses and over 130 local networks, with the bulk of those forming over the last two years. Not surprisingly, a growing number of these businesses are LBM dealers, such as Kenyon Noble Lumber in Montana and Burke Brother's Hardware in North Carolina.

“Joining an Independent Business Alliance, or starting one in your local community, is not unlike joining a co-op, where members can benefit from group buying on advertising, supplies, etc.,” says Jeff Milchen, co-founder of AMIBA. Milchen, counts the recession and growing interest in reducing environmental impacts as two of the main drivers lifting the number of independent business alliances they work with from 30 before the recession to an anticipated 75 by year’s end.

Both organizations provide support to locally-focused business networks to educate the community about the benefits of buying and “thinking local.” Alissa Barron, of BALLE, points out that there’s a strong economic case for local businesses to form collaborative networks that promote buying locally. “Dollars spent at locally-owned businesses circulate in the community 2-4 times longer, and do 2-4 times more good, than those spent with chains,” says Barron. “We’re also finding that businesses end up collaborating on broader issues, too, like pooling resources for buying renewable energy.“

Seeking to tap this trend with some innovative twists is San Francisco start-up, Viv, (www.doyouviv.com). It’s a forward-thinking rewards program that helps green customers entice participating retailers to continuously green their operations with a simple card scan. The businesses take green steps based on the number of customer visits, while the Viv team offers consulting, free energy audits, and discounts from affiliated wholesalers. Meanwhile, your customers share pride in your accomplishments and become more loyal.

For most independent LBM dealers, this trend plays to your natural advantage, but you can’t sit on your hands. Join your local network, put signs in your windows, buy your supplies locally, and start educating your customers – both contractors and home owners - about the community benefits of buying local. There may be opportunities to pool resources with fellow local businesses, too. If you’re sourcing local materials, make sure to point them out - they can also contribute to LEED regional credits. All in all, by fully embracing your local selves, your business will benefit and your community will, too.

Making Energy Efficiency a Growth Engine

2009-09-09T09:58:00.000-07:00

(Published in the September '09 issue of Merchant Magazine and Building Products Digest.)

It’s been said that there are no certainties in life except death and taxes, but I propose that there is at least one more – energy efficiency. At least, in the realm of residential construction and the retail supply chain there is no doubt that both market and government requirements for energy efficiency will continue to grow for the foreseeable future. There are several drivers, and suppliers who understand them can shape their retail strategies and tactics to maximum benefit.

Let’s start with the macro-economic trends. Regulations are toughening energy efficiency requirements in building codes and making green building guidelines mandatory. Nascent energy retrofit programs will likely continue for years, supported by rebates and other incentives. Carbon regulations coupled with supply and demand issues ensure that the long-term trend for fossil fuel prices is rising. Home buyers are seeking, and will continue to seek, more energy efficient homes, and home builders are learning that energy efficient homes are easiest to sell and at premium prices. Lastly, product manufacturers will continue to rollout technology innovations that make it easier to build energy-efficient homes and retrofit existing ones. The upshot of all this is that there will be a growing number of pros and homeowners looking for options that contribute to energy efficiency.

For dealers and distributors, the obvious strategic play is to position the firm as an authority on energy efficiency. The key to making this work is finding ways to build energy efficiency knowledge into the fabric of the organization, and this requires an investment in people. Involve everyone at the beginning. Identify key management and staff, send them to training, and make them responsible for creating a plan for including additional staff, identifying key products appropriate for your region, creating effective merchandising programs, and reaching out to key customers. While LEED seems the obvious choice, I recommend having a look at the Passive House Institute, (www.passivehouse.us), which promotes the most innovative approaches to energy efficient building design.

While there are a growing number of product and material innovations, it’s important to choose products that work in your region and clearly demonstrate that you’re on the leading edge. Energy lost through windows is enormous, so why not stock the most efficient options and make them the centerpiece of your merchandising effort? Serious Materials, (www.seriousmaterials.com,) a Silicon Valley producer of insanely efficient windows, is a good place to start.

With organizational knowledge in place and innovative products on the shelf, the next step is connecting with customers. Signage in your store and yard should be a given, and the overall message hierarchy should emphasize staff expertise, low cost of ownership, rapid payback, rebates and incentives. There should also be plenty of opportunities for customers to educate themselves, therefore hangtags, booklets, kiosks, and other ways of offering customers more “drill down” are key. Most product manufacturers will gladly help with this task, so don’t be shy about asking them to contribute. Finally, host energy efficiency workshops led by your most capable staff and invite local weatherization and retrofit firms, (keep in mind there are a growing number of non profits doing this work, too,) as well as city leaders, green building experts and, of course, your best customers.

From new home construction to home improvement projects, the leading priority is, and will continue to be, energy efficiency. Dealers that invest the energy in making themselves experts, will have created a growth engine that will carry them through the next business cycle and beyond.

Green Building and Greenwashing

2009-07-08T13:27:00.000-07:00

(Published in the August '09, Merchant Magazine and Building Products Digest.)

The green building movement continues apace and more LBM dealers continue to ask how they can prepare. One of the best things a dealer can do is get their key staff trained in the most relevant programs in their area, whether it’s LEED or a regional program. Developing this knowledge base in the organization can only be a positive and, if pursued intelligently, can be leveraged for competitive advantage. But knowledge of guidelines is only half the battle since, as a merchant, the bottom line is still the bottom line – you have to stock and be effective at selling the green materials and products that green builders want, or should want with the proper education. And education is, of course, one of the most important aspects of selling. Which brings up the question – how do you know which products to stock?

The first part of the answer should be obvious - ask your customers. You have to get close to your customers, learn about the projects they're working on, and for goodness sake, ask them what kinds of products you should stock for them. Having some background in green building guidelines will help you ask the questions intelligently, but even so, a green builder who encounters an interested, responsive retailer is practically a customer for life, so go do it!

But relying on your customers to tell you what they want is, again, only half the battle. Developing expertise in your product categories and discerning the “real deal” from the “greenwash” requires some study of product certifications and getting to know the manufacturers.

Product certifications exist to protect against false claims and many are so good that green building rating systems like LEED incorporate them as standard. Among them, for example, are GreenSeal’s GS-11, the standard for low-VOC paint and coatings, and FloorScore, for low-emitting flooring products. But for uncertified products, the honus is ultimately on the merchandise manager to determine whether the product is truly green, is good enough to stand behind, and whether customers actually want it. After all, if a product fails to satisfy, for whatever reason, the dealer’s reputation can suffer right along with the manufacturer. And reputations are damaged most when the charge is “greenwashing.”

In short, greenwashing is the false or exaggerated claims about a product – that it’s “LEED certified” (LEED is a building rating system, not a product certification) when it’s not, or that it has any number of “green” qualities that are vague, untrue and/or unverified. In the realm of green building, the merchandise manager can help him or herself tremendously by asking manufacturers for 3rd-party LEED credit analysis or other documentation that demonstrates the veracity of the claims being made. A manufacturer that has gone the extra mile to produce an environmental product declaration (EPD), for example, demonstrates not only that the product qualifies for LEED credits, but that they take green building seriously. That’s a good sign.

It’s also a good idea to attend the green building expos and talk to manufacturers directly – there are regional shows in almost every part of the country with the USGBC GreenBuild show being the largest national show. This is where you’ll find the best information on new products and their performance characteristics short of trying them yourself. And why not try them yourself. Only with this kind of commitment will you find those gems that your customers should be using and when that happens your green building reputation will be golden.

Green Optimism and the Emerging Economics of Trust

2009-06-06T16:22:00.000-07:00

(Published in the June '09, Merchant Magazine and Building Products Digest.)

It seems there’s less talk these days about the bad economy and more about things we can do to take action. Action is inherently hopeful which is psychologically empowering, but the real dollar value lies in the fact that that those businesses that take action when economic conditions change create their own opportunities. And over the last several weeks, this is exactly what I see happening. After multiple conferences and talking with hundreds of businesses and entrepreneurs, I’m hearing optimism about green business opportunities and a genuine desire to be more, or even much more, sustainable. And this is leading to an emerging economics of trust that our industry needs to embrace.

The big economic trends all point to “green”, of course, clean energy, energy and water conservation, clean technology, federal spending and regulation, etc. The green building movement is positioned to explode over the next several years. There are more green building programs that require 3rd party verification and the USGBC’s LEED program is pushing 3rd party life cycle analysis (LCA) for products and materials earning LEED credits. And there are more 3rd party certifications that cover a wider variety of product categories. The message to manufacturers is that not only must they produce products that meet green building guidelines, they must do so sustainably, and it must be demonstrated to a trusted, impartial third party. “Trust, but verify,” a former president and product pitch man once said. And manufacturers are doing it, ensuring that this will be one of the most important ways to establish their credibility in the marketplace, with huge implications for brand building, marketing and sales strategies.

Consumer attitude trend lines continue to slant “green,” as well. Energy saving is top of mind for most at the moment, but awareness about the long term issues of climate change, drought, eutrophication, toxic chemicals, food security, etc. hasn’t abated. Consumers are still buying greener products, but more people are suspicious of corporate greenwashing. In fact, one emerging trend shows people moving away from “consumerism” altogether and toward greater personal responsibility. More people want to do more with less: less negative impact on their family’s health, the environment, and energy budget, and more quality of life. As a result, a host of social media websites like GreenGuide.com and GreenMaven.com are popping up, attempting to deliver the real truth about this green product or that greenwasher, creating rapidly growing communities that trust in the “wisdom of crowds.” More importantly, sites like these can establish or obliterate the credibility of a retailer or a product in flash.

I’ve recently spoken with a surprisingly large number of product manufacturers, some in unexpected product categories, who are planning to undergo some sort of third-party certification or documentation to give their claims a credibility boost in the market. Product certifications and other documentation are increasingly important to retail and distributor merchandisers who process loads of product data everyday but don’t have the expertise or the time to independently verify all manufacturer claims. More often these days, the first question a buyer asks when being sold a green product is, “who says?” That’s a good sign, because many retailers and distributors I talk to are attempting the more difficult task of creating trustworthy merchandising programs for their stores and yards. The starting point and the foundation for these programs must be on building collections of quality, verified products that the sales staff understands with confidence. Those who get it right will inspire trust and have good reason to be optimistic about their future.

Self-Reliance is Back

2009-05-12T10:19:00.000-07:00

(Published in the May '09, Merchant Magazine and Building Products Digest.)

When the First Lady planted the White House vegetable garden this spring, it did more than just promote home gardening. It harkened back to the Victory Gardens that were commonplace during the Second World War, when our society pulled together for the war effort, and our culture was imbued with the virtue of self reliance. And it seems that our culture, which has been criticized over the last generation as being both selfish and disposable, might be taking a taking a sharp turn toward self-reliance and sustainability. Anecdotally, this seems true. A friend of mine has forsaken anything packaged and has taken to making her own cleaning products, toothpaste and yoghurt. On a recent trip to Portland, I saw more rain barrels and front-yard vegetable gardens than I could count. Though I don’t know for sure, I’m inclined to believe that book sales for Emerson and Thoreau are on the upswing, as well. All this, of course, creates opportunities for the savvy retailer in our industry.

Let’s start with gardening. Not only were sales of organic gardening products up last year, but more households were growing their own food. According to the National Gardening Association, an estimated 36 million households participated in food gardening in 2008 and projected that number to increase 19% to 43 million households in 2009. In a separate report, they find that “9 out of 10 households, believe that it’s important to maintain their landscape in a way that benefits the environment,” although only about half are knowledgable about how to do so. That gap is the retailer’s opportunity – a budding population of food gardeners with a thirst for knowledge.

For those dealers with garden centers, (those without might reconsider), it should be relatively easy to source organic soils, plant foods, pest control products, and drip irrigation kits, as these product categories have been growing for years and most L&G distributors stock them. Seeds can be a different matter and here I recommend Seeds of Change, (www.seedsofchange.com,) who stock a wide variety of organic and heirloom varieties. Getting your staff educated is also a key component. In California, there’s a fantastic program called Our Water Our World, (www.ourwaterourworld.org,) a non-profit funded by state and utility grants that provides free training and education for store staff on pesticide-free methods for controlling typical garden pests. There are similarly focused non-profits and organic gardening organizations around the country, so they should be easy to find.

There’s lots more to household self-reliance and sustainability than simply planting a garden. For example, installing a rainwater harvesting system, which I wrote about last month, adds another key input toward the sustainable food garden. But along with inputs come the outputs, such as waste. Households generate lots of organic waste, with food scraps accounting for a big chunk of what goes to the local landfill, where it’s consumed by anaerobic microbes that produce methane, a green house gas that is 25 times more powerful than carbon dioxide. The solution is simple: composting. Composting organic waste produces a nutrient rich soil amendment, which every gardener knows is essential. There are some good composters on the market that look attractive on the retail floor, such as those from EnviroCycle, Terracycle, and the Earth Machine. Some, like the Green Johanna even work in cold weather and can handle meat and bones. An alternative to conventional composters is the worm bin, such as the Worm Factory, which works well for those folks without a yard.

Little “economic recovery” gardens, irrigated by rainwater, with soil amended by composted organic waste – a great story all around, full of merchandising opportunity for the savvy and self-reliant retailer.

Water Self Reliance

2009-04-09T12:15:00.000-07:00

(Published in April '09, Merchant Magazine and Building Products Digest)

With April, comes Earth Day and a host of local events all over country and of every description, from creek clean ups to huge music festivals. The media is full of green stories and more people than ever want to know about green building, saving energy, solar and wind power, retrofitting, etc. But often overlooked and under reported is the water crisis and what homeowners and builders can do about it. While those in regions used to drought and limited fresh water supplies might be prepared, communities in regions just coming into drought could use some help in becoming more water self reliant. For retailers, this represents an opportunity to do well, and do good.

There are many products and practices available for reducing household water demand, many of which can earn sizable rebates. Highlighting these products, with signage that details benefits, cost savings and local rebates can boost your sales – make sure you have the rebate forms on hand. Weather sensing irrigation controller, such as Cyber-Rain (www.cyber-rain.com) offers a cool, internet-enabled product for both home owners and landscapers. Dual-flush toilets also qualify for rebates that can sometimes cover the entire retail price of the product. And Caroma’s (www.caromausa.com) new Profile Smart is 1.28/0.8gpl and even incorporates a sink on top of the tank, capturing and reusing that graywater for even greater savings.

Another water-wise strategy is rainwater harvesting, an emerging opportunity for retailers. Regions of drought and abnormally dry weather are spreading across the West, Midwest and South, so it makes sense to capture the water when it rains for use in garden irrigation and other non-potable applications. Innovative new products now make it easy for a home owner to install their own system, eliminating the mosquito and debris clogging problems of home-grown rigs. Starting at the gutter, RainTube, (www.raintube), offers an enclosed system the lets water in and keeps debris out. Next, cutting the downspout and fitting diverters is where many homegrown projects go wrong, but a slick new kit makes it easy to get it right. The RainReserve Diverter, (www.rainreserve.com), incorporates a filter, is mosquito proof, comes with tools and is made from recycled and biodegradable plastics. Once fitted, the home owner can use the RainReserve website to locate their own used barrel to reuse. A cool alternative to the barrel is the RainWater Hog, which looks like a piece from a giant construction set and is designed to be sited almost anywhere. An in-store display incorporating products like these with useful information about your local drought conditions and benefits of rainwater harvesting could prove valuable to your community.

For the slightly more committed, graywater systems and composting toilets are two other water conservation strategies that are gaining some mainstream momentum and are worth learning more about. Graywater systems capture and reuse water that’s already been used for bathing, cleaning, laundry, etc. Very often, local codes can be very restrictive, but they’re beginning to be reviewed and modified in response to current and forecasted drought conditions. Composting toilets, of course, use no water to begin with and that’s generating more interest in them. As people learn to overcome their fears and misconceptions about how they work, the retail opportunities will grow. And while the systems can be expensive, there are rebates available, and SunMar, a leading manufacture of residential units, offers a program for non-stocking dealers. Even better, a demo unit on your store floor would be a nice way to test the water, so to speak, in your local market.

Get Ready for Green Home Builders

2009-03-11T11:03:00.000-07:00

(Published in March '09, Merchant Magazine and Building Products Digest)

This year may be remembered for its gargantuan financial meltdown and economic crisis. It may also be remembered as a foundational year for green home building for two big reasons. First, energy and water conservation are more important issues than ever before. With government incentives, such as rebates and weatherization financing, and water rationing looming in some regions of the country, energy and water efficiency are top of mind concerns for home owners and new home buyers. Second, green homes are selling faster than non-green homes. This has been borne out by research conducted by various local green home building programs, but a recent press release from the US Green Building Council indicates that new homes meeting the LEED for Homes standard built by Pulte in Las Vegas, are selling about twice as fast as their conventional homes. The LEED for Homes program is barely a year old and already there’s a ten-fold increase in new homes slated to be certified this year. With production home builders now taking notice, you can bet that a dramatically larger percentage of new housing starts will be green.

If a rebound in new home construction will be led by green, how can retailers position themselves to benefit? To get a broader perspective on this question, I organized a virtual roundtable discussion with some green building professionals. It seemed everyone wanted to talk about LEED for Homes and rising consumer demand. Why? While it’s not necessarily a good fit for every project, it’s a national standard and a strong brand, which is especially good for production builders. New home buyers are already looking for energy efficiency and healthy indoor air quality, so a credible national green certification for homes will help builders sell their green homes quicker, which is what we’re already seeing. And to meet the growing demand for green homes, the new professional credential, LEED AP + Homes, is rolling out this year, which will dramatically increase the number of professionals working in the area. This is precisely where retailers should take notice.

“Retailers who are serious about serving their pro customers need to get themselves educated about the changes transforming the home building industry,” says Michael Strong, president of GreenHaus Builders (www.greenhausbuilders.com) of Houston, Texas. He was one of the first to build a LEED for Homes project, 2008 NAHB Green Building Advocate of the Year, and has been building green for years. He recommends retailers have at least one staff member go through the LEED AP + Homes training and to bring the rest of the staff up to speed – floor staff and buyers. “Nothing’s more frustrating than to spec a product, educate my supplier, only come back for a second purchase to find they no longer stock the product because they didn’t understand it,” says Strong.

Education and training was also a main theme for Heather Gadonniex, LEED AP, and president of sustainability consultancy Green it Group, (www.greenitgroup.com.) “When I meet with major retailers or distributors looking for help in getting into the green building market, I find there’s enormous confusion about green building guidelines and product certifications,” she says. Part of the blame must go to product manufacturers whose sales and marketing people often add to the confusion. But retailers must ultimately know about the products their pro customers want and develop the expertise to anticipate their needs as technologies, green building guidelines and product certifications evolve. “Retailers should look for products from manufacturers who provide back up documentation to support the validity of their green product claims and, when necessary, obtain third party certification,” says Gadonniex.

While LEED for Homes is a national standard, it includes credit for locally produced materials and innovations appropriate for local conditions. Of course, there are also local and regional green building programs that very often offer a simpler alternative for local builders. According Clarke Snell, author and principal of Think Green Building, (www.thinkgreenbuilding.com), a green and natural builder in North Carolina, thinking local is the right approach. “Building for local climate conditions with locally produced materials is what builders should be focused on, therefore it should be the focus for retailers, too,” says Snell. “Selling FSC certified lumber products from the other side of the planet just doesn’t make sense.” While sourcing locally might be hard for big box chains, it could be a valuable differentiator for knowledgeable independents.

The Green X-Ray House – a Community Affair

2009-01-18T16:29:00.000-08:00

(Published in January '09, Merchant Magazine and Building Products Digest)

In past columns, we talked about the importance of community involvement, networking with green building leaders, and making sure the local municipal green building folks know who you are. It costs virtually nothing and can only lead to good things, and sometimes even spectacular things. Nothing exemplifies this better than Beronio Lumber’s involvement in an exciting little project that put an otherwise unremarkable little town in Northern California on the green building map.

South San Francisco is an industrial suburb of San Francisco, whose fortunes waned with the outflow of manufacturing and airline jobs over the years. Recently, city leaders had a vision to promote green building, community development, and the city’s attractiveness to potential new residents, and it all congealed around a single project. The city owns several rental properties and decided to transform one of them, a modest 3 bedroom bungalow, into a showcase called the Green X-Ray House (see their website here: www.greenxrayhouse.com.)

While the focal point of the project is the house, the real story is about the community that came together to make it happen. The major player in this story is, of course, the City of South San Francisco’s Economic and Community Development Department who, earlier in the summer of 2008, convinced the Green Building Exchange to become part of another city project dubbed the Sustainability Center, a multi-use facility housing several green businesses. The Green Building Exchange is a unique business, designed to provide a central location for green building education for builders, architects and home owners. Beronio Lumber started building relationships with green building related organizations a couple of years ago, including the Green Building Exchange where they’ve even installed a permanent display. So, when conversations began about what to do with the vacant property, the city consulted with the, now local, Green Building Exchange, who immediately brought Beronio Lumber into the process. Thus, the Green X-Ray House was born.

The concept was simple: remodel the house with lots of green features to demonstrate how easy a modest green makeover could be. Beronio Lumber provided decking materials, FSC certified flooring, FSC molding, window and door casings, as well as the windows and doors. Meanwhile, the folks at Green Building Exchange talked up the project with other local firms – it seemed everyone wanted to be involved. The modest green makeover quickly became a vibrant community project. Over 19 local firms participated, nearly all directly involved in the green building industry. Local builder W.L. Taylor Construction managed the project. Local plastering company Get Plastered! (yes, that’s their name!) applied American Clay, an interior plaster product that is all the rage among interior designers. The most surprising partner was Pepsico/Frito-Lay, whose business has nothing to do with green building, but as a local member of the community donated cash and over 25 volunteers to work on the house over a weekend.

The Green X-Ray House is now a symbol for the neighborhood, not just as another green show house, but of what can happen when a community comes together to try to make a difference. Beronio Lumber created enormous community good will, as did other participants. The Green X-Ray House neighbors are thrilled because their property values went up a tick and their community got some positive recognition. Suddenly South San Francisco is a green leader, with cities from around the country sending representatives to learn how this successful collaboration can be replicated in their communities.

My Winter Solstice List

2008-12-12T09:57:00.000-08:00

(This article appeared in the December '08 issues of Merchant Magazine and Building Products Digest.)

While the events of the last few months have been monumental, stimulating an enormous volume of concerned thought and conversation among friends and acquaintances, citizens and economic actors, spinning out the various scenarios for economic recovery, change in government, and the sacrifices we may all have to make in the coming year, my thoughts this time of year naturally turn to the cool stuff I want. I admit that sounds a bit shallow, selfish and not really all that “green”. But in this case, the products on my wish list are really innovative, green, and maybe even virtuous.

First on my list is the WaterMill, from Element Four (www.elementfour.com), a product that produces clean, fresh drinking water from the air. Fitted to the outside of a home, this nifty little device condenses the water vapor in the air by drawing it through an air filter and over a cooling element. The droplets of water collect, up to 13 quarts a day, then pass through a carbon block filter and an ultraviolet sterilizer, before going onto a dispensing point inside the home. Performance will vary with local air conditions – very humid air yields more water and dry air less. Aside from an obvious appliance for any off-the-grid shelter, imagine the usefulness of the WaterMill in a drought or post-disaster situation. After a hurricane or earthquake, solar-powered WaterMill stations could provide some relief.

Continuing on the theme of self-reliance, the second product on my wish list provides free heat from the Sun. The SolarSheat from Your Solar Home, (www.yoursolarhome.com), is a do-it-yourself thermal solar heating solution for a single room. It’s well designed, and simple, so that virtually anyone can perform the installation and get it right – a first, or near first, for a renewable energy product. In colder climates, space heating comprises a large part of a family’s energy budget, which means that the SolarSheat can save money, too.

There’s another product on my list that will also save on home heating bills: ThermaProof™ Windows from Serious Materials, (www.seriousmaterials.com), a super insulated, exceeds EnergyStar requirements by 400%. Energy efficiency will be a hot issue across a range of product categories in the coming year, but these windows have already staked out a significant performance lead over their nearest competitors. It’s a result of Silicon Valley innovation getting together with green building know-how – the products are produced in Sunnyvale, CA. And they didn’t stop with windows, as they also produce ThermaRock, an energy-saving alternative to drywall, and will soon launch EcoRock, another drywall alternative made with 85% recycled content and manufactured with 80% less energy.

Last on my list is a nifty little water saving device that can turn virtually any residential toilet into a high-efficiency dual flush. It’s called Perfect Flush from Brondell, (www.brondell.com), and it seems like a perfect solution for generating big water savings without having to tear apart the bathroom. The retail price is significantly less than buying and installing a new toilet, and there will likely be rebates available in the near future. It’s well designed and easy for just about anyone to install correctly. Finally, it’s customizable so the user can dial in the most appropriate water flow for each flush.

These innovations are cool and functional, but they're tip of the iceberg, so to speak, with hundreds more cool new innovations in the pipeline. They also represent some important new steps toward water and energy conservation in ways that promise an exciting new year to come.

Green Collar Jobs

2008-11-12T09:53:00.000-08:00

(This article appeared in the November '08 issues of Merchant Magazine and Building Products Digest.)

While the scramble is on to bail out our nation’s banks and financial institutions, most of the rest of us are wondering what’s next. The economy may well be headed for a nasty recession with rising unemployment and sinking consumer confidence. Is this the beginning of a structural economic adjustment analogous to the industrial restructuring of the 1980s that shipped thousands of manufacturing jobs overseas, what we call “Globalization”? Many longer term economic trends point in that direction: rising shipping costs, higher manufacturing costs in China, greater emphasis on green house gas reduction and local sourcing, huge venture capital investments in “green tech,” and government policy promoting green building and clean energy, to name but a few.

But what about the short term? Will the bank bailout keep people in their homes, bring mortgage rates down and provide a small boost for our industry? Will another stimulus package from Congress do the trick? It just may be that the eventual economic recovery will be based, at least in part, on a grass-roots movement that is gaining traction with both local and national policymakers: “green collar” jobs.

From Oakland to Los Angeles, from the South Bronx to Chicago, New Orleans to Newark, local green collar jobs programs are revitalizing neighborhoods and giving people a chance to participate in the still growing green economy. A national organization, Green For All, (www.greenforall.org), founded by Van Jones and Majora Carter serves as a clearinghouse and resource center for local nonprofit-led programs, as well as municipalities seeking to develop their own program. These programs train workers for the clean energy economy and many include weatherization and retrofitting programs for existing homes and commercial buildings.

This is where it gets interesting for home improvement retailers. Getting involved in your local program could provide some immediate tangible benefits – you could be supplying the necessary products for these programs: weather stripping, insulation, lighting, roof coatings, and more. There are also opportunities to provide local leadership and expertise, gain community recognition, free publicity, find trained and motivated new workers, forge links with potential new customers, and more. And with federal green collar jobs programs coming soon, there may even be more opportunity.

On the national stage, it appears that plans to stimulate the growth of green collar jobs are already underway. Thanks in part to the efforts of Green For All and other grass roots organizations, Congress passed the Green Jobs Act as part of the 2007 Energy Bill, calling for $125 million to create the Energy Efficiency and Renewable Energy Worker Training Program. It’s a pilot program that would, (if funded in the next appropriations bill), jumpstart green collar job programs across the country. The House is currently discussing another stimulus package that would include investment in green collar jobs. In addition, both presidential candidates have expressed their support for growing green collar jobs. In any case, it appears that the green collar job issue is here to stay and that should be good news for hardware and home improvement retailers.

Time for a Green Event

2008-10-09T09:48:00.000-07:00

(This article appeared in the October '08 issues of Merchant Magazine and Building Products Digest.)

Fall is here. And for do-it-yourselfers, their attention has turned to pre-holiday home projects, like painting a room or making the house a little more energy efficient. For green builders, this is the season of two of the most important green building industry events, West Coast Green, in San Jose, California and Greenbuild, in Boston. West Coast Green happened in late September, (see what you might have missed here: www.westcoastgreen.com,) and has firmly established itself as a leading showcase for building innovation and education for pros and homeowners. Of course, the US Green Building Council’s Greenbuild Conference and Expo, coming up in mid November, (visit their website, here: www.greenbuildexpo.org) is the big green building event. So, with home projects and green building topics top-of-mind for many of your customers, it might be time to host a green event at your store.

Hosting a little green event in your store can bring in some of your best customers, as well as new customers. It can also bring other less tangible benefits including creating positive word of mouth, strengthened relationships with community leaders, and staff enthusiasm. The best part is that it doesn’t have to cost very much, especially if you elicit support from your suppliers and local organizations. Let me share some examples of what some of the best green retailers are doing on the West Coast.

Creating a workshop around a cool product or new building technique can bring in motivated customers. American Clay (www.americanclay.com), a natural plaster product from New Mexico is being stocked by a growing number of green retailers throughout the country. It’s a beautiful alternative to paint, but it takes a little extra know-how to apply it correctly, so the manufacturer and their dealers host workshops in the store. These little events cost virtually nothing to produce and have proven to be a boon for the retailers. Customers pay for the workshop, buy the product, and come back with their friends. A more traditional home improvement dealer in Northern California, Central Valley Building Supply, added the line last year and has hosted several American Clay workshops, finding that sales of other products get a boost, too.

Having a sexy, niche product can be an effective draw, but that’s not the only way to attract motivated customers. Virgil’s Hardware Home Center in Southern California recently hosted an event promoting water conservation. With support from the local water authority and their suppliers, they set up product demos and distributed rebate information, connecting customers to the right products for their project and the right rebate information for their community. Given that rebate information can be confusing to some people, it provided a real community service, saved their customers money and boosted sales.

There are other simple themes one can create an event around – one retailer I know offered 15% off for all women on a Women’s Day promotion and set up tables with information from local non-profit organizations promoting awareness of common household chemicals. The main point is to create an event that will be compelling in some way. But that’s not enough – you need to get the word out to your customers and influential members of your community. Have your cashiers hand out small flyers with every purchase for a couple of weeks in advance – print double-sided on recycled paper, of course. But most importantly, make a few personal phone calls to local green building advocates and community leaders and let them know what you’re doing. It boosts your reputation and will boost your business. Oh yes, and remember to have fun.

GHG and Retail

2008-09-12T09:42:00.000-07:00

(This article appeared in the September '08 issues of Merchant Magazine and Building Products Digest.)

When the topic of green building comes up in our industry, it usually starts up the debate about certified lumber. SFI or FSC? Which is better? Is chain of custody certification worth the trouble? The questions are valid, but the debate is essentially over and has become a distraction from understanding the real issue driving the green building movement. Carbon. It may bring as much change to the hardware and building materials channel as the “big boxes” did decades ago. Let me explain.

The green building movement continues to gain solid support from state and local governments. Solid? San Francisco recently passed mandatory green building guidelines that are the most stringent in the nation, but it’s not another example of West Coast eccentricity. What’s driving the green building movement on the West Coast and the rest of the country isn’t some “tree hugger” ideology, but a science-based approach to curbing green house gas (GHG) emissions, which includes carbon dioxide.

The building industry accounts for nearly half of all green house gas emissions, which includes both embodied energy – the energy required to produce the building materials and move it to where its needed – as well as the energy required for operations, such as lighting, heating and cooling. (See www.architecture2030.com for more information on this, as well as really nice graphics that illustrate the depth of the issue.) Cities and states are focusing on green building related policies as one strategy for limiting GHG emissions because that’s the sweet spot.

A major component of every green building program concerns energy usage. Adding renewable energy, like solar or wind, can earn a building project lots of green points. So too, can adding a host of energy saving features. While federal rebates for solar may end soon, most pundits predict a future that includes more rebates for renewables and energy saving products, coupled with ever stricter building codes. In fact, there is a movement afoot to set the green building standard at carbon neutrality, or zero-energy, well before 2030.

This increasing focus on energy and carbon reduction will create business opportunities and threats. Ikea recently announced their intention to sell solar panels and other home energy products in the next five years. Is this a sign of some big changes headed for this retail channel? Could be. New products in the pipeline will make it easy for do-it-yourselfers to install small-scale solar and wind systems for room additions, out buildings, etc. There’s lots more new energy saving products coming our way, too. Because these products deliver big margins, it’s attracting the attention of retailers like Ikea. And because “alternative energy” is becoming mainstream, established “alternative energy” retailers, such as Northern California’s Real Goods, are seeing tremendous growth opportunities. It’s a sure bet that in the years ahead there will be new retailers focused on meeting the demand for carbon-free energy and challenging traditional home improvement/hardware dealers in that category.

What will all this mean for traditional home centers and building materials retailers? For those that are energy savvy, the new wave of carbon-busting products will add growth to the bottom line. Retailers today that have a solid lineup of Energy Star products and, perhaps, a relationship with a solar installation outfit, have a head start and will be well positioned to take advantage.

Merchandise and Merchandising

2008-08-08T09:37:00.000-07:00

(This appeared in the August '08 issues of Merchant Magazine and Building Products Digest.)

As far our industry is concerned this economy is absolutely abysmal, but there is a silver lining. The only aspect of our little corner of GDP that seems to be moving in the right direction is green building, both in terms of projects in the works and the products that go into them. In past columns, we’ve talked about a variety of things you can do as a retailer to take advantage of this growth. Now, we turn our attention to the core issue: selecting and selling quality green products.

If the goal is to stock green building products your customers want, it will help to know a little about green building guidelines. For our purposes here, we can generalize what guidelines call for and categorize the products according to resource, energy and water conservation; and indoor air quality. Sourcing products and materials locally is also a plus.

Here’s a short list of green building products everyone should probably stock:

• GreenSeal certified, low-VOC paint
• Low-VOC, formaldehyde-free adhesives, caulks and sealants
• Formaldehyde-free, recycled content insulation
• Energy Star lighting – fixtures, CFLs and LEDs
• EnergyStar ventilation
• High-Efficiency Toilets (HET) – more than one model!
• Tankless water heaters

One can go much farther, of course. There are hundreds of green building products one could put on the retail floor, too many to talk about here. And probably you already have many of the less obvious ones, such as pipe insulation. But once you’ve source them, you have to sell them.

The first big question most merchandisers pose is whether or not to put green items in their own section, end-caps, or mix products in with the rest. It’s a good question and generally the answer is, “Yes!” A large home center in Northern California, Friedmans Home Improvement, has 20 feet of shelving at the front of the store with a broad sampling of green products, in addition to end-caps, and mixing the green products in with their conventional brethren. Since most people shop by category, the green products must be found with the other product in their category, along with appropriate signage. Segregating green products into green-only section is a recipe for failure. On the other hand, adding end-caps to highlight a product line or a solution, such as green paints, recycled rags, and recycled paint rollers, is generally good retailing practice for promoting any sort of product.

I mentioned signage above, and there’s more to say about that. Since we’re talking about selling green building products, it’s important to identify them on the shelf for your customers. Shelf talkers that indicate whether a product meets green building guidelines are simple enough to produce. Adding posters and banners that call attention to green building products, the fact that you have them, where they can be found in the store, prompting questions, etc., all contribute to creating a positive selling environment.

Finally, if you have contractor sales desk there are several little things you can do here that will make a big difference. First off, educate your sales staff about the guidelines in your area and the products you sell. Have them ask each customer that comes to the desk about their interest in green building and what you’re doing to help them. Second, have at least one binder at the desk with product literature for each of the green building related products you stock and those you can source through special orders. Third, have signage on the desk that talks about what you’re doing, brochures about the local green building program.

Get Connected: building community around your store

2008-07-12T09:32:00.000-07:00

(This appeared in the July '08 issues of Merchant Magazine and Building Products Digest.)

For generations, the hardware store was a focal point in the community, where folks could get great advice, discuss the issues of the day, or catch up on the latest gossip. Obviously, things have changed as “big box” retailers have muscled in and literally changed the landscape. And it seems the bigger “the box”, the less community connectedness. In contrast to that disturbing trend, a recent report from Conscientious Innovation, a sustainability think tank, found that consumers ranked feeling connected to family and community as their most important sustainability issue. Also ranking high was the desire to support locally-owned businesses. These results lead to an important insight - forging deep connections within your local community just may be one of the greenest ways you can grow your business.

Last month we talked about things you can do to “green up” your store’s operations, suggesting that offering CFL, battery and paint recycling provides a valuable community service. Recycling programs provide convenience to your customers, but deliver something more important to your community. By diverting toxic waste, such as mercury that accumulates in the food chain, from the local landfill where it can leach into the ground water, you demonstrate a concern about the health and well being of your patrons.

But to get really connected with your community, you’ve got to get involved. Contact your local green building organization - it might be a city agency or a local non-profit – call them on the phone as soon as you’ve finished this article, go to their meetings, and let them know you want to be involved. This will get you access to valuable know how and help you connect with local green building leaders. Most cities with green building programs embrace interested retailers and will even include them in promotions. In San Francisco recently, the city took out ads in the local paper promoting the local hardware stores stocking green building products.

But don’t stop with green building, connect with other non-profit organizations. If your store is locally owned, join the Business Alliance for Local Living Economies, or BALLE, (www.livingeconomies.com). BALLE’s mission is about building community through local business networks. They can help you build the “buy local” advantage in your market. Don’t forget to support your local schools and parent groups. Making a small donation of organic compost for the school garden, participating in their fundraisers, sharing information about non-toxic alternatives – those small ways of showing your support will help to build long-lasting relationships. There are probably other organizations in your area that are focused on protecting local watersheds and bays, wilderness areas or providing job opportunities for young people. Find out what your staff members are interested in and encourage them to get involved, too.

You should also consider participating in local green events where you can educate your local community members about what your store is doing to make less-toxic, environmentally friendly, and resource conserving choices available. Better yet, host a green event at your store. If you’ve gone out and developed relationships with local green building and other sustainability organizations, you should find no shortage of enthusiastic help. Enlist the aid of your local green product manufacture and distributors, as well. After all, they are an important part of your community, too.

Getting connected with concerned community groups will make you feel good about offering eco-safe and non-toxic alternatives. It will also build your reputation and generate excellent word-of-mouth referrals, bringing new appreciative customers into your store. You can do good and do well and that’s what getting connected is all about.

Walking the Talk: making your store a little greener

2008-06-12T09:25:00.000-07:00

(This appeared in the June '08 issues of Merchant Magazine and Building Products Digest.)

The demand for greener product choices is clearly growing from both pros and consumers. Last month we talked about what makes a product green and how to identify them. Stocking greener products will help retailers take advantage of this growing business opportunity, but is that enough? Not necessarily. Advertising and other communications are essential, of course, but to effectively connect with the green customer, there has to be credibility behind the claims. If you, the retailer, are not “walking the talk” it may all be for naught.

Most everyone these days has heard the term, “greenwashing.” Cynical attempts to jump on the green bandwagon, misrepresentations of environmental claims, and hypocrisy are the kinds of things that earn the “greenwash” label and it can result in losing customers fast. So, what can retailers do to walk the talk and build lasting relationships with their new green customers? There are three really easy things a retailer can do to start building their green cred: 1) become a community resource, 2) reduce operational impacts, 3) increase staff’s product knowledge.

1) Many cities have programs in place that make it easy for retailers to become a community resource for recycling batteries, paints, and fluorescent lighting. Being a collection point for these kinds of items provides a valuable service to your community. These programs, whether through your local city government, utility or third parties, also provide opportunities to connect with local schools and non-profits that will be happy to promote the good work you’re doing. Make sure the store and lumber yard are recycling their own waste, and inform your pro customers about recycling on the job site.

2) Operational impacts are sometimes hidden from customers, but doing something in this area can save money and build brand loyalty, especially when your efforts are known. Change lighting from inefficient incandescents and T12’s to CFLs, LEDs and T5’s. Swap out your inefficient toilets for High Efficiency Toilets (HETs) and/or waterless urinals. These measures often come with aggressive rebates – take advantage! If your locality has a Green Business Program, participate!

3) Getting your staff educated about the greener choices on the shelf is the easiest of all to accomplish. Most manufacturers and distributors are more than willing to come into your store and educate your staff on the ins and out of their soy-based sealer, energy-saving-device, or zero-voc paint. Product knowledge sessions are a good way to get even your crustiest department heads on board and you can incorporate them into an in-store event.

There are other things retailers can do, of course, such as put solar panels on the roof or use bio-diesel in your delivery vehicles. The main issue, however, is that retailers that make a genuine effort to reduce the impact of operations, educate staff, and take advantage of community programs, while stocking greener products, will establish themselves as the green leaders in their communities.

What Makes A Product “Green”?

2008-05-12T09:22:00.000-07:00

(This article appeared in the May '08 issues of Merchant Magazine and Building Products Digest.)

Last month’s Earth Day is now behind us and the media frenzy around all things green was truly impressive. Major retailers and manufacturers, from Wal-Mart to Clorox, sought to establish their “green” credentials, announcing initiatives, reformulated products, carbon offsets and renewable energy plans. As the news stories and advertising begin to subside, most of the rest of the retailing world is taking notice and asking what they can do to better address the rising demand for greener products and services.

In this, and future columns, we’ll seek to answer those questions in ways that help independent retailers in the hardware and home improvement channel win over new customers and reinvigorate relationships with existing ones. So let’s start with one of most frequent questions I’m asked: What exactly is a “green” product?

As with most questions of this sort, there are simple answers and slightly more complex answers. OK, simple answer first: green products pose no health threat to the user, are good (or at least not harmful) for the environment, and are made in ways that do not negatively affect the communities where they’re made or the workers who make them. This, of course, is an ideal that most “green” products approach but cannot attain if no other reason than most production and distribution requires energy in the form of fossil fuel, which carries with it some serious negative impacts in the form of air pollution and green house gas emissions.

So let’s look at a slightly more complex, more useful definition of what makes a product “green.” And to do that, we need to consider the context. Who’s buying the products in the first place? In our business, we generally serve two types of customers, building professionals and consumers, each with their own set of motivations and criteria.

For building professionals, the relevant context for products and materials are green building guidelines, such as LEED (Leadership in Energy and Environmental Design) from the U.S. Green Building Council (USGBC), as well as numerous local and regional programs. These programs define design and construction criteria that make commercial or residential buildings energy and water efficient, healthy, and with minimal negative impact to the environment, specifying material and product characteristics that earn credits, or points. Building projects that gain enough points are awarded “green” status, such Silver, Gold or Platinum in the case of LEED. Using lumber certified by the Forest Stewardship Council (FSC), for example, will earn LEED credits, as will using low-VOC paints, adhesives, and caulks, materials with renewable or recycled content, etc.

While the USGBC and other programs don’t identify specific product brands, other resources do. One of the best building product guides comes from Building Green, a well respected organization in the world of green building, who publishes the GreenSpec Guides. GreenSpec is also online at www.greenspec.com. These guides ostensibly cut through marketing noise to identify the best-in-class products for use in any green building project. If you’re a retailer with a strong pro customer base, GreenSpec is a must have publication for your buyers and contractor sales team.

For the consumer market, the task of identifying green products is a little more involved because there is no comprehensive program like LEED to guide product choices. A good place to start is with the consumers themselves. While green builders may be motivated by lower operating costs, enhanced rent and real estate values, or regulation, (building green is becoming mandatory in some communities,) consumers are increasingly motivated by concerns for the environment and personal health issues. It is this rising tide of shifting consumer attitudes that is powering the growth of Whole Foods, for example. These consumers tend to be skeptical of manufacturer claims, respond better to word of mouth than traditional advertising, and are willing pay a little more for a greener product.

Product certifications don’t yet exist to help us identify products in every category for the increasingly green consumers, but they’re catching up. Energy Star has been around for awhile, of course, with nearly universal recognition, and it’s expanding to include new electrical products, such as cordless power tools. The EPA recently introduced a similar program for water-related products called WaterSense, which covers High Efficiency Toilets (HET), faucets, showerheads and irrigation products. The growing popularity of organic foods and other products has helped to drive demand for organic supplies for the garden. Lawn and garden products that carry the OMRI (Organic Materials Review Institute) label have been certified to comply with the USDA’s National Organics Program. And of course, there are other products in these categories that would certainly be considered green but aren’t covered by these certifications, such as smart power strips that shut down phantom energy loads, solar lighting, water purifiers, and composters.

Identifying green product choices for the rest of your store gets a little trickier. Cleaning products, for example, is probably the most vexing category because there’s no trustworthy certification program and manufacturers are not required to disclose ingredients. Unfortunately, unverified claims can’t always be trusted and some claims, even if verified, might not be relevant. For example, a household cleaning product might be biodegradable, but may contain ethylene glycol, a chemical that studies have shown to be linked with reproductive harm. That’s obviously important since women are the primary users of cleaning products in the home. Non-profit organizations, such as the Center for a New American Dream (www.newdream.org) and Healthy Child Healthy World (www.healthychild.org) offer good background information on common chemicals and even make a few product recommendations.

There are a growing number of products coming to market that do represent greener choices for both consumer and building professional, outpacing the ability of certifications to keep up. By looking for products that conserve resources and promote healthier living, asking questions of your suppliers, and doing a little research, you can do a lot on your own to begin offering greener choices to your customers.