Community Insulation

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

(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.