Making Energy Efficiency a Growth Engine

(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.

My Winter Solstice List

(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.