The current green push in residential construction is no passing fad or silly trend; green building evolved to become one of the defining elements of commercial construction in less than a decade. Builders and manufacturers who understand that the shift will occur — and don't waste internal resources debating the permanency and timing of the ultimate shift — will be poised to reap significant benefits in the marketplace. Several home builders and building product manufacturers have begun to position themselves as green and have used the platform to differentiate themselves — and grow — in the face of the current housing downturn.
Here are a few examples of companies growing in a down market — after refocusing on the green attributes of their products — cited from recent building-products trade press media:
- Honeywell International: expanding foam insulation, rose 20 percent in 2006
- James Hardie Industries: fiber-cement siding, rose 16 percent last six months
- Louisiana-Pacific Corp.: attic-insulation radiant barrier, up 40 percent in 2006
- Georgia-Pacific Corp.: paperless wallboard, sales doubled in 2006
So green's dirty little secret, that money is moving in lock-step with the environment, may be a modest statement. In fact, the full secret disclosure may be that the green niche, which is projected to grow to 5-10 percent of housing starts by 2010, is packed with potential for manufacturers. While past green movements have fizzled, the results this time appear to be different. Many green manufacturers are already stealing market share from traditional manufacturers that have been slow to act and react.
Are your internal skeptics preventing you from earning your fair share of green?
Carl Cullotta is vice president of Frank Lynn & Associates and leader of the Chicago-based consulting group's Construction Practice. He may be reached at (312) 558-4823 or at cpc@franklynn.com.
