Tuesday, March 24, 2009

Green can save Green


Green seemed to be the prevalent theme in the year of 2008! Every seminar, trade show and advertisments for new and old products were claiming to be Green. In reality I am not sure the majority of Consumers care about Green except for the Green they can keep in their wallets. The good news is some Green can save lots of Green!

In one study I reviewed, 49% of the participants said "a company's environmental record impacted their purchasing desicions", however, only 21% claimed they had purchased a specific product over another because of it, and yet, more surprising, only 7% could name the specific product they purchased.

We have always been a nation listening to the WII FM station! (What's In It For Me!). We heartlessly make choices based on today and not tomorrow. This is especially true when it comes to our usage of energy. In the last five years we have increased our energy usage by 10% while silently watching the cost double during the same span. Expanding the energy problem is the world growth, which continues to double every 80 years, and other nations' subsequent desire to enjoy energy also. In 2007, the United States continued to do their part in increasing the world growth by setting a record year for births!


What does this mean and How does it Affect the Consumer?

The economic theory of supply and demand will greatly influence the energy market. There will be more demand for energy with less being available per capita and household. We will see substantial yearly increases in energy costs. Furthermore, we will see the government tapping into hidden taxes on utilites which will increase the costs. Consumers will be obligated to decrease their energy usage, if only for cost reasons.

Over the last few years we have experienced a tremendous increase in "Green" purchases that actually save "Green" when it comes to energy usage. Energy efficient commercial buildings, energy efficient residential homes and energy efficient automobiles have substantially increased. Future resale values will be directly linked to the energy efficiency of the houses, buildings and cars.

"Green" was the theme of 2008. "Energy Efficiency" will be the theme of 2009.


Thursday, March 19, 2009

Builders or Homeowners - the Blame Game


As I consult with Builders, Developers and Homeowners, it amazes me how many are uninformed in regards to the latest trends and changes in Building Materials utilized in construction. Everyone seems to be more attentive to the cosmetics of a home than with the actual building structure. The glitz is a one time purchase and can be changed anytime, however, the structure creates an ongoing cost. When a person purchases a home their decision process seems to follow an order like this:

1.) I like the look of this house from the outside.
2.) I like the look and feel of this house on the inside.
3.) I think I will purchase this house.

A house is usually the highest amount a consumer will spend on a purchase, yet they don't question the after purchase costs. Even with a car they will follow a different evaluation method:

1.) I like the look of this car from the outside.
2.) I like the look and feel of this car on the inside.
3.) What is the miles per gallon?
4.) What is the warranty?
5.) What will be the resell value down the road?
6.) What will the new models look like?
7.) I think I will purchase this car.

I talked with a General Contractor this week that stated "I have been building for the last 30 years and don't see a need to change the way I build". Wait a minute....I don't think He was listening to what He said. Is He still installing rotary dial telephones in His homes? Is His computer from the 80's? Do people still enjoy avacado living room carpet? Does He still drive a Pacer or Gremlin? The world is changing extremely fast and the building technology seems to be shifting even quicker. Affordable Zero-Energy Homes are happening now and will only become more prevalent with the fast-paced rise in utility costs. Builders and Developers have an obligation to their clients to stay abreast of the changes. I believe we will be seeing a large amount of lawsuits, filed by Homeowners against their Builders, for building a custom home that is not affordable. 

If a Home is not energy efficient, then it is not affordable. If the Home is not sustainable and has high maintenance problems, then it is not affordable. If the Home creates an evironment where the family has health issues and medical bills, then it is not affordable.


Who is ultimately liable? The Builder or the Homeowner? Unfortunately, until the Homeowner becomes educated with their choices most Builder's will continue to claim ignorance!