Why are so many builders going green? The answer is simple - green building can enhance your company's bottom line through:

• Cost savings from making the best materials and equipment choices
• Reduced risks, increased productivity, and fewer callbacks
• Greater profit margins on energy efficiency and other upgrades
• Competitive advantage in the marketplace
• Customer satisfaction and referrals.

Aside from boosting the bottom line, building green also contributes to the creation of a more environmentally responsible industry, and increases a builder's sense of pride in his craft, knowing they’re doing their part to help the environment. Green building is on the rise, spurring new technologies that save energy and money while creating more healthful workplaces.

Properly Choosing Materials and Equipment

The costs of incorporating some green building materials and techniques can be more than what you are currently spending, but in general the costs associated with green building are vastly overstated. The idea is to use the materials best suited to the job and to size equipment accordingly. And higher prices in one area can be at least partially offset with savings in other areas. Costs for all building materials can vary tremendously in their own right, but your level of experience and design choices have a large bearing. For comparison, some green builders find they experience no overall increase in materials costs to offer an energy-efficient package, but others suggest added costs of up to $1,500 per home.  Of course, consumers interested in purchasing an energy efficient building or home are generally aware of the potential increased construction costs and willing pay those extra costs, with the understanding that their investment will pay off with significantly lower operating costs for the life of the home.

Reduced Risks, Increased Productivity, and Fewer Callbacks

A Win-Win Situation

As a manager, watching your profit margins is a full-time job. The structure of your sustainable business and emphasis you place on consistency determines how much profit you get from options packages. Some green builders choose to incorporate energy efficiency and health and comfort options into their base price; others include them as options with a profit margin similar to other premium add-ons. Whichever approach you use, the experience of other green builders suggests that customers place great value on energy efficiency and are willing to pay for it.  Profit margins vary substantially from company to company. Consumers can either pocket the long-term savings they will realize from purchasing an energy-efficient home, or use them to buy a more expensive home. Any upgrades translate into added profit. In short, green builders can increase their profits at the same time that consumers lower their costs. Thus, from an economic standpoint, everyone wins.

Consumers Expect More

Buyers want energy efficiency and they are willing to pay for it. One of your key goals as a manager is to gain competitive advantage in the marketplace. One easy way to tell the public about your new product is to partner with ENERGY STAR. ENERGY STAR is a nationally recognized branding program sponsored by the U.S. Department of Energy and the U.S. Environmental Protection Agency. Consumers trust the ENERGY STAR logo to tell them whether their product is energy efficient. Participating in ENERGY STAR is easy and it gives you an effective way to distinguish your product from your competition. Over 2,000 builders work with ENERGY STAR in the United States, and half of the 100 largest builders in the nation have at least one division building ENERGY STAR qualified homes. ENERGY STAR qualified homes are independently verified to be at least 30 percent more energy efficient in space conditioning and water heating than homes built to the 1993 national Model Energy Code or 15 percent more efficient than the state energy code, whichever is more rigorous.  Since heating, cooling, and hot water energy use make up about half of a household's total utility bills, the savings realized from an ENERGY STAR qualified home is significant.