Wednesday, September 30, 2009

Will the U.S. Residential Construction Industry Embrace Energy Efficieny Before It's Too Late?

Since January of this year, I have been helping a Canadian-based structural concrete wall panel manufacturer get its second North American factory up and running in Alberta. We have pushed very hard to secure the financing and, thus far, have successfully met many challenging milestones. But, we are not done yet. It is my expectation that the Canadian manufacturer will have an Alberta-based plant operational by sometime in Spring 2010.

Each plant costs about $30M to launch, so it's a pretty massive undertaking. My role has been helping the licensees in Alberta work through the relationship with the manufacturer. Part negotiator. Part facilitator. Part strategist. With a little bit of pyscho-analyst thrown in for good measure. I have also been the go-to person for questions from investors, insurers, builders, government officials, etc.

My focus has, and will continue to be, on developing technologies and techniques that allow communities to build durable, sustainable, modestly-priced homes for average income earners worldwide, not just in the U.S. To that end, I am currently working on a project that will allow for the construction of structural wall panel plants in Iraq. A long story, but an important one. They need 3 million units of housing. In the past 25 years, they've only managed to get less than 20,000 units constructed, according to the United Nations. Lack of adequate housing fuels the cycle of poverty and the resulting after-affects which includes terrorism. A story not being told by the mainstream media.

I have a team of experts now assembled who can rapidly build thousands of units of housing per year anywhere in the world. A welcome, though unintended, consequence of the work we've done over the past three years. If you need housing for your country, call us. :-)

Another part of my work has found me helping raise money for two home builders in modestly-priced residential housing markets in the U.S. and Canada. Since May, I have helped to raise over $6M in construction loans. It's not been easy, but we've done it. Over 50 modestly-priced homes are being built in the these markets this year as a result.

What's frustrating, though, is that I am struggling to get anyone to pay much attention to me on the energy efficiency issue. The many builders I am working with see no compelling reason to change what they are doing. From Nova Scotia, to Alberta to Louisiana, Virginia, Oregon and beyond, there is simply no driving imperative to do anything different. For all of the talk of a green revolution in this critical industry, the realities are FAR from close to what organizations like the USGBC desires. In fact, I'd argue that it will take another 20+ years or more to see any noticeable change in how homes are built.

Yet, I am determined to get through to the people I work with. These are smart, motivated people. But right now they need to make money. Everyone is suffering in one form or another. I wonder if there is not a small baby step anyone could recommend these folks take to bring home building into a more modern era? What's the one simple thing you'd advise on the issue of increasing the energy efficiency of a modestly-priced home?