The Greening of America

It continues to surprise me how far the green movement has come in even just the past three years. At the same time I'm surprised at how little traction has been gained on the everyday side of green. When you look in any popular magazine or newspaper there is always some new story of a company going "carbon neutral" or completing a high profile LEED project.

Where are the stories about warehouses doing mass transitions away from metal halide lighting? Where are the stories of waterless urinal/low-flush toilets flying off the shelves? Where are the stories highlighting the benefits of simple LED light bulbs for exterior use? Why is there no attention on the small stuff?

Doing the right thing isn't always sexy or easy. I get that but in this case it should be. At the very least companies should feel ashamed to be using energy inefficient bulbs. Why hasn't GE or Sylvania brought out the campaign for energy efficient lighting? Where are the press releases highlighting the cost of not switching?

I follow the environmental industries not closely but regularly. It seems that recently all the focus has been on the macro-industries: energy, fuel, cars. What I want to see are the studies highlighting the little things. I guarantee a national campaign to change light bulbs will do more in the next 2 years than any amount of fuel efficiency will do over the next 5.

The Carbon Neutral Smoke Screen

It is all the rage for companies to strive for carbon neutrality. A system has been set up to trade carbon credits on the open market where carbon neutrality can be bought at a price. No longer are companies applauded for simply reducing their footprint, it requires an additional outside investment in, usually, a non-profit carbon harvesting plan.

True carbon neutrality is impossible to achieve using even the most modern technologies. It is the marketing and advertising arms of large companies have convinced them that carbon neutrality is still achievable. It is one thing to be able to make the claim that you've reduced your carbon impact on the environment by 45%. It's another to say that you have no impact on the environment. This leads down the messy path towards carbon positive companies which I can only imagine is not far down the road due to typical corporate one-upmanship.

There is a better way to achieve carbon neutrality as a company that will put those additional dollars at least partially toward the bottom line: invest in carbon reduction technologies for your suppliers and customers. You make the investment for them and claim the carbon savings for yourself. Any agreement with them would be for them to pass along operational savings to your costs as well.

Retailers should invest in improved manufacturing processes for their suppliers. Manufacturers should invest in improved transportation modes from producers of raw goods. Real Estate companies should invest in the infrastructure of leasable buildings. Restaurants and grocery stores should invest in the growth of local agriculture.

The pay-back for reduced item costs is a bonus on top of the ability to claim multi-year carbon neutrality. The good will it will generate also has a value. Sure your competitors will benefit as well, but why should their good fortune keep you from making a wise business move? Is it really better to put your money into some carbon farm that has no financial benefit to your company other than the claim for one year of carbon neutrality?

Modular Wall Systems

One of the biggest questions on the minds of facility managers across the country is how to incorporate green products while saving money. The largest on-going cost in most facilities is churn caused by growth/contraction/relocations. Construction costs are regularly planned into the budget to make sure everything is in place for optimum performance. To that end I'd like to talk about movable wall furniture systems.

Almost all of the major workstation manufacturers have begun development on modular office systems. It's a natural progression to extend panels to the ceiling and provide attractive options outside of workstations and cubicles. The tough sell is that currently the cost is higher in most markets than traditional drywall construction - often high enough to put it outside the budget of your average company. Another difficulty is that since it is classified as furniture it is often excluded from a landlord TI allowance. However there is a growing trend in the real estate market for landlords to pay for these style walls within the TI assuming that they stay with the building at lease end.

With that being said, there are significant advantages to looking in the direction of a furniture system instead of traditional construction. The most important to a facility manager is cost. Wall systems are made to last up to 15 years. A typical payback period for a system of this type should be measured in terms of number of moves instead of years. Walls that are built to move are a cost avoidance over traditional construction. The electrical and data systems within them are built to be plug and play which makes things twice as easy. It is not uncommon for these walls to pay for themselves after even 1 reconfiguration. In more expensive construction markets they may even be the same price as traditional office construction.

The second reason is they are built to be environmentally friendly. If you are looking to have a LEED or environmentally certified space then these walls are the only way to go. Their use eliminates construction waste, they are often made from recycled materials and they can be reused many times. For a modest to good payback you are able to do your part for the environment.

If you are looking to undergo a workplace design change talk to your furniture vendor about this option. You may find that it fits well into your already existing plans. Or you can always contact us for help. We're always willing to talk construction methods.

US Manufacturing Should Embrace Green

With all the talk of recession lately I've been thinking about the new green economy that is being developed and what it could mean for the US manufacturing industry. There has been the lingering fear of manufacturing jobs eventually disappearing from US soil as they are slowly off-shored to cheaper labor markets. Sustainability dictates that the trend will reverse.

Sustainability principles put more weight on carbon than on price; regionally procured products are even one of the points available for LEED certified projects. As the market for green products grows, there will necessarily be a corresponding growth in regionally operated factories. There is a premium inside of sustainability for products produced and warehoused within 500 miles of the purchasing location. This also would mean a reemergence for the local mom & pop brick and mortar stores.

Whenever things seem to be going one way, there is usually a light at the end of the tunnel. In the short term sustainable practices offers higher prices and new ways of doing things. Long-term there is a potential for a rebirth of the good old days.

Environmental Outlook

The environment is one of those issues that has been around since earliest memory. Recently it has been given elevated status in the view of the world. It is now important to be environmentally conscious no matter who you are, what business you are in or what you sell. Utility companies have increased demand for green energy because individuals have begun to take it upon themselves to lead more environmentally focused lives. Businesses promote their environmental policies and progress on the front pages of newspapers and magazines. In every product category there is now an environmentally friendly option.

This has elevated beyond the realm of simple social trend. Being environmentally friendly is now an issue that every person and company has an obligation to face together. That's not to say that everyone has the same opinion of how to go about that or why it is the case, but it is to the point that everyone is taking notice. Car companies advertise efficient cars more often than SUVs now. Grocery stores provide better positioning for green products. Schools devote special lesson plans for how to be more friendly to the earth.

My company is driving towards an internal goal of having an environmental aspect to every project that we work on. That's not to say that we are an environmentally focused company, it is to say that we believe it is important enough for a mention in every project that comes through our door. Most of what we do is project management and strategy consulting business. Our clients are typically financially focused and have large issues occupying their attention from the little steps they could be taking at the same time.

We don't sell a tangible product that anyone can touch and feel. What we do is advise companies on how to do better with the people they have, the real estate they occupy and the money they spend. One of the ways that we do that is by recommending environmentally friendly solutions. It is surprising how many buildings don't even use or plan for high efficiency lighting. On the consulting side we are able to provide the environmental impact of transportation options. Reducing transportation costs means that you are driving fewer miles and causing less pollution all while saving money.

Imagine the impact if every company considered the environmental impact of every project that they undertake. Simply by having it in mind when making a decision typically will produce a better solution with almost no extra cost and probably some long term savings involved. It's the little steps that are going to get us to a goal of environmental improvement. It's taking it into account for problems that don't seem related that will be part of the solution.

Greening the Warehouse

Helping the environment is the big push in business. We've talked about the advantages to the marketing side of the business before. Today I'd like to go over some of the options out there for making your warehouse more environmentally friendly and why it's a good idea.

Warehouses are typically looked upon as industrial and environmentally unfriendly. This perception is holding back many companies from making real progress at cleaning up their act in the distribution centers. The opportunities available to reduce waste and energy are immense because of the purpose and operation of warehousing. Just like with offices, it is much more difficult to "Green" an existing warehouse than a new one but it is still possible and will save you money in the short and long-terms.

What areas are most ready to cut your costs and help the environment? To name just a few, you have paper reduction, transportation efficiency, lighting and air conditioning/heating. With all of these you can implement simple equipment or procedures than can provide you with quantitative results.

Paper Reduction

Old warehouse methods typically generate a large amount of paperwork. The less warehouse technology in place means that there is more paperwork needed to track all the transactions taking place. Some warehouses have room upon room for file cabinets filled with paperwork. Paper is may be recyclable but generating it and using it is not environmentally friendly. Technology is a way to reduce the paperwork generated by an operation and improves productivity at the same time. Advance Shipping Notifications (ASNs) and Warehouse Management Systems (WMSs) are the two best ways to reduce paper usage in a warehouse. Storing and backing up all the data across a building server or servers is the best way to enable quick retrieval and efficient storage.

Transportation Efficiency

Trucks stopping and going at your distribution center let out exhaust which releases greenhouse gases into the environment. Minimizing the impact of the trucks in your control can further reduce your environmental impact. Carbon footprint studies take into account the transportation associated with your company and products during the calculations. Moving trucks through faster or putting procedures in place for them to shut off engines when waiting is minimal cost but provides an impact.

Lighting

The lighting industry is beginning to take off on the back of environmentally friendly solutions. The reason for this is the extremely aggressive pay-back period for the technology in almost any application (both new or existing). If you are currently using metal halide, high-pressure sodium or t-12 lighting you fall into the category of prime candidate for an upgrade. Typically the payback period is going to be less than 2 years and the on-going savings are fairly significant. New environmentally friendly bulbs also give you the ability to discard your light recycling program that is draining money because you can throw the new bulbs away with the regular waste.

T8, and more commonly now T5, lights offer significantly lower energy usage and higher light output which means fewer lights required for the space. It's the best of both worlds. When you implement the light fixtures in combination with motion detectors to deactivate unneeded lights the savings becomes even more significant. Every major light manufacturer is moving to provide attractive T5 solutions and replacement plans to existing operations. More often than not they will come to your site and perform a free lighting assessment to show you the potential savings for your warehouse. Again, if you are using the older technology the Return on Investment will probably fall in at less than 2 years. As far as green technology goes, that is hard to beat.

Air Conditioning/Heating

Unless you fall into one of those great parts of the country (like San Diego) that has nearly perfect weather all year long, there is a good chance you spend money on heating and possibly cooling for your warehouse. Most warehouses in the country typically only provide heating unless there is a business need for air conditioning. The utility costs for heating a warehouse can be fairly significant though. There are three areas of the warehouse that can help you cut the cost you spend on heating and cooling.

First is the roof. If you are in an existing facility it is probably unlikely that there is anything that you will be able to do to upgrade this. New roofs are costly affairs and would probably result in operational downtime which is usually difficult to justify. However, in new warehouses the roof should be evaluated as more than just a way to keep out the elements. Look at the insulation value of the roof to determine the potential savings on heating and cooling. All that warm air in the warehouse rises to the top and a poor roof will exchange the warmth from inside for the cold outside forcing you to heat more on the inside than you would otherwise. Work with a specialist in HVAC if necessary to run the calculations.

Second is the warehouse doors. Dock doors are the primary contributors to warehouse air leaks. Cheap dock doors offer almost no insulation value from the outside. During the winter the cold air outside will cool down the air inside the warehouse. The principle is the same as with windows in residential housing. High performance windows offer better insulation and lower your heating/cooling costs every month. Doors with higher insulation factors are more expensive but could lower your monthly operating costs. However, the second problem with dock doors is that they are often not aligned correctly to be flush with the warehouse floor or dock leveler. Leaving doors open or gaps under and around the door will defeat any added insulation the door many have. Even with regular doors, make sure that they are flush with the floor and stay closed as much as possible during cool months.

Third is the walls themselves. Warehouse walls are usually not the most insulated construction materials in the world. Concrete tilt-up panels or metal walls offer more protection than dock doors, but still let in the cold. Adding additional insulation around the inside of the building will also reduce energy usage. The additional insulation keeps warm air in and the cold air out. You don't need to add it from top to bottom on the walls. Usually all that is needed is from the roof to about 15 feet above the floor. The goal is to protect the warm air in the warehouse (which has risen to the rafters) from trying to exchange heat with the outside. This is the same reason why upgraded roofs are good ideas.

Finally, use energy efficient equipment. Heating and cooling equipment is slowly becoming more energy efficient and you should take advantage of that fact in your operation. It is the simplest and easiest method to quantify the savings on.



Focusing on these four areas of the warehouse will give you the greatest environmental improvement for the cost. There are many different ways to green your warehouse and many of them will also improve your business and bottom line. Evaluation for potential impact by a professional consulting company will often cost little if anything. There is almost no reason not to try and find the areas you can help.


Technorati Tags: green, warehouse, environment

Green Marketing

When was the last time you evaluated your marketing budget and scope? If it was more than 5 years ago you are likely missing out on some of the latest methods for getting your companies name out in the market. The internet of course is the biggest driver of much of this, but there is another. Social consciousness is the latest way for bringing new customers into the fold. Showing that you are helping the environment through your business practices can do as much or more than showing a 5% lower cost than a competitor.

LEED has been the biggest driver of this trend. Whenever the latest company decides to make their buildings and space LEED Certified it makes quite a few major magazines and news reports. Writing off this additional cost to the marketing budget is the best way to justify these decisions. GE is the latest driver of the Green Marketing trend with their announcement of expanding investment of the ecomagination lines. Right now those lines don't have as good of a return as others, but the press they are getting for it is through the roof which bolsters sales of their other lines as well.

Any good marketing director will know how to push your initiatives into the public eye (or at least in front of your customers). Adding a marketing page to all of your brochures and presentations is the simplest way to let people know how you're helping. Marketing to the community is the next best way. Communities love to hold up the companies that are working to stay involved and be socially conscious. It could be a way to become a community sponsor and open up new lines of business.

Why can't changing out light bulbs, adding motion activated switches or using environmentally friendly products be marketing? Thinking in new ways is how companies become leading edge. With the cost of marketing being offset from cheaper ways of mass communication and replication, it is a simple matter to allocate some money to non-traditional marketing. Make sure you are still doing right by your business and investing in things that will still have a return on your investment, after all you are in charge of making good decisions. Doesn't a quantifiable return on your marketing expenses sound good to you?

Start looking down the road five to ten years from now and try and see where your market will be. Will they care about being environmentally friendly? More than likely they will and they will want to do business with like minded companies. You can either be a leader by making the small steps now and taking advantage while the time is still good or you can play catch-up when the change happens. It happens all the time with technology like this. First it was computers replacing typewriters. Then it was email replacing fax and letters. Next followed the internet replacing dictionaries and research books. The future will be clean technologies replacing wasteful technology.

Technology equipment will begin using less electricity, buildings will feature sustainable and intelligent systems and every product on the grocery store shelves will have some green aspect to it. Green beans in cans from recycled materials, cereal in recycled bags instead of boxes and cleaning products in higher concentrations (which has already started).

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Welcome to those visiting from the Carnival of the Capitalists. If you liked this post we have some other posts on Green design and thinking:

Green Design and LEED
Environmental Marketing Gone Crazy
Greening the Warehouse

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Technorati Tags: green, marketing, technology

Environmental Marketing Gone Crazy

This is a follow up to our LEED posting with an article from Environmental Leader. Apparently Sun Microsystems is of the opinion that "Double Carbon Neutral" companies are on the horizon. Companies so "dedicated" to helping the environment that not only do they completely offset their footprint, but they offset it a second time as well are not adding real value along the way. This just goes to show that many environmental programs are no longer about the environment, they are simply marketing strategies.

I'm a fan of helping the environment. I believe that every company should be working to reduce their carbon footprint and impact on the environment within the framework of their business. Sun is doing it precisely the way I believe is most appropriate: looking at their areas where they are most deficient, putting together a business case and budget for improvement and then putting the improvement into place. Humans will never be carbon neutral creatures, especially with the way technology operates today.

Being carbon neutral is a noble goal if approached for the appropriate reasons. Marketing can be a good reason for it, but we have to be careful that a distinction is made between companies in it for the marketing and companies in it for the environment. Any company that wants to could scrounge up funds to purchase enough carbon offsets to make them carbon neutral as many times over as they care to. Is that company really any better than a Sun Mircosystems that isn't carbon neutral but is working towards it organically?


Technorati Tags: LEED, environment, sun, carbon neutral

Green Design and LEED

Leadership in Energy and Environmental Design (LEED) seems to be the coming trend for quite a few businesses. Some companies seem to just be jumping on the bandwagon so they don't get left behind, some are using it as a marketing play and then some see it as their part toward being environmentally friendly. The LEED Certification process is a valuable tool to gaining recognition of your achievement. Fundamentally it is a marketing tool though. Why worry about meeting a LEED standard if the marketing bonus has no value to your business. The important question you must ask yourself as a company is why you are looking for a LEED build-out.

It is easy to find reports and research saying that the cost of building LEED is no more expensive than traditional construction. This is true for ground up buildings. For Interior fit-outs or renovations (the vast majority of projects) this is far from the truth. Due to the overall scale and budget of these projects it is near impossible for the added certification and validation costs to blend into the budget background or be factored out by other design changes. Putting the extra cost down as a marketing expense is the easiest way to justify a LEED project. Almost all other methods lead to the extra expense being non-justified.

The popular environmental news magazines and stories have companies believing that cannot be green without being LEED. This is the farthest thing from the truth. Utility companies and large manufacturers are the clearest example of this. These companies are constantly striving to do their part for the environment through small and big initiatives. Whether it is capturing vent stack CO2 for oil recovery or offering green electricity generation or discounts for cutting your power consumption they are making an impact without the LEED program.

If you decide like most companies to not go LEED, now you must ask yourself: what can I do to help the environment while helping my business? The answers to that question are much easier than most people think. Some solutions are as simple as changing out all the light fixtures in your building to be more energy efficient (the payback is quicker than you would think at 1 1/2 to 4 years). Some solutions are more complicated involving grey water capture for irrigation systems and low flush toilets. It all depends on the payback period that your company requires for investments of this type and taking the time to look at all the costs.

One of the easiest ways to evaluate green systems for your building is to work with a consulting company. Our company is currently applying green systems to every project that we're involved in including environmentally friendly carpet, low VOC paints, energy efficient lighting, and wall systems instead of drywall. Every project and geographic area will have different variations on what is allowed by code, but there is a lot of room to be environmentally sensitive without blowing the budget and actually securing on going cost savings.

Being environmentally aware as a business is a critical challenge for every company large and small. Over both short and long term it can have significant impact on your business. Companies that are not environmentally friendly are going to have a hard time growing in many markets and will be spending more on their infrastructure and operating costs than competitors. LEED is a good way to go about achieving the green goal, but it is definitely not the only way and usually not the best way.


Technorati Tags: green, LEED, design