Green growth trends for 2009

By Jay Tompt

r|-IHERE'S no question that 2009 is I going to be a tough year for most businesses, with relatively few reasons for optimism. However, growth opportunities that do emerge in 2009 will have a decidedly green flavor due to public policy, growth in green building. and shifting consumer priorities.

At the macro economic level, government policies will tilt toward green more strongly than ever before. Among the announced priorities of the incoming administration, we can expect investment in new school construction and renovations, as well as government building retrofits.

School construction projects will likely incorporate many environmentally friendly elements, including green building materials, energy and water efficient fixtures, and less-toxic finishes.

New government buildings will be built to green standards and existing buildings will undergo energy efficiency retrofits. The new administration has also promised to weatherize one million homes.

At the federal, state and local levels, other policy activity will likely result in homeowner tax credits for alternative energy and energy efficiency features, plus rebates and a variety of other incentives. These measures could result in some opportunities by year's end for well-positioned suppliers.

While the construction industry is down, these days if something is getting built, it's probably going to be green. Green building, once a niche, is now mainstream and LEED is practically a household word. In a recent report, McGraw-Hill projected that the green building industry could triple by 2013.lncreasing focus on energy efficiency and reduced operating costs are major drivers for developers. but other factors are gaining in importance-such as increased property values for green commercial buildings and homes, and the fact that lenders are beginning to show a preference for green projects.

And just to make it a little easier, a growing number of city building departments are fast-tracking permits aiming for LEED and other green spruce up the home and garden comes naturally. Naturally, there will be plenty of interest in products that are energy and water efficient, especially in those regions where energy costs are high and drought conditions exist. building certifications. If ever there was a time for the LBM industry to get up to speed with the green building movement. it is now.

A second consumer trend offers an important insight. The Natural Marketing Institute (www.nmis olutions.com) reports that a large and growing number of consumers are actively seeking to eliminate toxic chemicals in their homes.

That shouldn't be surprising. Last year, the media reported on a variety of toxic chemical stories, including formaldehyde in prefabricated homes, ethylene glycol in cleaning products, bisphenol-A in plastic baby products, and so on. Products such as non-toxic cleaning products. zero-voc paint. low-voc adhesives, and wool carpeting, for example, will continue to do well.

Shifts in consumer priorities could combine to help give a boost to the savvy merchandiser right away. First, there is the "staycation" or "nesting" phenomenon that seems to accompany every economic slowdown. As people deal with reduced income and higher travel costs, the desire to

Among the retailers that I've spoken with over the past several weeks, those that focused exclusively on green products (such as Eco Home Improvement in Berkeley, Ca.) or otherwise have a strong green product offering (such as Friedman's Home Improvement in Santa Rosa, Ca.) consistently did better last year than their non-green counterparts. As this year unfolds, for some retailers, being green could make all the difference.

- Jay Tompt is vice president of green product development at Plan-It Hardware, San Francisco, Ca., which distibutes green products for hcrdware and home improvement stores throughout Calfornia, and a leading expert in sustainable business and supply chain issues. He can be reached at info@plan-ithardware.com or (415 ) 359-9914.

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Chris Brown has joined the lumber sales & marketing team at California Redwood Co., Arcata, Ca., succeeding Bill Scott, who has retired.

Terry Aust is the new mgr. of Parr Lumber. Bend. Or.

Teri Collins is new to plywood sales at Swanson Group, Grants Pass, Or.

Manny Gonzalez has joined Building Material Distributors Inc.'s building products division as mgr. of its Galt, Ca., distribution center. Paul Zartman. ex-Orepac. is new to sales at Twin Rivers Products, Maple Ridge, B.C., and is based in Sherwood, Or.

Richard Huff, ex-Sinclar Group, has joined Ainsworth Lumber Co., Vancouver, B.C., as president and c.e.o. He replaces Robert Allen, who resumes full-time responsibilities as chieffinancial officer.

Ernie Glanville, ex-Pope & Talbot, and Greg Wiltjer, ex-Milgard Manufacturing, have joined Contact Industries, Portland, Or., as North American sales mgrs.

Wayne Murdy has been elected to the board of Weyerhaeuser Co., Federal Way, Wa., following the retirement of director Donald Mazankowski. Charles Williamson will become non-executive chairman when Steven Rogel retires April 15.

John Moody has been appointed lead independent director for Potlatch Corp., Spokane, Wa., succeeding Dr. William T. Weyerhaeuser, who resigned from the board to join spin-off Clearwater Paper Corp.

Gina Meacham is mgr. of the new Lowe's Home Improvement Center in E. San Jose, Ca.

Sandra Vaughan has been named chief marketing officer for Serious Materials, Sunnyvale, Ca.

Kevin Hayes, mgr. of advertising & public relations, has left APA, Tacoma. Wa.. as the association concentrates on its quality auditing and product certification services and market access activities.

Michele Morse, architectural specification coordinator, Eagle Roofing Products, Rialto, Ca., has been qualified to become a Leadership in Energy & Environmental Design (LEED) Accredited Professional.

Greg Bloom, Mill Creek, Wa., was named executive v.p. of Allied Building Products' exterior products division for the West and Midwest regions. Ruben Mendoza, Newport Beach, Ca., is now v.p. of interior products in the West.

Rod Hyatt has been named solar product mgr. for Heat Transfer Products, Salt Lake City, Ut.

David Emerson has been appointed to the board of TimberWest Forest Corp., Vancouver, B.C.

Brad Kronschnabel, Noble Truss & Lumber, Wenatchee, Wa., and Roger Walters, Western Materials, E. Wenatchee, were elected directors of the North Central Home Builders Association.

Jill Zaske, co-owner, Ace Hardware, Cottonwood. Az.. was elected to the county school board.

Jennifer Phillippi, owner, Rough & Ready Lumber Co., Cave Junction,

Or.. and president, Perpetua Forest Co.. Grlnts Pass. Or.. wus appointed by Gov. 'fed Kulongoski to a sccond term on the Orcgon Board of Forestry. The board's new chair, John Blackwell, is former president of the World Forestry Center.

Parker Carr is ttverseeing the new valct service at Mungus-Fungus Forcst Products, Climax, Nv., rcport co-owners Hugh Mungus and Freddy Fungus.

Montana Mills Scale Back

Plum Creek Tirnber Co.. Seattle, Wa.. is cutting back production at mills throughout Montana due to waning demand fbr woocl products.

The company will permancntly close its Ksanka stud rnill in Fttrtine next month, eliminating 74 jobs. In micl-January, it temporarily idlccl its pine board sawmill in Columbia Falls and stud mill in Kalispell at least until March. and cut back to a single shiti at its pine board rnill in Pablo and MDF plant in Columbia Falls.

"The forest products industry in -ee neral ancl (he lumber business in particular have been scverely impacted by the battered housing market." said Rick Holley. presidcnt und c.e.o. "Untbrtunately. these steps are necessary to match supply with the eroding dernand for our wood products."

The firm has l0 mills and 7 million trcrcs of timberlancl in the Northwest.