Making energy efficiency a growth engine

fT'S BEEN said that there are no lcertainties in life except death and taxes, but I propose that there is at least one more-energy efficiency.

At least, in the realm of residential construction and the retail supply chain, there is no doubt that both market and government requirements for energy efficiency will continue to grow for the foreseeable future. There are several drivers, and suppliers who understand them can shape their retail strategies and tactics to maximum benefit.

Let's start with the macro-economic trends. Regulations are toughening energy efficiency requirements in building codes and making green building guidelines mandatory. Nascent energy retrofit programs will likely continue for years, supported by rebates and other incentives. Carbon regulations, coupled with supply and demand issues, ensure that the long-term costs for fossil fuel will increase. Homebuyers are seeking, and will continue to seek, more energy efficient homes, and home builders are learning that energy efficient homes are easiest to sell and at premium prices.

Lastly, product manufacturers will continue to rollout technology innovations that make it easier to build energy-efficient homes and retrofit existing ones. The upshot of all this is that there will be a growing number of pros and homeowners looking for options that contribute to energy efficiency.

For dealers and distributors, the obvious strategic play is to position your company as an authority on energy efficiency. The key to making this work is finding ways to build energy efficiency knowledge into the fabric of your organization, and this requires an investment in people. Involve everyone at the beginning. Identify key management and staff and send them to training. Make them responsible for creating a plan for including additional staff, identifying key products appropriate for your region, creating effective merchandis-

By Jay Tompt

them the centerpiece of your merchandising effort?

With organizational knowledge in place and innovative products on the shelf, the next step is connecting with customers. Signage in your store and yard should be a given. The overall message hierarchy should emphasize staff expertise, low cost of ownership, rapid payback, rebates, and incentives.

There should also be plenty of opportunities for customers to educate themselves, so hangtags, booklets, kiosks, and other ways of offering customers more information are key. Most product manufacturers will gladly help with this task, so don't be shy about asking them to contribute.

Finally, host energy efficiency workshops led by your most capable staff and invite local weatherization and retrofit firms. Keep in mind there are a growing number of non-profits doing this work, too, as well as city leaders, green building experts, and, of course, vour best customers.

ing programs, and reaching out to key customers. While LEED seems the obvious choice, I recommend having a look at Passive House Institute (www.passivehouse.us), which promotes the most innovative approaches to energy efficient building design.

While there are a growing number of product and material innovations, it's important to choose products that work in your region and clearly demonstrate that you're on the leading edge. Energy lost through windows is enormous, so why not stock the most efficient options and make

From new home construction to home improvement projects, the leading priority is, and will continue to be, energy efficiency. Dealers that invest the energy in making themselves experts will have created a growth engine that will carry them through the next business cycle and beyond.

- Jay Tompt is managing partner of William Verde & Associates, a consuhing ftrm dedicated to helping LBM and home channel retailers, distributors and manufacturers become green leaders in their communities. He can be reached at info@ williamverde .com or (415 ) 321-0848.

American Expands To Nevada

McKillican International has expanded its American Hardwoods division to Nevada.

McKillican's distribution centers in Las Vegas and Reno, Nv., which have been carrying hardware and decorative laminates since the mid-1990s, have added hardwood lumber and panels.

With the growth of the hardwood division, American has also bulked up its management. John Parr, exCertified Forest Products, is now San Francisco, Ca.-based regional business manager, overseeing the branches in Las Vegas, Reno, San Francisco, Phoenix, Az.; Boise,Id., and Salt Lake City, Ut.

Jim Eva, ex-Lumber Products, has joined as hardwood products manager for all U.S. and Canadian locations, based at American Hardwoods' reload in Winston, Or.

McKillican renamed its hardwood division after purchasing American Hardwoods and its Phoenix branch in February.

Fremont Dealer To Expand

Dale Hardware, Fremont, Ca., has submitted a tentative plan to more than double its square footage by adding two new garden centers, offices, retail space, and an enclosed, drive-through lumber center. Two nearby buildings would be demolished for additional parking area.

Owner Gar Smith said that parking and landscaping issues could scuttle the project. One key issue is how the expanded store will mesh with future development at a vacant city-owned 6.6-acre lot across the street. "We are on a condensed site tlat we are trying to max out as much as we can," he said.

Daren Fields, the city's economic development director, said Dale's is one of the few local businesses expanding during the recession. "They are bucking the trend in a positive way," he said.

ldaho Yard Ordered To Move

Western Heritage Timber Products was given just 14 days to move more than a million dollars worth of lumber off its property in Driggs, Id., and close its business operation because it failed to get a business license, an occupancy permit, and a required conditional use permit. The company has occupied the site since May.

County officials issued the directive on Aug. 20. Owner Gary Engman could face jail time and fines up t0 $1,000 for each day the business is not in compliance with the order.

At a planning and zoning meeting held in mid-August, residents objected to Western being allowed to operate out of a building originally used for a Ford dealership. They complained of large piles of lumber stacked around the business and noisy equipment that is required to operate the facility.

"This was not zoned for his use," said Scott McKague, owner of nearby Valley Mortuary. "People are trying to live, people are trying to have funerals-it's very quiet. To see that building get used the way it is right now is an embarrassment to the community."

In the meantime, Engman is talking with officials to find a location suitable for storing lumber.