Nearly everyone in the construction industry has heard of the benefits of green construction in some capacity. Unfortunately, too many firms are dismissing green building methods as just another trend that will quickly pass. This type of mindset will only cause these firms to miss out on their share of the $523 billion that the green construction market is projected to reach by 2026. Joining in the growing demand for green building now, rather than down the road, will pay off in multiple ways for progressive construction firms.
Wondering where green construction is going to go over the next 25 years? Our latest ebook “7 Reasons to Get Into Green Construction Today” forecasts the changes that are sure to shake up the construction industry as a whole over the next quarter century. Readers will also find helpful tips on how to implement a green construction focus now.
Interested in learning about some of the reasons why green construction is the wave of the future? Read below.
1. Continuing Rates of Growth
Since 2015. the growth rate of the green building sector has been increasing faster than the rest of the construction industry. The level of growth is projected to continue, opening up plenty of new opportunities for construction firms just starting to expand into this sector. There are multiple factors for this, including:
- Concerns over climate change, resulting in national and international agreements to reduce carbon emissions and design buildings to better withstand increasingly volatile weather patterns;
- Development of new rating systems for measuring and comparing the performance of different green building methods; and
- Demand from the end users of residential and commercial buildings who want an energy efficient building that will cost less to maintain and use.
2. Demand and Marketability
Construction companies around the world are reporting that they expect to make 60% or more of their projects green by 2021, proving that customer demand is finally catching up with what the industry can provide. This figure represents a doubling of demand in some parts of the world over the last ten years, largely due to the combination of prices dropping on green materials and construction firms increasing their marketing of new building techniques. Clients have to know what a construction company can do before they’ll expand their plans to include cutting-edge green design, so the work of evangelizing green construction often falls on these firms rather than on the material manufacturers or creators of rating systems.
3. Higher Profit Margins
One of the most widely cited reasons for not entering the green building sector is that construction firms feel that they will have to spend more on specialty materials and more challenging assembly methods without a corresponding increase in price. However, research actually proves the opposite is true. Almost 70% of builders surveyed in 2015 reported that they believed clients would pay a premium price for green construction and that number has only grown since then. Since green construction can fetch a higher price from clients or customers, it’s perfectly possible to increase a company’s profit margins rather than decreasing them. The willingness to pay more for a green building is often due to the long-term savings offered by increased energy efficiency. Clients are willing to trade off a slightly higher upfront investment for those ongoing savings, especially when the construction firm can prove their suggested design will perform as desired with advanced energy use modeling.
4. Availability of Skilled Workers
While the global construction industry as a whole has been suffering from a labor shortage for the last few years, embracing green building can actually help construction firms find skilled labor. Since green construction projects tend to generate higher profits thanks to the ability to upsell to the clients commissioning the work, firms can afford to pay more for workers who have the necessary skills already. In fact, the green construction sector already employs about one-third of all construction workers in the U.S.
Firms who can’t find existing skilled laborers often turn to training programs for existing workers and new less-qualified hires, resulting in an upskilling trend that spreads across the industry when those better-trained workers move on to positions with other companies.
5. Emerging Construction Technology
Finally, advanced construction technology is necessary for handling the increased complexity and need for seamless communication that comes with green building. Even when working with a team of experienced and skilled green construction workers, it’s essential that project details are clearly communicated to every member. Missing crucial details results in green designs that don’t work as planned, sinking the client’s confidence in future building projects. Tools like PlanGrid help green construction teams communicate between the office and field so no detail goes overlooked. Don’t forget about other valuable construction technology essential for making the best green building designs, such as building information modeling (BIM) that can help predict a building’s future energy efficiency.
Need More Reasons to Get Into Green Construction? Download Our Ebook.
To learn more about the ideas above and read our 6th and 7th reasons you should get into green construction, check out our guide. To get started on a new green construction initiative, download our ebook on green building best practices, “7 Reasons to Get Into Green Construction Today.” It contains invaluable information that construction firms of all sizes can use to find a niche for themselves within the larger green construction sector.