As a builder I cant help but be impacted by the constant deluge of bad news. Crude oil increases impact our business from the materials that we use to the transportation of people to jobs. Declines in housing starts and house values decrease margins and economies of scale. Is there a bright side? Certainly.
I get many of my products from companies that already incorporate green practices into their business. From the use of renewable energy sources like wind, solar, and geo-thermal to the use of recycled content in their products. These companies are being affected none the less but on a much smaller scale. Wind or sun doesn’t all of a sudden cost more when oil goes up. In fact much like the price of computer went from $15k to $500 the prices of renewable energy are starting to decrease as the technology advances and demand increases.
Green products and practices are also starting to gain an advantage in the sense that they are becoming much more mainstream. There was a time where architects charged to design your plans on a computer and there will be a time where I believe you will have to charge more to design and build a home that is NOT green.
As I have stated in previous posts a 20% increase in an electric bill has a much smaller effect if you are only paying $15 a month vs. paying $75 a month. Will green bring the market back? No. But I am starting to see more and more consumers that understand the benefits of being green and believe that dialing down their monthly utility costs in owning their home serves to lessen the impact of soaring commodity prices.
Nic Stover
Rubicon Construction