Economic and Revenue Forecast for ConstructionService for SustainabilityGreen Bites: Going Green Gets the Green
The construction sector continues to be a drag on the recovery. Excluding the boom years, construction activity in the state is approximately 4.5% of the economy, but 8% of revenue. This is the main reason the economic recovery appears stronger than the revenue recovery. Residential construction is coming off a boost from the homebuyer tax credits, but now that those credits have expired, we expect the nascent recovery in the state to taper off, just as it has nationally. Growth in residential construction will be anemic until the middle of 2011. Non-residential construction, on the other hand is unlikely to improve by much until 2012, although contract data for the state indicate that the decline in square footage is stabilizing.
The weakness in the commercial real estate sector has left community banks particularly vulnerable because of their disproportionate exposure to that sector. This has resulted in those banks being unable to ease up on credit, although large nationally chartered banks have done so. The deterioration in the asset quality of Washington chartered banks has slowed, but asset quality remains poor. We expect continued weakness in this sector and resulting tight credit for small business in the immediate to medium term. The health of community banks will eventually improve as the economy recovers and so does the commercial real estate sector.
Read the full document here: http://www.erfc.wa.gov/forecast/documents/rev20100617color.pdf
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Often, some of the simplest things can make a significant difference. This is true when it comes to helping the environment. If fact, every business with a fleet of vehicles can help the environment just by performing regular vehicle maintenance, practicing sensible driving habits, and replacing vehicles at appropriate intervals to take advantage of more fuel efficient technologies.
For example, simply reexamining and changing routes could save a few gallons of gasoline every week. This can add up to a substantial savings at the end of the year when multiplied by the number of vehicles in a company’s fleet.
Paying more attention to proper vehicle maintenance also can help reduce fuel consumption. This not only means performing preventative maintenance at the recommended intervals and using the correct fluids but also maintaining your vehicles’ recommended tire pressure, checking wheel alignment and keeping the air and fuel filters clean. It also means avoiding the temptation to overload a truck, which can result in poor performance and decreased fuel efficiency along with the possibility of expensive repairs and frequent downtime.
Maintenance issues that can have a significant effect on fuel consumption include the following:
- Keep tires properly inflated. Under-inflated tires create more rolling resistance on the road, which decreases fuel mileage and shortens tire life due to accelerated wear. Since tire pressure changes with temperature, you should check and adjust pressure when the tire is cold and when the vehicle has been sitting for a couple hours. Because information printed on the tire’s sidewall may not be the optimum pressure for your vehicle or driving situation, the most accurate place to find out about proper tire pressure is on a label inside the driver’s door or in your vehicle’s owner manual.
- Check wheel alignment periodically. Misalignment can be caused by hitting potholes, curbs and bumps, worn steering or suspension components and deterioration from aging of suspension parts. Not only does misalignment increase rolling resistance and reduce fuel efficiency, it also causes additional wear and tear on tires. Wheel alignment should be checked every 12,000 miles or once a year, whichever comes first or if you notice unusual tire wear.
- Select the right oil for your engine. Using the correct viscosity oil is important because higher viscosity oils create greater resistance to the moving parts of the engine and can actually reduce fuel efficiency. Manufacturers have, in some cases, increased the service intervals for their vehicles to help reduce their carbon footprint. This not only decreases the cost of maintaining them but reduces the amount of crude oil needed and the amount of waste oil produced. Changing your vehicles’ engine oil at the manufacturers recommended intervals is not only a good maintenance policy, but it is also good for fuel efficiency.
- Adjust driving style to save gas. Smooth, steady acceleration from a stoplight or stop sign uses fuel more efficiently than quick “jackrabbit” starts. Drivers also can increase fuel efficiency by shifting to higher gears at the lowest practical speed for standard transmission and accelerating gently with an automatic transmission. If vehicles are equipped with overdrive and/or cruise control, these should be used when appropriate. Also, making sudden starts and stops, revving the engine and excessive idling significantly lower gas mileage. And, according to a United States government Web site, www.fueleconomy.gov, “each five mph you drive over 60 mph is like paying an additional $0.15 per gallon for gas.”
- Remove excess weight. Using roof-mounted racks and keeping unnecessary items in your vehicle, especially heavy ones, increases rolling resistance. The U.S. government estimates that an extra 100 pounds in your vehicle can reduce your mpg by as much as two percent, based on the percentage of extra weight relative to the vehicle’s weight, which affects smaller vehicles more than larger ones. A good rule of thumb is, when possible, to carry large items inside the trunk or vehicle, and remove items when you don’t need to carry them.
Replacing older, less fuel efficient vehicles at appropriate intervals also can impact the environment. Knowing when to dispose of older vehicles, a systematic process known in the fleet management industry as “cycling,” depends on many factors, such as the time of year, mileage, vehicle type, age and maintenance issues. A cycling program not only ensures vehicles are always in the best possible condition, it helps a company achieve optimum performance and the best resale value, which also directly affects cost savings.
Aaron Lindstrom, Senior Account Executive for Enterprise Fleet Management in Washington, can be reached at 206-423-3958. Lindstrom is supported by an experienced team of veteran mechanics and accredited Automotive Service Excellence (ASE) technicians to serve the fleet maintenance needs of businesses with mid-size fleets. In addition to maintenance management programs, Enterprise’s services include vehicle acquisition, fuel management and insurance programs, as well as vehicle registration, reporting and remarketing. Visit the company’s web site at www.efleets.com or call toll free 1-877-23-FLEET.
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Building construction is going through a lot of change, changes that started years ago and are just now starting to impact us. Buildings come in all sizes, shapes and designs. They are used for everything we do “inside.” There are residential, commercial, medical, academic, industrial, institutional, professional, athletic, and the list goes on. They provide coverage, protection, storage, refuge and a whole lot more. Buildings are a critical and integral part of society. Buildings are humankind’s way of managing the environment in which we live.
Until recently our management wasn’t as good as it could have, should have been. Events have caused us to rethink what and how we build. Natural disasters, accidents, human intervention and time have given us good reason to look at our structures and ask ourselves how we can improve them. When an earthquake wipes out a city and takes lives, our response is to think of ways to construct buildings that can withstand the trials of tremors; tsunamis and tidal waves force us to rethink what structures are subjected to when billions of gallons and tons of water wash away entire cities and ports. When hurricane winds and tornado twisters level miles of construction in minutes we look around and decide it’s time to do something.
We haven’t even started to consider the impact the existence these structures have on our environment, our natural resources and our future.
We have become a wasteful society. I remember when we fixed things rather than throw them out. Today if it doesn’t work we discard it. There was a time when there were shoemakers also known as cobblers; radio, TV and appliance repair shops; tailors and repair outlets for virtually everything else we used. Today stuff that doesn’t work often finds itself along the curbside waiting to be collected and taken to a landfill.
Recent energy crisis, going back to the late 1970s, have made us a little more concerned about the cost of energy and it’s long-term abundance. More recently the escalating fuel prices here have brought energy consumption awareness back into focus. We have started thinking “Green” not only about vehicles but also about our buildings.
There are a couple of trade associations dedicated to Green building, the first that comes to mind is the United State Green Building Council (USGBC; www.usgbc.org). If you are in the building end of construction you need to become familiar with the organization. Another is The Concrete Joint Sustainability Initiative (JSI; www.sustainableconcrete.org), which is a coalition of industry associations representing companies who make or maintain concrete structures. They share a goal of educating themselves, their members and their customers about the role and responsibilities of concrete in sustainable development.
USGBC is the organization that developed the LEED certification for buildings.
LEED is an internationally recognized green building certification system, providing third-party verification that a building or community was designed and built using strategies aimed at improving performance across all the metrics that matter most: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality and stewardship of resources and sensitivity to their impacts.
Developed by the USGBC, LEED provides building owners and operators a concise framework for identifying and implementing practical and measurable green building design, construction, operations and maintenance solutions.
LEED is flexible enough to apply to all building types – commercial as well as residential. It works throughout the building lifecycle – design and construction, operations and maintenance, tenant fitout and significant retrofit. LEED for neighborhood development extends the benefits of LEED beyond the building footprint into the neighborhood it serves.
If you’re into building construction, it doesn’t matter the type or size of building, this is something with which you need to be familiar. The following is from another organization with which you need to acquaint yourself, the National Resource Defense Council (NRDC; www.nrdc.org).
Green Cement
Let’s look at some interesting information about the most common of our building products. David Shepherd, director, sustainable development, Portland Cement Association pointed me to the JSI website, which is full of information on the important role that cement plays in building construction, particularly green building construction.
While we were talking, Shepherd pointed out a simple fact that is easily forgotten when we think about sustainability, it is the durability factor. A well-constructed cement building is able to withstand attacks by floodwaters, tornados, hurricanes, earthquakes and all the other things Mother Nature or King Neptune can throw at us. In view of this, of what should emergency service facilities – fire stations, police stations, power plants, drinking water facilities and the host of other agencies – be constructed? In times of need they will still be there as evidenced in some of the recent disasters.
Compared to 1972, it takes 37 percent less energy to produce a ton of cement, enough to power 2.3 million homes a year.
Improvements in efficiency have dramatically reduced the energy needed to produce cement: from 7.38 million btu per ton (1972) down to 4.65 million btu per ton (2008). Based on the savings of 2.73 million btu per ton x 83 million tons current annual production divided by an average 95 million btu per home per year, this savings would serve 2.385 million homes per year. (Residential consumption data source: US Energy Information Administration, 2005 survey).
Each year the cement industry uses enough industrial by-products to fill a freight train 386 miles long.
Burning coal creates fly-ash, bottom ash and synthetic gypsum, much of which was previously land-filled. All of these, along with mill scale and slag, by-products from steel production and spent foundry sands and sandblasting grit can be used by cement manufactures as a component of Portland cement. Concrete structures used over 23 million tons – approximately13 million cubic yards – of fly ash, slag and silica fume as Supplemental Cementing Materials (SCMs) in 2007. Stacked on a football field, this amount would be about 1.4 miles high!
Set side to side, the tires consumed as fuel by the cement industry each year would cross the country almost three times.
Tires have been difficult to handle in the waste management industry. Some creative uses for reclaimed rubber, such as flooring products, have emerged but there hasn’t been a significant market created to absorb the huge number of tires discarded every year. The U.S. generates over 300 million scrap tires annually (that would be 18 cross-country rows) and cement manufacturers were able to use 58 million. They have 25 percent more energy than the coal they replace and the steel belts, a problem for most recyclers, are a required ingredient for cement production. Landfill tires can burn out of control because of their energy content and open burning releases noxious emissions. Controlled, high-temperature burning destroys pollutants and displaces fossil fuel consumption.
In the United States, 140 million tons of concrete are recycled annually.
That saves a lot of landfill space and virgin materials; better to use it to fill occupied space. While it lasts a long time, at the end of its service life concrete can be crushed and used again, either as fill or as aggregate in new concrete. This is growing as more areas and more producers gain familiarity with the resource and the best ways to reuse it. Even the reinforcing steel can be reclaimed and recycled. Concrete improves building energy performance from both within and outside a structure. Within a structure it serves as thermal mass, as the envelope it reduces air infiltration and the structural ability to reduce supporting walls allows daylight to reach farther into the building.
Outside it reduces the urban heat island effect by reflecting more solar radiation than darker colors, reducing the need for additional cooling to counteract the localized temperature increase and the same reflectance can reduce nighttime lighting requirements.
Building heating and air conditioning accounts for roughly 30 percent of energy use in the U.S. across all sectors. Lighting represents another significant portion of energy demand and is all electric; the least efficient form of energy because so much is lost in production and transmission. Population and economic growth increases demand and demand increases the pressure to build more facilities, exploit more fossil fuels and distribute them. Growing recognition that the introduction of excess carbon into the atmosphere will alter climate patterns and disrupt temperature and weather conditions makes it imperative to work to restore balance. Aside from climate change, energy acquisition carries impacts and investment cost, we should get as much as we can for our investment. Alternative fuel sources can help, particularly when decentralized like rooftop solar panels but the best investment is to improve the ‘fuel to service’ ratio through conservation and efficiency. Energy demand is not about using energy; it is about having comfortable indoor temperatures, light when and where we want it and all the other services we demand. Designing to best use concrete’s thermal, structural and reflective properties can provide high levels of service and comfort with less energy input.
Being in the industry there is a lot we can do. For example, Cashman Equipment, CAT’s Nevada dealer, built the state's largest LEED Gold-certified industrial complex. The Gold Certification is based on LEED system points; the higher number of points the rating, which goes from basic certification up to Silver, Gold and Platinum. Cashman expects to see a return on investment within five to six years from the energy savings. The 300,000 sq. ft. headquarters building is located in Henderson, not far from the world-famous strip.
James “Big Jim” Cashman established the dealership in 1931 to provide equipment, tractors, to the Hoover Dam project. The company currently has 750 people statewide, with branch locations in Reno, Carson City, Elko, Winnemucca and Round Mountain.
The new facility was designed by SH Architecture of Las Vegas, has several water-saving features including drought-tolerant landscaping, low-flow sinks, waterless plumbing fixtures and eco-friendly Dyson air hand dryers. The company expects to save 20 percent more water than a similar project its size through efficient irrigation, low-flow technology and retention ponds.
Green permeates all of the organization’s activities. Around 88 percent of all construction waste is being recycled, preventing 814 tons worth of debris from ending up at a landfill.
The buildings were erected on site using 460 concrete tilt-wall panels measured as large as 64 ft. by 25 ft. and weighs 200 tons.
A geothermal heating/cooling system that consists of 359 4-inch-diameter wells is used to control the inside environment. Water is circulated in flexible pipe in a closed loop grouted into each of the 400-ft.-deep wells. The system is a key component of the project's LEED certification effort. Southern Nevada's constant 75- to 80-degree Fahrenheit belowground temperature plays an important role in the efficient year-round heating and cooling. The project is designed for an average 43-percent savings in energy costs and is expected to pay for the buildings.
This is an outstanding example of what can be done once the decision to go green is made. Over time it will more than pay for itself. The very brief description of the project doesn’t do it justice. I recommend some additional reading on the subject and if you happen to be in the Las Vegas area arrange for a visit. If you’re in this business this is one construction project you want to visit.
What is LEED certification?
In the United States and in a number of other countries around the world, LEED certification is the recognized standard for measuring building sustainability. Achieving LEED certification is the best way for you to demonstrate that your building project is truly "green."
The LEED green building rating system – developed and administered by the U.S. Green Building Council, a Washington D.C.-based, nonprofit coalition of building industry leaders – is designed to promote design and construction practices that increase profitability while reducing the negative environmental impacts of buildings and improving occupant health and well-being.
What are the benefits of LEED certification?
LEED certification, which includes a rigorous third-party commissioning process, offers compelling proof to you, your clients, your peers and the public at large that you've achieved your environmental goals and your building is performing as designed. Getting certified allows you to take advantage of a growing number of state and local government incentives and can help boost press interest in your project. In some cases it can be tax incentives or even stimulus funds.
The LEED rating system offers four certification levels for new construction – Certified, Silver, Gold and Platinum – that correspond to the number of credits accrued in five green design categories: sustainable sites, water efficiency, energy and atmosphere, materials and resources and indoor environmental quality. LEED standards cover new commercial construction and major renovation projects, interiors projects and existing building operations. Standards are under development to cover commercial "core & shell" construction, new home construction and neighborhood developments.
How does one achieve LEED certification?
- The U.S. Green Building Council's LEED website provides tools for building professionals, including:
- Information on the LEED certification process.
- LEED documents, such as checklists and reference guides. Standards are now available or in development for the following project types:
- New commercial construction and major renovation projects (LEED-NC)
- Existing building operations (LEED-EB)
- Commercial interiors projects (LEED-CI)
- Core and shell projects (LEED-CS)
- Homes (LEED-H)
- Neighborhood Development (LEED-ND)
A list of LEED-certified projects
A directory of LEED-accredited professionals
Information on LEED training workshops
A calendar of green building industry conferences
Tips for Getting LEED Certified
Set a clear environmental target. Before you begin the design phase of your project, decide what level of LEED certification you are aiming for and settle on a firm overall budget. Also consider including an optional higher certification target – a "stretch" goal – to stimulate creativity.
Set a clear and adequate budget. Higher levels of LEED certification, such as Platinum, do require additional expenditure and should be budgeted for accordingly.
Stick to your budget and your LEED goal. Throughout out the design and building process, be sure your entire project team is focused on meeting your LEED goal on budget. Maintain the environmental and economic integrity of your project at every turn.
Engineer for Life Cycle Value As you value-engineer your project, be sure to examine green investments in terms of how they will affect expenses over the entire life of the building. Before you decide to cut a line item, look first at its relationship to other features to see if keeping it will help you achieve money-saving synergies, as well as LEED credits. Many energy-saving features allow for the resizing or elimination of other equipment, or reduce total capital costs by paying for themselves immediately or within a few months of operation. Prior to beginning, set your goals for "life cycle" value-engineering rather than "first cost" value-engineering.
Hire LEED-accredited professionals. Thousands of architects, consultants, engineers, product marketers, environmentalists and other building industry professionals around the country have a demonstrated knowledge of green building and the LEED rating system and process -- and can assist you in meeting your LEED goal. These professionals can suggest ways to earn LEED credits without extra cost, identify means of offsetting certain expenses with savings in other areas and spot opportunities for synergies in your project.
In today’s building construction arena you will definitely want to be in a position to bid and build jobs that require LEED certification. Stimulus dollars are going to require this as well as virtually all government jobs. Don’t forget, Green is the color of construction and money.
Re-printed with permission from Pacific Builder & Engineer, Associated Construction Publications
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