Green Building Accelerates Globally through Economic Downturn,
According to New McGraw-Hill Construction Study
NEW YORK, Nov. 13, 2012 /PRNewswire/ -- Around the
world, the green building marketplace is accelerating, according to
a new study being released by McGraw-Hill Construction in
partnership with United Technologies today at the Greenbuild
International Conference and Expo in San
Francisco.
The study indicates a shift in the global construction market,
now viewing green as a business opportunity rather than a niche
market. Overwhelmingly, firms report that their top reasons to do
green work are client demand (35 percent) and market demand (33
percent) -- two key business drivers of strategic planning. The
next top reasons were also oriented toward the corporate bottom
line -- lower operating costs (30 percent) and branding advantage
(30 percent). In contrast, the top reason in 2008 motivating the
green building market was doing the right thing (42 percent) and
market transformation (35 percent), followed by client and market
demand.
"This research confirms that green building advances
environmental stewardship while providing value to the market,"
said Geraud Darnis, president and CEO, United Technologies Climate,
Controls & Security. "It also confirms that we now see
more pull than push for green buildings."
In the next three years, the sectors with the largest
opportunity for green building around the world include new
construction and renovation projects. Sixty three percent of firms
have green work planned in new commercial projects and 45 percent
in new institutional projects by 2015, and 50 percent have plans
for green renovation work. In the United
Kingdom and Singapore,
green renovation projects were planned by the greatest number of
firms at 65 and 69 percent respectively. In Brazil and UAE, new projects pose the largest
opportunity. In Brazil, 83 percent
of firms are planning to work on new green commercial projects over
the next three years, and in the UAE, 73 percent have new green
institutional projects planned.
"It is notable that over the next three years, firms working in
countries around the world have green work planned across all
building types, incorporating both new construction and
renovation," said Harvey M.
Bernstein, vice president, Industry Insights and Alliances
for McGraw-Hill Construction. "The existing building market is a
ripe opportunity for green building, and we are seeing that play
out in the market. It is clear that green is becoming an important
part of the future landscape of the global construction
marketplace, and firms will need to be prepared for that
transition."
Green buildings are also expected to garner business benefits
for building owners. For new green building projects, firms report
median operating cost savings of 8 percent over one year and 15
percent over five years, as well as increased building values of 7
percent (according to design and construction firms) and higher
asset valuation of 5 percent (according to building owners).
For green retrofits, operating savings are higher than for new
buildings with operating costs reported to decrease by 9 percent
over one year and 13 percent over five years. Asset valuation is
also expected to increase, though at more moderate levels than for
new green buildings -- design and construction professionals expect
5 percent increased building value from green retrofits, and owners
expect higher asset valuation of 4 percent. For green projects,
payback on efforts is expected within 8 years for new projects and
7 years for retrofit/renovation work.
Other significant findings include:
- Human factor benefits are driving green building more today
compared to three years ago -- 55 percent cite greater health and
well-being as the top social reason for green (tied with
encouraging sustainable business practice), up from only 29 percent
in 2008.
- Energy use reduction tops the environmental reasons for green
building -- 72 percent say it is the important environmental reason
to engage in green building.
- Water use reduction is more important today. 25 percent of
study respondents cite reduced water consumption as the top reason,
up from only 4 percent in 2008. It is particularly important in the
UAE (64 percent cite it as a top reason), Brazil (39 percent), and the U.S. (32
percent), ranking as the second most important environmental factor
in these countries.
- Improved indoor air quality is also more important today -- 17
percent cite it as a top reason to engage in green building, up
from only 3 percent in 2008.
- For firms not currently doing any green project work, the
primary driver that they think will motivate future green activity
is the desire to do the right thing. This is in sharp contrast to
those involved, suggesting this market is not as familiar with the
business case for green building.
"We've been on the ground watching the markets shift to green
around the world. Today, there are green building councils in 92
countries around the world -- more than double what it was when we
first looked at the green building market globally in 2008," said
Jane Henley, president of the World
Green Building Council. "The business case is helping move the
markets, and this study underscores the importance of measuring and
reporting those benefits."
"This study validates what we've experienced the past couple of
years -- that the business community has fully embraced green
building as a strategic business imperative that also happens to
have a strong societal benefit. We see this as a success of
LEED and all the rating systems that have helped drive green
building movement globally," said Rick
Fedrizzi, president, CEO and founding chair, U.S. Green
Building Council.
The study also revealed that approximately 48 percent of the
work by U.S. respondents was green -- with that share expected to
increase to 58 percent by 2015. These results are consistent with
McGraw-Hill Construction's 2013 Dodge Green Construction Outlook
that sized the green building share of new construction starts in
the U.S. to be 44 percent by value, and up to 55 percent by
2015.
The findings are drawn from a McGraw-Hill Construction survey of
firms across 62 countries around the world. Firms include
architects, engineers, contractors, consultants and building
owners. The sample was drawn from firm members of the World Green
Building Council in 62 countries, other global industry
associations, and the ENR Top Lists. Of the respondents, 92 percent
are members of Green Building Councils around the world. The
results include a feature of 9 countries around the world with
sufficient sample for statistical analysis. The study expands and
contrasts against McGraw-Hill Construction's 2008 Global Green
SmartMarket Report study. Given the survey sample source,
McGraw-Hill Construction compared the sample against a non-GBC
member audience, which was comparable in terms of involvement in
green and planned activity. Further, the U.S. sample was consistent
with McGraw-Hill Construction's extensive analysis of the U.S.
construction market through its Dodge project data.
The study was produced in partnership with United Technologies
with support from the World Green Building Council and the U.S.
Green Building Council. Other research association partners include
the Chartered Institute of Buildings, International Federation of
Consulting Engineers (Federation Internationale Des
Ingenieurs-Conseils), Association for Consultancy and Engineering,
Conseil International du Batiment (International Council for
Building), Architect's Council of Europe, and the Royal Institution of Chartered
Surveyors. A separate survey of global manufacturing firms was also
conducted.
The results of the study will be presented today in San Francisco at the International Summit at
the Greenbuild Conference and Expo at the Moscone Center -- West
Building, with remarks by Geraud Darnis, president & CEO United
Technologies Climate, Controls & Security at noon pacific time and presentation by
Harvey Bernstein at 4:15 p.m. pacific time. The study will also be
discussed at a panel from 11:00 to 11:30
a.m. pacific time on Wednesday, Nov.
14, at the McGraw-Hill Construction Booth #3539 in the
Moscone Center -- North Building Exhibit Hall. The panel will
feature executives from McGraw-Hill Construction, United
Technologies Climate, Controls & Security, World Green Building
Council and U.S. Green Building Council.
For more key findings from the 2012 World Green Buildings Study,
visit http://bit.ly/ZD4zz5. The full report containing these and
other study results will be published as part of McGraw-Hill
Construction's SmartMarket Report series, with global release
anticipated in the first quarter of 2013.
About McGraw-Hill Construction:
McGraw-Hill Construction's data, analytics, and media businesses --
Dodge, Sweets, Architectural Record, GreenSource, and
Engineering News-Record -- create opportunities for
owners, architects, engineers, contractors, building product
manufacturers, and distributors to strengthen their market
position, size their markets, prioritize prospects, and target and
build relationships that will win more business. McGraw-Hill
Construction serves more than one million customers through its
trends and forecasts, industry news, and leading platform of
construction data, benchmarks, and analytics. To learn more, visit
www.construction.com.
About The McGraw-Hill Companies:
McGraw-Hill announced on
September 12, 2011, its intention to
separate into two companies: McGraw-Hill Financial, a leading
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McGraw-Hill Education, a leading education company focused on
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information is available at http://www.mcgraw-hill.com/.
About United Technologies
United
Technologies Corp., based in Hartford,
Connecticut, is a diversified company providing high
technology products and services to the building and aerospace
industries.
Media Contact:
Kathy Malangone, Senior Director, Marketing
Communications, McGraw-Hill Construction, +1-212-904-4376,
kathy_malangone@mcgraw-hill.com
SOURCE McGraw-Hill Construction