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Making a Profit in the Green Building Market

The National Association of Electrical Distributors (NAED) has released an informative new study written by Jerry Yudelson of Yudelson Associates, the leading green building consulting firm. The study, entitled "Green Goes Mainstream: How to Profit from Green Market Opportunities," details promising trends in the energy efficiency market and the closely related green building and renewable energy markets.

Jerry Yudelson, president of Yudelson Associates

"The emerging 'green' market offers electrical distributors unprecedented opportunities for profit and growth," said Tom Naber, president and CEO of NAED. "Energy is an issue of increasing importance and will dictate significant changes in market behavior, which is why NAED is committed to helping its members understand the nature and scale of the changes in the energy market place."

The Yudelson Associates study emphasizes that electrical distributors must figure out how to become "order makers" instead of "order takers," to seize emerging green building market opportunities. According to Yudelson Associates' report, customers want solutions delivered by technical experts. As political, financial, and economic forces line up to rapidly grow the green building market, the report contends that the electrical distribution industry as a whole must position itself to fill this role.

According to Yudelson, the green building expert, speaker and author who led the research for the study, "From the NAED membership, we surveyed 165 distributors and 63 manufacturers, we scoped out the current market literature and we personally interviewed more than 30 leaders throughout key market sectors," Based on this database, "Our research shows that energy efficiency, green building and renewable energy will provide a major growth market for sales of electrical products and systems over the next half-decade, as the energy issue comes front and center in the consciousness of building owners and managers." Yudelson concluded, "We feel that distributors who make the effort to learn about this emerging market are likely to see growth in sales and profits as a result."

The study's recommendations are presented in a convenient A, B, C outline representing the various levels of commitment distributors have to pursuing green markets:

Feet Wet: Distributors who want to understand the market but who are not yet ready to fully commit to it should become more knowledgeable about local utility and state incentive programs and focus on lighting upgrades and motor efficiency upgrades with variable-speed drives.

Waist Deep: These distributors can begin training their existing sales force about green markets and technologies, and can seek to either develop or hire qualified sales staff dedicated to the lighting retrofit market.

Fully Immersed: Distributors with the resources and desire to fully commit to serving these markets can hire specialized sales staff and provide financing (directly or indirectly via a partnership) to "lock in" sales with key corporate and institutional customers.

For distributors who want to become more knowledgeable about energy markets, the appendix of the study offers a list of extensive resources and a glossary of some common terms used in the energy efficiency, green building and renewable energy markets.

A free executive summary of the study is available from Yudelson Associates and can be downloaded at http://www.greenbuildconsult.com/books/#naed.

Additional information about the NAED's sponsorship and more details of the study can be found on the NAED website: http://naed.org/common/ArticleSearchDetail.asp?CurrentPage=7198

NAED member companies can access an electronic version of the study for free from the NAED Learning Center. Printed versions of the study are also available for purchase by NAED members ($20) or non-members ($999). Contact NAED Customer Service at 888-791-2512 or customerservice at naed dot org for more information.

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