Construction overall has been down over the last few years but one aspect of it has retained an upward trajectory: green construction. In fact McGraw Hill Construction predicts that by 2015 40-48% of new nonresidential construction by value will be green — meaning a $120-145 billion market opportunity.
This and many other green market trends were presented to AGCs Future Leadership Forum (FLF) by McGraw-Hill Vice President Harvey Bernstein at an event sponsored by McGraw-Hill.
Bernstein added that by 2015 the green share of retrofit activity will more than triple growing to a $14-18 billion opportunity in major projects alone based on current construction forecasts. If small renovation projects that tend to fall below reporting levels is factored in the market is much larger.
Knowledge of green construction is the only way to stay competitive and increase market share Bernstein told the FLF group.
Several factors are driving the dramatic growth in green construction not the least of which is demand. According to Bernsteins survey corporate leaders green construction efforts are driven less by government regulations (or the fear of potential regulations) and more by a view of sustainability as a business opportunity. In fact 75% of corporate leaders view sustainability as consistent with their profit missions and 61% believe that sustainability leads to market differentiation and improved financial performance.
There is also a synergistic relationship between green building and technology: More green building involves the use of BIM technology and greater use of BIM is making more green building feasible. Bernstein notes that green building is expected to drive the use of BIM tools especially as BIM becomes better integrated with energy performance modeling software currently used by engineers and contractors and energy management systems in existing buildings used by facility managers. Plus as owners become more aware of the advantages of BIM for use on retrofit projects and with building operations and maintenance adoption of BIM for green projects will increase.
Bernstein authored Green Outlook: Green Trends Driving Growth for McGraw-Hill Construction. The complete report can be downloaded for free by clicking here.
Bernstein defined a green building project as one built to LEED or equivalent standards or those that incorporate numerous green building elements addressing energy and water efficiency and improved indoor air quality.
Photo: Harvey Bernstein McGraw-Hill Construction and Julianna Baldwin Lydig Construction.