Builders must find a road forward in the new economy

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Sam Hagerman is president of Hammer & Hand and the Passive House Alliance.

There's a sea change happening in the construction sector and it demands a refocus by builders.

While none of us know what the future housing market will bring, most of us know this: Things are different now. Gone are the days of profligate lending and spending, massive building sprees and the expectation from consumers and builders alike that real estate prices will always rise.

The paradigm has shifted.

And from a purely "green" perspective, this is a good thing. The unbridled housing boom wasted resources, fueled low-density sprawl and erected tracts of hastily built, low-performing structures.

But where do we go from here?

This much is certain: The planet is under strain, and energy isn't getting any cheaper. Shoddy buildings just aren't acceptable anymore. As an industry it's time to fundamentally shift how and what we build.

We all know it's the right thing to do, but it's also where the market is headed. Short-term profits don’t drive investment in real estate today. Quality and value are the new drivers — things like building performance, energy efficiency, durability, health and safety, comfort, and design integrity.

If we green builders deliver on these criteria, our creations will sell, the building sector's carbon footprint will decrease, our craftspeople will thrive, Oregon’s economy will strengthen and we will achieve the fabled triple bottom line — environmental sustainability, social responsibility, and profit.

In other words: doing well by doing good.

We're seeing this at work today at Hammer & Hand. And our local, albeit anecdotal, experience was recently validated by a major study by McGraw Hill Construction, entitled “Green Outlook 2011: Green Trends Driving Growth”, that shows that not only are U.S. homes getting greener, but the demand for green buildings, and builders' activity to meet that demand, is increasing as well.

Inhabitat magazine wrote about the report late last year and quoted Harvey M. Bernstein, vice president of global thought leadership and business development at McGraw-Hill Construction saying, "In today’s economy, firms that specialize in green or serve this market are seeing a tremendous advantage — and they’re doing good at the same time. Green building leads to healthier places for us to live and work in, lower energy and water use, and better profitability.”

This certainly matches our experience. Not to say we've had banner years lately, but (knock on wood) we've weathered the storm pretty well. There are lots of reasons for that, but the sustained interest in green building, plus new interest in housing types like accessory dwelling units and Passive House have helped us along.

Another key component, though, is the human story.

Whenever you see a beautifully constructed building, that excellence was made possible by the dedicated work of passionate and talented craftspeople. As we construction leaders continue to embrace green building, we also need to invest in the progressive employment policies and benefits packages that keep our staff happy and healthy. When artisans are given respect, agency and support, wonderful things happen with clients and projects. This establishes a positive feedback loop that drives work quality, building performance, customer satisfaction and profitability.

Profitability is important — we are business people, after all. But this again illustrates the power of that triple bottom line.