Green Outlook Report tracks dramatic growth, forecasts green building over next five years
Boston, MA – November 18, 2008 – The U.S. green building market is accelerating at a dramatic rate, says McGraw-Hill Construction’s Green Outlook 2009: Trends Driving Change report, released today at the Greenbuild International Conference and Expo in Boston, MA. The value of green building construction starts was up five-fold from 2005 to 2008 (from $10 billion to $36-$49 billion), and could triple by 2013, reaching $96-$140 billion.
McGraw-Hill Construction’s Green Outlook 2009 estimates the value of the U.S. green building market over the next five years, providing the first-ever comprehensive insight into the future of this fast-growing segment of the construction industry, based on data found in the McGraw-Hill Construction Network-- powered by the Dodge database, construction industry surveys, data analysis and analysis of other indicators, including increases in LEED certification and government regulation.
“Green growth is phenomenal across the globe,” said Harvey M. Bernstein, Vice President of Industry Analytics, Alliances and Strategic Initiatives, McGraw-Hill Construction. “The business opportunities afforded by green building, even in the midst of a global economic crisis, are real and recognized by industry players. Furthermore, green building has great potential to help tackle unemployment through green jobs, and can address other societal issues, such as creating healthier places where we live and work.”
Green building is the bright spot in an otherwise tough economy. U.S. Green Building Council members report green building to be less affected by the down market compared to non-green building, and homebuyers are willing to pay more for a green home. Perceived economic benefits are driving green building, including higher revenues, lower lifecycle costs, and lower operating costs, but builders and buyers are also motivated by health benefits, new government regulation, and pressure from global competition.
“Green building creates green jobs that save energy and money,” commented Rick Fedrizzi, President, CEO, and Founding Chairman, U.S. Green Building Council. “Our community can help solve climate change and the economic crisis while building a new energy economy by putting the greening of existing buildings at the top of our agenda.”
McGraw-Hill Construction attributes green building’s rapid expansion to growing public awareness, an increase in government regulations, and recognition of bottom-line advantages. Since 2005, the perceived benefits of green building have increased and differentiated as people become more knowledgeable about green building. The decrease in operating costs is the most often cited benefit (13.6%, up from 8-9% in 2005), followed by the increase in building values (10.9%, up from 7.5% in 2005).
More information and specific green building projects can be found in the Green Outlook 2009 Report and on the GreenSource website (http://greensource.construction.com/projects). To order a copy of the report, visit http://www.construction.com/market_research/default.asp or Greenbuild booth #1410. Two green building SmartMarket Reports will also come out this week: The Green Home Consumer and Commercial & Institutional Green Building.
About McGraw-Hill Construction
McGraw-Hill Construction connects people, projects and products across the design and construction industry. For more than a century, the Company has remained North America’s leading provider of construction project information, plans and specifications, product information, industry news, and industry trends and forecasts. In print and online, the Company offers a variety of tools, applications, and resources that easily integrate with its customers’ workflows. Backed by the power of Dodge, Sweets, Architectural Record, Engineering News-Record (ENR), GreenSource and 11 regional publications, McGraw-Hill Construction serves more than one million customers within the $4.6 trillion global construction community. To learn more, visit www.construction.com.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands including Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at www.mcgraw-hill.com.
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