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Industrial revolution turns green • 2U.S. Energy consumption, by end-useTransportation 29% Residential 21% Commercial 18% Industrial 32%ChemicalsHeatingLightingPetroleum refining50%10%40%GasolineDieselJet fuelOtherAir conditioningWater heatingLightingElectronicsRefrigerationDishwshr/laudryOtherAir conditioningHeatingElectronicsVentilationWater heatingRefrigerationOtherPrimary metalsPaperFood processingOther manufacturingNon-manufacturingFeedstocksFuel Source:Primarily petroleumPrimarily natural gasMix: natural gas, coal, nuclear, hydroelectric, renewablesSeveral low or no-cost measures can be implemented quicklyfor immediate gains. Facility operating expenses can instantlybe cut by a cumulative fi ve to 10 percent by adopting simplemeasures such as switching off lights when not in use, adjustingthermostats, turning off computers and offi ce equipment afterhours, and scheduling cleaning crews during daylight hours.Beyond buildings: Cost-effective strategiesToday we need to deploy industrial-strength green strategies thatgo beyond replacing ineffi cient light fi xtures and recycling waste,rethinking every aspect of facilities and operations with an eye onsustainability. Developing a comprehensive, innovative and costeffectivesustainability strategy with a long-term budget forecastdemonstrates the erroneous perception that sustainable buildingsmust cost more. Innovative approaches may include:• Performance contractsRather than spend capital to implement sustainable technologies,self-fund your improvements through performance contracts.Under such contracts, an energy service company or other serviceprovider commits to deliver an annual amount of cost savingson energy and operations when it makes mechanical, electrical,lighting, and building improvements. For the period of the contract—usually fi ve to 10 years—the money saved on operations andenergy can be used to cover the capital costs.• Government incentivesAs industrial properties’ energy expenditures grow, thegovernment is providing more incentives to help stimulate energyeffi ciency projects in industrial facilities. This year, companies fromCaterpillar to Dow Chemical pushed Congress to enact tax creditsfor industrial energy effi ciency projects. Both houses of Congressare currently weighing revisions to tax credits.Many municipalities offer rebates on a case-by-case basis forcommercial and industrial lighting, as well as industrial processupgrades, including premium effi ciency motors, motor controllersand adjustable speed drives, pumps, compressed air systems,refrigeration and dryers. For your state’s incentive policies andprograms, visit www.dsireusa.org.WhirlpoolJones Lang LaSalle’s Atlanta team recently achieved the goal ofLEED® certifi cation for a new, 1.5 million SF regional distributioncenter for Whirlpool in McDonough, GA. Providing projectmanagement and sustainability services, within three years wesuccessfully delivered the project, ahead of schedule and underbudget. The facility exceeded the LEED certifi cation goal, earningGold certifi cation—the largest industrial buildingin the U.S. to qualify for LEED at the Gold level.
Industrial revolution turns green • 3McDonald’sThe McDonald’s Corp. continues to lead in improving sustainabilityin its restaurants, corporate buildings and supply chain. JonesLang LaSalle conducted a LEED EB (Existing Buildings) feasibilitystudy that resulted in McDonald’s decision to pursue LEED EBCertifi cation for its 704,120 SF Campus containing offi ce space,food labs and test kitchens. Using Six Sigma methodologies, ourproject team value-engineered an $80,000 budget reduction byrecommending that McDonald’s use in-house employees andresources instead of outside consultants.• Employee educationSome companies are fi nding that involving employees in thesustainability process helps increase savings. Procter & Gamble,which formed one of the fi rst sustainability departments in itsindustry ten years ago, has made strides in greening its productsand facilities. One highly successful initiative was to engageP&G’s 130,000 global employees in the company’s “Take theR (responsibility) for Tomorrow” program. Combining thevolunteer efforts of sustainability site champions with personalizede-training and global websites and communications, P&Gmotivated employees worldwide to behave voluntarily in a moreenvironmentally friendly way. The result: not only are the majorityof P&G personnel enthusiastic about a sustainable workplace, butthey also contribute ideas that save the company about $1 millionper year in energy costs.• Process efficienciesA growing number of companies are fi nding a huge returnon investment by using Six Sigma methodologies to analyzetheir building’s energy processes to address energy effi ciency.Six Sigma is a rigorous method of data and statistical analysisfor measuring and improving a company’s operationalperformance.What you can doHow do you decide which direction for improving sustainability isright for you? Here’s where investors, owners and occupiers canwork together to establish goals, undertake audits and determinewhere savings and improvements can be made.The owner-occupierOwner/users absorb all of the costs of greening their industrialfacilities and, in turn, reap most, if not all, of the savings benefi ts.They can control the improvement process and reduce their utilitybills by conserving energy and water. Lower “down-time” costs(i.e., less energy wasted during non-production hours) are anadded advantage.And the relatively easy steps taken to improve sustainabilitydemonstrate, within the company and in the community, that theowner is investing wisely, in a proactive and visible response tomarket conditions.The landlordAlthough landlords absorb the upfront costs of greening theirfacilities, they achieve a healthy ROI. Energy-effi cient lightingand reduced energy costs accelerate leasing, attract moretenants, and improve tenant retention. Lower operating expensescan justify a higher face rate, ensuring the building’s positionas high-value. Moreover, a federal tax incentive allows ownersto deduct as much as $1.80 per SF for buildings that achieve acertifi ed 50 percent in energy savings.Landlords also stand to gain as their tenant base changes torefl ect the growth in new industries, driven by a wave of capitalincentives for green industry. Many of these new companies aredemanding greener buildings to pursue leaner, more cost-effi cientoperations. Greening enhances a property’s long-term leasingpotential, making it more competitive in the market.
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