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Trends Emerging from Pandemic Likely to Drive Public Interest in Green Building

Posted By Tom Herron, Sr. Director, Market Insight and Transformation, Friday, February 25, 2022

Without ignoring the fact that the COVID-19 pandemic has adversely affected people’s lives around the globe, it is time for the fenestration industry and green building community to look forward and ask what we can accomplish now in this changed world.

The pandemic reminded us that change is perpetual, pervasive, and exponential. In fact, one global study says the pandemic has motivated 57% of companies to accelerate their sustainable transformation plans.

Moreover, research by the National Fenestration Rating Council (NFRC) shows this has led to three trends likely to drive public interest in green building.

Newfound Cooperation

As the world recovers, it becomes increasingly apparent that the COVID-19 crisis affected all the members of the green building community similarly, though with varying intensity levels and in staggered waves.

Even before COVID, we knew it could be challenging for any one organization to work single-handedly toward a cause and win, and this commonality reveals that drastic, transformative change is possible and has made us all more receptive to forming new partnerships that provide leverage to create a more energy-efficient future.

Additionally, design-build professionals do not want to create a better version of the past. Instead, they are embracing the value of collective action and seek to become better informed by science so they can help facilitate a strong recovery with sustainability taking center stage.

Increased Demand for Healthier Homes and Buildings

The accelerated pace of change has also increased demand for healthier homes and buildings through improved indoor air quality. Accordingly, many home builders, commercial real estate developers, and facilities managers view themselves as the frontline caregivers.

Additionally, market analysis shows facilitating employee health and wellbeing (33%) will take precedence for companies throughout 2022, even ahead of emissions reduction (30%). Moreover, investors cite employee health and wellbeing as a priority, preceded only by assuring sustainable supply chains.

These two factors can precipitate sweeping changes throughout the commercial and residential real estate markets. Although many companies have become partially or fully virtual, one study says that as of September 2021, new demand for office space was at its highest level since the onset of the pandemic. In fact, Chicago and Seattle are above pre-pandemic levels, while Los Angeles and New York are hovering at over 95% of pre-pandemic levels.

While balancing the demand for fresh air ventilation with the need to conserve energy presents a challenge, it also positions the fenestration industry to develop more innovative products. Studies tell us indoor environments that mimic or allow access to the natural world can lower blood pressure and cortisol levels, improve concentration, and strengthen the immune system.

Studies also show that compromised indoor air quality exacerbates many diseases. In the U.S. alone, the cost attributed to “sick building syndrome” in commercial workplaces is as high as $70 billion annually. From this perspective, creating healthier structures is one of the most important endeavors of our time.

Responsible Consumption and Product Certification

Finally, today’s post-pandemic shoppers want to consume more responsibly and seek assurance that their purchases are sustainable.

Industry analysis estimates the global energy-efficient windows market will grow from USD 13.1 billion in 2021 to USD 18.3 billion by 2026 at a Compound Annual Growth Rate (CAGR) of 7.0%. The commercial window market size was estimated at USD 2.8 billion in 2019 and is expected to grow at a CAGR of 3.2% through 2027.

Moreover, global demand for green building materials is expected to grow from $238.91 billion in 2021 – driven mainly by the growing awareness about environmental sustainability – to $383.85 billion in 2025.

Turning to consumer attitudes and behaviors driving this trend, 73% of consumers want to change their consumption habits to reduce their environmental impact, and 85% think about sustainability more than they did before the COVID-19 pandemic.

Additionally, most Millennials (75%) are willing to pay more for an environmentally sustainable product, compared to 63% of Gen Z, 64% of Gen X, and 57% of Boomers. Additionally, 77% of Americans are concerned about the environmental impact of products they purchase.

Furthermore, one study says 64% of Americans are willing to pay more for sustainable products, but most (74%) do not know how to identify them.

The same study showed 78% of Americans are more likely to purchase a product that is clearly labeled as environmentally friendly or energy efficient and that 53% of Americans have doubts about companies’ sustainability claims. Finally, 45% say they need a third-party validating source to trust such claims fully.

Conclusion

The inflection point that resulted from the pandemic has created a blank canvas for novel solutions and approaches throughout the fenestration and green building industries. As society is reshaped, and the economy relaunched, we all have a role to play in creating better homes and buildings and helping society overcome the existential threats of climate change.

Tags:  energy efficiency  fenestration  green building  Tom Herron 

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The National Fenestration Rating Council (NFRC) is the trusted, independent, nonprofit certification body for the energy performance of windows, doors, and skylights. With more than 35 years of expertise, NFRC is the standard-bearer in fenestration performance certification, providing the public with objective data that helps stakeholders make informed decisions about product and building performance. NFRC certification ensures that products are tested using precise, scientifically validated methods, resulting in ratings that are fair, accurate and credible. Contact us at info@nfrc.org.

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