Is the interior fit-out market really embracing the green revolution?

Fresh Market

Are the suppliers, specifiers and end-users of interior fit-out markets really embracing the green revolution? Ashford Pritchard investigates.

When it comes to consumer product marketing, we’ve all seen a huge increase in the use of terms such as ‘sustainability’, ‘environmentally friendly’ and ‘green’. And yes, that has also translated into the number of “green” products available for commercial fit-out projects. However, according to Paul Borrett, Managing Director of TDA Interiors, specifying green when it comes to corporate projects is not always as simple as it should be. Green options are often hard to locate, and given the time and budgetary constraints of most interior designers, installing eco-friendly options is often difficult. “Green products such as flooring and fabric panels are often hard to find within the lead-times we need,” he says. Clients, understandably, are also hesitant to pay higher priced products, without independent and trustworthy certification or guidance.

Guesstimates

We asked a number of suppliers to offer their estimates of the number of clients demanding as using green options, based on their own industry experience.

How many clients are demanding green?

“For interiors overall, about 30 percent are purchasing green options with a rapidly upward trend in the commercial market. Specifically in the carpet industry, the figure is closer to 40 percent and the numbers vary according to the interior product category.” Bill Gregory, Director of Sustainability, Milliken & Company “I would say 10 percent of our clients are now willing to pay more for “greener” products, and we are seeing that the percentage is rising gradually.” Andy Croney, Director, Eurasia Architectural Products Limited.

“We do not have a figure for our industry but overall 82 percent of consumers are buying green products even during the battered economy in the US.” Landico Wong, Senior Marketing Executive, CompoClay Holdings Ltd

How many clients are willing to pay a premium for green products?

“We have conducted a customer survey for 100 architects from Dec 2009 — Feb 2010, designers and dealers across the Asia-Pacific region, and two-thirds of them are willing to pay more for green product. Only 25 percent are unwilling, and 2 percent think it should be cheaper.” Michael Ho, Regional Manager, Corian

“Clients are willing to pay a premium (as long as this premium is low – say not more than 15-20 percent more than the standard products)” Andy Croney. Eurasia Architectural Products Limited.

Borrett believes that the industry in general, and particularly the design profession, is crying out for a comprehensive and verifiable resource that can offer real green alternatives to conventional products. “We very much want to move our projects in a greener direction. Having cost effective, in-stock products — verified by a trusted list of approved suppliers at a sensible cost, would help tremendously in making it easier for project teams as a whole to move towards an ideal of greener projects.” Concurrent to this demand, more and more green products are being marketed, notes Arnold Hui, Director of Design and Marketing at B.S.C Group, one of Hong Kong’s largest product suppliers. “Nowadays, the development of green interior fit-out products is becoming more diversified than ever.” From water-saving bath fittings to more eco-friendly wall and floor finishing materials, manufacturers are creating better products.

Irving Steel, Account Manager — Shanghai and Environmental Champion China for flooring manufacturer Tandus agrees: “The push towards green for interior fit-out products has been exceptional recently. Even a year ago there was not a single thought of a LEED CI Platinum Project in China. The demand is coming from the economic perspective: people are getting more return on their investment, greater marketing capabilities, and more notoriety for having sustainable materials and LEED offices.” He cites China’s first LEED CI project, which used his organisation’s green flooring, as a case in point of growing demand for green.

Supply and Demand

When clients ask for sustainable options, it is clear that suppliers are looking to meet this need. “Green innovations are mainly driven by customers. The increasing collective awareness of green living drives the manufacturers to put more effort into the R&D of green products in order to capture this huge potential market,” says Hui. So which firms are driving the demand for green products? “Usually its big projects, government projects, big law firms and banks, restaurants, healthcare and education institutes who specify green products,” explains Michael Ho, Regional Manager at Corian. “There are also clients that are concerned about green certification like LEED. In the residential segment, usually [developers catering to] families with small kids, like to specify green products for better air indoor quality.” Interestingly, when it comes to the China market, it appears that local clients are taking their responsibility seriously. “More often than not it is the multinational corporations purchasing these materials. Lately we have seen more and more state-owned enterprises and Chinese companies leading the way in this regard. China and the Chinese government know that it can be a leader in the realm of sustainability and is pushing it towards their economic advantage,” says Steel.

Government support is pushing forward the green product markets in Europe, according to Matt Fulford, Head of Sustainability at EC Harris (UK). “The main driver is one of legislation, either current or anticipated legislative demands as we progress to zero carbon standards in 2016/2019 in new build. There is also a strong area developing fast in the ability to improve the sustainability of our existing building stock and solutions being developed to address the refurb and fit out of existing buildings to improve its ‘green’ credentials.”

Paying the Green

In Fulford’s experience, despite legislative encouragement, the perception of additional costs for being ‘green’ is a barrier to the implementation of sustainable product options. “Some are willing to pay additional capital expenditure if the product will deliver demonstrable operational savings but most ‘payback’ decisions require this benefit to be achieved in four or five years or less.” It’s important, however, to note that many additional factors also carry weight in product specification, says Bill Gregory, Director of Sustainability at Milliken & Company. These include extended product life, brand support, maintenance costs, productivity and replacement cycles.

Another barrier, Gregory points out, is “gaps in product offerings to fit all building requirements. Upfront planning should allow green interiors to meet the same budget.” Economies of scale, it is widely believed, will help bridge this pricing gap and foster the creation of a wider range of green and sustainable offerings. As Fulford concludes: “In the next decade, it is more likely to become an issue that to maintain current price levels, the product has to be green. Current traditional products will be devalued by not being green. Success will be found by manufacturers who can ‘green’ their products through efficiencies without increasing price.”

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