Be Proactive

Embrace The Push For Sustainability

Brian BarlowPresident/CEO

2012 AEM Annual Conference © BARLOW 2012

Overview

• Industry Impact

• How Sustainability Affects The Entire Supply Chain

• Reversing The Low-Bid-Wins Paradigm

• Finding Success In This Profitable Market Segment

The Rise In Sustainable Building Programs & Rating

Systems Is Evolving Your Customers

The Rise In Sustainable Construction Programs Is

Transforming Your Customers…

The Rise In Sustainable Building Programs & Rating

Systems Is Evolving Your Customers

The Numbers Speak For Themselves…

1/3

of all nonresidential

construction is

sustainable today 120road

construction projects tested by

Greenroads™

2 Billion

ft2 of

commercial

projects USGBC

LEED® certified

$280 Billion

expected worth of green building

by 2020

U.S. Green Building Stats

45%of construction

projects will be sustainable

by 2014

120,000+LEED Accredited Professionals in

the U.S.

Canadian Green

Building Stats

1st North Americancity to enforce green roofs

technology: Toronto

3,985

Canadian

projects

LEED

registered

$268,000 cost savings using

recycled materials for

City of Saskatoon road project

10,000 LEED Accredited Professionals in Canada

2 Billion ft2 certified under Canadian Building

Environmental Standards

The Rise In Sustainable Building Programs & Rating

Systems Is Evolving Your Customers

Some Have Already Embraced Its Potential…

The Rise In Sustainable Building Programs & Rating

Systems Is Evolving Your Customers

Will You?

Capitalizing On It Requires Understanding How It Affects The Global Supply Chain

Sustainability Will Pay Big Dividends To Those Who Embrace It Now

Impacting The Construction Supply Chain

• Demands transparency & value from all supply levels to achieve sustainability goals

• Current customer relationships throughout supply chain are redefined

• Ohio wind farm concrete base example

Sales Channels/Dealers

Changing The Low-Bid-Wins Paradigm

Changing The Low-Bid-Wins Paradigm

Sustainable Value Often Supersedes Price

• Efficiency & cost savings to construct• Reused/recycled materials• Newer, energy-efficient equipment• Newer, more efficient technologies & products

• Lower operation costs upon completion• Value increase in commercial, institutional & residential• Proven ROI • Human factor

• Shifting more immediate perspective to longer range value

The Rise In Sustainable Building Programs & Rating

Systems Is Evolving Your Customers

How Can You Be Successful?

You must provide legitimate sustainable value for your customers to win sustainable work

Provide Transparency

Share sustainable values of:• Products• Services• Technologies

Share their:• Carbon footprints• Life cycle assessments• Embodied energy• Other calculations

Share how you contribute to customers’ sustainable goals & how it relates to their customers

Copyright © 2009 Taiga Company

W.S. Tyler LEED Credit Statement

Educate Your Sales Channels

• Share your company’s commitment to sustainability

• Encourage the same level of sustainability

• Create education & training programs for your sales force

• Provide customer-oriented

sales tools

Honda Power Equipment

• New program supports dealer participation in Honda’s global sustainability initiatives

• Eco-Guide illustrates specific practices dealers can undertake that dovetail with Honda’s environmental strategies

• Guide provides a comprehensive list of recycling, energy savings & heating, cooling, water & community conservation initiatives, along with ways for dealerships to implement these activities

ISO 14001 Certification

The benefits of using ISO 14001 include:• Reduced waste management costs

• Consumption of energy & materials savings

• Lower distribution costs

• Improved corporate image among regulators, customers & the public

Certification assures company management & employees, as well as external stakeholders, that environmental impact is being measured & improved

Komatsu

• 18 Manufacturing facilities ISO 14001 Certified worldwide

• Developed low-VOC paint to meet British environmental regulations

• Amount of volatile organic solvents released into the air reduced by 66%

• Works with suppliers & their customers who are committed to environmental conservation

The Rise In Sustainable Building Programs & Rating

Systems Is Evolving Your Customers

Your Customers & Theirs Are Embracing Sustainability

• First quarry in the world to operate 100% under solar power

• 3,444 solar panels generate more than 1,120,000 kilowatt hours of renewable energy/year

• Reduction of 15,000+ tons of CO2 emissions from 2010 to 2020

• Monetary savings leading to greater profitability & depreciation tax liability

BoDean Mark West Quarry

Santa Rosa, California

City of Saskatoon, Saskatchewan

• Used recycled rubble materials on 540 m stretch of road

• Cost savings of ≈ $268,000

• Reduction of hauling distances

• Reduced virgin material quantities

• Elimination of landfill fees

• Energy Savings of ≈ 127,560 Megajoules

The Rise In Sustainable Building Programs & Rating

Systems Is Evolving Your Customers

Achieving Your Sustainable Value

Achieving Your Sustainable Value

Evaluate • How sustainability fits within

your current business model

• Trends affecting your

primary markets

Research • Relevant

sustainability programs & rating systems

• Sustainability initiatives in your targeted regions

• Sales channels to reach customers who value sustainability

Develop • Sales programs

focusing on the sustainable value of your equipment

• Education & training programs for your sales force

• Customer-oriented education & sales tools

Execute • Marketing strategies for

incorporating sustainability into overall branding

• A sales/marketing approach stressing the positive impact on your customers & theirs

Achieving Your Sustainable Value

Achieving Your Sustainable Value

Support • Strategies & tactical

approaches with the right mix of marketing materials that dovetail with your existing efforts

Expand • On all of the above with

customization related to the environmental standards of each new global geographic region

Questions

Thank You

Brian BarlowPresident/CEO

2012 AEM Annual Conference © BARLOW 2012