Business Going Green:
Can we green our way out of a recession?

Two new national best sellers make strong arguments that the only way to reverse the current economic spiral is through investment in green technologies and jobs.

Thomas Friedman's Hot, Flat and Crowded and Van Jones's The Green Collar Economy: How One Solution Can Fix Our Two Biggest Problems both claim America can be a global leader by focusing on vast, untapped capabilities in environmental restoration, solar, wind, biofuels, geothermal and energy efficiency.

If President-elect Obama fulfills his campaign promises, new federal dollars in the form of loans, grants and incentives will be applied for training and hiring people in green jobs and clean energy.

Even without this infusion of funds, there is some evidence that green businesses are faring better in this economy for two reasons: many green businesses have taken steps to dramatically reduce waste (resulting in lower operating costs), and customers recognize a greater value in green products and services.

One example is the resilience of organic food sales. Along with the economic downturn in retail, there has been a decline in some organic food sales. However, The World of Organic Agriculture: Statistics & Emerging Trends 2008 reported that the global demand for organic products continues to grow, with sales increasing by more than $5 billion a year. Studies show that some consumers may be eliminating some organic products from their shopping list, but many consumers are comparison shopping more since organic products are now carried by many retail and discount stores.

Another example is the housing market. Sales of new single-family homes declined another 5.3 percent in October, according to the U.S. Department of Commerce. At the same time, the National Association of Home Builders found more than 70 percent of surveyed home buyers said that they would pay up to $11,000 more for an energy-efficient home that would reduce their ongoing utilities costs.

The NAHB also found that 33 percent of surveyed remodelers reported more jobs devoted to improving the energy efficiency of their client's homes.

Other green businesses are better weathering the economic storm because they have taken steps to eliminate waste. Assistance for identifying these opportunities is available through pollution prevention program of the Missouri Business Development Program Web site at www.missouribusiness.net/eac.

If your business is just starting to consider ways to go green, do a quick assessment of your energy use. Simple steps to reduce energy can mean significant savings for small businesses and some steps—like turning off unneeded lights and computers and cleaning equipment—require no investment.

Other energy efficiencies may require investment, but can have a pay-back of just one-two years. Funding for energy improvements can be found through the Database for State Incentives for Renewables & Efficiency at www.dsireusa.org.

This story was featured in the December 2008 newsletter