Do You Need LEED to Be Profitable?

Suzanna de Baca -- Expert Business Source, 4/16/2008 7:05:00 AM

As I work with clients in design and construction related industries to achieve their personal financial goals, I often hear about what is happening in their companies. After all, for business owners or managers, the success of the company has a lot to do with their personal wealth. More and more, the subject of LEED comes up and frequently it is in the context of remaining competitive. 

LEED, which stands for Leadership in Energy and Environmental Design, is everywhere. As the nationally accepted benchmark for the design and construction related industries, LEED building certification and professional accreditation are becoming more common, leading many professionals to wonder, “Do we need LEED to be profitable in the future?”

Many firms have utilized or espoused “green” or sustainable building techniques and philosophies for years, but recently this way of thinking has been formalized though LEED. Not only does LEED encourage the global adoption of sustainable green building and development practices, it also provides a specific, consistent framework for procedures and for performance measurement. 

While green building is gaining in popularity, LEED accreditation is only required or specified in projects in a certain number of industries. Experts predict that demand for green building will rapidly explode in the coming years, expanding from all areas of commercial building to residential as well. I’ve overheard a number of architects mention that in order to bid on certain jobs, LEED accreditation of professionals is increasingly required.

In the past, it is has been difficult for many green-oriented firms to complete projects that not only espouse sustainable philosophies and techniques but which are also profitable. Historically, integrating green processes and procedures has eroded margins –sometimes slightly, sometimes significantly. Often, this is a cost the end client cannot support. But times are changing. As manufacturers develop products that make green building more efficient, the margins are normalizing.

So the past dilemma of “Can we afford to be green?” is giving way to “Can we afford not to be green?” LEED is becoming the standard for professionals, just as creating a LEED certified building is becoming a point of pride for many of the professionals involved in the project. Becoming a LEED AP is now becoming the price of entry.

For business owners or professionals who want to remain competitive, continuing education and the completion of various licensing or certifications has always been a good idea. In order to be competitive, you must strive for continual improvement and look for ways to differentiate yourself and your business. Becoming LEED accredited may not seem like a specific way to increase your bottom line, but failing to be forward thinking in regard to this designation may actually be a factor in your firm securing jobs in the future.

If your firm doesn’t get the jobs, it’s hard to remain competitive. If your business isn’t thriving, it is hard to meet your own personal wealth goals. So, is LEED accreditation necessary to remain profitable? From my vantage point, going for this professional accreditation seems like money in the bank – or at least like a sound form of insurance.

Disclosure: Suzanna de Baca is President of Private Capital Solutions Group, a financial and investment firm in Des Moines, Iowa. She is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS), 7 Hanover Square, New York, NY 10004, (888) 600-4667. Securities products/services and advisory services are offered through PAS, a registered broker/dealer and investment advisor. Private Capital Solutions Group is not an affiliate or subsidiary of PAS.

PAS is a member FINRA, SIPC.

Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with individual professional advice.