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Industry warned over Green Deal risks

A new report has warned that the construction industry runs the risk of becoming a second-tier supplier to energy companies and retailers under the Green Deal.

Research by the Chartered Institute of Marketing Construction Industry Group found that only 35 per cent of product manufacturers believe the Green Deal will be an important opportunity and that only 31 per cent currently have suitable products available.

Installers’ perceptions of the key benefits of their energy saving services to home owners were principally financially driven; either reducing energy costs (33 per cent) or generating extra income (22 per cent).

Similarly, manufacturers saw the principal benefit as reducing energy bills (55 per cent) and home energy generation (45 per cent).

The report states:

No single section of the construction industry can work in isolation, trade associations, manufacturers, contractors and wholesalers must work together to create an effective supply chain.

While the construction sector remains sceptical about the Green Deal and its success, organisations from outside the sector like the energy companies and major retailers have recognised the opportunity and are starting to act.

Construction runs the risk of becoming a second tier supplier to these organisations.

Money was ranked as the most important issue to the home owner, followed by reducing climate change and waste. Improved comfort and status with neighbours were considered least important.

The report, Taking Sustainability to the Consumer, was described by CIMCIG as a ‘wake-up call to manufacturers and installers’ due to the enormous potential of the Green Deal scheme, estimated by the Federation of Master Builders to add up to £6.5bn to the existing RM&I market.

Author Chris Ashworth said: “The main challenge for manufacturers in this sector is to understand the motivations of the UK consumer

“As a committee, CIMCIG is dedicated to helping marketers in the construction industry develop best practices and capitalise on opportunities - In the current market conditions it takes initiative and imagination to create sales.”

The report was compiled through interviews with 100 manufacturers and installers and concludes that to achieve take-up, the construction industry must adopt a marketing approach to inform and motivate the homeowner.

The report is now available for download from the CIMCIG website here.

DeHavilland is organising a conference - The Green Deal: Optimising the opportunities for the UK’s Construction Industry & Supply Chain - to take place in London on 23 and 24 November in partnership with Construction News, Glenigan and H&V News.

The conference will look at Green Deal Policy as it progresses to into law, examine how it will work in practice and outline the implications for all links in the UK construction industry and its supply chain.

See here for further details on how to attend.