Lifetime Cost Case Analysis: Energy-Efficient, LED-based Commercial Signage

Lightmark_led_1 If you haven’t noticed, commercial enterprises use lots of neon in their signage.  I drove around the neighborhood and found a few gas stations and a Sonic Drive-in with neons wrapped around the structure.  You can tell because the neon lighting breaks at the nodes.  Well, LEDs, while still a nascent lighting technology, have the potential to become the future signage lighting behemoth, if building owners can catch on to their benefits.  To get to that point, however, the stars will need to align so that the key decision maker does a costing analysis incorporating the operational benefits, in addition to the sticker price (initial costs). 

LED Technology Benefits:
LEDs have energy savings of up to 80% over neon lighting.  In addition to the energy savings, LEDs differ in size and electronic control.  Point blank, with LEDs, there’s reduced maintenance, reduced energy consumption, better light quality output, safer + lower voltage requirements, and low temperature performance.  They last longer, too.  There’s no gap in the illumination like there is with the neon.  And with a technology like LightMark, the units are variable so you use just the right amount for the project. 

Lightmark_mcdonalds Lightscript_tsutayabig Arco_lightmark

Costing + Payback:
LEDs pay for themselves in about 2-3 years.  When a decision maker is comparing neons (or some other light source) and LEDs, it’s important to make sure that the comparison is apples-to-apples.  Use a "lifetime cost of ownership" analysis:  (1) initial purchase price + (2) initial installation costs + (3) lifetime energy usage + (4) lifetime maintenance charges.  I’d suggest two more external considerations, which aren’t factored into the lifetime cost of ownership.  First, consider the extent of liability (i.e., if neons tend to flame up at gas stations more than LEDs, there’s a tangible savings benefit [note - this may or may not be true]).  Second, consider the tax implications (i.e., state, local, or federal government offers tax credits/deductions for LED use, etc.). 

A few companies that have been incorporating this new technology include Arco, A&W, BP, McDonald’s, KalTire (Canada), Tsutaya (Japan), and Petro-Canada.  What it takes, however, is a paradigm shift from initial cost, or sticker price, to lifetime cost, and if owners aren’t making the change, the contractor should speak up and create value for the customer. 

Extra Links:
BP Case Study [TIR Systems]
LightMark + LightScript 
Energy-Efficient, LED-Based Signage [Grant Harlow - Buildings.com]

Starwood Capital Group Announces New Green Hotel: 1 Hotel + Residences

Starwood_capital_group Early last spring, I was looking into the faces of 45 bored students, giving my 4 minute business plan pitch for a trendy, green hotel concept geared specifically for young professionals ages 20-40.  I had it all laid out:  kiosk integration for mundane tasks, high customer service, green shuttle service, LEED certified hotel construction interior and exterior, teamwork style cleaning, paperless everything, free internet, slightly smaller rooms with mega-style, modern art + photographs, etc.  People were like, "I don’t know if that will work."  "What’s wrong with the Hilton or La Quinta."  Well, it looks like my instincts were right:  Starwood Capital Group announced plans to launch a new brand, "1" Hotel and Residences, as a luxury, eco-friendly global hotel brand.  The first hotels will be in Seattle (late 2008), Mammoth Lakes, Scottsdale, and Fort Lauderdale (in order of opening).   

Let’s face it, the entire industry will head this direction because hotels are levered to the cost of energy in two ways:  (1)  people travel less as transportation energy costs rise and (2) hotel’s profit margin is squeezed by the energy costs of running a building.  Up until now, most hotels haven’t really attacked this problem by looking at the entirety of the situation:  by building green hotel buildings!  So trend-setting hoteliers like Starwood are going to make money because they are operationally smart.  I’m excited about this green development.  After the initial locations, "1" will expand to New York, Los Angeles, + Washington D.C., soon thereafter.

Sustainability:
The hotels will be LEED certified in and out.  Natural Resources Defense Council (NRDC) will act as environmental advisor for the brand.  Each "1" location will donate 1% of its revenues to local environmental organizations.  The first four hotels, and most of the hotels, will be new construction, but Paris will be a renovation.  "1" emphasizes air and light, offering a fresh, invigorating, and alternative way to travel.  Inundated with the "richness, beauty and variety of colors, textures and materials," guests and residents (sounds like a multi-use platform) may not realize the myriad of ways that their building is stepping lightly on the earth.

Good Links:
++Starwood Plans Green Hotels [South Florida Business Journal]
++Starwood + Sternlicht Unveil Groundbreaking ’1′ Hotel Concept [Press Release]
++Starwood Capital Group [Official Website]

Jennifer Siegal, Office of Mobile Design, the Modern + Green Take Home

Take_homeQuoting Jennifer Siegal, founder of Venica, California-based Office of Mobile Design (OMD):  "I’m interested in how technology is influencing the way we form communities…because our lifestyles are demanding more lightness, our buildings shouldn’t be sitting so heavy."  Siegal was featured in the October 2006 issue of Fast Company magazine, and praised as a "fresh face from the front lines of design."  In a world where renderings are common and completed projects are not, aka, the prefab world, Siegal is really staking a claim in this ultra-stylish, sustainable chase for comfortable, affordable living. 

Fast_company_siegal

Siegal’s work includes the Mobile Eco Lab (1998), Portable House (2001), Seatrain House (2003), and the Swellhouse.  Her most recent work is a modern, modular home product line called Take Home.  Go to the website and take a gander at her captivating architecture.  You’ll find also that her work goes beyond the realm of aesthetics and mid-century modern vernacular and into sustainability.  That’s going to be where architects will make a huge difference, I believe.  In addition to that, I think OMD is taking pro-active steps to clarify the pricing of their prefabs and make modern + sustainable living more affordable.

Take_home_3 Take_home_2 Take_home_4_1

Sustainability:
Sustainability is a key issue in the design process at OMD.  Prefab presents the natural green benefit of avoiding all the construction waste that plagues stick-built construction.  With the Take Home, OMD also offers precision steel construction, high-end amenities (Italian Boffi kitchens + Duravit bathrooms), fully landscaped courtyards with pools, passive cooling systems, and AVAILABLE 100% solar power and water heating.  Also available is bamboo and radiant heated flooring.  Homes range in size from 800-5,000 square feet and cost $210-270 per square foot.  Not bad at all!

Extra Links:
Incoming! [Fast Company]
Office of Mobile Design [OMD + Prefab]
Siegal’s Desert Hot Springs Development [the take home]

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