Impact of Climate Change on Building Merchant Industry and Its Effect on the Marketplace

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An Analysis of the Impact of Increased Climate Change on Building Merchant Industry, Its Effect on the Marketplace and the Future Strategies of E.H. Smith Introduction One of the frightening environmental concerns is the build-up of carbon-dioxide (CO2) in the atmosphere that has resulted from heavy use of fossil fuels. This carbon dioxide blankets traps the sun's radiation, which leads to an increase in the earth's average temperature. In the UK, climate change is likely to give rise to warmer temperatures, wetter winters and drier summers, as well as higher sea levels resulting in flooding of coastal areas (Boyd et al 1998). As an article (Habitat International 1995) states "the building industry, together with the materials industries which support it, is one of the major global exploiters of natural resources, both physical and biological". The department of trade and industry (DTI) says that just to maintain existing stock the industry "produces about half of UK carbon emissions and single biggest action is in improving energy efficient in new and existing stock". Buildings consume 40% of energy and produce 40% of CO2 emissions (DTI 2004) to reduce the high level of CO2. EU and UK government have introduced tougher energy efficiency standards, this will be felt by builders merchant; the latter stand to gain from an increase in demand for insulation materials but will also have to bear additional costs. The Key Impacts of building merchant industry on climate change are the cement sector alone accounts for 5% of global man-made CO2 emission (Piltz 2005), highest impact is the mining/manufacture of materials and chemicals, transport of heavy materials such as cement is energy-intensive, but most building materials tend to be sourced from close-by facilities. The chemical processes and use of fuel/electricity account for the major portion of the sector's CO2 emissions. The effect of CO2 emissions (climate change) on the UK Builders merchant industry and E H Smith Ltd The key impacts of climate change on Building industry; Weather related impacts: flooding, coastal erosion, subsidence, drainage systems require new building techniques and materials to withstand adverse weather conditions; influences the choice of site. Cost of finance/insurance: Insurance sector beginning to factor impacts of climate change into premiums. Sector has yet to put systems into place to discount climate-change related risk mitigation, but could be pushed to do so through building industry initiatives. Businesses will be interrupted from wetter winters (Kruse 2004) With the new sustainability approach in effect, it creates great opportunities for the builder's merchant industry.

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