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Pure Green News
Occasionally we come across articles or websites that may be of interest to those intriqued by green lighting. We share them here for our clients and visitors to enjoy.
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More greenbacks for green projects |
More greenbacks for green projects
The stimulus bill provides additional tax incentives for renewable energy projects
By Cathryn Milkey and Maureen McInerney
The American Recovery
and Reinvestment Act of 2009 (commonly referred to as the stimulus
bill), signed into law by President Obama on Feb. 17, contains more
than $787 billion in government spending and tax incentives, including
$63 billion directed to renewable energy programs and related tax
incentives. The stimulus bill also continues federal benefits
previously available to the industry.
The new cash grant program created by the stimulus bill allows
investors and developers of certain renewable energy projects the
option to receive a cash grant in lieu of tax credits, which are
discussed below. The renewable energy community is excited about the
cash grant, as it provides an upfront payment.
The cash grant will be equal to 30 percent of the project costs for
wind, solar, fuel cell, biomass, landfill gas, trash, qualified
hydropower and marine and hydrokinetic renewable energy facilities and
10 percent of the project costs for microturbine, combined heat and
power, and geothermal heatpump facilities. To be eligible for a cash
grant, the facility must either be placed in service in 2009 or 2010
and otherwise be eligible for tax credits, or be placed into service
after 2010 yet before the tax credit termination date, as long as
construction of the facility began in 2009 or 2010. In all cases, the
application deadline is Sept. 30, 2011. The grant program will be
administered by the Treasury Department (not the Department of Energy),
and the grant amount will be paid within 60 days of the later of the
application date or the date the property is placed in service. The
grant will not be deemed taxable income, but, similar to the tax credit
programs, the grant would reduce the tax basis of the property. The
particulars of the cash grant program are still being developed, and
there might be additional reporting or other federal requirements for
developers and investors who opt for the grant rather than tax credits.
In addition to creating the cash grant program, the stimulus bill
extends the deadline of the already-existing production tax credit
program. The deadline has been extended for three years, so for
operational large-scale wind projects the deadline is Dec. 31, 2012,
and for other renewable projects, such as geothermal, landfill gas,
biomass and qualified hydropower, the deadline is Dec. 31, 2013. PTCs
are federal income tax credits based on produced energy generated from
a renewable energy project (e.g., for a large-scale wind project, the
current PTC rate is 2.1 cents/kilowatt-hour).
The stimulus bill also extends the deadline for the already-existing investment tax credit program. In lieu of PTCs,
developers may now claim a 30 percent investment tax credit for wind
facilities placed in service before the end of 2012 and for biomass,
geothermal, landfill gas, trash, qualified hydropower and marine and
hydrokinetic renewable energy facilities placed in service before the
end of 2013. ITCs are federal income tax credits that are based on a percentage of renewable energy project costs. The ITC
amount is the same amount available under the cash grant program
discussed above. Developers and investors must choose to take advantage
of only one program (PTCs, ITCs or the cash grant) for each project.
In addition to the benefits provided for large-scale projects, the
Stimulus Bill also provides benefits to the developers of small-scale
projects. One of these benefits is investment tax credits equal to 30
percent of the total installed cost of the system, which are available
for owners of small wind systems on homes, farms and businesses.
Additionally, the stimulus bill provides for a tax credit for
individuals of 30 percent of amounts paid for qualified energy
efficiency improvements placed in service in 2009 and 2010, up to an
aggregate of $1,500.
Whether you have a large project or a small one, the stimulus bill was
designed to encourage renewable energy projects. New incentives, plus
the extension of old incentives, are now available for green energy
developers. To receive federal government updates on the stimulus bill,
please visit www.recovery.gov.
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The Road Ahead
How the economy is affecting the lighting industry
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More articles from the Exchange section
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Source: ARCHITECTURAL LIGHTING Magazine
Publication date:
February 1, 2009
By Elizabeth Donoff
The current economic turmoil is
forcing individuals and businesses to address an unprecedented set of
challenges. While certain sectors such as the housing market have been
completely blindsided, the lighting industry, both in design practice
and manufacturing, is reacting somewhat differently. Firms and lighting
companies have remained busy and it is only now, at the beginning of
2009, that the lighting industry is starting to see the impact of
project slowdowns. What follows is an overview of some of the issues at
hand for the lighting community as it navigates present economic
conditions.
THE EFFECT ON DESIGN FIRMS AND DESIGNERS
Overall, the lighting community
has experienced unprecedented growth over the past several years. The
architectural community at large is more focused than ever on the value
of good lighting. Lighting designers, in the U.S. and abroad, were
still indicating at the close of 2008 that they remained extremely busy
and could not hire enough staff to support their project load. “There
are just not enough lighting designers out there to meet the demand,”
says lighting designer Brian Stacy, of Arup Lighting in New York. This
is in part due to the limited number of university-based lighting
design programs and the correspondingly small number of graduates
entering the workforce each year. Additionally, there is a gap between
entry- and senior-level professionals; past recessions removed the
ever-valuable midcareer designer from the continuum as they left
lighting for other industries.
While many architecture firms
are being forced to cut significant percentages of their staffs, at
present lighting design firms are not facing a similar situation. With
a growing group of newly unemployed architects and designers looking
for work, as well as recent architecture graduates entering a
profession that is not hiring, one wonders if architecture's misfortune
could be lighting's gain? Lighting designers could take advantage of
tapping into new employee streams. But the opportunity may vanish
quickly. As projects are canceled or put on hold, and the effects
trickle down to lighting designers, they may lose the chance to recruit
this potential human resource. The lighting community may be equally at
risk of losing its own group of recent and new graduates from lighting
programs, as they search for employment in other fields during these
difficult economic times. “There are some upcoming graduates we'd like
to hire,” says Glenn Heinmiller, principal at Cambridge, Mass.–based
Lam Partners. “But given the economic situation, we need to be
especially careful about our employment commitments.”
ON THE MANUFACTURING FRONT
Many companies such as B-K
Lighting, Day-Brite Lighting, Erco, Litecontrol, Martin, Selux, and
Visa Lighting indicated stellar growth overall through the end of 2008,
commenting generally that they had seen some of their highest sales
figures to date. Brian Golden of Hanson, Mass.–based Litecontrol notes
the company had experienced record shipments at the end of 2008. “There
is no doubt that 2009 is expected to be difficult,” says Nick Bleeker,
director of business development for Tupelo, Miss.–based Day-Brite
Lighting.
Initially, when the U.S.
housing and mortgage crisis began to reveal itself in summer 2008,
lighting manufacturers were operating under production schedules with a
12- to 18-month outlook. From June to December 2008, manufacturers
reworked these timelines to a more immediate three- to six-month window
that will require designers and manufacturers to be much more efficient
in their project planning. “We anticipate a slowdown in the next
quarter as jobs are being pushed off by a month or two,” Golden says.
Since November 2008, lighting manufacturers have seen a decline in
quotes, an indicator in a general slowdown of new work.
GAUGING THE FUTURE
In an effort to assess business
cycles, designers and manufacturers alike are paying close attention to
several construction- and lighting-specific economic indexes, including
the American Institute of Architects (AIA) Architecture Billings Index
(ABI) and the National Electrical Manufacturers Association (NEMA)
Lighting Systems Index (LSI). In December, the ABI, for the second
consecutive month, posted its lowest level since the survey was
initiated in 1995: 34.7. The ABI has fallen below 50 for eight
consecutive months. (Scores above 50 represent billing increases.)
Inquiries for new projects scored at 38.3, also a historic low. A
regional look indicates that the Northeast (39.5) remains busiest in
terms of project activity followed by the South (36.8), West (33.5),
and Midwest (31.4). In terms of project types, mixed practice (44.5)
remains strong followed by institutional (40.8), multifamily
residential (30), and commercial/industrial (26.7).
The LSI, the key index for
lighting manufacturers, declined by 4.3 percent in the third quarter of
2008. And while the index has fluctuated over the past several
quarters, overall it has contracted by 7.5 percent in the past year,
and by 12 percent since the start of 2006. (Data from 2002 is used as
the index's 100-point benchmark.) The third quarter of 2008 represented
a point level of 92.5. Previous lows date back to the fourth quarter of
2006 (93.5) and the first quarter of 1999 (94.5). The low mark for the
third quarter of 2008 indicates the reduction of domestic shipments for
all six lighting equipment segments—ballasts, emergency lighting,
lamps, lighting controls, luminaries, and solid-state lighting—with
large lamps posting the greatest overall decline.
Not surprisingly, demand for
residential lighting equipment was weak. Housing starts are limited,
and builders still do not have a sense whether the market has hit
bottom. Very few lighting design firms have concentrated their
practices solely on residential work, and it appears that manufacturers
will continue to feel a greater impact in this sector than designers.
IS GREEN DESIGN AT RISK?
With banks limiting credit and
consumers being extremely cautious about new purchases, even
energy-efficient lighting equipment, such as compact fluorescent light
bulbs, has experienced a decline in sales according to the LSI.
Belt-tightening consumers view the higher first-cost pricing of such
products as a deterrent. While this might seem like a small point, it
actually calls attention to a much more troubling scenario: The
economic recession could stunt the growth and success of the green
building movement.
Contrary to what the LSI
indicates for the green residential market, lighting manufacturers who
create products for the commercial sector remain confident that
lighting specifiers will continue to request energy-efficient products.
“It's about producing luminaires that optimize performance,” Day-Brite
Lighting's Bleeker says.
for the rest of the article go to..... http://www.archlighting.com/industry-news.asp?articleID=862346§ionID=1311
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It’s time to profit from history. |
How to sell in a recession
Learn from the past
By Fred Kessler
Click here for a printable version. | |
Worried about your sales numbers? You should be.
You
should be aware of the problems and opportunities in this economy and
that business failure rates are increasing and haven’t peaked.
With
the last serious economic downturn more than 30 years ago, not many
current sales professionals were in sales in the mid to late 1970’s. So
if you are under 53, you haven’t sold in a tough economy.
The
recession of 1980-‘82 was one of the mildest in history and represented
more economic stagnation than loss. So if you are under 46, you likely
didn’t sell during that mild recession either.
Sales reps will
cite the bubble burst at the turn of the millennia — but in real
economic terms, the economy grew those years. We’ve seen the longest
period of economic expansion in history. There is an unfortunate price
for the good fortune: The sales force of today isn’t prepared to deal
with selling in a recession.
Here are three keys to selling in a recession that may help you:
Down economic times doesn’t mean there isn't any money to spend.
It
just means that customers are driven differently than in a boom
economy. Customers are saying money is tight. Credit lines have been
disappearing, profits are down, non-essential spending is down — so
customers aren’t lying but they aren’t telling you everything either.
The
customers aren’t saying there is no money. Every major study in sales
since 1950 has found that neither price nor budget is any higher on
buying motivations. But in a recession, what does drive a customer?
Neil
Rackham, author of "Spin Selling," gave the compelling statistics on
selling in a depressed economy this year. What swayed customers in the
Great Depression, the recessions of 1953-‘54, the 1973-‘75 recession,
the 1980-‘82 recession and today’s recession? Customers want protection
- they want to avoid risk and will pay a premium to do so.
During
down economic times, people want security even if it is at a price.
Price or "no budget" objections are an easy way to get rid of sales
reps because most won’t probe further. When you don’t know what will
happen with your vendors, clients, or credit lines — wouldn’t you want
a little more security as well?
Force objectivity about your pipelines.
It’s tempting to stick with the prospects that you already know as times get tough. It’s tempting but it will cost you dearly.
Chasing losses isn’t something only done in Vegas. Its typical human
behavior to want to invest "just a little more" to reclaim our losses.
Sales is no different. The prospects that you’ve called on five or six
times that you know are stalled or aren’t closing take on an added
perception of value in tougher times.
You already know these
prospects and feel like you’ve already made the investment to get "this
close." Sales reps will call these prospects twice as often in a
recession than they otherwise would. The result? The sales numbers go
down.
Those customers didn’t close in the normal amount of time
for a reason. You will be more profitable spending that extra time
developing new prospects than to resurrect a customer that never was
close to closing. This can give you an edge since your competitors are
likely making the same mistake and not focusing on new prospects.
Aggressiveness in sales and sales management wins the day in tough times.
A
down economy presents a chance for radical change. The job market is
drying up, and, as we pointed out earlier, people will pay more for
security (including your sales staff).
Make the changes you
know will improve your sales performance and profitability but that you
haven’t tried for fear of rocking the boat. Radical thinking and
aggressiveness are the key characteristics of successful sales people
and successful businesspeople in general.
Your sales force has
to be aggressive, know how to ask questions, and be rewarded well when
they succeed. Focus your efforts on what makes you money — the
successes within your sales group. Many companies will cut budgets, lay
off trainers and cut sales support or marketing. Drinking less water in
a drought just delays the inevitable. The solution is to find new
sources of water and use every tool you have to get there.
The
times are challenging for sales. But they’ve been so before and will be
so again. You can either profit from the opportunity or become a
statistic.
It’s time to profit from history.
Fred
Kessler is the president and CSO of Sales Partnerships, Incorporated in
Westminster. Contact him at 303-412-3185 or via email at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
.
http://www.cobizmag.com/articles.asp?id=2515&page=2
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