GREEN BUILDINGS MARKET FORECAST - Demand for Building Products, Metro Vancouver, 2019-2032 - Measuring the Economic Impact of the BC Energy Step ...
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GREEN BUILDINGS
MARKET FORECAST
Demand for Building Products, Metro Vancouver, 2019–2032
Measuring the Economic Impact
of the BC Energy Step Code
I
vancouvereconomic.com
@VanEconomic | 1.866.632.9668 TABLE OF CONTENTS
About Us
The Vancouver Economic Commission (VEC) serves one of the world’s fastest-
growing, low-carbon economies, contributing to a metro region representing SECTION 1 ECONOMIC OPPORTUNITIES 01
60 percent of B.C.’s economy and an annual GDP of $138B. BEHIND THE MARKET DATA 03
As the economic development agency for the city’s businesses, investors and
citizens, VEC works to strengthen Vancouver’s economic future by supporting SECTION 2 B.C.’S GREEN BUILDING SECTOR 09
local companies, attracting high-impact investment and promoting international
trade. VEC works collaboratively to position Vancouver as a global destination for Fenestration 11
innovative, creative, diverse and sustainable development. Insulation 13
Today, the green economy employs one in 15 Vancouverites and VEC works to
Heat Recovery Ventilators 15
unleash its economic potential by working with industry partners in the green Air Source Heat Pumps 16
buildings sector to: Domestic Hot Water 19
Drain Water Heat Recovery 20
→→ Support manufacturers in the transition to meet future demand
→→ Enhance B.C.’s industry relationships with key overseas markets
→→ Create more local IP while gaining access to global innovations
SECTION 3 VANCOUVER ECONOMIC COMMISSION SUPPORT 23
→→ Conduct and publish original research on the green economy
→→ Improve affordability and support the development of more efficient local SECTION 4 SELECT BUILDING PRODUCT COMPANIES 25
supply chains
ENDNOTES 27
Report Author: Juvarya Veltkamp, Vancouver Economic Commission
ACKNOWLEDGEMENTS 28
Our Partners
We gratefully acknowledge the financial support of the Discovery Foundation,
as well as BC Housing through the Building Excellence Research & Education
Grants Program.
Funding Partner
Advisory Committee Members
Research Partner Foundational Partners
Cover Image Source: Cascadia Windows and Doors
Photo: Alfred Hermida, Flickr
II III
01 “W e’ve been trying to encourage curtain wall and fenestration manufacturers from
Europe making Passive House-certified units to bring their products to Canada,
and they are looking for hard data and market information on which way the market is
going.
This report provides concrete market data, which can be very useful for them and other
manufacturers, architects, municipalities, and developers.”
Cillian Collins
Senior Architect, Perkins+Will
ECONOMIC OPPORTUNITIES
and B.C.’s Building Regulations
Vancouver and British Columbia’s zero emissions and net-zero energy ready
building policies are stimulating a $3.3B market for high-performance building
products and technologies in Metro Vancouver
Vancouver has a long history of pioneering approaches to planning and built
forms from the continuous public waterfront to the podium-tower development
model that have been emulated worldwide and become globally branded as
$3.3B
“Vancouverism.” In the 1980s and 90s, British Columbia's “leaky condo crisis”
sparked further development of deep local expertise in building envelope and
mechanical system performance. The end of the crisis dovetailed with the Kyoto
Protocol and a growing emphasis on reducing carbon emissions. Local engineers
subsequently turned their attention to the next big topic related to building
market value for building enclosures: energy efficiency. Vancouver has established expertise in these Photo: Andrew Latreille / Courtesy: Perkins+Will
areas, and continual revisions of local building codes have set iteratively greener
$12M
products in Metro Vancouver building standards. The World Green Building Council has recognized the City of This report is designed for manufacturers, suppliers, investment partners
2019-2032 Vancouver as having the “Best Green Building Policy” of any jurisdiction in the
(VEC) and other industry professionals to help them understand and prepare for
world.1 changes in building product demand and performance requirements in Metro
Vancouver as a result of the BC Energy Step Code.
Vancouver has a goal to be 100 percent powered by renewable energy by 2050,
with all new buildings producing zero emissions before 2030.2 3 British Columbia annual energy savings
The Vancouver Economic Commission (VEC) is working with a wide group of
(B.C.) plans to reduce carbon emissions by 40 percent by 2030 (based on 2007 industry partners to advance economic development within B.C.’s green building (2007–2015) for Vancouverites
levels), and the BC Energy Step Code charts a path for all new buildings across sector with a focus on the following: due to City of Vancouver’s
B.C. to be net-zero energy ready by 2032.4 5 successful reduction of carbon
→→ Supporting local manufacturers with transitioning knowledge, equipment, and emissions from buildings9
Constructing buildings to meet these high-performance standards is set to drive marketing to meet current and future demand
a $3.3 billion market for building products in Metro Vancouver (2019–2032).6
Globally, the green building materials market is estimated to be worth over $350 →→ Enhancing B.C.’s industry relationships with key overseas markets
$350B
billion by 2022.7 B.C. currently imports many of the technologies required for →→ Creating more local intellectual property (IP) while accessing global innovation
high-performance buildings, in particular mechanical equipment such as heat →→ Improving affordability by creating more resilient and efficient local supply
pumps and heat recovery ventilators. Manufacturing the products required chains while reducing transportation distances, costs, and logistical risks
in Metro Vancouver from 2019–2032 would support an average of 925 each
year; currently, only one-third of these jobs are located in B.C.8 Installing these →→ Increasing the overall number of manufacturing jobs in B.C.
market value for the global products would support an average of 770 local installation jobs.
green building market by 2022
(IMARC Group)
1 2
BEHIND THE MARKET DATA Delivering High-Performance Buildings
Requires a Wide Range of Products and Technologies
A Roadmap for Changes in Demand Adapted from:
The BC Energy Step Code is an amendment to the BC Building Code that
provides consistency and predictability as the market transforms towards net-
zero energy ready buildings. The performance requirements for each step were
developed over two years through a province-wide, consensus-building process,
supported by energy modelling and analysis.10 This analysis provided insights
into the technologies suitable to meet the requirements of each step. Renewable Energy
& Batteries Heat Pumps
The VEC built on this analysis to develop a ‘Market Demand Forecasting Tool’
that forecasts the demand for building products and technologies–and the
required performance level–as a result of the BC Energy Step Code.
Virtual Reality
& Building
The Market Demand Forecasting Tool was developed in consultation with a wide Information Systems
range of real estate and construction industry experts convened by the VEC over
eight months in 2018, with modelling provided by The Delphi Group.11 All market
forecast data in this report is from this tool unless otherwise stated.
High-
Thermal Performance
Break
Demand for Building Products Solutions Drain Water
Heat Recovery
Lighting
Metro Vancouver, New Construction, 2019–2032 Forecast (cumulative) Systems
Insulation
$2,000 Mass Timber
Potential increase with stricter GHGi requirements
$1,819
Potential increase with stricter GHGi requirements
Potential increase with stricter GHG requirements
& Engineered
$1,800 Wood Products
Air-Sealing
$1,600 Accessories
& Air-Barriers
$1,400
Heat
$1,200 Recovery
$ Millions
Ventilators
$1,000 $881
Smart Meters
$800 and Controls
$600
High Performance
$400 Windows & Doors
$228 $180 $187
$200 $37
Page 11 Page 13 Page 15 Page 16 Page 19 Page 20
Fenestration Insulation Heat Recovery HVAC Domestic Drain Water Fenestration Insulation Heat Recovery HVAC Domestic Drain Water
Products Products Ventilators Equipment Hot Water Heat Recovery Products Products Ventilators Equipment Hot Water Heat Recovery
(HRVs) (Including Heat Pumps) (HRVs) (Including Heat Pumps)
Methodology
5 Building Archetypes & Material Costs Fenestration Products
The Market Demand Forecasting Tool is a responsive, Excel- Supply-side insights were developed from 30 key informant September 2017 Metrics Research Study, Integral Group (updated 2018)
Insulation Products
based tool designed to estimate demand for six categories interviews with leading subject-matter experts. All research Product & Material Quantities
of building products. and modelling was conducted by The Delphi Group on Blend of lowest incremental cost and net present value Market Demand
Heat Recovery Ventilators
Forecasting
behalf of VEC, and is further detailed in the technical Construction Activity & Growth Rates Tool HVAC Equipment (including Heat Pumps)
Key variables and inputs to the tool are illustrated in the policy report the BC Energy Step Code Supply Chain and Metro Vancouver 2040 Regional Growth Strategy and Avison Young forecasts
Domestic Hot Water
graphic to the right. Economic Opportunities December 2018. Energy Step Code Adoption Timelines
Local government timelines and CleanBC energy efficiency targets (2018) Drain Water Heat Recovery
3 4
An Even Bigger Market Exists The BC Energy Step Code:
A High-performance Staircase
The $3.3 billion figure for the size of the market is just the tip of the iceberg.
Due to study limitations, the data does not include all the potential demand for
building products in several key areas: The BC Energy Step Code is a "high-performance staircase" that offers a voluntary
path for local governments to require a higher level of energy performance than that
Accelerated Uptake of the BC Energy Step Code required in the BC Building Code regulation.18 The BC Building Code itself will work
Just five local governments (representing approximately 50 percent of Metro its way up through the steps and the highest
Vancouver’s new construction) had announced plans to adopt higher levels step of the BC Energy Step Code will become
Energy Standards at a Glance the minimum standard for all of B.C. by 2032.
of the BC Energy Step Code when the Market Demand Forecasting Tool was
developed in 2018.12 As more municipalities adopt similar standards, this will TEUI TEDI GHGI The CleanBC climate strategy indicates that
kWh/m2/year kWh/m2/year KG CO2e/m2/year Part 9 of the building code (small buildings and
grow the forecasted demand beyond $3.3 billion. If all of the communities that
Passive House
Benefits of Strengthening B.C.’s Green B.C.’s Manufacturing Renaissance
Building Supply Chain
30% With sales of over $50 billion in 2017, B.C.’s manufacturing sector has
increase in B.C.'s grown more than 30 percent over the last five years and is a key driver of
B.C. has strong capabilities and assets in green building engineering, design and manufacturing sales in intellectual property, innovation and high-paying jobs.20 21 22
construction, along with local access to raw materials including wood and mined five years
metals. However, B.C. imports many of the products required for net-zero energy More than 65 percent of industrial businesses in Vancouver plan to
and zero emissions buildings, in particular mechanical equipment such as heat expand in the next two years23. Globally, startups in sectors such as
pumps and heat recovery ventilators. advanced manufacturing and robotics have seen a nearly fourteen-fold
increase in total funding value (2012–2017).24
A concerted effort to build on B.C.’s strengths and increase
the proportion of high-performance building products
60,000 Even the dense, urban city of Vancouver is home to 60,000 industrial jobs
Incentives industrial jobs in City of in production, distribution and repair (15 percent of all jobs in the city), of
manufactured or assembled in the province would allow which 58 percent pay a living wage.25 26 Small and medium-sized industrial
This report highlights some of the incentives
B.C. to capture economic opportunities from relocalizing the
Vancouver
available for net zero energy buildings and high- enterprises contribute $2.4 billion annually in wages to Vancouver’s
supply chain. These opportunities include: economy.27
performance building products – check out each
product section for details of product-specific →→ The creation of local technology and IP
incentives. →→ Strategic investment into B.C.’s manufacturing infrastructure Each manufacturing job in B.C. supports an additional 3.5 indirect or
→→ Workforce development "spinoff" jobs (e.g. in transportation, packaging or accounting), and
EfficiencyBC | efficiencybc.ca →→ The proliferation of well-paying, sustainable employment procurements from local businesses recirculate at least 30 percent of
EfficiencyBC offers homeowners and businesses opportunities revenues within the local economy.28 29
access to information and incentives to reduce →→ Reducing transportation distances from plant to site
energy use and greenhouse gas emissions in →→ Improving access/affordability of building products in B.C.
new and existing homes and buildings. Incentives
are administered by BC Hydro, FortisBC and BC For instance, if B.C. is not manufacturing a particular
Housing. technology, there is an opportunity to leverage the market Construction Industry by the Numbers
data in this report to catalyze local entrepreneurs and
Fortis Commercial New Construction manufacturers or attract outside investment to B.C. Global B.C. Construction Projects City of Vancouver Building Permits
Performance Incentives | fortisbc.com partnerships and joint ventures with local companies offer the Value and GDP Contribution, 2014–2018 Value and Number of Permits, 2014–2018
Up to $500,000 for larger, more complex buildings international partner access to local and regional markets (e.g. 120 8.6% $6 7,000
that achieve a higher whole-building energy (TEUI) Cascadia, Asia Pacific), as well as an opportunity to customize
Number of Permits
100 8.4% $5 6,800
performance than the minimum B.C. Building Code. and tailor their goods to local specifications. Local companies 6,600
Percentage
80 8.2% $4
CAD$B
CAD$B
benefit from licensing or creating new, jointly owned IP and 60 8.0% $3
6,400
6,200
accessing global capital and supply chains worldwide. 40 7.8% $2
6,000
20 7.6% $1 5,800
0 7.4% 0 5,600
This mirrors a global trend: uncertainties marked by trade wars, political shifts 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
and volatile commodity markets, coupled with social and environmental concerns Value of Projects Underway Contribution to B.C. GDP Value of Permits Issued Number of Permits Issued
and technological advancements, are leading to relocalization of supply chains $ Billions Percentage $ Billions Quantity
Source: BC Construction Association, B.C. Construction
around the world. Source: City of Vancouver, Issued Building Permits, 2018
Industry Statistics 2018
A U.S. subsidiary of Fujitsu partnered with Oregon’s Ventacity Systems to Green Buildings Jobs Jobs Opportunity for Meeting Metro Vancouver Demand
integrate Ventacity’s smart building controls systems and heat recovery Number of Jobs Annual Average Jobs, 2019–2032
ventilator within Fujitsu’s heating and cooling system, providing a more
efficient HVAC solution tailored to the Oregon market. 325 600
37,000 Manufacturing Jobs 925
“C
B.C., 2017
ascadia is pleased to be an innovator and manufacturer of products that enable buildings to Pembina Institute 770
be more energy conserving than ever before. VEC’s report further validates the need for this Installation Jobs 770
expertise, and that our industry’s supply chain is ready to advance to the highest of the BC Energy Step 298,000 7,700
Canada, 2014 City of Vancouver, 2016
Code levels.” CaGBC VEC Within B.C. Outside B.C.
Number of jobs Number of jobs
Michael Bousfield Source: VEC, 2018
Technical Director, Cascadia Windows & Doors
7 8
02 B.C.’s GREEN BUILDING SECTOR
At a Glance
In This Section
Page 11 Page 13 Page 15 Page 16 Page 19 Page 20
Fenestration Insulation Heat Recovery HVAC Domestic Drain Water
Products Products Ventilators Equipment Hot Water Heat Recovery
(HRVs) (Including Heat Pumps)
Reputation for durable home design,
Vancouver has an international reputation as a leader in the field of Green Buildings house-as-a-system best practices
Green buildings are the result of a complex value chain, from conception, design and construction Trades training enable accelerated
through to the manufacture and installation of products and technology, to ongoing maintenance and adoption of green construction practices
eventual deconstruction. e.g. BCIT High Performance Building Lab
World-class tech sector and startup
Vancouver and B.C. have a long history of innovation at every stage of this value chain, driven by ecosystem: virtual & augmented reality Green Demolition Bylaw promotes
technical expertise and know-how as well as pioneering policies that make this region stand apart on deconstruction and minimum recycling
issues of environment and climate change. for 3D visualization of blueprints, fine- requirements; 86 percent diversion rate
grained analysis of materials, energy and from single detached homes
geospatial data (City of Vancouver, 2017)
This report focuses on six key building products and technologies where the BC Energy Step Code is
driving local demand for high-performance solutions: fenestration, insulation, heat recovery ventilators,
BIM TOPiCs Lab, a centre of excellence in
heat pumps, domestic hot water, and drain water heat recovery. But B.C.’s green building sector is virtual design and construction at UBC
expansive and goes well beyond these products into a wide range of technologies, construction services
and professional expertise that make up B.C.’s green building sector.
Strength in control systems and using
sensors and artificial intelligence for
building automation and monitoring
One of the world’s largest exporters of
softwood lumber and the largest
Reputation for excellence in building
proportion of sustainably managed forests optical fibre, LED systems; quantum dot- envelope, mechanical engineering, LEED
enabled light fixtures and Passive House projects
Niche HVAC components (membrane
Growth in mass timber, engineered
technology; custom tube and shell
wood product manufacturing
heat exchangers) Green building design expertise in
Strong, fast-growing prefabrication demand around the world; 35 percent of
“Wood First” initiative advances use of industry delivers structural insulated 100+ window and door manufacturers, firms active internationally; industry growth
wood building systems; e.g. UBC’s panels, wood wall panels, assemblies 50 ENERGY STAR-certified World-leading drain water heat recovery has averaged 10 percent per year
18-storey Brock Commons, the world’s and district-scale sewage heat recovery (Statistics Canada, 2010)
tallest mass timber structure projects
Solutions for multi-family, commercial Small smart, dynamic glass cluster
and industrial construction even up to
BC Building Code allows 6-storey 25-storeys
woodframes rising to 12-storeys in 2020 Growth in thermal break innovations
Wood Products Prefabrication Fenestration Energy Recovery Contech Professional Services Construction & Trades
Supportive Ecosystem
Vancouver’s Greenest City and Renewable City Action Plans International Trade Agreements Presence of many non-profit facilitators Incentives & Financing Options
BC’s Carbon Tax
1st
» Set goals for Vancouver to be the greenest city in the world, » CETA (Canada-EU) » USMCA (Canada-US-Mexico) » CaGBC » BC Innovative Clean Energy Fund (BC-ICE)
» First in North America
and to use 100% renewable energy by 2050 » CPTPP (Canada-Asia Pacific including Australia and Japan) » Light House Sustainable Building Centre » NRCan Energy Innovation Program
» OPEN Green Building Society » NRCan Industrial Research Assistance Program (IRAP)
CleanBC » Passive House Canada » Scientific Research and Experimental Development (SR&ED) tax credit
Progressive building codes drive innovation and demand for high performance buildings CO2 » Province-wide GHG reduction targets with new financing and » Zero Emissions Building Centre (ZEBx) » Sustainable Technology Development Canada (SDTC) funds
» BC Energy Step Code » Vancouver’s Zero Emission Building Bylaw supportive policy advancing green buildings & low carbon energy
9 10
» Company Spotlight:
Cascadia Windows and Doors
B.C. Capabilities Risk Factors
Manufacturer of high-performance fiberglass ENERGY STAR
windows, employing 90 staff at a 90,000
Repetitive Retooling
square foot facility in Langley, B.C. B.C. fenestration industry has proven Demand for different performance
responsive to new standards in the levels could co-exist, requiring
past, developing double and even repetitive retooling and inventory
triple-glazed products. Today, there tracking33
25% are 50+ ENERGY STAR-certified
increase in average annual manufacturers across B.C. High-Cost R&D Needs
revenues for last 10 years
Smaller B.C. manufacturers may risk
High-Performance Ready being squeezed out if unable to invest
5-15 new hires Larger B.C. manufacturers have in R&D, product testing, certification,
indicated their capacity to upgrade
Cascadia Windows and Doors
expected annually technology upgrades. However,
through 2023 capabilities and deliver high- the High Performance Window
performance and even Passive Certification Program provides support
House-certified windows, given clarity for transition – see Incentives below.
F ENE STRATION
on timelines and market demand
North American Sales (Cascadia Windows, Innotech,
Windows and Advanced Coverings
Eurolines)32 Market Opportunities
Windows, skylights and doors, US$M Smart Glass Pan-Canadian Market
structural glazing and curtain walls $11,130 $1,830 A small cluster is developing smart, Manufacturers may consider alignment
2016 $12,960 self-tinting glass (Switch Materials and with emerging federal standards that
View Dynamic Glass) could require U-value
» Company Spotlight:
ROCKWOOL
B.C. Capabilities:
Prefabrication and Offsite Assembly
World's largest producer of stone wool, made
from natural basalt rock and recycled slag to
form high-performance insulation products. B.C. is home to a strong and fast-growing prefabricated building
Headquartered in Copenhagen, the firm’s and offsite assembly industry.
B.C. operations were established in 1999 in
Grand Forks.
Prefabrication offers multiple benefits Around the world, prefabrication
$3M relevant in the current real estate cycle is attracting significant investment.
Contribution to local of high land values and construction Tech giant Amazon invested in Plant
economy costs. Productivity in the construction Prefab, betting on smart modular
sector has grown only one percent homes with short delivery times.
200+ annually since the 1990s, while
manufacturing output has increased
B.C.’s wide-ranging capabilities span
from structural insulated panels and
employees
Photo: ROCKWOOL
three times faster.36 The controlled wood wall assemblies to technology-
environment offered by prefabrication, driven solutions for multi-family,
INSULATION
and the use of lean construction commercial and industrial buildings up
North American Sales approaches, automation and additive to 25-storeys (Stack Modular, Metric
manufacturing, allows improvements Modular, Horizon North, QUBE).
Weather Barriers and Efficient
in productivity that can cut costs and
Wall, roof, slab and foundation Insulation, US$M
improve affordability.
$660 $140
2016 $800
$710 $150
2017 $860
Market Opportunities
Demand Forecast for Insulation Materials B.C. Capabilities 2017– 8.9%
2022 Growth
New Construction, Metro Vancouver, 2019 - 2032 U.S. Canada Wood Fibre Insulation Hemp Products
100 M Low-Impact Materials Source: BCC Research Demand for wood fibre insulation may Legalization of cannabis in Canada
90 M Small niche producers of high- grow due to drivers such as Passive could create market for hemp
performance or environmentally Residential Insulation by Material House projects. Wood fibre insulation insulation but requires more data
Square Feet (millions)
80 M
benign products such as expanded United States, 2017 is not currently an area of expertise and analysis
70 M
polystyrene and stone wool, and 5% 5% for B.C. lumber companies. This would
60 M
potential for other cellulose materials require a different market mindset Deconstruction
50 M
such as wood fibre and hemp (most and partnerships with established Vancouver’s Green Demolition
27%
40 M insulation materials come from 63% European manufacturers to bring Bylaw is diverting wood products
30 M international manufacturers) know-how, efficiencies and technology from the landfill and driving market
20 M to B.C.37 for deconstructed materials (e.g.
10 M Thermal Break Solutions Unbuilders, Octiscapes, Green Coast
Fiberglass Cellulose
Thermal break solutions to overcome Prefabrication Rubbish)38
Foamed Plastic Other Expand capacity to deliver
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 heat loss from thermal bridging (e.g.
Cascadia Windows Cascadia Clip Source: Freedonia Focus Reports prefabricated panelized wall and Building Envelope Innovations
Wall Under Slab thermal spacer and fiberglass curtain curtain wall assemblies, and invest in Increased investment and R&D into
wall vent adaptor address heat loss lean construction approaches such thermal break innovation, capacity
Roof Foundation Wall Metro Vancouver Context
through building envelope; Monoglass as automation, off-site modular and building and product licensing
spray-on insulation helps with balcony 3D-printing materials
retrofits) 50%
increase in foundation wall
$880M
Mass Timber material demand after 2024
& Cross-Laminated Timber
Capabilities in mass timber and Part 9 (small buildings) driving
engineered wood products: cross- Metro Vancouver growth39
Incentives
market value for insulation laminated timber (CLT), dowel-
laminated timber (DLT), nail-laminated
materials in Metro Vancouver timber (DLT) and glulam (Structure Home Renovation Rebate and EfficiencyBC Program | efficiencybc.ca
(2019–2032) Craft, Structurlam, B.C. Passive Homeowners can receive up to $5,500 in rebates for installing insulation
House, Seagate Structures); driven in their homes
by regulations allowing for expanded
13 wood and tall wood construction 14
Photo: Core Energy Systems
H E AT RECOVERY VENTIL ATORS AI R S OU RC E HE AT P UM P S
Photo: Lamiot
Heat recovery ventilators and Air-to-air heat pumps, air-to-water heat pumps,
energy recovery ventilators ductless mini-split heat pumps
Demand Forecast for Heat Recovery Ventilators Demand Forecast for Air Source Heat Pumps
New Construction, Metro Vancouver, 2019–2032 New Construction, Metro Vancouver, 2019–2032
14,000
Global Sales North American Sales
3,500
12,000 Energy Recovery Ventilators, Heat Pumps 3,000
US$M US$M
Number of Units
Number of Units
10,000 2,500
2012 $2,600
$1,800 2015
8,000 2,000
2017 $4,180
6,000 2016– 1,500
11.5%
Growth 2024 2017– 4.3%
2022 Growth
4,000 1,000
Source: Transparency Market Research Source: Freedonia Focus Reports
2,000 500
Metro Vancouver Context Metro Vancouver Context
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
3x 3x
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
60% Efficiency 60% Efficiency
Residential Commercial increase in demand for increase in demand for residential Cold Climate Air Source Heat Pumps
Residential 25 mbh
Split-Type Commercial Heat Pumps
60 mbh
70% Efficiency 80% Efficiency 75% efficient residential units units (25 mbh*) in Metro Cold Climate Air Source Heat Pumps
Residential Commercial
after 2024 Vancouver after 2024 Commercial 720 mbh
75% Efficiency
Residential
Units Required Units Required
$228M $121M
119,600 residential 15,510 residential
in-suite units (100–200 cfm*) units (25 mbh )
26,800 large commercial 10,200 small commercial
centralized units (>600 cfm) units (60 mbh)
560 large commercial
units (720 mbh)
market value for heat market value for air source
recovery ventilators in Metro heat pumps in Metro
Vancouver (2019–2032) Vancouver (2019–2032)
mbh = 1,000 BTU/hour
cfm = cubic feet per minute BTU = British Thermal Unit
15 16Expanding Influence of Carbon Reduction Policies
Vancouver, Burnaby, New Westminster, Richmond and Surrey utilize a mixture of Low Carbon Energy
System (LCES) and Greenhouse Gas Intensity (GHGi) metrics in addition to TEUI and TEDI standards. These
requirements are expected to drive fuel switching, favouring renewable electricity and renewable natural gas,
the former further increasing demand for low carbon technologies like heat pumps.
Total Percentage of Regional Population
using GHGi/LCES:
68%
Photo: Core Energy Systems
City of Burnaby
City of Vancouver LCES 10%
GHGi 26%
Industry Risk Market
Competitiveness Factors Opportunities
City of New Westminster
GHGi & LCES 3%
High Barriers to Entry Cold Climate Phased Availability
The high capital investment and Performance of air source heat Manufacturers and suppliers can time
economies of scale required for pumps may suffer in below-freezing investments into B.C. based on demand
manufacturing heating ventilation and conditions; cold-climate air source heat (residential heat pumps and 75-percent- City of Surrey
air conditioning (HVAC) equipment, pumps (optimized for temperatures efficient residential HRVs needed now; LCES 21%
means high barriers to entry. This as low as -25C°) are being tested and demand doubles after 2024) City of Richmond
has resulted in the dominance of offered in Canada40 LCES 8%
multinationals based in Asia, Europe Co-Production
and the United States; some limited Few High-Efficiency Models Potential for partnerships to encourage Legend
manufacturing exists in Quebec and Current shortage of heat recovery product licensing, customization Regulatory System Used
Ontario ventilators >75 percent efficiency and assembly in B.C. For instance
in B.C.41 local component and control system
Established Suppliers companies can offer market access Percentage of Regional Population
Builders and project developers Upfront Capital to international partners. The North
tend to purchase complete HVAC Investments in heat recovery American market for energy-efficient
systems and related components from ventilators can incur additional upfront controls, including thermostats and
established national and international construction costs. However, when smart home automation in residential Incentives
manufacturers and suppliers evaluating an impact on affordability, buildings, was $2.5 billion in 2017
the total cost of ownership should be with an expected annual growth of 18 Home Renovation Rebate and EfficiencyBC Program | efficiencybc.ca
considered, as lifetime heating costs percent through 202243 Homeowners can receive up to $2,000 in rebates for installing central system, mini- or multi-split air source heat
for the owner are significantly lower42
B.C. Capabilities Benign Refrigerants
pumps in their homes. Select municipalities offer an additional $2,000 when converting from fossil fuels.
HRV Models and Brands Cold climate heat pumps that work in FortisBC Air Source Heat Pump Loan Program | fortisbc.com/rebates/home
Niche Manufacturing colder climates, and CO2 heat pumps
Niche components, including high- By Sensible Recovery Efficiency (SRE) Homeowners can borrow up to $6,500 at 1.9 percent interest for installing high-efficiency central or variable speed
that replace refrigerants with greater mini- or multi-split air source heat pumps.
performance membranes (Core 100
global warming potential
Energy Recovery), custom tube
and shell heat exchangers, ducting
100
North American Market FortisBC Air Source Heat Pump Rebate for Non-Profit Organizations | fortisbc.com/rebates/business
Co-ops, Indigenous housing providers, nonprofits or charities can receive incentives for cold climate, packaged
Quantity
systems, and vents 80
Manufacturers may consider early
60 alignment with wider provincial, federal terminal and Variable Refrigerant Flow (VRF) heat pumps.
Monitoring & Control Systems 40
and U.S. standards driving demand for
Strength in control systems allowing high-performance HVAC equipment44
optimal operation and monitoring of 20
HVAC and other energy efficiency or 0
air quality equipment (Delta Controls, 65% to 70% 71% to 75% 76% to 84%
SRE
Ecotagious, Rainforest Automation,
Sensible Building Science, TZOA) Number of Brands Number of Models
Source: ‘Research Local High-Performance Building
Supply for New Low-Rise Homes’, Arash Shadkam
(Greenest City Scholar), Prepared for City of Vancouver
17 Sustainability group, August, 2018.45 18Photo: Olympic International/Smartforme solutions
Photo: SHARC Energy Systems
DOMEST IC HOT WATER DRAIN WATER HEAT RE C OV ERY
Instantaneous natural gas, electric storage, hot water heat pumps, Copper drain wrap arounds and
boiler combination systems (heating/hot water), condensing boilers large scale heat exchangers with or without storage
Demand Forecast for Domestic Hot Water Systems Demand Forecast for Drain Water Heat Recovery
New Construction, Metro Vancouver, 2019 2032 New Construction, Metro Vancouver, 2019 2032
North American Sales Global Context
8,000 4,500
Tankless Water Heaters 4,000
7,000
20,000 units
Number of Units
Number of Units
US$M 3,500
6,000
drain water heat recovery units 3,000
$396 $84
5,000
2016 $480
were manufactured and installed 2,500
4,000
$451 $97
globally, almost exclusively in 2,000
3,000 2017 $548 Canada in 2015 1,500
Source: California Energy Commission
2,000 1,000
2017– 16.5%
1,000 2022 Growth 500
U.S. Canada Metro Vancouver Context
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Source: BCC Research
Gas Instantaneous Gas Instantaneous Heat Pump Water Heaters 3x
Residential Commercial
US$M increase in demand for Residential Commercial
Electric Storage Electric Storage drain water heat recovery
Residential Commercial Residential Commercial
Heat Pump Hot Water Combo
$132 $18
products between 2019 2022
Residential Commercial 2016 $150
Residential Commercial
Heat Pump Hot Water $151 $22
Demand by type 2019 2032:
Commercial 2017 $173 Residential
Condensing Boiler 36,300
$187M $37M
Residential
2017– 14.3% residential in-suite units
2022 Growth
3,100
U.S. Canada commercial systems
Source: BCC Research
Metro Vancouver Context
market value for domestic hot water systems in market value for drain water
Metro Vancouver (2019 2032) 3x heat recovery systems in Metro
increase in demand for residential Vancouver (2019 2032)
hot water heat pumps in Metro
Vancouver after 2029
19 20Photo: Vancouver's Neighbourhood Energy Utility (NEU)
Industry
Competitiveness
Market
Opportunities
Company Spotlight:
Vancouver’s Neighbourhood
»
Energy Utility (NEU)
Global Significance Regulatory Changes Operating since 2010, this district energy
Highly competitive supply chain for Drain water heat recovery demand system captures energy from sewage and
delivers heat and hot water to 5.3 million
domestic hot water systems and growing across North America: square feet of residential, commercial and
market dominated by large, global required by code or supported institutional floor space
manufacturers; Canadian water heater by incentives in Ontario, Alberta,
manufacturing largely relocated to Manitoba; increasing in United States 5.3 million sq. ft.
United States over past ten years due also; opportunity to ramp up capacity floor space served
to labour costs, exchange rates to meet greater demand, especially
given timelines and market projections ~45,000 MWh
Cold Climate (burgeoning demand across Metro annual sales of energy
Five primary manufacturers of drain Vancouver 2019–2022)
water heat recovery units all located
in Canada (EcoDrain, EcoInnovation
Technologies, RenewAbility Energy, Company Spotlight:
SHARC Energy Systems, WaterCycles SHARC Energy Systems
Energy Recovery). All report being
able to meet growing demand with Industry-leading DWHR technology
manufacturer and installer, with
existing capacities.46 neighbourhood-scale sewage heat recovery
systems in operation around the world. A
B.C. SHARC system is installed at Vancouver’s
NEU to assist sewer screening in a
Capabilities hermetically-sealed environment, removing
odour from sewer heat recovery
Local Manufacturers
Some manufacturing of hot water
x7
increase in revenues
tanks (Advance Metalpres) and in past 5 years
several boiler makers (IBC Boilers)
up to 100
Sewer Heat Recovery employess in next 5 years
Local manufacturing of drain water (currently 12 in Canada)
heat recovery (SHARC Energy
Systems, that also specializes in 5,000 sq. ft.
district-scale sewage heat recovery facility in Port Coquitlam
systems)
Company Spotlight:
Smartforme solutions
Provides a total heating, cooling and
domestic hot water system that reduces
carbon emissions on buildings to near zero
levels using a combination of technologies
CO2 83%
reduction in carbon
Incentives emissions
Home Renovation Rebate and EfficiencyBC Program | efficiencybc.ca
Homeowners can receive up to $1,000 in rebates for installing heat pump
water heaters, or up to $3,000 for combination space and water heat
pump systems.
21 2203
VEC SUPPORT The Tech Deployment Network (TDN) | vancouvereconomic.com/gddp
for the Green Building Sector Launching in 2019, the TDN is a member-based demonstration network
comprised of major asset owners in Vancouver sharing common visions, values,
and goals around sustainability, intelligent facilities, and the customer experience.
The Vancouver Economic Commission (VEC) serves one of the world’s fastest- The program builds on the existing Green and Digital Demonstration Program
growing, low-carbon economies, contributing to a metro region representing (GDDP), but expands its impact regionally. TDN communicates the members'
60 percent of B.C.'s economy and an annual GDP of $138B challenges through an online portal and allows innovators to submit targeted
project proposals through an intake process. VEC scouts, screens, and shortlists
To learn more about any of our VEC strives to ensure inclusive, sustainable prosperity for all in our region. projects while promoting the region as a global hub for tech adoption.
programs, get in touch with As the economic development agency for Vancouver, our approach is data-
VEC’s green economy team at driven and aligns with the best practices of leading global peer cities, such as “TDN is a technology partnership that eliminates traditional bureaucratic obstacles to innovation at the municipal
info@vancouvereconomic.com
New York, Portland and London. VEC has defined, measured and reported on level. The VEC acts as an external advocate, uniquely positioned to remove challenges that would otherwise
green economy metrics since 2010, and developed targeted programs that curtail innovation.”
aid Vancouver's transformation towards a low-carbon economy by supporting
innovative local entrepreneurs, businesses and talent. Jason Harmer
CEO, GetWorkers
Green Building Market Acceleration Platform (MAP)
This report is the foundation for VEC’s efforts to advance the green building
sector in response to the BC Energy Step Code. We continue to work with a wide
group of partners with a focus on the following: Thriving Vancouver | thrivingvancouver.com
Thriving Vancouver empowers businesses to introduce sustainable options
→→ Supporting manufacturers in transitioning to meet future demand into their daily operations by connecting the Vancouver business community to
→→ Enhancing B.C.’s industry relationships with key overseas markets curated resources, such as solutions providers, workshops, events and vendors.
→→ Creating more local IP while gaining access to global innovations
→→ Conducting and publishing original research on the green economy Impact 6 Pack | vancouvereconomic.com/impact-6-pack
→→ Improving affordability and supporting the development of more efficient Over six weeks, participating businesses work with a collaborative and
local supply chains supportive cohort to craft their impact business model and implement impact
strategies in their business. The course is comprised of six modules designed
Industrial Concierge | vancouvereconomic.com/space-sharing to build a strategic impact plan unique to each business. The course concludes
The Industrial Concierge Service addresses industrial space challenges in with a celebratory wrap party attended by members of Vancouver’s growing
Vancouver by activating underused industrial spaces and simplifying the space- impact ecosystem, special guests of the course, and previous Impact 6 Pack
sharing process for industrial operators. This service assists industrial businesses participants.
with finding industrial space, the permitting and licensing process, and
establishing governance structures and financing models – occasionally through Capital Mentorship Program | vancouvereconomic.com/cleantech-capital
space-sharing projects such as the Material Innovation and Learning Lab (MILL). The Discovery Foundation Capital Mentorship Program is designed to help
early-stage, for-profit entrepreneurs become more strategic in raising the capital
“The VEC Industrial Concierge is an invaluable asset for groups looking to find affordable space in the scarcity of critical to accelerating their ventures. The program is a series of impactful events
Vancouver's industrial lands. In 2018 the Industrial Concierge was instrumental in helping the MILL Co-op take our next featuring panels, workshops, pitch training, investor–company matching and
steps, both as an organization and towards finding our ideal location. We wouldn't have gotten this far without them.” networking opportunities.
Emily McGill Vancouver Startup City | vancouvereconomic.com/vancouverstartupcity
Founding Member, MILL Co-op Vancouver Startup City increases access to funding and deal flow opportunities,
investor networking, and startup education. Past programs have included
Startup City: Capital and Startup City: Impact – both week-long activations of the
Vancouver startup ecosystem.
23 24Category Company Name Product Location Website
Columbia Manufacturing Co. Ltd. Windows Burnaby columbiaskylights.com
04
Csky Windows Ltd. Windows Coquitlam csky.ca
SELECT BUILDING PRODUCT COMPANIES DYG Windows Ltd.
Dynamic Windows and Doors Inc.
Windows
Windows
Coquitlam
Abbostford dynamicwindows.com
Across B.C. EuroLine Windows Inc. Windows Delta euroline-windows.com
Ever-Brite Aluminum Products Ltd. Windows North Vancouver ever-brite-alum-prods-ltd.business.site
Fenstur Windows Duncan fensturwindows.com
Glenmore Millwork Windows Kelowna glenmoremillwork.ca
HighQ Windows Inc. Windows Burnaby highqdev.ca
Home Fortune Enterprises Ltd. Windows Vancouver homefortune.ca
IJ Windows and Doors Ltd. Windows Kamloops ijwindowsanddoors.com
Category Company Name Product Location Website Innotech Windows & Doors Inc. Windows Abbotsford innotech-windows.com
Burnaby, Kelowna, Jim's Prehung Doors Ltd. Doors Richmond
ABB Heat exchangers abb.ca
Surrey MJ Windows Ltd. Windows Surrey mjwindows.ca
Advance Metalpres, Inc. Heat Exchangers Richmond metalpres.ca
Modern Aluminum and Vinyl Products Ltd. Windows Powell River modern.ca
All Valley Metals Ltd. Sheet Metal Contractor Surrey avm.webmasterscorp.com
Morrison Windows Ltd. Windows Surrey morrisonwindows.ca
Allied Engineering Boiler North Vancouver alliedboilers.com
Mountainview Designs Ltd. Windows Surrey woodwindowsanddoors.com
Axton Mf. Ltd. Heat exchangers Delta axton.ca
FENESTRATION
MECHANICAL SYSTEMS
Oasis Windows Ltd. Windows Surrey oasiswindows.com
CORE Energy Recovery Solutions HRV and ERV Vancouver core.life
Open Windows Inc. Windows Richmond open-windows.ca
Ellett Industries Heat exchangers Port Coquitlam ellett.ca
Prestige Joinery Ltd. Glazing Victoria prestigejoinery.ca
EM Manufacturing Heat exchangers North Vancouver emmfg.com
RetroTeck Window Mfg. Ltd. Windows Burnaby retroteckwindow.ca
Fujitsu HVAC Vancouver, Victoria fujitsu.com/global
Skyview Windows Inc. Windows Surrey skyviewwindows.ca
Gasmaster Industries Inc. Boiler Delta gasmaster.ca
Starline Windows Windows Langley starlinewindows.com
Haakon Industries Canada Ltd Air handling units Richmond haakon.com
Stilewood International Door and Window Doors Port Coquitlam stilewood.com
International Thermal Research Boilers Richmond
Sunlight Windows MFG Ltd. Windows Richmond windowdoorvancouver.com
Heat exchangers and
Johnstone Boiler and Tank Vancouver jbtvan.com Super Windows Ltd. Windows Port Coquitlam
boilers
Primex Vents HVAC ducting and vents Langley primexvents.com Thermoproof Manufacturing Ltd. Windows and Doors Chemainus thermoproof.ca
SHARC Energy Systems DWHR Unit Port Coquitlam sharcenergy.com Tundra Windows, Doors and Hardware Inc. Windows and Doors Penticton
Smartforme ERV North Vancouver smartforme.ca Tyee Manufacturing Inc. Windows Abbotsford tyeewindows.com/products
Valor Fireplace and furnace North Vancouver valorfireplaces.com Unison Curtain Wall North Vancouver unisonwindows.com
VanAir Designs Doors Vancouver vanairdesign.com
Beaver Plastics Insulation Chilliwack beaverplastics.com Van Isle Windows Ltd. Windows Victoria vanislewindows.com
INSULATION
CGC Inc. Surrey usg.com Vintage Woodworks Windows Victoria vintagewoodworks.ca
Hal Industries Protection membranes Surrey halind.com Vinylco Windows Ltd. Windows Surrey vinylcowindows.com
Mansonville Plastics Group Sprayfoam insulation Surrey mansonvilleplastics.com Vinyltek Windows Windows and doors Delta vinyltek.com
Rockwool International Insulation Grand Forks rockwool.com West Coast Windows Ltd. Windows Delta westcoastwindows.ca
Westeck Windows Manufacturing Ltd. Windows Chilliwack westeckwindows.com
Delta Controls Control systems Surrey deltacontrols.com Westview Doors Ltd. Doors Delta westviewdoors.ca
AND CONTROLS
MONITORING
Reliable Controls Control systems Victoria reliablecontrols.com Windowland Construction Inc. DBA Windows Salmon Arm windowland.bc.ca/about
TZOA Air quality monitoring Vancouver tzoa.com
Sensible Building Science Energy monitoring Vancouver sensiblebuildingscience.com Stack Modular Prefab/Modular buildings Vancouver stackmodular.com
Rainforest Automation Energy monitoring Burnaby rainforestautomation.com Metric Modular Prefab/Modular buildings Agassiz metricmodular.com
Ecotagious Energy monitoring Vancouver ecotagious.com QUBE Prefab/Modular buildings Vancouver qubebuildings.com
PREFABRICATION AND ENGINEERED WOOD PRODUCTS
Prefab/Modular buildings
StructureCraft Abbotsford structurecraft.com
Eaton’s Cooper Lighting Business LED lights Port Moody cooperindustries.com Mass timber products
Green Image Tech LED Lights Richmond greenimagetech.com StructurLam Mass timber products Penticton structurlam.com
Prefab/Modular buildings
LIGHTING
BL Lighting LED Lights Vancouver bllighting.com B.C. Passive House Pemberton bcpassivehouse.com
Mass timber products
Onstate Technologies LED Lights New Westminster onstatetech.com
Centura Building Insulation products Delta centurabuilding.com
Radiance Energy EE lighting Manufacturer radiance.energy
Factor Building Panels Prefab/Modular buildings Squamish factorbuildingpanels.ca
Cooledge LED Lights Vancouver cooledgelighting.com
Tiny Healthy Homes Prefab/Modular buildings Roberts Creek bengarratt.com
Nano-lit Quantum dot lighting Vancouver nano-lit.com
Wood Shop Workers Co-op Reclaimed wood products Vancouver woodshop.coop
Engineered wood products
A-1 Window Manufacturing Ltd. Windows Burnaby a1windows.ca Brisco Brisco briscoman.com
Prefab/Modular buildings
Alkan Windows Ltd. Windows Surrey Westcoast Outbuilding Prefab/Modular buildings Squamish outbuildings.ca
AVS Windows Ltd. Windows & Doors Surrey avswindows.com Pacific Homes Prefab/Modular buildings Cobble Hill pacific-homes.com
Berdick Manufacturing Pacific Ltd. Windows Penticton berdickwindows.com Tamlin International Homes Prefab/Modular buildings Coquitlam tamlintimberframehomes.com
FENESTRATION
Boardwalk Woodworking Ltd. Windows Castlegar boardwalkwoodwork.com Karoleena Homes Prefab/Modular buildings Kamloops karoleena.com
Bowen Window & Door Ltd. Windows Richmond bowenwindows.com SRI Homes Prefab/Modular buildings Kelowna srihomes.com
Builders Door & Window Supply Windows & Doors Burnaby buildersdoorandwindow.ca Nomad Micro Homes Prefab/Modular buildings Vancouver nomadmicrohomes.com
Canadian Aluminum Windows (2004) Ltd. Windows Surrey canadianwindows.info Honomobo Prefab/Modular buildings Kelowna honomobo.com
Cascadia Windows Ltd. Windows Langley cascadiawindows.com Chaparral Industries Prefab/Modular buildings Kelowna chaparralbuilt.com
Centra Windows Inc. Windows Langley centrawindows.com Freeport Industries Prefab/Modular buildings Westbank freeportindustries.ca
Century Glass (85) Ltd. Windows Kamloops centuryglass.ca Moduline Industries Prefab/Modular buildings Penticton moduline.ca
Clear Choice Windows & Shower Doors Ltd. Windows Abbotsford clearchoicewindows.ca Footprint Sustainable Housing Prefab/Modular buildings Maple Ridge homesbyfootprint.ca
Coastal Windows Windows Nanaimo coastalwindows.ca Seagate Structures Mass timber products Surrey seagatestructures.com
25 26ENDNOTES Acknowledgements
1 World Green Building Council, 2013
The VEC would like to thank all those whose valuable contribution made this report possible.
2 City of Vancouver. Renewable City Action Plan, (2017)
3 City of Vancouver. Zero Emissions Building Plan. (2016)
4 Government of British Columbia. CleanBC. (2018)
5 Government of British Columbia. Energy Step Code (n.d.)
Research and Modelling Team Interviews
6 Projected demand in Metro Vancouver from new construction activity 2019–2032 (CAD$) for six categories of products and equipment (not including installation):
fenestration; insulation; heating, ventilation, air conditioning and cooling equipment including heat pumps; heat recovery ventilators; drain water heat recovery systems; • Bryce Edwards, The Delphi Group • Roger Bayley, Smartforme
and domestic hot water systems). Source: VEC’s Market Demand Forecasting Tool 2018 • Helen Goodland, Brantwood Consulting • Rob Bernhardt, Passive House Canada
7 IMARC Group. Green Building Materials Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023. (2018) • Ryan Coleman, Ecolighten
Grand View Research. “Green Building Materials Market Size Worth $364.6 Billion By 2022,” Research briefing. (March, 2018) • Shanna Killen, The Delphi Group
Research and Markets. Green Building Materials Market Analysis By Product (Structural, Exterior, Interior, Others), By Application (Framing, • Paul Shorthouse, The Delphi Group • James Dean, CORE Energy Recovery Solutions
Insulation, Roofing, Exterior Siding, Interior Finishing, Others) And Segment Forecasts To 2022. (2015) • Cam Drew, Thermoproof Windows
8 13,000 person years of employment • Andrew Dyck, Canadian Institute of Plumbing & Heating
9 City of Vancouver. Statement of Building Permits Issued, Vancouver Data Catalogue, December 2018 Advisory Committee Members
10 This analysis is available in the ‘Energy Step Code: Building Beyond the Standard - 2017 Metrics Research’ report, updated in 2018. The process was overseen by an • Graham Finch, RDH Building Science
Oversight Committee comprised of BC Housing, BC Hydro, the Province of B.C.’s Building And Safety Standards Brands, the City of Vancouver and Natural Resources
• Betsy Agar, Pembina Institute • Trevor Funk, SHARC Energy Systems
Canada and analysis was conducted by Integral Group, Morrison Hershfield and E3 Eco Group • Tom Berkhout, Province of B.C. Energy Efficiency • Gary Hamer, BC Hydro
11 The ‘Market Demand Forecasting Tool’ is being turned into an interactive online platform and will be directly accessible for users to generate their own data and Branch
reports by fall of 2019 • Alex Hebert, British Columbia Institute of Technology
12 Surrey, Richmond, New Westminster and the City and District of North Vancouver • Michael Bousfield, Cascadia Windows • Al Jaugelis, RDH Building Science
13 BC Energy Step Code Council. “Energy Code Stakeholder Update, September, 2018,” Energy Step Code Newsletter. (2018) • Victoria Charmet, Natural Resources Canada • Brendan McEwan, City of Richmond
14 Canada’s Pacific Gateway. Website (n.d.)
• Peter Moonen, Wood Works BC
15 Grand View Research. “Green Building Materials Market Size Worth $364.6 Billion By 2022,” Research briefing. (March, 2018) • Christian Cianfrone, Zero Emissions Building
16 City of Vancouver. Statement of Building Permits Issued, Vancouver Data Catalogue, December 2018 Exchange (ZEBx) • Monte Paulsen, Red Door Energy Advisors
17 BC Energy Step Code Council. “Energy Code Stakeholder Update, September, 2018,” Energy Step Code Newsletter. (2018)
• Cillian Collins, Perkins+Will • Albert Rooks, Small Planet Supply
18 BC Energy Step Code. (n.d.) • Tanya Rumak, FortisBC
19 Light House Sustainable Building Centre. B.C. Building Performance Study. (2014) • Sabina Foofat, City of Vancouver
20 • Max Sykes, City of Surrey
Business Council of British Columbia (BCBC). “BC’s Manufacturing Sector is Growing... But Still Faces Competitive Challenges,” Policy Perspectives, Volume 25, • Martin Gaudet, Natural Resources Canada • Anton Van Dyk, Centra Windows
Issue 1, March 2018
21 Government of British Columbia. Manufacturing Innovation In British Columbia. (2014) • Micah Lang, City of Vancouver • Doug Wilson, Peak Group
22 $1,003 manufacturing average weekly earnings vs $895 for all other sectors combined. BC Stats. A Profile of British Columbia’s Manufacturing Sector. Report • Wilma Leung, BC Housing
prepared for the Ministry of Jobs, Tourism and Skills Training, BC Stats (2015)23
23 Vancouver Economic Commission. Industrial Insights Report. (2018) • Morgan McDonald, Ledcor With Additional Thanks To
24 1386 percent; Startup Genome. Global Startup Ecosystem Report 2018: Succeeding in the New Era of Technology. (2018) • Katherine Muncaster, Province of B.C. Energy • Dale Andersson, Province of B.C. Building and Safety
25 Vancouver Economic Commission. Industrial Insights Report. (2018)
Efficiency Branch
26 Defined as more than $20/hr or $43,000 per annum Standards Branch
27 Vancouver Economic Commission. Industrial Insights Report. (2018) • David Ramslie, Concert Properties • George Benson, Vancouver Economic Commission
28 BCStats. B.C. Economic Multipliers and How to Use Them. (2008) • Susanne Ruhle, Canada Green Building Council
29 Compared with 16-18 percent of revenues from purchases from multinational counterparts. Pringle, Anthony. The Power of Purchasing: The Economic Benefits of Local • Claire Campbell, Vancouver Economic Commission
Procurement. May 2013 • Sarah Rutherford, BC Housing • Bill Collins, CollinsWorks Ventures
30 For example, most Canadian jurisdictions now require North American Fenestration Standard compliance, but these still include location specific requirements and so • Akua Schatz, Canada Green Building Council • Marcus Ewert-Johns, B.C. Alliance for Manufacturing
American NAFS certification may not comply with Canadian codes.
31 Key informant interviews • Kerry Shaw, Integral Group • Jeffrey Fisher, Urban Development Institute
32 Large B.C. fenestration manufacturers surveyed by City of Vancouver expressed readiness to produce windows at U 1.2 W/m2K with an average of two and a half • Bertine Stelzer, BC Hydro • James Glave, Glave Communications
months’ lead time needed to adjust their product line. Shadkam, Arash. Research Local High-Performance Building Supply for New Low-Rise Homes, Greenest City
Scholar report prepared for City of Vancouver Sustainability Group, (August, 2018)
• Elizabeth Tang, Canada Mortgage and Housing • Nat Gosman, Province of B.C. Energy Efficiency Branch
33 Smaller manufacturers with less internal capacity could require 12–24 months for proper retooling and shifting to manufacturer of higher performance products (Key Association • David Harper, Discovery Foundation
informant interview) • Kathy Wardle, Perkins+Will • Zachary May, Province of B.C. Building and Safety
34 NRCan’s national energy code for buildings may push this standard according to key informant interview
35 Key informant interview • Robyn Wark, BC Hydro Standards Branch
36 McKinsey Global Institute. Reinventing Construction: A Route to Higher Productivity, February 2017 • Lisa Westerhoff, Integral Group • Adrian Mohareb, Province of B.C. Building and Safety
37 Requires annual demand >$20M (could include demand from outside of B.C. in the Pacific Northwest) and requires $91M investment into greenfield facility (less if
expanding on existing lumber operations). Collins, Bill; Hankins, John. Wood Industries Business Cases, Prepared for Vancouver Island Economic Alliance, Bill Collins Standards Branch
and John Hankins (2017)
38 10,000 tonnes of material diverted from single family homes that are now deconstructed rather than demolished – an 86 percent diversion rate. City of Vancouver. • Sean Pander, City of Vancouver
“City adopts Zero Waste 2040 Strategic Plan, Single-Use Item Reduction Strategy, and deconstruction waste measures,” May 16 2018 • Andrew Pape-Salmon, Province of B.C. Building and
39 Part 9 buildings include single family homes and multi-unit residential buildings under 3 stories. There is less demand for insulation materials from Part 3 buildings
Safety Standards Branch
(large commercial and multi-unit residential buildings) because they are primarily concrete construction.
40 Natural Resources Canada. Clean Energy Fund Public Project Report: Cold Climate Air-Source Heat Pump Demonstration. (2016) • Christina Schroeder, Discovery Foundation
41 Key informant interview • Arash Shadkam, University of British Columbia
42 Reported estimates in 2018 were 7 percent for 65 percent efficient, and up to 43 percent at 80 percent efficiency. Shadkam, Arash. Research Local High-Performance
Building Supply for New Low-Rise Homes’, Greenest City Scholar report prepared for City of Vancouver Sustainability Group, (August, 2018) • Ingrid Valou, Vancouver Economic Commission
43 BCC Research Energy Efficient Technologies for Global Residential Markets, ed., Robert Eckerd. (December, 2017)
44 Ontario’s building code supplement drives demand for heat recovery ventilators with 75% efficiency and possible changes to Energy Star in the United States would
also push higher performance.
45 Home Ventilating Institute (HVI). “Certified Product Directory,” HVI Website. Accessed, January, 2019. (n.d.)
46 California Energy Commission. “Codes and Standards Enhancement (CASE) Report: Drain Water Heat Recovery,” Codes and Standards Enhancement (CASE) VEC gratefully acknowledges the support of our Foundational Sponsors
Initiative Report for the 2019 California Building Energy Efficiency Standards, July 2017
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