Calvert-Jones Company: The Color of Money
Energy Solutions
Written by Eric Slack   
Calvert-Jones Company: The Color of Money
This commercial mechanical contractor is staking its future on promoting sustainable construction practices as a way to benefit both the planet and the bottom line.
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Green is no longer just a color; it is a movement. For an entity like Calvert-Jones Company, the green movement is shaping its future. The challenge is getting potential clients to see the connection between going green and the greenbacks in the bank.

“Utility costs have an effect on the bottom line,” said Stan Peregoy, president. “We try to develop a plan for clients that can help them save up to 50% on energy costs.”

Calvert-Jones was founded in 1947 as an appliance business but evolved over time to become a commercial mechanical contractor during the 1970s. Today, its mechanical systems and services include new construction, healthcare facilities, mechanical asset management, specialized renovation and repair projects, building automation and energy management, environmental consulting, and predictive mechanical maintenance programs and service.

Calvert-Jones Company: The Color of Money
Stan Peregoy, president
The company works mostly within a 60 mile radius around Washington, DC. Although it has done work further from its primary service area in the past, the company only does so for existing clients; the company doesn’t actively pursue clients outside that area because of the costs associated with stretching its resources that far.

In the past, the company focused on the healthcare market and is the premier mechanical contractor in the DC market in healthcare. Calvert-Jones is a full service company with the second largest service department in the DC area. The company has new construction and special projects divisions as well as plumbing service and water treatment divisions. In 2005, the company started a green team charged with looking for customers with energy or environmental needs and concerns.

New directions
One of the company’s long-term keys to future success, the green team was created because Calvert-Jones believes sustainable, energy-efficient building construction is the wave of the future. An industry leader in green construction, Calvert-Jones offers clients solutions that can help reduce dependence on non-renewable energy sources. For existing facilities and new construction, the company offers solar, wind turbine, and geothermal technologies; green roofing; LEED-certified solutions; on-site efficiency assessments; air/water testing; independent laboratory analysis; and retro commissioning. However, some potential clients aren’t yet sold on the idea of investing more upfront in a sustainable building to see cost savings down the line.  

“Sometimes we’ve sat in front of clients and asked them if they have an energy strategy, and they looked at us like we have three heads,” said Peregoy. “We explain why they should think about it because of what is going to happen to the infrastructure of distribution and transmission of energy in the next 10 years and how it will affect their business.”

In 1999, when states like Virginia and Maryland deregulated the energy industry, Peregoy saw it as a mistake and believed energy costs would go up. Despite the assurance of deregulation supporters that competition would drive prices down, Peregoy’s prediction has proven true. In the last 18 months, the cost of energy has risen between 30% and 50% in Maryland, Virginia, and Washington, DC. The resulting increases have a bottom line impact on companies that aren’t prepared for how increases in energy costs affect their buildings.

For instance, while HVAC systems normally account for 20% to 25% of a building’s original construction price, once construction is complete, up to 50% of energy is used to operate that HVAC and up to 40% is used for lighting. Because those systems are huge parts of a building’s energy consumption, new equipment and technology provide opportunities to reduce costs on both.  

While many potential and current clients are intrigued by the potential for big savings on the cost of running their facilities, the biggest hurdle holding them back in Calvert-Jones’ market is the lack of rebates or incentives from either the government or utilities, whereas states like Pennsylvania, New Jersey, Arizona, and New Mexico provide incentives for business to invest in energy efficient construction. But for Peregoy, that isn’t a legitimate excuse.

“The cost of energy isn’t coming down. We need to move beyond talk and start doing what we need to do to make buildings more energy efficient and sustainable, lower our carbon footprint, and do our part to help solve the country’s energy problems,” Peregoy said.

Coupled with the uncertainty of a financial crisis and the threat of a deep recession, facility owners and managers will need to adjust their operations to conserve at every opportunity. Peregoy believes that as the economy worsens, Calvert-Jones’ energy services will become more valuable. To help promote the green building movement, Calvert-Jones is active with the United States Green Building Council, is an Energy Star partner, and is a member of the Sustainable Business Network of Washington, a nonprofit that provides businesses, consumers, and communities with programs designed to promote sustainable living. The company also recently began paying for LEED certification for customers, offering a three-part class for people interested in becoming LEED certified.

But Calvert-Jones doesn’t just talk the talk. The company bought a new building to serve as its future headquarters, upgraded the lighting and air conditioning systems, and plans to recycle nearly 30 different materials that are used regularly in the building and to install other technologies in areas like air purification so it can actually bring clients into the office and show them exactly what green building principles can do. During the next six to nine months, the company will go as far with upgrades and retrofits to the building as the current economic climate will allow.

Resources needed
In the long run, Calvert-Jones’ growth depends as much on its ability to hire and retain top talent as it does on green building. The industry is currently seeing three people retire for every one person entering. The company faces an additional burden because it is in primarily white-collar marketplace. As a result, Calvert-Jones has been forced to get creative in its HR efforts.

The company looks to parts of the country like Michigan and Ohio to recruit experienced installers and service technicians. It also has relationships with universities, colleges, and trade schools with vocational training centers. Internal apprentice programs are mandatory for new recruits with little industry experience.

For now, the battle to maintain the staff needed to sustain and grow the company continues, along with the effort to spread the gospel of green building. Because sustainable building does have initial expenses attached, the economic challenges of today make it harder to promote efficient construction techniques and technologies, but Peregoy is determined to turn these stumbling blocks into stepping-stones.

“Green building is associated with increased costs, but what is the cost of not being responsible? Every four-foot fluorescent light tube in a landfill has the capability to pollute 6,000 gallons of water,” said Peregoy. “But in the end, reducing our environmental impact is simply good business.” Y
 
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