Manufacturing Climate Solutions

1. Manufacturing Climate Solutions • Environmental Defense Fund (Jackie Roberts) • Building and Construction Trades Department (AFL-CIO) (Mike Tiner) • International Brotherhood of Boilermakers (Abe Breehey) • Industrial Union Council (AFL-CIO) (Bob Baugh) • United Association of Plumbers and Pipefitters (Joe McCartin) Project Sponsors

2. Two challenges • Unchecked climate change • Rising environmental costs (droughts, flooding, species loss, wildfires, hurricanes) • Monetary costs of inaction or delay • Risks to public health • Dependence on polluting or risky energy sources • Economic downturn • Recessionary market • Increased global competition • Slowdown of “old economy” • Heavily dependence on fossil fuels

3. The Choice is Ours Economy Business as usual means missing out on growing markets for jobs in carbon management VS. A ‘green renaissance’ Labor and materials needed for revolution in energy supply, energy use, and greenhouse gas reductions offers largest manufacturing growth opportunity since the launch of personal computers Economy

4. The McKinsey 250: Are You In?

5. Supply chains amplify the economic benefit “There are 8,000 parts in a wind turbine.” -- Liz Salerno, American Wind Energy Association • Wind turbine parts (some examples): bolts, lubricants, copper wiring, fiberglass housing, ball bearings, turbine blades, concrete & steel foundations and seals, power transmission equipment, printed circuits, motors and generators, other electronic equipment, and measuring devices. • Raw materials: For a 44 MW project, with 29 individual wind towers: • Steel: 6,453 tons • Composite fiberglass: 609 tons • Concrete: 12,470 tons

6. Raw Materials Value Chain Analysis Component Manufacturing Product or Technology Manufacture Consumer Market Research Team: Duke University, Center on Globalization, Governance & Competitiveness, led by Gary Gereffi

7. Climate Solutions Analyzed (Round I): • Auxiliary Power Units • High Performance Windows • Concentrated Solar • LED Lighting • Methane Capture (from hog farms)

8. Window Components Raw Materials Lumber Frames Sill, Sash, Stop, & Stool Aluminum Fiberglass • Gas Filling Vinyl Krypto Low-E, Solar Control Coatings Argon Nickel Insulating Spacer Titanium Dioxide Flat Glass Panes Chromium Nitrate Silver • Other Components • Backer Rod • Flange Polystyrene Foam High Performance Windows Silica

9. Raw Materials Components Manufacturers WindowManufacturers Consumer Market Retailers Low-E Coatings Seki-Sui-Lec: (Japan) Emirates Glass: (Dubai) CPFilms: (VA) Silica U.S. Silica Co., Wedron Silica Co.(IL), Shore Mountains Silica (TN) • Top Window Manufacturers • Jeld-Wen: (OR) • 25,000 employees, $ 2,900 million sales • Pella Co.: (IA) • 9,000 employees, $1,530 million sales • Andersen: (MN) • 9001 employees, $3,000 million sales • Milgard Windows: (WA, CA) 3,607 employees, $1,227.1 million sales • Atrium Windows and Doors: (TX) • 520 employees, $120.6 million sales • Gorell Enterprises(PA) 280 employees, $72.2 million sales • Alpen(co) Leading U.S. Window Retailers Lowe’s: (NC) 160,000 employees Home Depot: (GA) 331,000 employees 84 Lumber: (PA) 9,500 Employees Flat Glass Corning, Inc: (NY) 313 employees Cardinal Insulating Glass (ND) 280 employees Pilkington Glass Co.: (OH) 300 employees Nickel Russia, Canada, Australia, Indonesia Chromium Elementis Chromium (TX and NC) Spacer Edgetech I.G.: (OH) 50 employees GED Integrated Solutions: (OH) 110 employees TruSeal Technologies: (OH) 40 employees Manufacturer Retail Stores/ Showrooms Polystyrene Foam Owens Corning (OH), Carpenter Co. (VA), Foamex Intl. (PA) Installation (Contractors) Argon Praxair (CT), Air Products and Chemicals (PA) • Gas Fills: • Praxair: (CT) 27,992 employees • Air Liquide: France • Air Products and Chemicals: (PA) 21,500 employees • Airgas: (PA) 14, 500 employees Professional Installation Contractors Within Each State Aluminum Alcoa Inc., A.M. Castle Fiberglass U.S., China Other Components: Backer Rod, Flange • Residential Construction Companies (Professional Installation) • D.R. Horton (TX) 6,231 Employees • Lennar (FL) 6,934 Employees • Pulte Homes (MI) 8,500 Employees • Centex (TX) 11,418 Employees Vinyl Dow Chemical Co., E.I. du Pont Frames: Most frames are made on-site at the finished product manufacturer: Pella, Jeld-Wen, Milgard LumberWeyerehouse Co.(WA), Jeld-Wen (OR), Pella Co.(IA) • Research & Development: • Manufacturers: Many component and window manufacturers employ research engineers (ex: Pella has over 300 engineers; CPF Films has an R&D department) • Industry Organizations: Energy Star Other: Krypton, Titanium dioxide, Silver

10. Map 1: Top U.S. Component and Window Manufacturers

11. EDF New Energy Economy Project: `In the green’ companies Location of companies already benefitting from new markets in OHIO Blue points = Renewable Energy Businesses Green points = Energy Efficiency Businesses

12. Pennsylvania: ‘In the green’ Companies Location of companies already benefitting from new markets Blue points = Renewable Energy Businesses Green points = Energy Efficiency Businesses

13. Michigan: ‘In the green’ companies Location of companies already benefitting from new markets Blue points = Renewable Energy Businesses Green points = Energy Efficiency Businesses

14. Virginia: ‘In the green’ companies Location of companies already benefitting from new markets Blue points = Renewable Energy Businesses Green points = Energy Efficiency Businesses

15. Colorado: ‘In the green’ companies Location of companies already benefitting from new markets Blue points = Renewable Energy Businesses Green points = Energy Efficiency Businesses

16. Tennessee: ‘In the green companies’ Location of companies already benefitting from new markets Blue points = Renewable Energy Businesses Green points = Energy Efficiency Businesses