Problem: For every pretty new house that is built, a whole section of a forest is decimated. It is bad for the environment, as trees are massive in controlling climate change. Trees act as vacuums for all of the CO2, storing it away in their limbs. When these trees are cut down, the CO2 is released back into the atmosphere, contributing to climate change. These trees can also act as shelter and cover from the elements. Lumber is frequently used in very large quantities around the world, so a replacement is needed. Is there some sort of material (or materials) that could be used in place of lumber that would be better for the environment?
Inspiration for this topic came from this Eric Bahn tweet:
Subscribe here to get access to the first 500 ideas from our blog. For just one coffee a month, you can have access to more than $500 billion dollars of ideas. What's not to love?
Solution: There are many alternatives to wood, such as concrete, metal, and bamboo. All of those present very different architectural designs, so you can still have differentiation in the look of houses. None of these materials are mainstream, with lumber still being the most readily accessible option. However, slowly as people seem to be more invested in the problem of climate change, these options could become more and more popular. For example, the trees that are commonly cut down for lumber take many decades to grow back, but bamboo grows back at a much faster rate, the fastest in the world, according to Guinness World Records. Construction crews would need to be trained on how to use these materials to make a strong, secure house, but these could be the future of sustainable house-building.
However, where could companies get this material and what are the costs? Bamboo, for example, is just as durable as some of the best hardwoods, but comes in at a cheaper price. Therefore, more people would like to buy it to save money and it is cheaper to obtain for your business. Currently, China is the largest producer of bamboo in the world, followed by other Asian countries, so you would have to factor in the import costs, but it is still cheaper to get than hardwood. Bamboo has an average price of $3.80 per square foot, while wood is between $4-$8 per square foot with many hardwoods exceeding $10 per square foot. Metal on the other hand is a bit more expensive than wood upfront, which could turn a few people away at first, but when you look at the long-term durability of metal compared to wood, it saves costs in the long run. There are also millions of tons of scrap metal and steel in the US every year, which can be melted down and formed into something new.
The main idea you could utilize this idea for is to create a business that distributes these materials wholesale to contractors and construction companies. You could establish how to get the materials from wherever they are made and then depending on how much that is, figure out how much to sell them for to still make a profit.
The affordability and overall pros of these alternative materials are very intriguing, and could create a profitable business. They are both good for the environment, as well as being cost effective for users.
Market Size: The US estimates that there are about 1.45 million private building permits given each year. These builders alone are a massive market, not to mention the numerous public government-funded housing projects that are being built, and the private companies that are creating large-scale housing developments across the country.
Monetization: Hypothetically, the bamboo would cost $3.80 per square foot to buy, so for 2000 square feet, it would be $7600 to buy the flooring. Following the trends for installing, a two person crew can lay 1000 square feet a day. So factoring in time for setup, prep, and cleanup it would be 3 days. Most flooring companies charge about $6 per square foot for each guy doing the labor. Multiplying $6 by 2000 square feet by 2 guys would equal $24,000. The average flooring installer makes $22 an hour. Each day they are probably working an 8 hour day. 8 hours times $22 times 3 days times 2 guys equals $1,056 for the installers. So subtracting that $1,056 and the $7600 for the flooring from the total $24,000 dollars, you would profit $15,344 for a 3 day, 2000 square foot bamboo flooring job.