Tony Clarkson, chairman of bathroom specialist AKW, on the green agenda...      

The theme of the recent BMA annual bathroom conference 'profit from the green agenda' was always going to grab audience attention at a time when many in the industry are struggling to grow profits from any agenda.

Andrew Goodwin of Oxford Economics kicked off proceedings by underlining the fact that we are currently experiencing the biggest squeeze on incomes and consumer confidence in 25 years and that the next 12 to 18 months are going to be particularly difficult.
At a time when governments around Europe are collapsing and unemployment, along with the risk of a double dip recession, is rising, interest in green issues, at least in the short term, is cooling among both politicians and their electorates. It seems that in these times of austerity, many voters have no wish to be burdened further with costly green initiatives.

So where does this leave the bathroom industry? Well, Sonia Phippard of DEFRA told the conference that hot water accounted for 5% of UK carbon emissions and that DEFRA's target was to reduce domestic water consumption by 20% from 145 litres per person per day to 120 litres.

The 'Green Deal', the government's energy efficiency initiative for both households and businesses (which received a £200m boost in November's Autumn Statement) has the potential to change people's habits but she was understandably vague on the detail since the scheme is still in development and will not be announced until 2012.

Keith Taylor of AMA Research spoke about how attitudes to conservation may lead to changes in usage and the types of products demanded from manufacturers. However, the problem seems to be that demand for such products has yet to take off.

 It was Michelle Hubert, the CBI's policy adviser on climate change, that hinted at the possible reason for this and perhaps a way forward. In looking at buyer behaviour, she said that while 15% of choice was influenced by the lower environmental impact, the biggest influence by far was lower running costs (at 39%).

So, while a minority of people will adapt their behaviour or indeed endorse new products for ethical reasons it seems that the majority will not change their behaviour unless there is an economic imperative to do so.

So, it comes down to simple economics; the wider application of water metering across the country will help, but if the government really wants to see a reduction in consumption, then, in my view they are going to have to consider imposing additional taxes on consumption. This may be politically unpalatable at a time of soaring utility bills but there is no surer fire way of changing behaviour.

In her keynote speech, Sue Nelson, the BBC science and environment correspondent, called for the BMA members to "step up to the plate" and provide consumers with products that will allow for the achievement of DEFRA's targets while maintaining the quality of bathing and showering experiences to which the British consumer has become accustomed.

My only words of caution to bathroom manufacturers would be this; the customer is king - if there is both a volume demand for such products and a willingness to pay the price, then the Industry should plough ahead. If the demand is not there from the consumer in sufficient volume, then following a green agenda could push your business towards the red.