LP Gas, February 2014
COMMERCIAL MARKET Number and Market Share of Commercial Buildings Using Propane Other 10 Warehouse and Storage 8 Service 15 Religious Worship 14 Public Assembly 13 Office 5 Retail other than mall 11 Lodging 20 Health Care 9 Food Service 17 Education 11 55692 47911 92406 50648 36893 38611 47088 23991 14086 51996 42605 10000 0 20000 30000 40000 50000 60000 70000 80000 90000 100000 Total Propane Buildings 501927 Propane Market Share 108 ICF International Strategic Market Assessment for Commercial Sector Propane Sales 2011 Even with such confusion on all sides and little formal outreach into the segment commercial sales account for 19 percent of the propane gallons sold the study says And that number could grow Commercial energy use accounts for nearly 20 percent of total energy consumption in the country and is the fastest growing segment of the U S economy increasing from 158 percent of total energy consumption in 1990 to 174 percent in 2000 and then to 192 percent in 2009 Propane accounts for an estimated 08 percent of that commercial energy consumption the study says That means retailers need to get serious about convincing more customers to turn to propane and encourage them to use the fuel for all of their energy needs not just space heating If you want to grow gallons youve got to grow the number of burner tips says Randy Doyle CFO of Blossman Gas in Ocean Springs Miss The gallons dont just magically pop out of the sky youve got to have a burner tip before you can burn a gallon Tools available Armed with this knowledge PERC has developed tools to help marketers and builders better understand one another The council has allocated 900000 a year for the last two years to dig deeper into the commercial market with the following resources The 26 page Build with Propane Guide Commercial Edition is billed as a handbook for potential commercial users of propane systems technology and products It introduces the fuel explains storage systems and efficiency benefits and details how it can be used in restaurants stores schools hotels Number of Buildings warehouses and more Colorful graphics and charts draw attention to tankless water heaters and portable generators and school hotel and warehouse configurations offer examples of where tanks can be positioned so they are out of the way The guide is complemented by the buildwithpropane com website which showcases four virtual commercial building configurations noting all of the ways propane can be used We want to make sure people arent just thinking space heating Kidd says It also highlights stories of builders who have found savings using the Propane Energy Pod and explains incentives available to those who build with propane The website links to the Propane Training Academy where those in the construction industry can earn continuing education credits vital to their professional certifications Propane Gas Systems Considerations for Commercial Construction was added in November and Kidd says shed like to see 10 or 15 more commercial courses added to complement the 30 or so residential ones offered last year We encourage marketers to also take the course so they are aware Kidd says The Propane Technical Pocket Guide the handbook on which the industry relies has been updated to include for the first time commercial grade information Before it was all residential Kidd explains The guide went live in January to rave reviews Its the No 1 thing at industry trade shows Our marketers love it PERC also is creating a new toolkit set to debut in the coming weeks that explains the commercial market for marketers Continued on page 30 www LPGasmagazine com February 2014 LPGas 29
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