Being 'green' helps keep Wesley Allen in the black
Thomas Russell, Associate Editor -- Furniture Today, December 16, 2007
Before "green" became a popular buzz word in the industry, metal bed manufacturer Wesley Allen was a promoter of environmentally friendly production practices.
Back in 2003, it installed a $2.2 million solar power system on the roof of its main production facility in Southern California. Covering an estimated 40,000 square feet, the solar panels generate over half the power Wesley Allen uses. It's considered the largest installation of its kind for a private employer in Los Angeles County.
The company also recycles nearly all its scrap metal and aluminum, and all its corrugated boxes and waste paper. On its iron beds, it uses only waterbased powdercoat finishes that contain no lead.
"The raw materials you use have a chain effect on what happens in the ecology," said President Victor Sawan. "Our company has been very environmentally conscious in terms of what we recycle."
Other eco-friendly practices include using energy-saving light bulbs and lowering the water pressure for its production and administrative offices.
Sawan admits these initiatives are not entirely altruistic. Concern for the Earth is just half the reason behind the efforts. The other half is economic.
"I'm not going to kid you that the environment is the only reason we do these things," he said. Sure, the company is recycling more than it once did because it has become more conscious of its environmental impact. But it also saw ways to boost its bottom line as more companies began accepting materials.
The sale of scrap metal to metal processors, for instance, generates $6,000 to $8,000 per month. This helps offset the rising cost of metal, the No. 1 material in its finished goods.
The recycling of paper and cardboard brings in nearly $3,000 per month, Sawan said, while the solar panels save between $5,000 and $6,000 in energy costs.
Other things it does to save money include turning off the lights in the plant during lunch breaks and opening skylights to allow natural light in.
Along with helping the environment, Sawan said these initiatives are helping his company remain viable and competitive as a domestic manufacturer. "It helps my cash flow and my ability to stay in business," he said. "We are a corporation and have to make money, so it makes corporate sense."
Companies looking to jump on the green bandwagon but hesitating because they don't see immediate benefits should look to companies like Wesley Allen for inspiration and instruction.
Theirs is a story that illustrates how being green can help a company stay in the black.
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