Businesses Save Money by Reducing Waste

  • The lot that started Baldassari's quest to eliminate waste from his business. (Photo by Nancy Paladino of The Taylor Companies)

When you’re in the business of making things, you can wind
up with a lot of waste material. But these days more
companies are realizing trash has value. Julie Grant reports
instead of spending big bucks to dump their waste in a
landfill, these companies are making money from it:

Transcript

When you’re in the business of making things, you can wind
up with a lot of waste material. But these days more
companies are realizing trash has value. Julie Grant reports
instead of spending big bucks to dump their waste in a
landfill, these companies are making money from it:

Jeff Baldassari’s company makes sleek, upscale office
furniture.

“I would have never guessed ten years ago I’d
be the guy telling you this story right now.”

Baldassari is the CEO of The Taylor Companies.

A few years ago he started planning for a new factory. The
site where they wanted to build it was an old brownfield.

That’s a site that had been contaminated by a past
manufacturer.

Baldassari says they got grant money to clean up the land,
and it got them thinking about the environment – really for the
first time.

“‘Okay we cleaned up this brownfield – but
let’s not stop there. What else can we do for
the environment, what else can we do for our
bottom line to pay for this new facility, to
get it to pay for itself?’”

They started looking at their waste.

(sound of a factory)

On the factory floor, a worker is tracing the shape of a chair
leg onto a piece of wood. After it’s cut, the scrap wood is
tossed into a large box.

“Trees don’t grow in the shape of furniture
parts. So there is a lot of waste. Ultimately,
40% of each board ends up as scrap when it’s
all said and done – 30% to 40% will end up as
scrap.”

Baldassari says they used to pay to send all that scrap wood
to the landfill – along with huge dumpsters full of sawdust.
That cost the company.

But his team started making some calls. They found horse
farms that wanted sawdust for bedding. They found
companies that wanted wood chips for mulch.

Instead paying to have dumpsters of waste hauled away,
they found markets for the waste material.

It was the same deal with leather coverings for the chairs
and sofas. One-fourth of the leather used to end up in the
scrap heap as trash. Now a hand-bag maker in Montreal
comes to pick it up for purses and wallets.

And Baldassari is pretty happy about it. These days he’s
sending only one-eighth of the waste to the landfill as before.
That saves the company $30,000 dollars a year.

For many companies, this is the future.

Joel Makower says smart corporate leaders are finding ways
to reach zero-waste. Makower is the executive editor of
greenbiz.com.

“We’re starting to see companies think in
terms of closed loop systems. Factories
where basically there may not be any
smokestacks, drain pipes, or dumpsters.
where every waste product is turned into
some kind of raw material for another
process.”

But a lot of these companies are not necessarily cutting
waste because it’s good for the earth. Like Jeff Baldassari,
these corporate leaders often start the process as a way to
save money.

These days Baldassari says he’s the kind businessman he
never guessed he’d be: one who’s always looking for ways
to eliminate waste:

“Once I got started, I literally became
addicted to it. But it was addicted, in the
sense again, it helped our bottom line.”

Baldassari wants it clear: he’s not a tree-hugger. But, at this
point, he’s actually having fun. He’s caught up in finding
ways to save money by eliminating waste.

For The Environment Report, I’m Julie Grant.

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