Doing good helps carpet tile maker do well

Doing good helps carpet tile maker do well

Long before it was hip to be “green,” carpet tile manufacturer Interface, Inc. set out on “Mission Zero”—a bold plan to eliminate any negative impact its family of companies may have on the environment by the year 2020.

And now, finally, being kind to the environment is generating some paybacks.

FLOR, the Elmhurst-based consumer division of Interface, Inc., manufactures the Atlanta company’s residential line of carpet tiles. Customers combine these high-quality, designer-style 20” x 20” modular carpet squares to create one-of-a-kind area rugs, runners, or wall-to-wall flooring.

But these aren’t just pretty design tools.

FLOR’s carpet tiles are formaldehyde-free, non-toxic (no off-gas), and antimicrobial (no mold). Individual tiles are easily cleaned or replaced, since no glue is used. And, thanks to the modular design, installation produces very little waste.

Indeed, the quest for sustainability permeates everything FLOR does—from product design, manufacturing and distribution, to the recycling of old, used products.

As president Greg Colando explained, “When we started FLOR five years ago, we had the advantage of all of this wealth of information that had been accumulated at Interface since it started Mission Zero in 1994.

“We took all the measures we could to make FLOR as sustainable as possible from day one, and then be on its course to becoming completely sustainable by 2020.”

As the new company decided on its distribution and production models, reducing the company’s carbon footprint became paramount.

Interface’s manufacturing plant in LaGrange, Ga., has developed some unconventional means to reduce its carbon emissions, including pumping methane gas from a nearby landfill to fuel its facility.

As a result, the Interface family of companies has reduced its reliance on energy obtained from fossil fuels by 45 percent. And it has cut its manufacturing emissions and greenhouse gas production by an impressive 60 percent.

Suppliers have their part to play in sustainability as well. The company scrutinizes its raw materials as to where they come from, what they contribute or don’t contribute (to the earth), and whether they can be composted or recycled.

Furthermore, educating suppliers about the company’s goals is very important.

For example, under FLOR’s unique Return-Recycle program, customers can ship old carpet tiles back to FLOR at no expense, to be recycled into new tiles. FLOR separates the fiber from the backings of the old tiles, recycles the nylon into raw filament and then sends it to a processor to color it.

“We have to have a relationship with that processor or we wouldn’t be able to get this done, because we don’t own all the elements of that campaign,” Colando said. “So it’s important that our suppliers be partners we can bring along with us to fulfill our vision.”

The Return-Recycle program is unique in the carpet industry and brings full circle FLOR’s goal of creating the least amount of waste possible. In fact, the company has eliminated 63 percent of its waste that would otherwise end up in landfills.

“In essence,” Colando said, “we have achieved one big element of this sustainability vision, in that we can take our garbage and bring it back and make it into first quality product again.”

Still, simply being environmentally aware does not guarantee business success. Making such dynamic changes incurs great costs and requires a long term vision—especially difficult for public companies facing pressure to produce positive quarterly results.

It took the Interface family more than five years to begin to see a positive return on its investment, but the company has finally made the turn to profitability.

As the company has improved energy efficiency and reduced the cost of raw materials, costs have gone down; Interface claims to have avoided more than $336 million in costs since starting Mission Zero in 1994. Not surprisingly, its stock price has risen more than 113 percent in that time.

But although the company has reduced its carbon footprint by 50 percent compared to 1994, Colando conceded that the next 50 percent will be more difficult.

Some of FLOR’s early gains “might be considered low hanging fruit,” he said. “It took a lot of time to get there, but now we’ve got some formulas, and it’s working. And we continue to look at reducing.”

Colando predicted that a big hurdle will include getting away from simply offsetting travel and transportation to creating new ways for products to move efficiently and effectively

A focus on product transportation might involve creating a new business model, requiring more decentralization and completely changing the way the company operates, but Colando speculated that it might be one way for FLOR to further improve its efficiency.

Despite the challenges, FLOR is happy with its results so far. But there’s more to it.

“Although the environmental story is extremely important, it’s not the whole story,” according to Colando.

“You’ve also got to have a well-designed, thoughtful product, one that is smart and right for the times, and yet safe for the environment and appropriate for our quest for sustainability.

“And now, we’ve got a wonderful combination for our customers.”

Beth Carter, Contributing Writer

Posted on Wednesday, July 16, 2008 (Archive on Wednesday, July 23, 2008)
Posted by jstoltz Contributed by jstoltz

Return