Bamboo Hardwoods, founded in 1990, operates a successful and environmentally sustainable company that is working to slow the degradation of natural resources. By using bamboo (which is a grass) as an alternative source material for flooring, the company has demonstrated that deforestation of traditional hardwoods can be prevented. The company values its relationships with employees and suppliers, and actively promotes their well being.
Innovation
In an industry that has a reputation for depleting the planet’s resources, Doug Lewis, founder of Bamboo Hardwoods, has made a positive change. Acting on a remark his mother made about bamboo’s ability to replenish itself quickly, Lewis decided to explore ways to commercialize it. He moved to Vietnam to learn the language, develop relationships with farmers, and build a factory that produces bamboo products with the same – or better – performance standards as traditional hardwoods. In addition to responsibly growing, harvesting and manufacturing products made from bamboo, Lewis has demonstrated cultural sensitivity to the people who work for and with him. The company insures a steady source of income (50-100% above market rates) to farmers, and provides a healthy work environment.
There are many comparative advantages to bamboo over hardwood: it is a grass, and mature stalks can be harvested every two to three years since the root system remains to promote future growth. It is an ecologically benign native species that thrives in many parts of the world from the Far East to the United States, and it produces more oxygen than most trees. It is actually stronger and more durable than comparably priced hardwood flooring material, and can be used more effectively in bathrooms and in rooms with radiant heat.
Impact
Bamboo Hardwoods created a new and innovative market. Major businesses have recently become competitors in the sale of bamboo flooring, but Doug Lewis believes the quality of his product, the knowledge of his sales force, and the variety of options on hand – 25 types of bamboo in stock at all times – will keep the company on track.
As the business became established, Bamboo Hardwoods added bamboo farming as a side industry. This expansion resulted in more jobs for the indigenous population. There is now a developing market for bamboo distribution in Vietnam that will continue to grow as more competitors enter the bamboo flooring market.
After ten years, the company is now showing a profit with net income of $350,000 on $3 million sales in 2004. Profits are being reinvested in research and development to improve existing products and manufacturing methods. Projected sales for 2005 have been adjusted to $4.5 million, a 50% increase over last year. Bamboo Hardwoods is an organization that makes a positive socioeconomic impact on the lives of workers in Vietnam while promoting the sustainable use of natural resources AND turning a profit!
Inspiration
The use of bamboo, a renewable resource, as a substitute for hardwood flooring has altered the industry for the better. Some large retailers have begun carrying and, in some cases, manufacturing their own bamboo flooring. More important, the hardwood flooring industry has begun to recognize the unsustainable path it was on, and make changes in managed forestry practices. From a conversation with his mother in 1989, Doug Lewis and his colleagues have established a profitable company. Fewer old growth trees have been harvested for flooring, and Vietnamese farmers have a product, native to their ecosystem, to grow and sell to a new market.
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
