Thursday 24th October 2024
As soon as I started to talk to people about touring round the US looking at reuse facilities literally everyone said "You're going to Urban Ore, aren't you??!". I realised pretty quickly that I needed to go to Urban Ore. It's seen by most in the Zero Waste and reuse spheres as THE place, and where it all began. It's the biggest and best there is so of course I had to see it for myself.
I was really lucky that Mary Lou herself (co-owner with her husband Dan) was available to meet with me. The history of where it came from and how it’s developed is important and I was handed their ‘To end the age of waste’ leaflet as soon as I arrived –
“In 1976 the City of Berkeley boldly required the operator of its city-owned landfill to salvage for reuse”
Dr Dan Knapp had just completed a study for a county agency in Eugene which showed that salvagers could pay their own operating costs if they had ready access to items being wasted in landfills and transfer stations. They refused to implement his plan, so he moved to Berkely and began salvaging at the Berkely landfill four days later. They were given no budget, only permission to salvage and sell at the side of the road. They had to earn their keep from day 1 and maximizing value became a major objective.
Reuse conserves the value of the objects. The leaflet cites the example of a brass faucet (tap) which will gain pennies from recycling the brass but dollars if sold as a tap. It goes on to describes the value obtained in products in addition to the material value – the embedded carbon, the craftsmanship and even cultural value.
Entrance to the 30,000 sq ft warehouse (part of a 3 acre site)
Recognising that most people don’t shop at the dump, further down the line they rented a vacant commercial unit in town. Several moves followed and in January 20000 they began their move to their current 3 acre location. The site includes a 30,000 sq ft indoor sales warehouse, stocking , well, absolutely everything.
“We’re not in the things business, we’re in the space business. We give people their space back”
The outdoor yard stocks mostly windows and bathrooms but agian, you can find just about everything else here too
Support
The relocation was supported by the California integrated Waste Management Board, The Alameda County Source Reduction, Reuse and Recycling Board and the City of Berkely. The project had to be phased to account for the conversion of the building from a steel pipe manufacturing facility. The move therefore took over 2 years, as well because EVERY item in their inventory was transferred, starting with building materials, and they could only move as resource and budget allowed. Although they began renting, as of 2009, they now own the building.
They still have plans to develop the mezzanine but the costs are too high to alter the stairs to meet current building regulations. They are very used to adapting to their situations though. Dan said that they are essentially a mobile business they've had to move so many times, and Mary Lou showed me the platforms that their doors sit on - custom made to fit a forklift, for easy removal should they need to decant again.
In 2018 it was recognised that Urban Ore created “measurable economic benefit” and it’s important to note that this is the way they spoke to the county about their operations, listing the myriad of ways they support their community and create sizable economic impact. A resolution declaring Urban Ore a ‘Berkeley treasure” was passed and support granted to save the operation and finically support the move (2 x $100k low interest loans). Support was also given to amend zoning codes to allow sales in an area of mixed light industrial warehousing. The timing was significant as it came at the same time as the California Integrated Waste Management Act (AB 939) required 50% of waste to be diverted from landfills with fines of $10,000 per day for non-compliance.
They have a contract for salvaging reusable items from the transfer station which pays them $47.74 per tonne, the same that it costs the county to dispose of it into landfill. This amount is not paid on the items coming to them directly so only accounts for around $35000 of income per year.
Drop offs
“Whatever people don’t want, they bring here. We sort it, organise and merchandise it”
Key to the success of Urban ore is the efficiency by which they sort and process items. Goods are received directly to the Eco Park, as well as still being salvaged from the transfer station. They also collect from homes via just one van with 2 men, just 5 days per week.
They receive more than 100 ‘drop offs’ per day. They don’t use the word ‘donations’ as they are not. People are dropping off items for reuse. I’m still digesting that differentiation and what impact it could have for the reuse sector in Scotland to make that change. The switch in mindset of how people view items as a resource to be reused rather than an items donated to those that need it is desperately needed.
Drop off site where they receive all items directly from householders
Urban Ore (just like SVdP) don’t weigh or measure the volume of items coming in. Just the number of car loads. Every ‘once in a while’, and for a 10 year operational analysis report, they do a more detailed snapshot of inventory and what is coming in and lay out the contents of one truck to show the range of volume of what is collected, that was destined for the landfill.
The only thing that is measured on a daily basis is the weight of items salvaged from the transfer station. One truck, operated by 3 men, by hand, will bring in 3 tonnes per day. The weights are recorded as they now claim an income for this (more below).
The drop off area is surprisingly tiny, and I mean tiny, and items are immediately sorted into their finely developed categories. From there they are delivered to the category sales area where a specialist checks and prices each item.
The receiving area where all donations are immediatly sorted into ther final destination sales catagories (the boxes on the right on the shelves)
Sales
I’m given an initial tour of the sales floor by Mona, and I ask about their sales techniques and what role visual merchandising or ‘traditional’ retail tools and tricks are used. Turns out she is involved in the hiring process and tells me that she scans CV’s for key words like merchandising and customer service. Having a sales and customer focus is really important to them and their sales specialists have to be on top of sales trends, customer needs and be focussed on how to sell. They also have to be self-motivated in their product areas and are given autonomy to flex and test. Music to my ears!
Mona tells me that the first thing she does every morning is to sweep round the store tidying everything – not in her job description, but she wants to lead by example.
Later Mary Lou and I have a further conversation about the role of merchandising and her thoughts are that while it’s important, it’s probably more important in other places with smaller spaces. Here, it’s the volume that drives people here and attracts sales.
Several times she uses the term ‘supply driven retail’. Mary Lou said it took them years to understand they were in the retail business and had to understand retail.
Sales are recorded under 200 different sales categories. There is constant feedback between the sales departments and the receiving teams. They only accept what they can sell…although to be fair, that’s pretty much everything (except hazardous materials, chemicals, paint and food).
How long do they keep things on the sales floor for?…is a very common question apparently and one that is meat with a bit of a chuckle –
“Until we trip over it!"
She is of the opinion that if it sold once, it will sell again, no matter how obscure or old the item may be.
The amount of space allocated to sorting and checking is incredibly small. Mary Lou talks passionately about the need to maximise the sales space, and we are on the same page. She says several times on the tour that I have an entrepreneurs brain and coming from her, I am extremely flattered and instantly my urge to set up an Urban Ore in Glasgow that I have been supressing for years is given permission to rear it’s head!
Mary Lou and Dan have given significant time over the years to support further development and support for reuse and to help others set up similar operations. At 80 and 85, their dedication to the cause is awe inspiring.
This amazing chair just arrived while we were standing in this area chatting - the perfect place to take a picture....next to the obscure kilted man shaped jug!
Mary Lou’s advice to others looking to set up an Urban Ore is 1) to grow into it, 2) be sales focussed from day one and 3) to know your market. During their last move, 30% of their customers changed and they bought different things. It’s important to know what your customers want and I was surprised to hear that their market is pretty localised. ALL of this stuff is being rehomed locally??
Community Wealth Building
I posed the same question that I had to Terry in SVdP to understand what their view was on CWB and what, from their perspective were the non-material benefits to their operation.
Mary Lou, just like Terry, gave a great and very tangible example of buying a door. Someone buys a door that is preprinted a needs stripped and repainted. They will buy the door low cost and use that saving to pay a contractor to repaint and fit the door, this improves their home, increasing the probability they will stay there. Not only will they continue to pay the council tax on that home but the value of their home is increased and collectively in a street this probably raises the value overall and therefore the council tax too (well, the US equivalent).
A slide that was shown at the Bay Area Deconstruction working group meeting the day before had listed a number of direct and indirect benefits. I noted down a few:
Payroll of 40 local employees is money directly into the local economy. The associated employer taxes are also a benefit to the city. 40 paid staff are all receiving paid health benefits, and their dependants too. Staff also receive 15% of profits every month.
In 2004 the company collected more than $140000 in state sales taxes and paid $42000 in property taxes which would not have been generated if the items were not segregated for reuse.
The redistribution of wealth from a wealthy person giving away a high-quality desk to someone on a lower income that couldn’t have afforded it otherwise.
Disposal $$ saved by the community
Preservation of cultural value
Community and social benefits
Knock on climate benefits
I took away so much food for thought and inspiration from my visit to Urban Ore, and many quotes. One from the deconstruction group meeting really got my attention in relation to the term ‘positive friction’ that Dan calls for - “Waste services get more support and attention than reduce/reuse, and that’s the wrong way about”.
More pictures and videos in this album on my flickr page
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