Architecture and Design

Local angle: China competition leads to Chicago Green Exchange

One factory’s downfall is another business’ success

In a subtle twist of irony, Chicago’s Frederick Cooper Lamp factory was shut down in 2005 because of increased competition from China’s booming manufacturing economy, only to be reborn into the Chicago Green Exchange, “an epicenter for green businesses and organizations in the Midwest.” So while China is still trying hard to strike a balance of public interest, profits and sustainability, it appears that Chicago has already found a successful solution.

Dimming lights lead to a bright idea
At the time it was struggling, Cooper Lamp, which specialized in highly stylized, handcrafted lamps, couldn’t compete with cheaper products sold at local mega-markets and chain stores.

Fred Gershanov, vice president and one of the owners at Cooper, talked to the Chicago Sun-Times about his company’s final days:

Frederick Cooper Lamp factory to be shut down
Chicago Sun-Times
Feb 9, 2005
By David Roeder

..the Cooper plant is suffering the same fate of many other domestic manufacturers, something [Gershanov] summarized in one word etched with frustration, “China.”

He said the company had its best year in 2000, with sales of about $20 million, but has declined steadily since then as consumers increasingly have gone for cheap lamps produced in China. Cooper sales were only $8 million last year, Gershanov said. . . .

“Lamps have become a throwaway item. You use it for a year and if you don’t like it anymore, you get a new one,” Gershanov said.

He said he’s already had to source his parts from China because components such as sockets, wiring and weights for the bottoms of vases are no longer made in the United States.

But the factory’s demise spelled out a unique opportunity for socially and environmentally conscious Chicago business leaders to revive the community by introducing new jobs, incubating green businesses, and promoting sustainable practices. (Read “Green Exchange,” by Arnold Collins, in the Chicago Sun-Times, July 20, 2007.)

Responsible development

After its green renaissance, the four-story, quarter-million-square-foot LEED-certified building will host as many as 100 companies in the sustainable-products sector, such as environmental printing services, bicycles, and solar-powered electronics.

If only China could redirect its energy from selling cheap products to developing more green ventures. Of course, it’s not like China is totally ignoring greenification. Just in this last week, Premier Wen Jiabao has publicly called for energy-efficient, frugal construction for the Beijing Olympics; the Chinese government is working on regulations for clean energy; and officials are toying with the idea of giving China’s State Environmental Protection Administration ministry status.

Cities like Chicago are trying to make green development the norm, not the exception.

Ald. Manuel Flores, representing Chicago’s 1st Ward, summed up the advantages of green development like this, as quoted in the Sun-Times:

“Take a look at the needs: more jobs, stronger economy, global competition and doing it in a way where we’re not harming our environment. That’s a winning formula,” Flores said.

Sphere: Related Content

© 2007 ResponsibleChina.com: Environmental sustainability, corporate social responsibility and social entrepreneurship in China..