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July 2, 2009 EDITION
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Federal grant helps local business increase sales by $2 million

Just south of Wilkesboro in Moravian Falls is an operation that defies a number of widely held assumptions about North Carolina business during the worst economic recession in decades: manufacturing in the state is dead; small business is struggling, cutting back on employees and postponing expansion; and an off-the-beaten path location means certain failure.

Steve and Sandy Forrest, owners of Brushy Mountain Bee Farm, point to example after example of how their business is not only surviving, but thriving in these lean times and to the phenomenal growth they’ve experienced in the past two years.


Workers in the new woodenware assembly area at Brushy Mountain Bee Farm construct the components of the firm’s beehives. Lean manufacturing improvements in the assembly area have resulted in dramatic increases in productivity and significant decreases in production costs. Photo submitted
That success is the result of applying lean manufacturing techniques they learned from a specialist with N.C. State’s Industrial Extension Service (IES) — invaluable training that didn’t cost the Forrests a dime.

On June 3, representatives from IES presented Steve Forrest with the $1 Billion Award for North Carolina, formally recognizing Brushy Mountain Bee Farm for posting more than $2 million in increased sales and for increasing its workforce from 27 to 50 employees.

The story behind the story is that the money for the lean manufacturing training at Brushy Mountain Bee Farm came from the federal government.

Two years ago, Steve Forrest worked with Ruby Greene of the High Country Workforce Development Board to prepare a proposal for an incumbent worker grant.

The federal Workforce Investment Act includes funding for training employees at existing businesses with the idea that such training will enhance employees’ skills, will increase the business’s productivity and will increase the potential for company growth.

Forrest won an incumbent worker grant in a statewide competitive process, and the trainers from IES brought their expertise to Moravian Falls.

“The government never did anything to help me that I can put a finger on until this,” Forrest said at the awards ceremony. “This program is the only thing I know of trying to help American business, and small business generates jobs. This is one of the biggest opportunities I’ve had to positively impact the lives of people here in North Carolina.”

Forrest said in addition to almost doubling the number of employees at his business, he has also been able to provide benefits such as a 401(k) plan and health insurance. “I can’t even guess the amount of money that has gone into the local economy,” he said.

“I want to thank Ruby Greene and the folks from Boone,” Forrest continued. “We got money from the federal government to pay for this; this is the first time I’ve gotten money from the government.”

As he accepted the award, Forrest said, “This is not a day of celebration for Brushy Mountain Bee Farm, but a day of celebration and promotion for N.C. State Industrial Extension Service. I’m so impressed with what they do, I’ve joined the board. We need to get the word out about what N.C. State does.”

Steve Laton, lean product leader for IES, congratulated Forrest and said, “Brushy Mountain Bee Farm stands out as a special case in this economy.”

In business since 1977, Brushy Mountain Bee Farm manufactures and sells a variety of beekeeping supplies, beeswax for candle and soap making and educational books and videos.

Lean principles are focused on increasing productivity and decreasing waste, and incorporating those principles at the business led to expansion of the wood storage area, the woodenware assembly area where the beehives are constructed and the packaging area where personnel prepare an average of 300 orders per day for shipping.

“The woodenware assembly area is a great example of us taking what we learned in the green process and making ourselves much more efficient,” said general manager Shane Gebauer.

In a clean, well-ventilated and light-filled workroom, woodworkers assemble the various components of the firm’s beehives. The redesign of the workstations, the equipment setup and doubling the number of workstations have resulted in significant decreases in the production cost per piece and in assembly time. For some pieces, Gebauer said, the production cost dropped by half.

By improving its production processes, Brushy Mountain Bee Farm has been able to take full advantage of the increased popularity of beekeeping. Books and movies with beekeeping themes, the growing number of backyard gardeners who are branching out into beekeeping and the prominent placement of a beehive at the White House to pollinate the first family’s victory garden have all contributed to Brushy Mountain Bee Farm’s increased sales.

“All the publicity around beekeeping has generated a lot of interest,” Gebauer said. “I don’t care what your political affiliation is — Democrat, Republican, independent — but to the White House having a colony of bees in the front yard, I say, ‘Thumbs up!’”

In addition to the wood cutting, stamping with the Brushy Mountain logo, shaping and assembly operations; the sew room where protective veils and suits are constructed or finished; the warehouse and distribution operation where orders are picked and packed for customers all over the world, Brushy Mountain Bee Farm also welcomes an average of 30 walk-in customers each day and hundreds of customers at its thrice-annual Bee Days when people arrive from all over the country to pick up live bees to populate their hives.

To better serve these walk-in customers, Brushy Mountain Bee Farm has a brand-new retail building scheduled to open this month.

The recently completed building, with stunning poplar bark accents from Highland Craftsmen Inc. in Spruce Pine, will provide enough room for the on-site retail operation to display more products and expand offerings to include bee-related gift items, as well as the standard beekeeping equipment and supplies.

And as if all these expansions and improvements aren’t enough, the company plans to open a distribution facility in Pennsylvania this fall to serve the growing number of customers in the Northeast.

“I’ve just been incredulous throughout this whole thing that (a) we could get government money, and (b) that it has been so valuable,” Gebauer said.

“The N.C. State IES is one of the most amazing things I’ve ever seen,” Forrest said. “I can’t say enough about them. The things that we learned — the lean manufacturing techniques — we are continuing to build on. We’re real proud of what we’ve got here.”

To learn more about Brushy Mountain Bee Farm, click to www.brushymountainbeefarm.com.

To learn more about N.C. State’s Industrial Extension Service, click to www.ies.ncsu.edu. To learn more about Workforce Investment Act incumbent worker grants, call Ruby




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