Bag one: Timbuk2 owner Marc Dwight oversees the custom-made bags crafted in his S.F. factory. Guardian photo by Mirissa Neff

The messenger bag with the signature swirl has been blurring the line between fashion and function in San Francisco since 1989. Named for the city of mythical proportions, Timbuk2 proves that a company can be profitable, charitable, and dedicated to the local community.

The company's headquarters are in a relaxed and eclectic loft warehouse space that is also a streamlined and efficient factory, where one bag is produced every 15 minutes. The longtime Timbuk2 headquarters on Treat Street permanently closed its doors this March and reopened around the corner in a location twice the size. This seemingly incongruous mixture of style and speed fuels the company's resolve to remain local despite economic pressures.

Timbuk2 was founded by former bike messenger Rob Honeycutt, who began by sewing bags in his San Francisco apartment – and his work gradually achieved cultlike status. But the future of the company turned grim when it became less profitable after the rippling effects of the dot-com bust. "The company had plateaued and was basically in survival mode," said Marc Dwight, who bought the enterprise in 2002.

Timbuk2 needed a serious revamping in order to survive, and its new owner interpreted that to mean new products, expanded production, and better money management. "We had to rescue this company," Dwight said. The avid bicyclist and former technology executive turned things around in less than a year. "I wanted the company to have a larger social mission than just creating local jobs," Dwight said. Timbuk2 currently has about 50 employees – half of whom are involved in production.

But the San Francisco factory only produces about 50 percent of the company's products. Timbuk2 has gone the way of many companies and moved production of its off-the-shelf bags somewhere cheaper – in this case, China. However, Dwight adds, "Local production and the custom-made bag are part of our heritage."

While the company relies on this newfound cheap labor, Timbuk2 has kept its manufacturing operations here. "I am committed to keeping the San Francisco factory open for as long as possible," Dwight said.

Customers can order a custom-made bag online and have it shipped to them within a day from San Francisco, a turnaround time not possible from the Chinese facility. Dwight says that he also likes to be able to supervise production of the custom-made bags and their multiple color combinations.

The company sponsors an industrial design class at California College of the Arts, and students feed directly into the Timbuk2 internship program. Product innovations that evolved out of the student program include the Pro Series Messenger bag and backpacks equipped with lightweight durable materials, a reflective stripe, waterproof interior and exterior, and the possibility for giant dimensions for professional messengers. Students also designed the digital DJ hip pack, made for carrying portable music gear and oversized headphones.

Timbuk2 also donates part of its proceeds to local organizations such as Root Division, which provides studio space to artists who teach free art classes to the public; Precita Eyes, a mural arts center; the San Francisco Bicycle Coalition; and At the Crossroads, an outreach organization for homeless youth that passes along hundreds of new Timbuk2 messenger bags to its clients every year.

Dwight is defensive of the decision to outsource some production overseas, but he stands by the intentions of its local operations. He's quick to point out, "We wouldn't have the resources to fund these types of projects if we were limited solely to the San Francisco factory."