Alco Industries, Inc. is an employee-owned corporation which consists of seven diversified manufacturing companies located in the United States and Canada. These companies are engaged in a wide variety of industries, including:
•Agricultural chemicals and soluble fertilizers
•Electrical insulation materials
•Tools and dies
•Foundry equipment, commercial tanks and pressure vessels
These companies are supported by Alco Industries’ corporate headquarters located in Norristown, Pennsylvania.
In 1984, Alco Standard, our former parent company divested its industrial products manufacturing companies as part of its concentration on distribution companies. Former Alco Standard manufacturing executives implemented a management buyout and formed a new corporation, Alco Industries, Inc.
In 1992, Alco Industries established an Employee Stock Ownership Plan (ESOP) which began to buy back shares and transfer ownership to Alco Employees. In 1998, Alco Industries became 100% employee-owned by its Employee Stock Ownership Trust.
The Alco Standard model was to have each Alco portfolio company managed by the original founder or president who strategically developed the business. Under Alco, this person was deemed to be a partner in the Alco consolidated business and was rewarded as a partner based on the annual performance of his individual company and the performance of the Alco stock. Tinkham Veale, II believed that these managers were entrepreneurs and should be allowed to operate accordingly. They knew their business, operations, customers and their needs the best. They should not be tethered in the pursuit of this growth by functions performed by service specialists. He believed that these functions that constrained time, assets and growth could be more efficiently provided by a centralized staff. The corporate staff would be small, highly qualified, and professional and their services could be shared among all Alco companies.
Alco Industries has held true to this philosophy. Each company president has complete autonomy in running their company. The Alco corporate staff provides expertise and services in law, banking, risk management, tax, benefits, consolidation accounting, environmental needs and strategic planning.
This philosophy of supporting the entrepreneurial spirit and of decentralized management has proven to be very successful. Our credo is that good companies do well because they have good managers and employees.
As one Alco president states, “Alco Industries is the closest thing to owning your own business”.
While the investment in capital employed for each individual company solely resides with the corporation, the managers are rewarded for their effort on economic value created on that individual investment under their control.
Alco has achieved an enviable record of consistent and consecutive years of profitability while attaining increasing value for each employee owner. There are few better examples of individuals working for a common cause.