According to a recent statement from Verit Advisors (C&E Industry Outlook and Company Valuation), employee ownership may be a valuable tool for driving C&E companies during this uncertain time for the industry. Although the industry outlook predicts an increase in infrastructure growth, there are a number of factors stacked against companies in construction and engineering.
Rob Ruszkowski, currently vice president at Verit Advisors, has a background in chemical engineering at S&C Electric Company in Chicago, an ESOP company. He knows first hand how insentives like employee stock ownership plans can drive performance, increase equity, and attract and retain employees.
The article states:
“C&E companies are driving value different ways. Many of the top performing companies have significant employee ownership in the form of options, direct ownership, stock appreciation rights and employee stock ownership plans (ESOPs).”
The National Center for Employee Ownership lists “The Employee Ownership 100: America’s Largest Majority Employee-Owned Companies,” and more than a quarter of the companies fall within construction and engineering, some of which are 100% employee-owned.
Engineering consulting firm, Boucher & James Inc, headquartered in Doylestown, PA recently saw the benefits of converting to an ESOP and announced their new corporate structure on PhillyBurbs.com.
The Bluebook Building and Construction Network, a publishing company specializing in contractor and project information for commercial construction also recently converted to an ESOP to celebrate the company’s 100th anniversary. According to the article at TMC News, an ESOP was attractive to the business because it would “ensure it would live on with the people who helped build it.”
“The Blue Book Network employees now own the company and the ESOP enables them to control their own destiny. With the investment of a little hard work and an unbeatable team of employees, the ESOP will help steer The Blue Book Building and Construction Network into the future!” -Blue Book Network President, Richard Johnson