ESCA member company, Vermeer Texas-Louisiana broke ground this week in Selma, Texas, outside of San Antonio, on a new facility. This facility will provide increased space for heavy equipment, parts inventory, service, training and sales. Vermeer Texas-Louisiana is a market leader in environmental and underground construction equipment and is the authorized dealer for Vermeer underground construction, wood waste recycling, landscaping and tree equipment within the state. This impressive new 34,000 square foot facility will be built on 8.2 acres and is scheduled to open in early 2013.
Investing in a new facility brings positive rewards not only for the company but for the local community. As an employee-owned company, Vermeer Texas-Louisiana has an unwavering commitment to the community and better service for their customers throughout the region. The dealership has even been awarded the Platinum Mark of Excellence, the highest distinction awarded by the manufacturer, recognizing excellence in customer service and support.
Companies like Vermeer Texas-Louisiana, structured as S Corporation Employee Stock Ownership Plans (S ESOPs), have proven to outperform other companies when it comes to retirement savings, job stability, job growth, productivity, and profitability, according to a recent study by Alex Brill, who served as a tax advisor to the Simpson-Bowles deficit reduction commission. Brill says, “employee commitment leads to increased profitability, which in turn allows companies to grow at a faster rate because they can invest more, hire more workers and increase output.” With the groundbreaking of this new facility, Vermeer Texas-Louisiana is a vibrant example of economic stimulus that a private, employee-owned company contributes to the community and the country.
A 2008 University of Pennsylvania/Wharton School of Business study found that S ESOPs contribute $14 billion in new savings for their workers each year beyond the income they would otherwise have earned. The study also found that S corporation ESOPs’ higher productivity, profitability, job stability and job growth generate a collective $19 billion in economic value. Any business structure that indicates economic strength and growth is valuable and should be recognized.
Further, in these times of economic uncertainty, it is promising to see companies such as Vermeer Texas-Louisiana expanding and profiting with ample support from the local community.
Notably, the groundbreaking ceremony for the new facility was hosted in partnership with the Randolph Metrocom Chamber of Commerce, which supports economic development and business growth in Selma and nine other local communities. “We are extremely grateful for the support we have received from our San Antonio customer base over the past thirty years,” Vice President Mike Bye said at the event, “We are investing in this new facility to demonstrate our continued commitment to better service our customers in the region.”
Employee-owned companies like Vermeer Texas-Louisiana play a vital role in stimulating economic growth in local communities throughout our country. It is important to preserve the S ESOP structure that has proven so successful and encourage other companies to consider this form of ownership.
Congratulations to Vermeer Texas-Louisiana for breaking ground on their new facility and we look forward to seeing the finished product!