Even during trying economic times, ESOP companies thrive. The employee-owners’ commitment, resiliency and productivity allows S corporation ESOP companies to weather economic turbulence much more effectively than the general private sector.
A study by Alex Brill, an advisor to the Simpson –Bowles Commission, An Analysis of the Benefits S ESOPs Provide the U.S. Economy and Workforce examined ESOPs resiliency in the first couple years of the 2008 recession. Brill found that S corporation ESOP companies fared much better than others in terms of job creation, revenue growth, and retirement contributions. The study explains that the inherent incentives of employee ownership allow workers to see the direct benefit of their hard work, which ultimately improves work ethic and commitment, even during trying economic times. These trends validate the need for Congress to support legislation that allows employee-owned companies to continue to grow and prosper.
The Sundt Corporation, an employee-owned national construction firm and ESCA member company, is one such company that flourished during the recession due to the efforts of its employee-owners. Just last month, Sundt put the finishing touches to a sophisticated Marine training facility in Yuma, AZ. The project includes mission briefing and de-briefing rooms, classrooms, equipment storage space, administrative offices and a library. The success of this project, due in large part to Sundt’s hardworking employee-owners, directly influenced the construction company being awarded another enormous project from the Department of Defense. Last year, Sundt was awarded a $24.3 million for a landing field project in connection with its recently constructed training facility. This facility is expected to be completed by this summer.
Both of these projects were awarded to Sundt during the crux of the most recent economic crisis. And its employees’ resiliency, dedication and work ethic, cultivated through they’re strong culture of ownership, are the reason why Sundt continues to grow.
Congratulations Sundt on your continuing success!