Central States Inc. provides employees with financial freedom opportunities
(Seguin) – There’s a rare jewel among Seguin’s manufacturing community. In observance of October as National Employee Ownership Month, Central States Manufacturing in Seguin is celebrating its accomplishments in continuing to operate as 100 percent employee owned.
Central States, a leader in metal building components, roofing, and building systems, recently has become a member of Certified Employee-Owned (Certified EO), the leading certification program for employee-owned companies in America.
To become a member of Certified EO, companies must pass a rigorous certification process to demonstrate that their employees own at least 30 percent of the business (exclusive of company founders). They must also show that access to ownership is open to every employee, and that the concentration of ownership is limited.
Company officials say strict requirements mean that very few American companies reach this standard plus an even much smaller percentage are 100 percent employee-owned like Central States.
Kevin Hahn is the Central States’ managing director for Texas. Hahn, who once served as the plant manager here in Seguin, says investment begins when stockholders are all involved in the company.
“Our company is 100 percent owned by the employees. So, there are no stockholders that aren’t involved. Everybody that owns stock is an employee. If you don’t work at Central States, you cannot buy our stock. It’s not publicly traded. Every employee is part owner 100 percent in Central States, and it has been that way (for the last several years). We were partially employee owned and there are a few of those companies out in the workforce but we’ve been 100 percent employee owned since 2011,” said Hahn.
Hahn adds that the benefits, in the end, are well worth the effort for employees. Plus, he says it is a huge motivating factor.
“Everybody knows that they are an owner so it helps in the decision making of everybody — from somebody that started a week ago to somebody who has been here 25 years and what I think is one of my favorite things is I have multiple people that have worked here 20 years in Cedar Hill – obviously the Seguin location opened up in 2016 but I have multi-millionaires that drive semis for me or fork lift because their stock in the company has evolved over the last 20 years into what they have now and our stock has increased 22 percent over the last 30 years and 30 percent over the last 10 years. So, it is well outperforming other stocks in the manufacturing sector that are publicly traded,” said Hahn.
Thomas Dudley, CEO and Co-founder of Certified EO, says they are excited to have Central States as their newest member.
The Certified EO program provides best practices, market insight, communication support, and a host of educational resources to the companies it certifies.
Dudley adds,”Employee ownership changes the relationship between the company and employee. It’s a win-win-win for the employees, the business, and the community. As one of the fewer than 1 in 200 American companies eligible to join Certified EO, Central States stands out in promoting the power of employee ownership. They’ve joined a growing community who are reshaping how businesses operate.”
Today, Central States provides financial freedom for 1,400 employee-owners across 13 locations nationwide, with two more manufacturing facilities set to open in 2025.
Central States is located in Seguin at 2902 North Heideke St.